Business igcse (0450)
Section 3 Chapter 10 Marketing
Þ Most businesses, unless they are very small, will have a
marketing department
Þ In a large public limited, the marketing director will have
people responsible for market research, promotion,
distribution, pricing, and sales
Marketing director
Sales market research promotion distribution
Advertising. promotion
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Þ If the marketing department is successful, it can,
Þ Raise customer awareness
Þ Increase sales revenue and profitability
Þ Increase or maintain market share
Þ Maintain or improve image
Þ Target a new market or market segment
Þ Develop new products or improve existing ones
Why consumer spending patterns change.
Þ Consumer tastes and fashions change - Different styles
of clothes to those they lost wore
, Þ Changes in technology - with new products being
developed, old products don't have as high sales.
Þ Changes in income.
Þ Aging population.
Why some markets are more competitive.
Þ Globalization of markets has meant that their products are
increasingly sold all over the world.
Þ Transportation improvements have meant that it is easier
and cheaper to transport products from one part of the
world to another.
How can businesses respond to changing spending patterns
and increased competition?
Þ Will have to take action to maintain its level of sales and
market share whenever there are changes to spending
patterns or increasing competition,
Þ maintain good customer relationships,
Þ keep improving its existing product.
Þ Bring out new products to keep customers interests.
Þ Keep costs low to maintain competitiveness.
Markets
A market for particular good or service is made up of the total
number of customer and potential customers, as well as sellers.
Mass marketing
Þ The prices of devising products with mass appeal and
promoting them to all types of customers.
Disadvantages:
high levels of competition.
High costs of advertising and promotion.
, Benefits from
economies of scale Mass marketing
Opportunities for
growth Leads to
Low costs and high High Sales
profits
Which leads to
Which leads to
Mass production
Niche Marketing
Þ Is the process of tailoring a product to a particular type of
customer and market segment
Þ A specialized product or service isn't designed to meet
the distinctive needs of the consumer.
Advantages
Þ A higher price can be charged for highly differentiated
products which are valued by the target market
Þ A loyal customer base can be established
Þ May grow to become a mass market
Disadvantages
Þ The market may remain small
Þ Dependence on one product
Þ Successful niche firms may attract larger firms which will
take market share
