Market - where buyers and sellers come together
Marketing - techniques that sellers undertake
Brand - distinguish, differentiate, create image. Beneficial in mass market to be able to charge premium
prices
NICHE; small market with specific needs
• Charge premium prices
• Avoid competition
• NOT spreading risk
• Larger firms can easily overrun
MASS; produce in large quantities to mass
• Lower unit cost allowing economies of scale to be exploited
• Higher profit margins
• High advertising costs
• Fierce competition
Market size - value/volume. Calculated by total sales of business, fluctuate
Market share - sales/total sales X 100. Market leader influence strategy of others and objectives
ONLINE RETAILING
Consumer:
• Global fashion
• 24/7 (USP)
• Distance is no object
• Delivery cost
• Alienate markets, elderly
• Quality
Business:
• Save costs
• Global market
• Gather consumer info, be able to use direct marketing
• Website crashes, cause huge losses
• Cannot tap into certain markets
Markets change because of:
• SIZE: grow or shrink affected by PLC
• NATURE: product/service providing, consumer perceptions and trends
• NEW: develop with technology
,How businesses can adapt to change:
• Develop a niche
• Continuous improvement
• Investment
• Market research
• Flexibility
COMPETITION
Business -Under pressure to get customers and can adopt methods such as:
• Lower prices, better quality, advertise and promote, offer extras adding value
• Reduce profit potential
• Make barriers into market
Consumer
• Choice, in absence of competition consumers may be exploited
Risk - action taken by business and outcome unknown Uncertainty - external influences beyond control
Product orientation - focuses on production process, products design, quality and performance
Market orientation - continuously identifies, reviews and analyses consumer needs. More engaged with
effective marketing:
• Respond quickly to change
• Confident in product launch
• Anticipate change from research/trends
• Meet and compete with rivals
Influences of market orientation:
• Nature of product
• Policy decisions
• Views of those in control
• Nature and size of market
• Degree of competition
,THREE purposes of market research:
• Identify and indicate customer wants and needs
• Quantify likely demand
• Insight into consumer behaviour
DATABASE - stores client info, easily searched and found facility
SOCIAL NETWORKING - global reach, cheap and analyses trends
WEBSITE - surveys, cheap and available 24/7
QUALITATIVE RESEARCH - attitudes, beliefs and intentions
QUANTITATIVE RESEARCH - measured and statistical
Primary research:
• Questionnaires
• Posta surveys
• Focus group
• Test marketing
Secondary research:
• Internal data
• External data
SEGMENTATION
Geographic
• Different needs depending on where they live and different wants culturally
Demographic
• Age, gender, income, social class, ethnicity, religion
Psychographic
• Attitudes, opinions and lifestyle, difficult to collect data type
Behavioural
• Loyalty or impulse
BENEFITS
• Meet specific needs
, • Increase revenue
• Avoid wasting resources
• Gain loyalty
Market positioning - conceptions consumers hold can use, benefits of products, USP, attributes of
product, origin or classification
Market map - two dimensional, helpful for individual brands not corporate. Can only compare two
features
Competitive advantage
• Design - differentiation
• Quality - premium price
• Promotion - personalise advertisement
• Customer service - exceed and deliver encouraging sales
• Ethical stance - segment
Differentiation; gain competitive edge
• Flexible pricing - create perceived high quality allowing premium pricing
• Recognition - more appealing, higher sales revenue and less advertising
• Product range - each market
• Brand development - use, overcome competitor
Adding value
• Bundling
• Customer service
• Packaging
• Frequent buyer offers
• Customisation
