BUSINESS 1.1

• Marketing mix = 4Ps - Product, Price, Promotion, Place
• marketing objective = targets a market must achieve in a specific time period
• marketing strategy = medium to LT plan for meeting objectives
• mass market = targets as many customers as possible across demographics
• ADV of mass market:

  • large market size = higher sales revenue and brand awareness
  • EOS as produce at lower AC = lower prices
• DIS of mass market:

  • lower profit margins
  • less variety
  • vulnerable to changes in demand
• niche market = targets a specific group of customers to their needs and wants
• ADV of niche market:

  • can easily adapt product of consumer needs = higher customer loyalty = charge premium prices = increase profit margins
  • fewer competition
• DIS of niche markets:

  • smaller market size so less profit and growth development = low EOS
  • high demand may cause larger firms into the market
• market share calculation = total sales of firm/total market sales x 100
• how a market is dynamic and changes:

  • changes in consumer tastes
  • changes in demographics
  • amount of competition
  • changes in legislation
• ADAPTING TO CHANGE:

  • innovation
  • invest in new technology
  • market research to meet needs
• ADV of online Retailing:

  • access to larger customer base
  • 24/7
  • cheaper

  DIS of online retailing:

  • higher cost for website maintenance
  • increase competition
  • decrease in customer services
• product orientation = focus on the product, not the customer, and the business is driven by the product
• market orientation = a business strategy that focuses on the needs of customers.
• ADV of market positioning:

  • spot gaps in market
  • encourages mkt research
  • keep up with trends and preferences
• DIS of market positioning:

  • gap doesn’t always mean demand
  • no guarantee of sucess
• added value = selling price - cost of raw materials
• adding value = making product more valuable than its competitors, can be achieved by improving quality, reducing costs, improving customer service
• differentiation = offering unique features or benefits compared to competition