UNIT 2 AOS 2

• Marketing - Provides the link between producers and providers of goods and services, and the consumers of these.
• market oriented approach - A strategy that focuses on the needs and wants of consumers and develops products to meet their needs.
• Brands - A powerful business asset that is a maker’s mark. It creates and brings with it awareness, desirability and power.
• customer base - The group of consumers who repeatedly purchase goods or services of a business and are the main source of revenue for a business.
• marketing - Business produces, sells and promotes products to satisfy customers needs
• Technology is the practical application of science to achieve commercial or industrial objectives.
• legislation (macro) - Laws and regulatory bodies (ASIC) protect consumers from being misled by statements made by businesses when advertising their products or services
• Corporate/business culture -the shared values and beliefs within a business
• Market research - Market research is the systematic approach used to assist in making decisions about consumers and the marketplace.
• define problem and establish research objectives - identify a problem the business is targeting which generally relates to potential demand for a product or service or business competition.
• Exploratory research involves collecting information in an unstructured and informal manner, such as reading a magazine or article, using a particular product or service and gaining an impression and feeling about the product or service.
• Descriptive research incorporates such things as consumers’ attitudes, intentions and behaviour. It can be related to the ‘image’ of the product or service being researched. Information can be gathered through observation of consumers’ behaviour.
• Causal research aims to find the cause and effect of certain actions. One variable, such as the price of a product, could be changed to study what impact this has on the volume of product sales.
• Primary data - Information gathered first-hand by the business.
• Secondary data - Information that has been previously collected.
• A questionnaire is a standard form of survey used to gather data.
• Observation is a process that recognises and takes note of people’s actions and behaviour, rather than directly asking them for information.
• Focus groups have a group size is usually between six and 12 participants and is conducted in an informal setting
• population - all customers that purchase a business' products or services
• sample - a proportion of the customers of a business which are chosen to take part in primary research
• Collect & analyse data - The business collects information e.g. from focus group and analyses data to form conclusions.
• Prepare and present final report - The report includes the methodology used to collect data and graphs, charts and graphics to show patterns and trends.
• Market - a market comprises customers and potential customers with similar needs and desires who may purchase a product or service through the exchange of money or other things of value.
• types of markets:

  consumer

  business

  global

  not-for-profit and government
• Consumer market: Involves selling mass consumer goods, such as soft drinks, food and household products to customers.
• Business market: Where the purchasers are other business personnel who are often well-trained and well-informed professional buyers.
• Global market: Businesses that decide to export their product or service.
• Not-for-profit and government market: Organisations that are formed to provide assistance to or infrastructure for society
• Psychological Factors - What is in consumers mind before, during and after purchasing.

  Situational Factors - When, where, how consumers make purchases
• Niche market: a subset of a larger market with its own particular needs or preference. For example: a café that only sells raw vegan food.
• Mass marketing: a marketing strategy that seeks to attract the attention of all market segments through the use of mass distribution and mass media.
• Target market: the customers at which a product or service is primarily aimed at.
• product - The result of the production process, that can be either a good or service. OR Anything that can be offered to a market to satisfy a need or a want
• A brand is a name, term, symbol or design that is designed to distinguish one businesses product from competitors’ products.
• price - The amount for which a product or service is sold
• place - The distribution channels used to market products to customers.
• Direct Distribution - A manufacturer sells a product directly to a customer.
• Indirect Distribution - A manufacturer sells their product to a wholesaler and/or retailer who then sells to a customer.
• promotion:

  • The business communicating with customers through advertising, branding and sales promotion to inform and persuade customers.
• advertising - mass communication that informs buyers about a product