- The Sales department is responsible for the sales of the product.
- The Market Research department is responsible for finding out customers' needs.
- The Promotion department deals with advertising the products.
- The Distribution department brings the products to the market.
The role of marketing
Marketing is not just about advertising and selling the products, but:
Marketing is not just about advertising and selling the products, but:
- Identify customer needs: find out what kind of products or services that customers want, price that they are willing to pay.
- Satisfy customer needs: Customers want the right product, at the right place and at the right price.
- Maintain customer loyalty: Build and maintain a good relationship with the customers.
- Gain information about customers: To meet their requirements and establish long term relationships
- Anticipate changes in customer needs: By identifying new trends in customer demand or missing products in the market.
Business Objectives:
- raise customer awareness of a product or service of the business.
- increase sales revenue and profitability
- increase or maintain market share
- maintain or improve the image of products or a business
- target a new market or market segment
- enter new markets at home or abroad
- develop new products or improve existing products
Market Share is the percentage of total market sales held by a business
Understanding market changes
Some markets are changing at a rapid pace, such as mobile phones, whereas some businesses changes not very quickly such as cereals.
Why customer/ consumer spending patterns change
Some markets are changing at a rapid pace, such as mobile phones, whereas some businesses changes not very quickly such as cereals.
Why customer/ consumer spending patterns change
- Consumer tastes and fashions change
- Changes in technology - New products being developed
- Change in incomes - some might get high incomes so that they can afford expensive products, some don't.
- Ageing population - people at different ages have different style or tastes
The power and importance of changing customer needs
If businesses fail to respond to customer needs then they are going to fail. Customers are always the king, as their needs change, the business will need to research about what these changes are and respond to them.
If businesses fail to respond to customer needs then they are going to fail. Customers are always the king, as their needs change, the business will need to research about what these changes are and respond to them.
Why have some markets become more competitive?
- Globalization of markets has meant that products are increasingly sold all over the world.
- Transportation improvements, easy to ship the products from one place to another.
How can business respond to changing spending patterns and increased competition?
- Maintain good customer relationships - this has a key role in continuing to meet customer needs.
- Keep improving existing product - true if its competitors improve their products.
- Bring out new products to keep customer's interest in their company rather than their competitors.
- Keep costs low to maintain competitiveness - as this could help keep low prices
What is meant by a market?
A market for a particular good or service is made up of the total number of customers and potential customers as well as sellers for that particular good or service. It can either measured by the total number of sales or by the value of the sales. These market can be mass markets or niche markets.
Mass Marketing is a market that has a very large number of sales of a good.
-Advantages:
-Advantages:
- large sales to these markets
- Economies of scale
- risks can be spread
- opportunities for growth of the business due to large potential sales
- really competitive
- lots of money for promoting and advertising
- standardized products or services are produced and might not meet the needs of all customers, lead to lost sales.
Niche market are often specialized products, are only sold to a very small number of customers who form a very small segment of a larger market.
-Advantages:
-Advantages:
- Small businesses can sell to niche markets because there is less competition
- The needs of consumers can be focused
- Niche markets are small and therefore have a limited number of sales, which means only small businesses can operate in these markets.
- Often specialize in just one product so if that product is no longer demand anymore, the business will fail
Market segments is the different groups of a whole market that have the same characteristics.
-Segmenting a market can help a company by:
-Segmenting a market can help a company by:
- Higher profits and incomes for the business
- Researching about the things that do not satisfy the needs of the customers.
- By socio-economic group: Different groups of people with different incomes.
- By age: Teenagers, Adults, Elderly people
- By location: Different area
- By gender: Male, Female, lesbian
- By use of the product: for example cars can be use for many purposes, domestic use or business use.
- By lifestyle: Single, married, divorced
1. a) Healthy fruits to eat
b)- Some of the customers realized that it is unhealthy for them to drink coffee
- Too much type of coffee brands are established so customers don't know which to buy so they don't buy it.
c)- people's income are rising so they buy more fruits
- healthy eating
d)- Cooperate with another farm to reduce cost and make more profit.
- Try to grow a variety of fruits so that there is more options
e)- Yes, because these days every countries are encouraging their citizens to eat a healthy diet
b)- Some of the customers realized that it is unhealthy for them to drink coffee
- Too much type of coffee brands are established so customers don't know which to buy so they don't buy it.
c)- people's income are rising so they buy more fruits
- healthy eating
d)- Cooperate with another farm to reduce cost and make more profit.
- Try to grow a variety of fruits so that there is more options
e)- Yes, because these days every countries are encouraging their citizens to eat a healthy diet