revision

• What is the definition of marketing?

  Marketing is identifying customers’ needs and satisfying them profitably.
• What are the main components involved in marketing?

  • Identifying customers’ needs and wants
  • Designing products or services that meet those needs
  • Understanding threats from competitors
  • Informing customers about products
  • Charging the right price
  • Persuading customers to buy
  • Making products available in the right location
• What does product orientation focus on?

  Product orientation focuses on making a quality product and then trying to find customers to buy it.
• What does market orientation focus on?

  Market orientation focuses on finding out what the customer wants through market research.
• What are the three things involved in satisfying customers' needs?

  1. Adding value
  2. Unique selling point (USP)
  3. First mover advantage
• How is value added through marketing calculated?

  Value added is calculated as unit cost minus selling price.
• What is a unique selling point (USP)?

  A USP is a feature of a product that is superior to the competition.
• What is first mover advantage?

  First mover advantage is the advantage gained by being first into a market.
• What are some ways to improve customer loyalty?

  • Communicate with customers (e.g., newsletters, social media)
  • Offer good quality service
  • Train staff for quality service
  • Ask for feedback (e.g., surveys)
  • Resolve complaints quickly
  • Offer rewards/loyalty programs
  • Provide extra services (e.g., online/mobile app)
• How does the economy affect customer spending patterns?

  In a boom, spending increases; in a recession, spending decreases for most goods.
• What is customer loyalty?

  Customer loyalty is when a customer buys the same product from the same company repeatedly.
• What factors affect individuals' consumption?

  • Income
  • Age
  • Lifestyle
• How do firms respond to changing spending patterns?

  • Invest in adapting or developing new products
  • Switch production to meet new tastes
  • Change suppliers if needed
  • Accept possible higher costs
  • Experience short-term lower profits
  • Change is necessary to avoid falling sales revenue
• What might increase competition within a market?

  • Changes in technology
  • Changes in government regulation
  • Fall in the number of customers
• How can businesses respond to increased competition?

  • Keep costs down
  • Use cheaper suppliers (with risks)
  • Government quotas/tariffs can help
  • Offer extra post-sales services
  • Additional promotional campaigns
• What are the advantages of greater competition for consumers?

  • Lower prices
  • Greater choice
  • Better quality
• What is niche marketing?

  Niche marketing is a small, specialized segment of a larger market.
• What are the characteristics of a niche market?

  • Premium prices
  • Small sales volume
  • Highly differentiated products
  • High skills base
• What are the advantages of operating in a niche market?

  • Less competition
  • Clear focus on target customers
  • Builds specialist skills and knowledge
  • Higher prices improve profit margins
  • More customer loyalty
• What are the disadvantages of operating in a niche market?

  • Lack of economies of scale
  • Risk of over-dependence on a single product
  • Likely to attract competition
  • Vulnerable to market changes
• What is mass marketing?

  Mass marketing aims at selling the same product to the whole market.
• What are the characteristics of a mass market?

  • Low prices
  • Undifferentiated products
  • Wide range of sales outlets
  • Extensive promotion
  • High sales volume
• What are the advantages of operating in a mass market?

  • Less risk due to larger consumer base
  • Lower average costs from economies of scale
• What are the disadvantages of operating in a mass market?

  • Heavy capital investment required
  • Need to ensure sufficient demand exists
  • Goods/services may not sell well outside original market
• What is market segmentation?

  Market segmentation is dividing the whole market into segments by consumer characteristics.
• What is market share?

  Market share is the percentage of total market sales held by one brand or business.
• How are markets segmented?

  1. Geographic Segmentation
  2. Demographic Segmentation
  3. Socio-demographic Segmentation
• What are the benefits of segmentation to businesses?

  • Target marketing campaigns accurately
  • Identify gaps in the market
  • Differentiate products from competitors
• What are the disadvantages of segmentation to businesses?

  • Decreased potential market base
  • Increased risk due to reliance on one market
• What is a marketing orientated business?

  A marketing orientated business focuses on finding out customer needs and designing products to meet those needs.
• What is market research?

  Market research is the process of collecting and interpreting data about customers and competitors.
• What are the advantages of effective market research?

  • Identify customer needs and wants
  • Determine best price for a product
  • Assess competition in the market
  • Spot gaps for new products/services
  • Design marketing mix for different segments
  • Respond quickly to changes in needs
  • Reduce risk in launching new products
• What do firms investigate using market research?

  • Customers’ preferences
  • Competition
  • Market segments
  • Market size and trends
• What are the two types of data generated by market research?

  1. Quantitative data
  2. Qualitative data
• What is quantitative data?

  Quantitative data is based on large samples and is statistically valid.
• What is qualitative data?

  Qualitative data is based on opinions from small groups and aims to understand customer behavior.
• What is secondary research?

  Secondary research is the process of gathering data that has already been collected or published.
• What are types of secondary data?

  • Sales records
  • Government data
  • Online sources
  • Commercial data
• What are the advantages of secondary research?

  • Cost-effective and often free
  • Provides data about the entire market
  • Easy access for small firms
  • Saves time compared to gathering data themselves
• What are the disadvantages of secondary research?

  • Reliability may vary by source
  • Specificity may not meet firm’s needs
  • Large amounts of data can be overwhelming