Marketing Notes

4.1 Introduction to Marketing

  • Learning Objectives:
    • Distinctions between market orientation and product orientation
    • Differences between market share and market growth
    • Calculate market share and market growth from given data
    • Importance of market share and market leadership
    • Application of the Boston Consulting Group (BCG) matrix in real scenarios

4.1.1 The Market & Marketing

Meanings of Market:

  1. Exchange Place: A physical or virtual site where buyers and sellers interact, e.g., open-air markets or online platforms such as Amazon or eBay.
    • Examples: Cryptocurrency markets, carbon markets.
  2. Geographical Location: A specific geographic area where market dynamics can vary, such as North America or specific regions like Greater Tampa Bay.
    • Example: McDonald's alters its menu based on location preferences.
  3. Type of Product: Refers to markets defined by specific products or categories, e.g., the energy drink market including brands like Red Bull.
    • Considerations include customer demand and competition.

4.1.3 Activity: Market Share Example

  • Calculating Market Share for Business X:
    • Total sales by three businesses: $3000
    • Business X sales: $2000
    • Market Share Calculation:
      Market ext{ } Share = rac{2,000}{3,000} imes 100 = 67 ext{%}

4.1.3 Market Growth

  • Markets can experience growth or decline. Businesses prefer selling in growing markets, as it fosters revenue generation.
    • Example: Tesla in the growing market for plug-in electric vehicles (EVs). Their early market entry enabled high sales, capitalizing on growing demand, though it also drags in increased competition.

4.1.4 Market Leadership

  • Market Leader: The product or brand holding the highest market share.
  • Advantages of Market Leadership:
    • Better access to distribution channels
    • Enhanced brand recognition
    • Economies of scale
    • Price leadership
      • Examples of Market Leaders: Head & Shoulders, Pantene in hair care.

4.1.6 Reminders:

  • Market Share Formula: ext{Market Share} = rac{ ext{product sales}}{ ext{total market sales}} imes 100
    • Example: An electronics company selling $200 million with an industry total of $1000 million would have a market share of:
      ext{Market Share} = rac{200}{1000} imes 100 = 20 ext{%}
  • Market Growth Formula: ext{Market Growth} = rac{ ext{(Total Market Sales T2 - Total Market Sales T1)}}{ ext{Total Previous Market Sales T1}} imes100
    • Example: For clothing sales from $950 million in 2020 to $1000 million in 2021, market growth is:
      ext{Market Growth} = rac{(1000 - 950)}{950} imes 100 = 5.26 ext{%}

Agenda

  • Daily Prayer
  • Presentation of BCG Matrix
    • Activity: Messenger Apps
    • Group Project to create a matrix
  • Check Outlines while groups work
  • Begin section 4.2 Market Planning
    • Present 4.2.1 Elements of a Marketing Plan and Cycle