AICE BUS16

Marketing

The full process of connecting business to customers, not just advertising and selling.

Define Marketing

The management task that links a business to the customer by identifying and meeting customer needs profitably.

Marketing Objectives

Specific goals set for the marketing department.

Marketing Strategies

Long-term plans designed to meet marketing objectives.

Market Orientation

An outward-looking approach focused on discovering and responding to customer needs.

Product Orientation

An inward-looking approach focused on producing products the firm can make.

Supply (in Supply & Demand)

Represented by producers.

Demand (in Supply & Demand)

Represented by consumers.

How the Supply & Demand Curve Works

Demand increases as price decreases; supply increases as price increases.

Market Share Formula

(Sales of the company ÷ total sales of the market) × 100.

Asset-Led Marketing

An approach that bases strategy on the firm’s existing strengths and assets instead of only customer wants.

Societal Marketing

Considers consumer needs and the long-term effects on society and stakeholders.

Seven Marketing Functions

Includes marketing, selling, information management, distribution, product/service management, pricing, promotion, and financing.

Why Market Size Matters

Helps managers decide if a market is worth entering, allows calculation of market share, and shows growth or decline trends.

Why Use Niche Marketing

Allows firms to survive in large markets and charge higher prices.

Market Segmentation

Targeting products to specific consumer groups within a market.

Why Prefer Mass Marketing

Enjoys lower average cost and lower risk (economies of scale).

Consumer Profile

Summary of characteristics of the target market.

Use of Consumer Profile

Determining who the target market is.

Three Bases of Segmentation

Geographic differences, demographic differences, and psychographic differences.

Why Use Demographics

Helps determine what customers want and can afford.

Psychographic Factors

Differences in lifestyles, personalities, values, and attitudes.

Link Between USP and Product Differentiation

Product differentiation creates a USP (unique selling point).

Market vs Product Orientation

Market orientation is outward, driven by consumer demand; product orientation is inward, based on past production success.

Why Market Research Never Ends

Consumer wants constantly change.

Market Growth

Percent change in the total size of a market (volume or value) over time.

Marketing Objectives vs Marketing Strategy

Marketing objectives are goals to achieve the overall objective; marketing strategy is a long-term plan to achieve those goals.