consumer goods markets
where products for customers are sold
markets for services
include services for individuals
housing market
where people buy and sell properties
commodity markets
where raw materials are traded
what is marketing?
a management process involved in identifying, anticipating and satisfying consumer requirements profitably
importance of marketing
satisfying customer needs
building customer relationships
keeping customer loyalty
market orientation and product orientation
market share and analysis
niche and mass marketing.
satisfying customer needs
businesses must produce goods and offer services customers want to buy
they identify customer needs by carrying out market research
businesses should also anticipate and adapt to customer needs
building customer relationships
some businesses try to establish a bond with customers using effective communication
businesses use social media as marketing is more successful if communication is two-way
how do businesses build relationships with customers?
take complaints seriously
personalise communication
say 'thank you'
know your customer
connect regularly
build trust
keeping customer loyalty
it's important to retain customer loyalty so they continue making purchases
this is done by satisfying their needs by developing new products, providing first-class services, maintaining effective communication and delivering reliability
developing a brand name
how do businesses keep customer loyalty?
reward cards
free gifts
charitable donations
partnership deals
market orientation and product orientation
businesses now are market orientated
led by the market and focus on the customer
do not make products until they know what people want
these firms spend a lot of their time and resources on identifying the needs of the customers
market share
businesses aim to increase market share at the expense of rivals
dominating firms can charge higher prices
market share (formula)
(total product or business sales / total sales in the whole market) x 100
market analysis
businesses are more successful if they carry out market analysis
this is finding out about the features of the market
businesses gather both qualitative and quantitative data
businesses must keep in touch with markets to respond
mass marketing
when a business sells products to all consumers in the same way
large number of customers
businesses can produce large quantities at a lower cost (economies of scale)
higher sales and higher profits
lots of competition and money used marketing
niche marketing
small market segment
selling to a small
avoids competition
easier to focus on customer needs
responding to changes in the market
markets don't remain the same over time
they are static and dynamic
some markets disappear
why do customer needs change?
consumer income change
social mobility
consumers are influenced by change in social markets
fashions change
varying needs
how do businesses meet changing customer needs?
businesses must monitor market and identify changes
changing customer/consumer spending patterns
businesses gather information about spending patterns in the market they operate in
they carry out their own research and use it to to evaluate the market
increased competition
businesses operate competitors' behaviours in the market to evaluate sales and changes
some businesses lose profit trying to attract customers from rivals in order to stay in the market
methods businesses use to attract customers
lowered prices
different products
better quality
powerful advertising
offering extras