IB Business introduction to marketing 4.1

what are the three meanings of a market

a place where buyers and sellers come together or interact

a location

a type of product

define marketing

is all of the processes involved in identifiying and satisfiying customer needs.

what are the 7 Ps

product

price

promotion

place

people

processes physical evidence

what is product

the good or service the business is offering the customer

what is price

the amount of money a business charges for its product

what is promotion

the publicising of a product, good or service to the public to increase awareness or sales

what is place

how products travel from producers to consumers

what are people

everyone who works in the business and has contact with the customers

what are processes

how a service is delivered to customers such as how they can place and pay for an order and the delivery of it

physical evidence

every tangible aspect of the service

what is product orientation?

a situation where business prioritizes the research and development of high quality, specialized products rather than prioritizing market research

what is a patent and why is it good?

the legal right to be the only producer and seller of a good for a period of time

competitors cannot easily copy ideas and gives them a unique selling point

what is the disadvantage for product orientation

there is no guarantee customers will want to buy the final product

large amounts of invested money may be lost as it is risky

what is a market leader

a product or brand with high market share

what are the advantages of product orientation

unique selling point and quality

monopoly power through a patent

lack of competition

what is market orientation?

when a business puts the needs and wants of the customer above everything else

what are the advantages of being market oriented?

low risk so

what are the disadvantages of being market oriented

there is no unique selling point

poor market research could result in poor product development

it may be difficult to keep with changes in markets

what is market share

it measures the value of a single company’s sales or revenues compared with the sales of all businesses in a market

what is market growth

it refers to the increase in sales revenues or sales volume in an individual market over time

what is the bcg matrix?

it is a tool that helps businesses that have multiple products to decide on their marketing strategies

bcg matrix

what is a market leader

the company with the highest market share