BUSINESS MARKETING

Market research

The process of gathering information related to the consumption of goods and services to identify

Helps:

the customers wants and needs

Identify gaps in the market

To reduce risk (eg when releasing a new product)

Primary research

Gathering information that doesn’t already exist

Methods: questionnaires, observation, focus groups,

Secondary research

Collection of information that already exists It’s quicker and easier then primary research

Methods: media, business websites, competitors

Qualitative data

Information about attitudes, beliefs and intentions

Quantitative data

Information that can be expressed as numbers

Market

Set of arrangements that allows buyers and sellers to communicate and trade in good and services

Marketing

Identifying customer needs and satisfying them profitably

Product orientated

Where a business focuses on the design and manufacture of the product itself rather than the needs of customers

Market orientated

Where a business focuses on the needs of consumers when developing products

Market share + calculation

Market share= total product or business sales divide total sales in the whole market x100

Proportion of sales in the total market that a particular business or product enjoys

Market analysis

Quantitative and qualitative assessment of a market

Mass market

Very large markets in which products with a huge demand are marketed

Niche market

Smaller market usually with a large market or industry

Responding to changes in the market

Changes in customer needs, changing customer/consumer spending patterns, increased competition,

Market segments

Part of a whole market where a particular customer group has similar characteristics

Methods of market segmentation and benefits

Location, demographic (age, gender, income, religion) segmentation

It makes it easier for the business to meet customers needs

Social grade for social status

A - Upper middle

B - Middle class

C1 - lower middle class

C2 - skilled working class

D- working class

E - the poor

Marketing mix

Elements of a firms marketing that’s deigned to meet the needs of customers PRICE, PROMOTION, PRODUCT, PLACE)

4ps PRODUCT

Generating ideas, analysis, development, test marketing, commercialization and launch. Packaging has to be considered.

Product life cycle

The level of sales at which different stages through which a product passes over time.

Development, introduction, growth, maturity and saturation, decline.

Product portfolio

Range of products a business is currently marketing/ what’s available on the market

Boston matrix

Something that describes the product according to market share and position in the life cycle.

Stars: a valuable product high market share but also potential growth.

Cash cows: high market share but the product isn’t likely to grow anymore. It generates a steady flow of cash

Question marks: a product with a low market share but the market is growing so if the correct action is taken the product has potential.

Dog: at the end of their life cycle. Low market share and not likely to grow anymore and should be replaced with new products.

4ps PRICING

Cost plus pricing: when I business has a set price allowing profit to be made. You add the mark-up (percentage added to costs makes a profit when setting a price) to the total costs.

Penetration pricing: setting a low price to start to get established in the market, price then can be raised.

Competition pricing: pricing based on what competitors charge

Predatory pricing: settings a low price until competitors have gone out the business.

Skimming: settings a high price initially then lowering it

Promotional pricing: lowering the price temporarily to attract customers

Discounts, psychological pricing

4ps PLACE

Distribution channels are needed as it’s how the product goes from the producer to the consumer. E-commerce involve the use of electronic items

4ps PROMOTION

Below the line promotion: any form of promotion that doesn’t involve advertising

Sales promotion: incentives to encourage people to buy the products (eg free gifts, loyalty cards)

Branding