MARKETING IMPORTANCE

• What is a market?

  a set of arrangements that allows buyers and sellers to communicate and trade in goods and services
• What is marketing?

  identifying customer needs and satisfying them profitably
• What does it mean to satisfy customer needs and wants?

  to produce goods and offer services that customers are prepared to buy
• What should the business be doing to build relationships?

  • say thank you
  • know your customer
  • connect regularly
  • build trust
  • take complaints seriously
  • personalise communication
• What are examples of customer loyalty schemes?

  • reward cards
  • free gifts
  • charitable donations
  • partnership deals
• What does it mean to be product orientated?

  when a business focuses on the design and manufacture of the product itself rather than the needs of customers
• What does it mean to be market orientated?

  when a business focuses on the needs of the customers when developing products
• What is the formula for market share?

  market share =

  total product or business sales/total shares in whole market x100
• What is market share?

  a proportion of sales in a total market that a business or product enjoys
• What is market analysis?

  a quantitative and qualitative assessment of the market
• What are mass markets?

  very large markets in which products with mass appeal are marketed
• What is a niche market?

  a smaller market, usually within a large market or industry
• What are some reasons why markets may change?

  • customer needs
  • changing customer/consumer spending patterns
  • increased competition
  • competition puts businesses under pressure
• Why may the needs of customers change?

  • their incomes change so they choose different products
  • they become better educated and more aware of what they can buy to mee their needs long term
  • fashion changes overtime
• Why may a business change customer/consumer spending patterns?

  to keep up with businesses in the same/different markets as them. They do this by carrying out their own research
• What would a business do to encourage customers to buy their products compared to rival products?

  • lower prices
  • make products appear different to rivals products
  • offer better quality products
  • use more powerful or attractive advertising or promotions
  • offer 'extras' like high quality customer service