Buisness Marketing 1,2,3

Market orientation (definition)

A business approach that focuses on meeting customer needs through research.

Product orientation (definition)

A business approach that focuses on product innovation, assuming demand will follow.

Market share (definition)

The percentage of total industry sales earned by a business.

Market growth (definition)

The percentage change in industry sales over time.

Market leader (definition)

The firm with the largest market share in an industry.

Marketing planning (definition)

A structured process of researching, setting objectives, and developing strategies to meet customer needs.

Niche market (definition)

A small, specialised segment of a larger market.

Mass market (definition)

A large, general market targeting a broad range of customers.

Segmentation (definition)

Splitting a market into groups of customers with shared characteristics.

Targeting (definition)

Choosing which market segment to serve.

Positioning (definition)

Creating a distinct image of a product in consumers' minds relative to competitors.

USP — Unique Selling Point (definition)

A feature that makes a product or service stand out versus competitors.

Market research (definition)

The process of gathering and analysing information about customers, competitors, and markets.

Primary research (definition)

Data collected directly from the target market — specific but costly.

Secondary research (definition)

Research using existing data collected by others (desk research).

Qualitative research (definition)

Research that explores opinions, motives, and attitudes (e.g. interviews, focus groups).

Quantitative research (definition)

Research that provides numerical/statistical data (e.g. surveys, sales figures).

Quota sampling (definition)

A sampling method where the sample is chosen to reflect key characteristics of the population.

Random sampling (definition)

A sampling method where every individual has an equal chance of selection.

Convenience sampling (definition)

A sampling method where the people easiest to reach are chosen.

Position map (definition)

A diagram that shows products relative to two axes (e.g. price and quality) to compare competitive positioning.

Market share (formula)

(Firm's sales ÷ Industry sales) × 100

Market growth (formula)

((New market size – Old market size) ÷ Old market size) × 100

Market orientation — strengths

Higher chance of success; responsive to trends; builds customer loyalty.

Product orientation — strengths

Enables unique innovation; creates strong differentiation.

Niche market — strengths

Loyal customers; less competition; ability to charge premium prices.

Mass market — strengths

Economies of scale; high sales volume.

Market leader — importance/advantages

Brand recognition = trust and prestige; economies of scale = cost advantage; pricing power = can set industry trends; attracts top talent, investors, and partnerships.

Primary research — strengths

Specific to the business; directly from the target market; up-to-date and relevant.

Surveys — strengths

Quick, low cost, provides quantitative data.

Interviews — strengths

Rich, detailed data; follow-up questions possible.

Focus groups — strengths

Explore perceptions; useful for testing reactions to new products.

Observations — strengths

Captures real customer behaviour.

Secondary research — market analyses: strengths

Reliable; provides industry-wide trends.

Secondary research — academic journals: strengths

Rigorous and credible.

Secondary research — government publications: strengths

Reliable; contains macroeconomic data.

Secondary research — media articles: strengths

Timely and easy to access.

Secondary research — online content: strengths

Wide range of sources; current information.

Quota sampling — pro

Ensures representation; efficient.

Random sampling — pro

Unbiased; statistically valid.

Convenience sampling — pro

Quick; low cost.

Market orientation — weaknesses

Costly research; reactive rather than proactive.

Product orientation — weaknesses

Risk of poor demand if customer needs are ignored.

Niche market — weaknesses

Limited growth potential; vulnerable to entry by larger firms.

Mass market — weaknesses

Intense competition; less brand loyalty.

Market leader — risks

Complacency; regulatory scrutiny; pressure to maintain lead.

Primary research — weaknesses

Costly; time-consuming.

Surveys — weaknesses

Risk of bias; low response rate.

Interviews — weaknesses

Expensive; time-consuming.

Focus groups — weaknesses

Small samples; dominant voices may distort results.

Observations — weaknesses

No explanation of motives; raises ethical issues.

Secondary research — market analyses: weaknesses

Risk of bias; low response rate.

Secondary research — academic journals: weaknesses

Expensive; time-consuming.

Secondary research — government publications: weaknesses

Small samples; dominant voices may distort.

Secondary research — media articles: weaknesses

May be biased or incomplete.

Secondary research — online content: weaknesses

Quality varies; hard to verify.

Quota sampling — con

Researcher bias possible.

Random sampling — con

Costly; impractical for large populations.

Convenience sampling — con

Unreliable; often unrepresentative.

Market orientation vs product orientation — which industry suits each?

Market orientation suits dynamic, customer-driven industries (e.g. streaming, food delivery). Product orientation suits high-innovation niches (e.g. luxury, cutting-edge tech).

Qualitative vs quantitative — when to use each?

Use qualitative for "why" (opinions, attitudes). Use quantitative for "how many" (numbers, statistics).

Niche vs mass — common mistake

Thinking niche always means "small firm." Large firms can also serve niche markets.

Primary vs secondary research — key difference

Primary is collected directly from the target market (specific but costly). Secondary uses existing data collected by others (cheaper but may be outdated or biased).

Rising market share — what to watch for

Rising share = stronger competitive position, but may come from discounting, which can squeeze profit margins.

Falling market share — is it always bad?

Not always — if the industry itself is declining, falling share may still be acceptable.

Market share rise in a shrinking market

Signals relative strength, but absolute revenues may still fall.

Market leader — note

Market leadership ≠ always best. Challengers can be more innovative (e.g. Nokia led mobile phones but lost to Apple/Android).

Market share rise ≠ always good

It could come at the expense of lower profit margins.

Marketing planning — functions (4)

1. Aligns marketing with overall strategy. 2. Sets measurable targets (sales growth, market share). 3. Anticipates problems (competition, trends, costs). 4. Coordinates across departments (finance, HR, ops).

STP — how the three stages link

Segmentation identifies customer groups → Targeting chooses which to serve → Positioning creates a distinct image for that segment.

Segmentation bases

Demographics, psychographics, geography, behaviour.

Differentiation strategies — 5 types

Product (quality, design, innovation); Service (experience, delivery, after-sales); Branding (emotional connection, lifestyle); Pricing (penetration vs premium); Distribution (exclusive channels, online vs retail).

USP — must be…

Meaningful to the customer, not just marketing spin.

Why carry out market research? (4 reasons)

1. Reduce uncertainty — base decisions on evidence. 2. Identify customer needs/wants. 3. Test feasibility before launch. 4. Monitor competitors and trends.

Sampling method affects…

The validity of research results.

Market growth — high vs low

High growth → attractive for new entrants, risk of intensified competition. Low/negative growth → pressure to cut costs or diversify.

USP — stakeholder link

Strong USP benefits: investors (premium pricing), employees (pride, retention), customers (loyalty).

Case link — firm losing sales

Check for a weak USP or poor positioning vs rivals.

Exam scenario — new product launch

Primary research is essential to understand customer preferences and price sensitivity.

Exam scenario — expanding abroad

Secondary research on demographics, economic data, and competitors is most appropriate.

Exam scenario — limited budget

Convenience sampling is possible, but its limitations must be acknowledged.

Exam scenario — mixed research approach

Combining primary and secondary methods gives stronger evidence and balance.

Market growth confusion — common mistake

Do not confuse market growth (change in total industry size) with market share (a single firm's portion of that market).