Marketing

Marketing

Amer Association definiton

art of linking the business to the customer by identifying and satisfying their needs and wants at a profit

marking 4 ps

promoting

right product

right price

right place

right customers

goods

(goods v services)

consumer goods are tangible

can be consumed + ownership of product + can be returned

non-durable goods consumed once a year

services

(goods v services)

intangible

cannot be taken back + no ownership

services have been using more reviews

product orientation

(product v market)

businesses develop products

focus on what they are good at doing

QUALITY

inward focused

decisions based on resource development

market orientation

(product v market)

responds to customer

NEEDS + WANTS

outward focused

decisions based on market research

product adv / disadv

(product v market)

adv

• no time spent on researching

• focus on producting high quality goods/services

disadv

• high failure rate

• alienating customers

market ad/disadv

(product v market)

ad

• flexible/dec risk

• adapting to changes in market

disadv

• spending $ on market research

market

a place where buyers/sellers come tgt

classified by type of product or location

when entering a market…

• market size + potential growth rate

• customer based

• barriers to entry

• competition

• geographical consideration

market size

measured in either sales volume (units) or value sold ($)

total amount of all producers in this market

market size tells us…

• is a market worth entering

• growth/decline

• businesses can calc their own market share

GROWING MARLET mean INC sales + INC competitors

market growth

% of change in the total size of a market ($ of units over a periods)

market GROW = MORE businesses want to enter the market

market growth is dependent on

economy

consumer tatses

consumer money

tech / innovation

market saturation

market growth formula

(CURRENT YR SALES - PRIOR YR SALES) / PRIOR YR SALES * 100 = X%

Market share

TOT COMPANY SALES / TOTAL MARKET SALES * 100 = X%

MORE market share = MORE power

BUT… having 70% market share doesnt mean more profit bc charge less per product

market leadership

business achieves highest market share of all businesses selling in that market

market leadership benefits

• sales higher than competitors → higher profits

• retailers more likely to promote the brand → better shelf placement

• businesses can use this fact in ads/promotions

• consumers often choose the market leader

segmentation

break consumers into distinct groups with similar characteristics + buying habits

helps businesses better meet needs + wants

better grouping of people → reach right customers with marketing

demographics

(segmentation)

facts

characteristics of the human poplation that doesnt change v quickly

psychographics

(segmentation)

study of consumers based on activities, interests, and opinions

their personality

geographic

(segmentation)

based on location  /  climate

diff culture + social attitudes 

segmented…then.. target market

niche market

mass market

niche market

(target market)

small # customers who share certain characteristics

niche marking (identifying small segment of a larger market & developing products for it)

niche market benefits

(target market)

• small firms survive & thrive in markets dominated by larger firms

• if no competition …..  niche businesses hv change @ higher profits

• can also be used by larger firms (status + img)

mass market benefits

(target market)

• econ of scale

• dec costs of production

• FEWER RISKS than niche strategies 

product positioning

creating a consistent and recog perception of a brand/product/service in the consumer’s mind

BASICALLY, marketing + psych ——→> create pos brand img

perceptual map or prod positioning map

geographical technique to measure consumer’s perceptions based on two variables (characteristics/dimensions)

perceptual map adv

• spotting gaps in market

• analyze competitors

• enough use of market research

perceptual map disadv

perception based

js bc a group doesnt mean theres demand

not guarantee of success

how reliable is market research?