Theme 1

• What is B2B Marketing?

  Business to Business marketing
• Market Share Calculation

  Sales of a Business/ Total sales in a market x 100
• Market research


  The collection, presentation and analysis of information relating to the marketing and consumption of goods and services
• Database


  An organised collection of data stored electronically with instant access, searching and sorting facilities
• Focus groups


  A number of customers are invited to attend a discussion about a product led by market researchers
• Quantitative research


  The collection of data that can be quantified; the collection of statistical data
• Product orientation


  An approach to business which places the emphasis upon the production process and the product itself
• Primary research or field research


  The gathering of new information which does not already exist
• Market orientation


  An approach to business which places the needs of consumers at the centre of the decision-making process
• Qualitative research


  The collection of data about attitudes, beliefs and intentions
• Sample


  A small group of people who must represent a proportion of a total market when carrying out market research
• Socio-economic groups


  Division of people according to social class
• Secondary Market Research


  The collection of data that is already in existence
• Benefits of Market Orientation

  • Can respond faster to changes in the market
  • Can be more confident the launch of a new product will go well
  • It will be more able to anticipate market changes
• Methods of Primary Market Research

  • Questionnaires
  • Focus groups
  • Test marketing
  • Observation
• Methods of Secondary Market Research

  Internal data:

  • Existing market reports
  • sales figures and annual reports
  • accounts published by a business

  External data:

  • Government publications
  • Information from competitors
  • Websites
• Supply


  The amount of a product that suppliers make available to a market
• Demand


  The quantity of a product bought at a given price over a period of time
• Design Mix


  The cost, function and aesthetics that have to be considered when designing a product
• Design for waste minimisation


  Designing products that last a lifetime, Designed to be smaller and lighter, no disposable products
• Design for recycling


  Using recycled materials, or making products recyclable
• Benefits of designing products to changes in social trends

  • Lower costs and higher profits
  • products are likely to be popular
  • Can be used as a USP
• Above the line promotion


  Placing adverts using the media
• Below the line promotion 


  Any promotion that isn't using the media - Sponsorship, Merchandising.
• What are the benefits of Online Retailing?

  • Reduced costs
  • Reaching more customers globally
  • Open 24/7
• How can markets change?

  • The size of the market
  • The Nature of the market
  • New markets can appear
• How can markets grow?

  • Economic growth
  • Innovation
  • Social changes
  • Changes in legislation
• Businesses can adapt to change through:

  • Market Research
  • Investment
  • Continuous Improvement
• Competition in the market can make businesses lower prices, offer higher quality products and advertise more to attract customers
• Factors of Uncertainty

  • New competitors
  • Natural disasters
  • Change in consumer tastes
  • A Recession
• Qualitative data can be used to identify and anticipate customer needs and wants
• Quantitative data can be used to quantify likely demand for a data
• Limitations of Market Research

  • Unpredictable human nature
  • Sampling and Bias - Don't represent everyone
  • People may not be honest in Questionnaires or Focus Groups
• Market Segmentation 


  When a business splits a market into different segments, based on age, income or gender
• A competitive advantage of a product or service can be gained through:

  • Product Design
  • Product Quality
  • Promotion
  • Ethical Stance
• The Purpose of product differentiation may be for

  • Flexible pricing
  • Recognition
  • Extend product range
  • Overcoming competition
  • Brand Development
• Adding Value can be done by:

  • Packaging
  • Customisation
  • Frequent Buyer Offers
• Factors Influencing Demand: PASSSIFICC

  • Population
  • Advertising
  • Substitutes
  • Seasonality
  • Shocks
  • Income
  • Fashion
  • Interest Rates
  • Competition
  • Complements
• Factors Influencing Supply: CCENTS

  • Competitors
  • Cost of Production
  • External Shocks
  • New Technology
  • Taxes
  • Subsidies
• Price Elasticity of Demand


  Measures the responsiveness of demand to a change in price