4.1 Introduction to Marketing

Marketing

All of the processes involved in identifying and satisfying customer needs. It involves anticipating consumer needs profitably.

Market Orientation

Market led and focused on establishing consumer demand so as to supply products that meet consumer needs and want.

Product Orientation

Product led and assumes that supply makes its own demand. Businesses produce innovative products and then tempt the customers to buy them.

Market Share

The percentage of total market sales a company holds, measured by revenue or units sold. It reflects competitive success and is calculated by dividing the firm's sales by total market sales.

Market Size

Refers to the total sales revenue generated by all companies within a specific market over a given period. It is crucial for businesses to assess potential opportunities.

Market Growth

The percentage increase in a market's total size over a specific period, measured by either sales volume or revenue. It can be calculated by dividing the change in market size by the original market size.

Market Orientation pros

More confidence in product sales

Less risk

Better predictions for market changes

Market Orientation cons

Time consuming

Expensive to do market research

Hard to meet consumer needs and wants

Product Orientation pros

High-quality products

Succeeds in stable markets with good reputation

Product Orientation cons

Ignores market needs, risking failure

Costly if consumer needs are overlooked