marketing

• what is marketing ?

  The process of identifying, anticipating (predicting) and satisfying customer requirements, profitably.
• what activities does marketing involve ?

  Researching the market – this involves gathering and analysing information on consumers, the marketplace and competition.

  Analysing the market – examining the market conditions to identify new opportunities.

  Setting of marketing goals – these must be linked to the business’s overall objectives.

  Developing a marketing strategy – this involves constructing a plan which details how the marketing objectives can be achieved. This strategy should be based around the use of the marketing mix, the 4Ps of marketing: product, price, promotion, place.
• why is marketing activities important ?

  All these activities are aimed at providing goods and services which

  will satisfy the customer and at making a profit for the business. The better the marketing, the more desirable (or desired) the product or service which is provided for the customer and the more profits the business should be able to make.
• what is market orientation

  When a business is market-orientated, the business bases its marketing mix on its perception of what the market wants.
• key features of market oriented ?

  • consumers are central to a business's decision making. There is a strong understanding of their needs
  • being able to respond quickly to changes in the market
  • in a strong position to meet the challenges of new competitors entering the market
  • more able to anticipate market changes
  • more confident that the launch of new product will be a success
• advantages of market oriented approach (1)

  • Flexible to changes in taste and fashion
  • Decisions based on effective market research
  • New products designed to meet consumer needs
  • Customer focus means the business will continue to improve and upgrade products/respond to changes
  • Customers get greater satisfaction which leads to repeat purchases and brand loyalty
• advantages of market oriented approach (2)

  • Loyal customers buy more frequently and in greater volume
  • Loyal customers are less susceptible to competition and are more willing to pay higher prices
  • Long term profitability means that a business will remain viable and successful
  • Familiarity with the market allows a business to build emotional impact into their advertisements i.e. to market more effectively
• disadvantage to a market oriented approach ?

  • high cost of market research to understand the market;
  • constant internal change as the needs of the market are met;
  • unpredictability of the future, especially from the point of view of staff;
  • abandonment of earlier product investment.
• what is a product oriented approach ?

  When a business is product-orientated, it will base its products or services on what it perceives as its internal strengths.
• key features of product oriented approach ?

  • Emphasis on developing a technically sound product, producing it and selling it.
  • Contact with the consumer largely at the final stage
  • An approach that is more likely to succeed when there is little or no competition
  • Fashion and tastes are not accounted for in product mix
• advantages of product oriented approach ?

  • Increased economies of scale
  • Focus on product development
  • Focus on quality
  • Easier to apply production management methods
• disadvantages of product oriented ?

  • Changes in market structure will not be responded to;
  • Fashion and taste are not accounted for in the product mix.
• identify the difference between a product orientation and a market orientation ?

  Product orientation is when a business bases is marketing mix of the business strengths , market orientation is when a business bases its marketing mix based on the perception of what market want using market research and customer opinions
• what is asset led marketing ?

  Asset-let marketing is when marketing decisions are based on the needs of the consumer and the strengths of the business.
• advantages of asset led

  • Strengths linked to market needs. This could be a reputable brand extending their product range e.g. the makers of Marmite have produced marmite flavoured rice cakes
  • The business will be aware of its weaknesses and will not produce products that it does not believe it can do well just because the market has requested them
  • The cost of market research may be less
  • Likelihood of success likely to be greater
• what is the definition of the marketing mix

  The marketing mix is a strategic framework that encompasses the key elements of marketing, commonly known as the 4 Ps: product, price, place, and promotion. It represents the set of marketing tools that a firm uses to pursue its marketing objectives in the target market