Marketing

Relation between supply and demand

  • in case of low supply, scarcity, demand exceeds the supply raising the price

The difference between an approach and a method is that approach is a way of thinking and method is a way of doing.

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The 4 Approaches to Marketing

=> There are 2 approaches to marketing, Product-oriented and MarketOriented.

=> ‘Asset Lead Marketing‘, leveraging a USP or brand, like Volvo which is known for safety and Cadbury for special occasions. When you have something proprietary or unique intellectual property.

=> Societal Lead Marketing, businesses leverage the good they are doing in the world, showing they care for the world, and compelling people to buy.

Growth in Market Share vs Growth in Market

Market Share

  • Market share refers to the portion or percentage of the total market that a company or product controls.
  • It is calculated by dividing a company's sales or revenue by the total market sales or revenue.
  • Growth in market share indicates an increase in the company's relative position within the market compared to its competitors.
  • Companies strive to increase their market share as it can lead to higher profits, increased brand recognition, and a stronger competitive position.

Growth in Market

  • Growth in the market refers to the overall expansion of the total market size or demand for a particular product or service.
  • It is influenced by factors such as population growth, economic conditions, technological advancements, and changing consumer preferences.
  • Growth in the market presents opportunities for companies to increase their sales and revenue by capturing a larger customer base.
  • Companies can achieve growth in the market by introducing new products, expanding into new geographical regions, or targeting new customer segments.

Key Differences

  1. Focus: Growth in market share focuses on increasing a company's relative position within the market, while growth in the market focuses on expanding the overall market size.
  2. Measurement: Market share is measured as a percentage of the total market, whereas growth in the market is measured in terms of the increase in market size or demand.
  3. Strategies: Companies aiming for growth in market share may focus on strategies such as competitive pricing, product differentiation, or aggressive marketing. On the other hand, companies targeting growth in the market may focus on innovation, market expansion, or diversification.
  4. Impact: Growth in market share can lead to increased profitability and market dominance, while growth in the market can create new business opportunities and revenue streams.

In conclusion, growth in market share and growth in the market are two distinct concepts. While growth in market share focuses on a company's relative position within the market, growth in the market refers to the overall expansion of the market size or demand. Both are important for companies to achieve long-term success and profitability.