market vs product oriented approach to marketing
market
making products they can sell
product
selling products they can make
commercial vs social marketing approach
commercial
meet needs and wants in profitable way
social
achieve benefits of social change
market concentration
degree of competition that exists within a market
market segment
distinct group of people with similar tastes and requirements
niche marketing
targets specific and well-defined market
mass marketing
undifferentiated marketing
pros of niche marketing (2)
better marketing focus
less competition
cons of niche marketing (2)
smaller than mass market
fewer opportunities to exploit economies of scale
pros of mass marketing (2)
huge potential of economies of scale
bigger customer base
cons of mass marketing (2)
high entry barrier
competition is fierce
product perception map
a graph that analyzes consumer perception of each of a group of competing products in respect of two product characteristics
unique selling point
A factor that differentiates a product from its competitors such as the lowest cost, the highest quality or the first-ever product of its kind.
pros of differentiation (3)
price advantages (low/lowest price)
brand loyalty
better placement of product in retail (convinience)
New product features
Ethical stance
cons of differentiation (2)
expensive
additional marketing costs
market research
Process of collecting, recording, and analyzing data about customers, competitors and market.
continuous
regular basis
ad hoc
as and when necessary
primary market research (4)
The collection of first-hand data that are directly related to a firm's needs
focus group
discussion groups to gain insight
survey
interviews
observation
secondary market research (4)
market analysis
academic journal
government publications
media articles
sampling methods (6)
quota
certain number of people from different market segments are selected
random
equal chance for population
stratified
subdividing market into segments that share characteristics
cluster
sampling within couple locations
snowballing
friends and family spread word to increase sampling size
convenience
easy to reach
Product Life Cycle
The pattern of sales recorded by a product from launch to withdraw
R&D: designing prototypes and test marketing
launch: careful marketing planning and often unprofitable. innovators will buy during this stage
growth: sale revenue starts to increase and brand awareness and early adopters occur
maturity: sales rise at slower rate
decline: cash flow is less favourable
extending PLC (3)
price reduction
redesigning
product differentiation
New markets
Rebrand
BCG
marketing planning tool for balanced product portfolio
stars: high share, high market growth
cash cows: high share, low market growth
question marks: low share, high growth
dogs: low share, low growth
cost-plus pricing
adding percentage to cost per unit of output to determine selling price
penetration pricing
setting low price to establish product in industry
price skimming
high price set to recoup R&D costs
psychological pricing
Setting prices that take account of customers perception of value of the product
loss leader
selling product below cost value in hopes of attracting customers
price discrimination
same product is sold at different price to different customer
price leadership
Exists when a business (the Market leader) sets a price for its products and other firms in the market set similar ones
predatory pricing
Undercutting precis to force competitors out of the market
ATL promotion
paid-for promotion through mass media such as TV and cinema
BTL promotion
non-mass media promotion such as branding and slogans
guerrilla marketing
untraditional methods on promotion on low budget
channel of distribution
means used to get a product to consumer
distributors
specialist business that trade in the product of few manufacturers
opportunities of entry to international markets
spread risks
increased customer base
expand PLC
threats of entry to international markets
legal issues
political issues
pressure groups
B2B
e-commerce catered to needs of other businesses
B2C
e-commerce caters for end-user
C2C
enables customers to trade with one another
benefits of e-commerce
flexibility
choice and convenience
lower overhead fees
cons of e-commerce
set-up costs of website
fraudulent trde
unsuitable for some businesses