Summary
Summary theme 1 - 1.1 Meeting customer needs
- Institution
- PEARSON (PEARSON)
Has a detailed summary of the first section in the Alevel business edexcel specification with images.
[Show more]
Content preview
Varnika RAMJEE1.1 Meeting customer needs
1.1.1 Introduction to marketing
Marketing can be defined as the department tasked with targeting the right product at the right
target market using the right combination of price, promotion and place
- Businesses need to make marketing objectives that are quantifiable and measurable to make
decision making more focused
Characteristics of effecting marketing
- Identifying the target market
- Segment markets
- Coherent brand image through coherent a marketing mix
Short-termist marketing = ineffective marketing:
- When a firm pursues strategies that could boost profit but only in the short run
- E.g. high prices designed to exploit consumer loyalty or a dominant market position
- Normally happens with firms where there is little competition
1.1.2. The market
- the aim of marketing is to know and understand the customer so well that the product or service
fits them and sells itself
Mass marketing – the largest part of the market where there are many similar products
offered by competitors and customers are less specific about their needs and wants of that
product. E.g. walkers’ crisps
Key features:
- Associated with a higher production output and capacity and potential for economies of
scale
- Success is usually associated with low-cost (highly efficient) operation or market leading
brands
The aim of mass marketing:
- Create products for universal appeal
- Aim for leadership of the largest market segment
- Build strong brands that are associated with the underlying product
- Exploit economies of scale to earn high profits
Benefits of successful mass marketing
- Wider potential customer base
- Lower risk as resources focused on one large marker
- Low unit costs from economies of scale
- Market research costs are relatively low
, Varnika RAMJEE
Niche marketing – where a business targets a smaller segment of a larger market where
customers have specific needs and wants. E.g. vegan pizza
- An advantage is less competitors which means a higher chance of success
Why target a niche market segment?
Advantages:
- Less competition
- Clear focus, target particular customers
- Builds up specialist skills and knowledge
- Can often charge a higher price
- Profit margins are often higher
- Customers tend to be more loyal
Disadvantages:
- Lack of economies scale
- Risk of over dependence on a single product or market
- Likely to attract competition if successful
- Vulnerable to market changes
Market size – indicates the potential sales for a firm and is usually measured in terms of both volume
(units) and value (sales). The size of the individual segments within the overall market can also be
measured.
Market growth – a key indicator for existing and potential market entrants. Growth rate can be
calculated using either value, e.g. market sales, volume, units sold.
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 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 varnikaramjee. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £4.09. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
51662 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 15 years now