Class notes
IB BUSINESS MANAGEMENT Unit 4 - Marketing
- Course
- Institution
Business Marketing notes covering the whole UNIT 4 topic in the IB diploma, with bullet points examples and images.
[Show more]
Seller
Follow
victorbonet
Content preview
VICTOR BBUSINESS HL MARKETING UNIT 4
4.1 INTRODUCTION TO MARKETING
People have different needs and wants so marketing exists to address people’s wants and
needs, while trying to make them buy a firm’s products or services
NEEDS: essentials humans need to survive
WANTS: human desires that are unnecessary
Marketing involves:
➔ Identifying needs and wants of customers
➔ Anticipating what customers want in the future
➔ Consider PRICE, PRODUCT, PLACE, PROMOTION
➔ Earning profit
MARKET ORIENTATION (outward looking):
- A firm that is market oriented will look to the market to see what consumers need
and want, meaning that it will produce in order to fulfill needs and wants
ADVANTAGES: Greater flexibility, responds quickly to changes in market because of its use of
market information. Their products will sell as they are made to meet the
needs and wants of customers.
DISADVANTAGES: Market research is needed to see what customers want and this is very
expensive. There is no guarantee that this will work as there is an impact
from the dynamic nature of the external environment
PRODUCT ORIENTATION (inward looking):
- A firm that looks at what they can make instead of making products that they can sell
- They focus on making a product that they hope will be demanded on the market
ADVANTAGES: Quality can be assured. More control over operations
DISADVANTAGES: Needs of the market are generally ignored. High risk strategy with high
failure rate as well as high research and development costs
, VICTOR B
MARKET SHARE
A market share is an organization’s share of total value of sales within a specific industry
- It is calculated as follows: ( Firm’s sales revenue / Industry sales revenue ) x 100
Firms with high market share benefit from their status, price setting abilities are less
threatened by competition.
➔ Example: If Zara establishes a price of 20$ for shirts, other companies will probably
set their prices somewhere near this, in order to be able to compete with it
● How to increase market share:
➢ product development
➢ motivating and training workforce
➢ establishing intellectual property rights
➢ using more efficient channels of distribution
➢ brand promotion
Market Growth: ( Current market size - Original market size / Original Market Size ) x 100
- It refers to the rate at which the size of the market is increasing
Market leadership refers to the position of the business having the largest market share in a
given market.
● BENEFITS:
➔ premium pricing
➔ economies of scale
➔ longer product life cycle
➔ favorable distribution terms
➔ greater publicity and brand exposure and recognition
➔ easier to attract and recruit high qualified employees
Basic social necessities:
- water, food, health, energy, networks, housing, gender equality, social equity,
political voice, peace and justice, income and work, education
PYRAMID OF MASLOW: a model for understanding the motivations for human behavior
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller victorbonet. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.63. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
73091 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now