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What is a market?
A market is a place or system where buyers and sellers come into contact
What are the marketing activities
market research, pricing, packaging, branding, sales promotion, advertising, and distribution
What is marketing?
Marketing refers to the activities a business undertakes to identify, anticipate, and satisfy customer needs and wants to make a profit
What are marketing activities?
all operations planned and devised by the marketing department to understand and meet customer requirements, s
Describe the "marketing mix"
consists of Elements k nown as the Four P's: Product, Price, Place, and Promotion that work together to meet customer needs and achieve business goals
What does 'Product' in the marketing mix refer to?
the goods or services offered by a business to satisfy customer needs and wants.
What does 'Price' in the marketing mix refer to?
the amount of money customers must pay to acquire the product.
What does 'Place' in the marketing mix refer to?
the distribution channels used to deliver the product to customers.
What does 'Promotion' in the marketing mix refer to?
the various methods used to communicate with customers and encourage them to purchase the product, including advertising, sales promotions, and public relations.
Why do businesses conduct market research?
aims to gather information about consumer tastes, behaviours, and competition to make informed decisions about product development, pricing, and marketing strategies.
How does advertising fit into marketing activities?
Advertising is used to raise awareness of a product or brand, inform potential customers, and persuade them to make a purchase.
What is distribution in the context of marketing activities?
the movemnt of goods from a source through a distribution channel
What is the importance of branding in marketing?
Branding helps create a unique identity for a product, making it easily recognizable and differentiating it from competitors
What are some examples of sales promotions?
Examples of sales promotions include discounts, coupons, loyalty points, buy-one-get-one-free offers, and contests.
What is the role of packaging in marketing?
Packaging serves to protect the product, make it attractive to customers, provide information, and facilitate easy handling and transport.
Trends in marketing:
SOcial media marketing:the use of social media platforms to promote products
Integrated Marketing:Businesses can promote their business through a variety of communication channels
Data Mining:
finding patterns in large sets of data
Pricing
involves determining the price level for products
Sales Promotion
activities and techniques designed to increase the sales of a product
Predatory/destroyer Pricing
setting prices very low to drive competitors out of the market
Penetration Pricing
Starting with a low price to attract customers and gain market share.
Premium Pricing
Charging a high price to suggest the product is high quality
Skimming Pricing
Starting with a high price and lowering it over time to attract different customers.
What are some of the functions of advertising?
, persuading customers, generating demand
What are some forms of advertising?
television commercials, radio commercials,flyers
Cost Plus pricing
Adding a set profit margin to the cost of making the product.
How does price influence consumer behavior?
Consumers look at whether a product is cheap or expensive compared to others.
How does quality influence consumer behavior?
Consumers want products that meet their quality expectations.
How does taste influence consumer behavior?
Consumers choose products based on personal preferences, which can change over time.
How does tradition influence consumer behavior?
Cultural and family traditions affect what products consumers buy.
How do spending patterns influence consumer behavior?
Spending patterns show what products people buy and how often they buy them.
What is brand loyalty?
When consumers keep buying from the same brand because they trust it.
What are common forms of packaging?
Paper, cardboard, plastic, glass, and metal.
How does packaging present goods?
makes products look attractive, shows they are new, and allows customers to see them.
How is social media used in sales promotion?
to interact with customers and create shareable content
What are product features?
Details about the product
What are product benefits?
The advantages a product offers
Trademark
A word name or symbol used by a business to identify its products in a distinctive way
Public Relations (Promotions)
managaging the flow of information from an organisation to its public to build up the reputation and image of the company
Personal Selling (Promotions)
where members of a salesforce interact directly with customers to explain a product and how it works
What are the main types of market research?
Primary Research (Field Research): collecting new data through surveys, interviews etc
Secondary Research (Desk Research):analyzing existing data from reports, studies, etc
Quantitative Research: This involves collecting numerical data that , such as surveys and questionnaires.
Qualitative Research: This involves collecting non-numerical data that often through interviews and focus groups
Identify the main types of market structures
perfect competition, monopolistic competition, oligopoly, and monopoly
What are the determinants of price?
demand and supply.The quantity of a good or service that consumers are willing and able to purchase (demand) and the quantity that producers are willing and able to sell (supply)
What is the concept of equilibrium price or market clearing price?
the price at which the quantity demanded by consumers equals the quantity supplied by producers
What is the concept of copyright for producers?
Producers maintain ownership and control over the product they have created and registered by obtaining a patent which prevents others from reproducing the product with permission
What is the concept of copyright for consumers?
Consumers may purchase the product but cannot reproduce it for commercial purposes without the permission of the producer
What is a loss leader?
a product sold at a low price to attract customers into a store
What are the roles and approaches of salesmen?
various approaches to sell products, include relationship selling, solution selling, and consultative selling role:build customer trust and closing sales
What is merchandising and adjusting of pricing policy?
Merchandising involves presenting products in a way that attracts customers, while adjusting pricing policy ensures prices are competitive and meet market demand
Patent
legal right granted to an inventor or assignee for a fixed period, typically 20 years, which gives them exclusive rights to their product
What are the methods of retailing?
Shops: Traditional brick-and-mortar stores.
Department stores: Large stores offering a variety of goods in different departments.
Mail order: Buying products through catalogues delivered by mail.
E-commerce: Purchasing products online via websites and mobile apps.
Tele-marketing: Selling products over the phone.
Vending machines: Automated machines that dispense products
What are the terms of sales for cash?
immediate payment for goods or services
What are the terms of sales for credit?
allow customers to purchase goods or services and pay for them at a later date, often with interest
What are the terms of sales for hire purchase?
an agreement where the buyer pays for goods in installments and gains ownership after the final payment
What are the terms of sales for layaway?
allows customers to reserve a product by paying a deposit and completing the payment over time before taking possession
What are the terms of sales for consignment?
selling goods through a third party, where the seller retains ownership until the goods are sold
What are cash and trade discounts?
Cash discounts are reductions in price given to customers for prompt payment, while trade discounts are reductions offered to businesses buying in bulk or to resellers
What are the functions of consumer organisations?
Ensuring the rights and protection of consumers through private and government organisations.
Quality control by organisations like the Bureau of Standards.
Addressing consumer complaints through the role of the Ombudsman
What is market segmentation?
divides a broad market into smaller groups with similar needs or traits.
Why is market segmentation important?
It helps businesses:
Target specific needs better.
Create focused marketing plans.
Use resources efficiently.
Increase customer satisfaction
What are the bases for segmenting a market?
Geographic: Location-based (country, city).
Demographic: Age, gender, income.
Psychographic: Lifestyle, values.
Behavioral: Buying habits, brand loyalty
What should a business consider when choosing a target market?
Size: Number of potential customers.
Growth: Potential for market growth.
Competition: Level of competition.
Profit: Potential earnings.
Access: Ease of reaching the market.
Fit: Alignment with business goals and resources
Outline the role of customer service.
Deliver high-quality service
Ensure customer satisfaction
Communicate effectively
Coordinate the flow of goods, services, and information
Describe forms of customer service.
Feedback: Follow-up to check customer satisfaction.
Warranty: A written guarantee to repair or replace unsatisfactory items.
Surveys: Structured questions to get customer views and identify areas for improvement
Explain the concept of intellectual property rights.
Protects original ideas turned into products, brands, and works
Industrial design
Protects unique shapes, colors, or patterns of a product
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