1.1.1- Marketing and People
Cards (10)
- Three different types of markets:
- Mass Market
- Niche Market
- Dynamic Market
- Mass Market:
- Market for goods produced on a large scale
- Examples include trainers, cow milk, most foods
- Advantages:
- High sales
- Bulk buy discount
- Brand awareness
- Low unit prices
- Disadvantages:
- High competition
- Low brand loyalty
- Price sensitive customers
- Variety of customers
- Niche Market:
- Small specialised markets for a particular market
- Examples include any free-from items, animal toys specific to an animal, milk alternatives (nuts/oak)
- Advantages:
- High market share
- Loyal customers
- Low competition
- Disadvantages:
- Low market size
- Limited expansion
- Competition in brands
- Premium prices
- Dynamic Market:
- Markets that change and evolve constantly
- Examples include technology, fashion
- Businesses in dynamic markets must constantly change to avoid failure
- Goal is to have revenue higher than costs
- Two types of competition:
- Direct: Same product, different customers
- Indirect: Different product, same customers
- Competition forces you to improve the product or service, improve productivity or efficiency, spend more time on promotion, and lower prices
- Market segmentation in 6 ways:
- Age
- Lifestyle
- Income
- Gender
- Interests
- Hobbies
- Reasons for market segmentation:
- Narrow down the market to advertise to potential buyers
- Lower advertising costs
- Leads to more sales by targeting interested buyers
- Two types of market research:
- Quantitative data: Numbers and graphs
- Qualitative data: Customer interviews
- Examples include loyalty schemes, ICT, surveys
- Market positioning methods:
- Market mapping
- Market mixes
- Market mapping:
- Used to find your position in the market
- Segment the market, find a gap, and position yourself on the market map
- Used for comparing businesses, finding gaps, understanding needs, and entering the market with less competition