POB Section 6
DEFINE MARKET
Any situation where buyers and sellers come into contact.
EXAMPLES OF MARKETS:
Street markets
Supermarkets
Fish markets
Bus travel market
Online electronic marketplaces
Market for tourists and tourist vendors
Finance markets
TYPES OF MARKET
Niche Market – Target specific groups in the whole market. This means it caters to a very specific segment of the whole market.
Examples: Vegan & Plant Based Foods, Eco-Friendly and Sustainable Products
Mass Market – This ignores segmentation and covers the whole market. This market will aim to cater to all individuals
Example: providing a single type of tea, which is of interest to all tea drinkers.
SEGMENTS IN A MARKET
Markets are divided into segments. Segments are the criteria used to divide the market based on the target audience. Eg: Age of target
TRENDS IN MARKETS
Data mining: refers to finding patterns in large sets of data, such as purchases of customers
Integrated Marketing: refers to the unified experience of customers when they interact with the company through a range of communication channels
Examples: Advertising, sales promotion, direct marketing
Social media: Internet-based communication instruments that enable people to interact with each other by sharing information
E-TAILER
A business that uses the Internet to communicate and sell goods to shoppers. Enables communication with a larger audience.
DEFINE MARKETING
Identifying, anticipating, and meeting customer needs to ensure profitability.
Involves the following aspects:
Identifying: finding out what customers want and their preferences
Anticipating: predicting future customer requirements.
Discovering customer requirements: finding out what specific products customers are looking for and the features involved
Meeting these requirements: responding to customer requirements by giving customers what they want.
Making a profit: marketing activity will enable a business to predict whether it will make a profit and profit size
TYPES OF MARKETING ACTIVITIES:
finding out about buyers and their buying behaviour
advertising goods and services in an appealing and accessible way
distributing a product
selling (the act of persuading someone to buy).
MARKET RESEARCH
Market research means carefully gathering and analyzing data about a market for particular goods or services
QUANTITATIVE VS QUALITATIVE MARKET RESEARCH
QUANTITATIVE research is research that can be measured in numbers, gathering data from large samples of people, while QUALITATIVE research seeks to expose customers’ views and opinions using open-ended questions, involving a small sample of people
MARKETING VS SELLING
Marketing is concerned with finding out and delivering what the customers want. Selling is persuading customers to buy what you have (your product).
FACTORS AFFECTING MARKETING ACTIVITY:
Consumer Taste (personal bias) - What consumers are looking for in the products they buy and how their tastes are changing.
Competition - A company must know competitors' offerings and plans to stay relevant, differentiate itself, and continually provide new & satisfactory products and services
Consumer behaviour - factors that influence consumers to buy one product over another
PRICING
Involves determining the price level for new and existing products, impacting consumer behavior
Internal factors influencing pricing:
Production cost
Determining the optimal price for maximizing sales or profits.
Deciding if a company wants to convey a specific image through its pricing
External factors influencing pricing:
Competitor’s price decisions
State of the economy
CONSUMER BEHAVIOUR
Factors influencing consumer choices between products and how this behaviour might change over time.
PACKAGING
Refers to the materials used to pack and protect goods.
colours and logos used on the packaging can help to promote the brand’s image.
Customers look for different forms of packaging for different products. For example, expensive perfume is often packaged in an interesting bottle and an attractive-looking box.
BRAND & BRANDING
A brand is a unique, consistent and well-recognised image for a product or set of products. Branding relates to establishing a distinct brand and enables a firm to establish a position in the market.
BRAND IMAGE
Set of beliefs that consumers hold about a specific brand.
SALES PROMOTION
A tool used for a relatively short time period to build brand awareness and motivate customers to make purchases
Examples:
Free samples
Offering an additional quantity
Offering an additional good with a purchase
Discounts and price reductions
ADVERTISING
Any form of paid, formal communication about goods or services to communicate with buyers. Through ways like TV, radio, websites, social media, sites, posters, newspapers, and flyers.
FUNCTIONS OF ADVERTISING:
Providing information - What it looks like, how much it costs
Persuading customers to buy the product – The main aim of advertising is to generate sales by having customers buy products
Communicating brand identity – Advertising compliments, companies, who have already built their brand
Generating demand - getting the message across that the product will satisfy customer requirements
Maintaining customer loyalty
Enabling price comparisons
Illustrating new trends
DISTRIBUTION
Movement of goods from a source through a distribution channel so that the goods reach consumers. Marketing activity is needed to identify the best methods of this.
CONSUMER PANEL
Group of people selected for marketing purposes to provide advice about products/services
MARKETING MIX
Four key decisions that must be taken in the effective marketing of a product. These are called the four Ps
THE 4 P’S:
PACKAGING
PRICE
PROMOTION
PLACE
PRODUCT
The most important part of the marketing mix, and must meet an identified consumer need. Products have several features:
Shape
Design
Colour
Size
Packaging
PRODUCT LIFE CYCLE
The life of a product is the period over which a product appeals to customers
Introduction stage: sales growth is slow as only a small amount of people understand its benefits.
Growth phase: profit begins to increase as more people are exposed to the product and want it.
Maternity phase: The product is at the maximum purchase stage and may be repeatedly purchased.
Declining stage: The product is seen as old and sales start to fall
GIVING NEW LIFE
Modify the Product
Alter Distribution Patterns
Change Prices
Promotional Campaigns
PRICE
How much an item/service costs. Depends on the percentage of the market it is trying to attract.
A lower price can attract sales by undercutting the competition. Large quantities, low costs
An average price requires a company to compete with rivals using other means
A higher price can make a company appear better than its rivals in meeting customer needs
PLACE
Place decisions concern deciding how much products should pass from the manufacturer to the final customer.
CHANNELS OF DISTRIBUTION
Bringing together an organization and customers to buy and sell goods at a specific place and time.
Organisations involved in the distribution chain:
Manufacturers
Wholesalers
Retailers
PROMOTION
Refers to ways of spreading info about a product, brand or company.
The four main types of promotion are: advertising, public relations, personal selling, sales promotion
PERSONAL SELLING
When members of a sales force are directed to interact with customers to explain a product and how it works, to hopefully make sales
PUBLIC RELATIONS
Includes managing information from an organization to its “public” to build the reputation of a company and its brands
WAYS OF PROMOTION
Coupons
Loyalty points
Rebate
Bundling
Loss Leader
SOCIAL MEDIA MARKETING
A form of internet marketing that uses social media sites such as Facebook and YouTube to generate social media activity
FACTORS INFLUENCING CONSUMER BEHAVIOUR
Price
Price of substitutes
Quality
Taste
Tradition
Income
Spending patterns
Brand loyalty
PURPOSES OF PACKAGING:
To enable branding of the product
To provide details of the product
To protect the product from contamination
To keep the product fresh
To make the product more attractive
DEFINE MARKET
Any situation where buyers and sellers come into contact.
EXAMPLES OF MARKETS:
Street markets
Supermarkets
Fish markets
Bus travel market
Online electronic marketplaces
Market for tourists and tourist vendors
Finance markets
TYPES OF MARKET
Niche Market – Target specific groups in the whole market. This means it caters to a very specific segment of the whole market.
Examples: Vegan & Plant Based Foods, Eco-Friendly and Sustainable Products
Mass Market – This ignores segmentation and covers the whole market. This market will aim to cater to all individuals
Example: providing a single type of tea, which is of interest to all tea drinkers.
SEGMENTS IN A MARKET
Markets are divided into segments. Segments are the criteria used to divide the market based on the target audience. Eg: Age of target
TRENDS IN MARKETS
Data mining: refers to finding patterns in large sets of data, such as purchases of customers
Integrated Marketing: refers to the unified experience of customers when they interact with the company through a range of communication channels
Examples: Advertising, sales promotion, direct marketing
Social media: Internet-based communication instruments that enable people to interact with each other by sharing information
E-TAILER
A business that uses the Internet to communicate and sell goods to shoppers. Enables communication with a larger audience.
DEFINE MARKETING
Identifying, anticipating, and meeting customer needs to ensure profitability.
Involves the following aspects:
Identifying: finding out what customers want and their preferences
Anticipating: predicting future customer requirements.
Discovering customer requirements: finding out what specific products customers are looking for and the features involved
Meeting these requirements: responding to customer requirements by giving customers what they want.
Making a profit: marketing activity will enable a business to predict whether it will make a profit and profit size
TYPES OF MARKETING ACTIVITIES:
finding out about buyers and their buying behaviour
advertising goods and services in an appealing and accessible way
distributing a product
selling (the act of persuading someone to buy).
MARKET RESEARCH
Market research means carefully gathering and analyzing data about a market for particular goods or services
QUANTITATIVE VS QUALITATIVE MARKET RESEARCH
QUANTITATIVE research is research that can be measured in numbers, gathering data from large samples of people, while QUALITATIVE research seeks to expose customers’ views and opinions using open-ended questions, involving a small sample of people
MARKETING VS SELLING
Marketing is concerned with finding out and delivering what the customers want. Selling is persuading customers to buy what you have (your product).
FACTORS AFFECTING MARKETING ACTIVITY:
Consumer Taste (personal bias) - What consumers are looking for in the products they buy and how their tastes are changing.
Competition - A company must know competitors' offerings and plans to stay relevant, differentiate itself, and continually provide new & satisfactory products and services
Consumer behaviour - factors that influence consumers to buy one product over another
PRICING
Involves determining the price level for new and existing products, impacting consumer behavior
Internal factors influencing pricing:
Production cost
Determining the optimal price for maximizing sales or profits.
Deciding if a company wants to convey a specific image through its pricing
External factors influencing pricing:
Competitor’s price decisions
State of the economy
CONSUMER BEHAVIOUR
Factors influencing consumer choices between products and how this behaviour might change over time.
PACKAGING
Refers to the materials used to pack and protect goods.
colours and logos used on the packaging can help to promote the brand’s image.
Customers look for different forms of packaging for different products. For example, expensive perfume is often packaged in an interesting bottle and an attractive-looking box.
BRAND & BRANDING
A brand is a unique, consistent and well-recognised image for a product or set of products. Branding relates to establishing a distinct brand and enables a firm to establish a position in the market.
BRAND IMAGE
Set of beliefs that consumers hold about a specific brand.
SALES PROMOTION
A tool used for a relatively short time period to build brand awareness and motivate customers to make purchases
Examples:
Free samples
Offering an additional quantity
Offering an additional good with a purchase
Discounts and price reductions
ADVERTISING
Any form of paid, formal communication about goods or services to communicate with buyers. Through ways like TV, radio, websites, social media, sites, posters, newspapers, and flyers.
FUNCTIONS OF ADVERTISING:
Providing information - What it looks like, how much it costs
Persuading customers to buy the product – The main aim of advertising is to generate sales by having customers buy products
Communicating brand identity – Advertising compliments, companies, who have already built their brand
Generating demand - getting the message across that the product will satisfy customer requirements
Maintaining customer loyalty
Enabling price comparisons
Illustrating new trends
DISTRIBUTION
Movement of goods from a source through a distribution channel so that the goods reach consumers. Marketing activity is needed to identify the best methods of this.
CONSUMER PANEL
Group of people selected for marketing purposes to provide advice about products/services
MARKETING MIX
Four key decisions that must be taken in the effective marketing of a product. These are called the four Ps
THE 4 P’S:
PACKAGING
PRICE
PROMOTION
PLACE
PRODUCT
The most important part of the marketing mix, and must meet an identified consumer need. Products have several features:
Shape
Design
Colour
Size
Packaging
PRODUCT LIFE CYCLE
The life of a product is the period over which a product appeals to customers
Introduction stage: sales growth is slow as only a small amount of people understand its benefits.
Growth phase: profit begins to increase as more people are exposed to the product and want it.
Maternity phase: The product is at the maximum purchase stage and may be repeatedly purchased.
Declining stage: The product is seen as old and sales start to fall
GIVING NEW LIFE
Modify the Product
Alter Distribution Patterns
Change Prices
Promotional Campaigns
PRICE
How much an item/service costs. Depends on the percentage of the market it is trying to attract.
A lower price can attract sales by undercutting the competition. Large quantities, low costs
An average price requires a company to compete with rivals using other means
A higher price can make a company appear better than its rivals in meeting customer needs
PLACE
Place decisions concern deciding how much products should pass from the manufacturer to the final customer.
CHANNELS OF DISTRIBUTION
Bringing together an organization and customers to buy and sell goods at a specific place and time.
Organisations involved in the distribution chain:
Manufacturers
Wholesalers
Retailers
PROMOTION
Refers to ways of spreading info about a product, brand or company.
The four main types of promotion are: advertising, public relations, personal selling, sales promotion
PERSONAL SELLING
When members of a sales force are directed to interact with customers to explain a product and how it works, to hopefully make sales
PUBLIC RELATIONS
Includes managing information from an organization to its “public” to build the reputation of a company and its brands
WAYS OF PROMOTION
Coupons
Loyalty points
Rebate
Bundling
Loss Leader
SOCIAL MEDIA MARKETING
A form of internet marketing that uses social media sites such as Facebook and YouTube to generate social media activity
FACTORS INFLUENCING CONSUMER BEHAVIOUR
Price
Price of substitutes
Quality
Taste
Tradition
Income
Spending patterns
Brand loyalty
PURPOSES OF PACKAGING:
To enable branding of the product
To provide details of the product
To protect the product from contamination
To keep the product fresh
To make the product more attractive
