Market management chains if analysis

• a. Define the term market segmentation

  Dicing market into sub divisions

  E.g demographics, behavioural

  To target product to specific group
• State two benefits of market orientation for a business.

  enhance customer satisfaction by aligning products with customer needs

  Increase competitiveness through responsiveness to market trends
• Identify two methods a business could use to differentiate its product.

  Offer better quality or unique features

  Distinct branding
• a. Analyse the possible reasons why the product has failed to gain market share.

  Misaligned with customer needs due to inaccuract market research

  Pricing strategy not competitive makes product seem unattractive

  Insufficient promotion ineffective promotion channel result in lower brand awareness
• . Evaluate the likely impact of changing pricing strategy on the business’s competitiveness

  Changing pricing strategies enhance competition

  Increase volume

  Lowering price might erode profit

  Or bad quality, adjust brand perception

  premium strategy Niche segmentation seeking exclusivity

  Efficient depending on price elasticity of target market
• . To what extent could increasing its online presence help the business improve its market position?

  Enhancing online presence

  Improve market position

  Increase brand visibility and engagement

  Enable e commerce opportunities

  Success depends on quality of online content

  Constitent engagment competitions online activity must be considered
• “Understanding customer needs is the most important aspect of successful market management.”

  To what extent do you agree with this statement

  Understanding customer needs crucial for success

  Informs product development, pricing, promotion

  Increases customer statisfaction, loyalty and competitive advantage

  Innocation, operational efficency and effective supply chain also play a crusrole

  E.g understanding needs but poor quality

  Interstate with other business function s to make it a succes
• b. Discuss the importance of market research when launching a new product in a competitive market.

  Market research vital in compete market

  Insight into customer preferences, trends and customer staisfactoon

  Guides product designto meet customer expectations

  Pricing strategy and effective target audience

  Identify gaps and reduce risk of failure

  Could lead to uninformed decisions and misalignment
• . Serving a niche market

  A business targeting a niche market focuses on a specific customer segment

  → which allows the firm to tailor products more closely to customer needs

  → increasing customer satisfaction and loyalty

  → leading to repeat purchases and a strong brand reputation.
• Operating in a niche market often means fewer direct competitors

  → allowing the business to charge premium prices

  → which increases profit margins

  → and gives the firm more financial resources for reinvestment or marketing.

  2. Less direct competition
• 3. Specialised branding

  A niche market business can create a strong, specialised brand

  → which builds trust and expertise in the market

  → helping the business differentiate from larger, mass-market firms

  → increasing customer retention and word-of-mouth referrals.
• 4. Higher risk

  Niche markets often rely on a smaller customer base→ which makes the business more vulnerable to changes in customer preferences or economic conditions→ potentially leading to a sharp fall in revenue→ which can threaten survival if not managed carefully.
• . Barriers to entry

  Niche businesses can develop strong knowledge or customer relationships

  → which creates barriers to entry for new competitors

  → helping protect market share

  → and providing more pricing power in the long run.
• Marketing Objectives

  • Increase sales/revenue
  • Improve market share
  • Enhance brand awareness
  • Enter new markets
  • Customer retention and loyalty

  Influences:

  • Corporate objectives, market conditions, competition, internal resources
• 2. Market Research

  rimary Research: First-hand data (e.g. surveys, interviews) – more accurate, but costly

  Secondary Research: Existing data (e.g. reports, databases) – cheaper, but possibly outdated

  Quantitative vs. Qualitative

  Sampling methods: Random, stratified, quota
• Market Analysis

  • Market size: Total sales value or volume
  • Market growth: % increase in size over time
  • Market share: (Firm’s sales / Total market sales) × 100
  • Trends & segmentation: Demographic, geographic, psychographic, behavioural
• . Marketing Strategies

  Mass Marketing: Targeting large markets with one product (economies of scale)

  Niche Marketing: Focusing on a specific segment (less competition, more loyalty)

  Product Differentiation vs. Low-cost strategies

  Ansoff Matrix:

  • Market Penetration
  • Product Development
  • Market Development
  • Diversification
• he Marketing Mix (7Ps

  Product: Design, features, USP, product life cycle

  Price: Cost-plus, penetration, skimming, dynamic, psychological

  Place: Distribution channels (direct, retailers, online)

  Promotion: Advertising, PR, sales promotions, sponsorship, digital marketing

  People: Staff-customer interaction

  Process: Service delivery, convenience

  Physical Evidence: Tangible proof of service (e.g. website, premises)
• Digital Marketing and E-commerce

  Social media, email, SEO, influencer marketing

  Benefits: Wider reach, cost-effective, targeted advertising

  E-commerce: Selling directly online – lower overheads, global access
• . Marketing Data and Decision-Making

  • Using sales data, market trends, and customer feedback
  • Data helps set targets, monitor progress, and adapt strategies
  • Limitations: Incomplete data, biases, external changes
• Balancing 4ps

  Product - meet customer needs will drive interest and sales

  Price - right price attract customers while ensuring profitability

  Place- proper distribution channels endire product is available at right place at right time

  Promotion- ensures potential customers are aware of new products

  Ensures receive success in market
• Adjust marketing mix to respond to changes in consumer preference

  Product-modify or introduce new products to meet changing customer tastes

  Price - change pricing strategy to appeal to doffernt customer segments e.g recessions lower prices

  Place- shift distribution channels suck as expand online to keep up with customer shopping online

  Promition- alter it to meet customer interests e.g focus on social media as customers engage more on social media
• evaluate role of market research in decision making

  sees what customers want, guide development of products

  Seating prices- see how much customers are willing to pay for a product

  Minimise risk- reduces uncertainty helps business avoid making decisions based on assumption
• Niche market

  Adv- less competition

  Higher customer loyalty

  Specialisation

  Dis- limited growth

  Higher market cost

  Vulnerability to change in markets
• matket segmnatation

  Behavioural- based on cutsimer behaviour such as purchasing patterns

  Psychographic- lifestyle , interests and personality traigs

  Demographic - age, gender, income ,education

  Geographical - based on location
• Brand image

  How customers actully perceive the brand based on expenses and opinions
• Brand identity

  How perceived by customers like logo, colour scheme and tome of communication
• Role of branding in creating customer loyalty

  Consistency - consistent branding build trust and reliability

  Differentiation - unique brand identity helps customer identify with a business making it preferred choice

  Perceived value- during brands often associated with higher quality enhances customer satisfaction and encourages loyalty
• How to build strong brand in competitive market

  Developing unique brand identity - crafting memorable logo

  Developing quality - product or service consistent mwet customer expectations

  Investing- consistently promoting to keep on top of mind with customers
• cost plus pricing

  Cost-plus pricing is a pricing strategy where a company adds a markup to the total cost of producing a product or service to determine the selling price.
• advantage and distance of cost plus pricing

  adv: easy to calculate, guaranteed a certain level of profit

  dos: doesn’t consider competition

  customers may not be willing to pay the price
• Above the line promotion

  Refers to mass media advertising that targets broad audience
• Below the line promotion

  Refers to direct marketing efforts to target specific groups or individuals
• role of social media in a business promotional strategy

  Wider audience reach,targeting allows business to reach specific customers based on demographic and behaviours, cost effective
• How peomotional campaigns impact sales and brand image

  Adv: increased sales, brand awareness,

  Neg: short term focus, heavy reliance can harm the perceived value of the brand making it seem cheap and low quality
• How does digital marketing differ from traditional

  Digital - using the internet

  Traditional - conventional methods such as tv, ads ,radio
• adv and dis of digital marketing

  Adv: cost effective, precise targeting, measurably, engagement

  Dis: time consuming, competition, negative feedback
• Impact of digital marketing on customer engaent and sales

  Adv: increased engagement, boosted sales

  Dis: overload with digital ads may become disengaged, data privacy concern
• Business use product life cycle to inform marketing strategy

  Introduction: focus on creating awareness

  Growth: focus on differneriting product, improved customer service

  Maturity: focus on sustaining market share offering promotions or variations

  Decline: reduce costs, find niche market where demand remains
• Challenges business may face during decline stage of product life cycle

  Decrease. Sales: cost reduction

  Increased competition : product diversification

  Brand image impact: product withdrawl focus on more profitable products