AICE BUS16


1. Marketing



Thinking of marketing as just advertising and selling is incomplete; it’s the full process of connecting business to customers.



2. Define Marketing



The management task that links a business to the customer by identifying and meeting customer needs profitably.



3. Marketing Objectives



Specific goals set for the marketing department.



4. Marketing Strategies



Long-term plans designed to meet marketing objectives.



5. “If you don’t know what, you can’t do why.”



You need a clear vision before planning objectives and strategies.



6. Market Orientation



An outward-looking approach focused on discovering and responding to customer needs.



7. Product Orientation



An inward-looking approach focused on producing products the firm can make.



8. Supply (in Supply & Demand)



Represented by producers.



9. Demand (in Supply & Demand)



Represented by consumers.



10. How the Supply & Demand Curve Works



Demand: as price ↓, quantity demanded ↑.

Supply: as price ↑, quantity supplied ↑.



11. Market Share Formula



(Sales of the company ÷ total sales of the market) × 100.



12. Asset-Led Marketing



An approach that bases strategy on the firm’s existing strengths and assets instead of only customer wants.



13. Societal Marketing



Considers consumer needs and the long-term effects on society and stakeholders.



14. Meaning of “If you don’t know what, you can’t do why.”



You must know your objective before you can plan action.



15–21. Seven Marketing Functions



Marketing

Selling

Information management

Distribution

Product/service management

Pricing

Promotion

Financing



22–24. Why Market Size Matters



  1. Helps managers decide if a market is worth entering.

  2. Allows firms to calculate market share.

  3. Shows growth or decline trends.




25. Why Use Niche Marketing



Lets firms survive in large markets and charge higher prices.



26. Market Segmentation



Targeting products to specific consumer groups within a market.



27. Why Prefer Mass Marketing



Enjoys lower average cost and lower risk (economies of scale).



28. Consumer Profile (how to remember it)



Summary of characteristics of the target market.



29. Use of Consumer Profile



Determining who the target market is.



30–32. Three Bases of Segmentation



Geographic differences

Demographic differences

Psychographic differences



33. Why Use Demographics



Helps determine what customers want and can afford.



34. Psychographic Factors



Differences in lifestyles, personalities, values, and attitudes.



35. Link Between USP and Product Differentiation



Product differentiation creates a USP (unique selling point).



36. Market vs Product Orientation



Market orientation: outward, driven by consumer demand.

Product orientation: inward, based on past production success.



37. Why Market Research Never Ends



Consumer wants constantly change.



38. Market Growth



Percent change in the total size of a market (volume or value) over time.



39. Marketing Objectives vs Marketing Strategy



Marketing objectives: goals to achieve the overall objective.

Marketing strategy: long-term plan to achieve those goals.