business - unit 3

Role of marketing

Involves identifying and satisfying customer needs, determining product design, pricing strategies, distribution channels, and promotional techniques.

Market

The total number of customers and potential customers for a specific good or service, along with the total sales volume per day or year.

Market share

The percentage of total market sales that a particular business accounts for, calculated by finding its share of total sales.

Changes in markets

Driven by shifts in consumer tastes, technology, incomes, and demographics like aging populations.

Competitive markets

Result from factors like globalization, transportation improvements, and the growth of e-commerce, leading to more choices and competition.

Business strategies for competitiveness

Include improving product offerings, pricing, loyalty schemes, customer service, quality, advertising, and delivery options.

Mass and Niche markets

Mass markets target a broad audience for larger profits, while niche markets focus on specific customer groups with stronger relationships but smaller profits.

Market segmentation

Involves dividing a market based on similar characteristics to target promotions, product design, pricing, and sales locations effectively.

Market research

Involves gathering information on customer needs, market size, competitors, pricing, features, and customer locations to make informed business decisions.

Market vs

Market-focused businesses design products based on market needs, while product-focused businesses prioritize creating the best product and may not conduct significant market research.

Market research methods

Primary research collects new data specific to business needs, while secondary research uses existing data that may be cheaper but less tailored to business requirements.

Sampling in market research

Involves selecting a small group to represent a larger target market, making research more manageable, cost-effective, and focused on the target market.

Accuracy of market research

Reliability can be affected by bias, outdated information, question quality, small sample sizes, sampling errors, and sources of secondary research.