Chapter 10 – Marketing, competition and the customer – Flashcards
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Sales department
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Responsible for the sales od the product
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Market research department
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Responsible for finding out customers needs, market changed and impact of competitors actions
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Promotion department
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Deals with organizing the advertising for products
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Distribution market
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Transports the products to the market
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Identify customer needs
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By finding out what kind of products or services customers want, the prices they are willing to pay, where and how they want to buy these goods or service Adam what after sales device they might want
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Satisfy customer needs
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In order to achieve sales of their goods or services - right product, right place, right price
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Maintain customer loyalty
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By building customer relationship
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Gain information about customers
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Meet their changing needs and to establish a long term relationship
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Anticipate changes in customer needs
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Identifying new trends in customer demand or gaps in the market so it can produce products not currently available
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If they meet the roles of marketing they
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- 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 business - target a new market or market segment - enter new markets at home or abroad - develop new product or improve existing products
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Why spending patterns change
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- customer tastes and fashions change - changes in technology - changes in income - ageing populations
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Reason for increase in competitiveness
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- globalization of markets has meant that products are increasingly sold all over the world - transportation improvements, easier to get products - Internet/e-commerce has meant that consumers can buy products from overseas
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Business response to changing spending pattern and increased competition
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-maintaining good customer relationships - keep improving its existing product - bring out new products to keep customers interests - keep costs low to maintain competitiveness
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Mass market
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Where there is a very large number of sales of a product
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Advantages of mass market
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- sales to these markets are very large - benefit from economies of scale - risks spread - opportunities for business growth
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Disadvantages of mass market
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- high levels of competition between firms - high costs of advertising - standardized products or services are produced and so may not meet specific needs of customers
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Niche market
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A small, usually specialized, segment of a much larger market
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Advantages of niche market
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- avoid competition from larger businesses - needs of consumers can be focused on and therefore targeted by the firm
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Disadvantages of niche market
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- limited number of sales due to market being small - specialist in just one product therefor if the product is no longer in demand their business will fail
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Segments help a business to
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- make marketing expenditure cost effective by producing a product which closely meets the needs of these customers - enjoy higher sales and profits for the business, due to cost-effective marketing - identify a market segment which is not having its needs fully met, offer opportunities to increase sales
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Segment marketing
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- socio-economic groups - age - region/location - gender - use of the product - lifestyle
