Marketing

miércoles,Ê11ÊdeÊeneroÊdeÊ2023 12:47Êp.Êm.

Market can be seen as:

The process to identify, anticipate and satisfy customers neccessities.
the location

To market efficiently you need: the place

a process and the type of product

a philosophy
building relationships with customers

Purposes:

The purpose of a company depends on their type of organization it is important to remark that different
business organizations have different marketing needs.
increase size A charity doesn’t use the same marketing strategies
Identify consumer requirements (or satisfy) as a for-profit.
To make a profit (or money for causes)
Anticipate consumer requirements (trends in modern world
change quick)
Compete in market share (better than competition)

Market
A place where buyers and sellers (consumers/producers) interact

It includes: The 4 P;s for goods

Marketing strategies:

Place How the product is distributed (travel)

Promotion the publicising of the product or activity. (right message)
Product Good or service that the business offers.
Price The amount of money that is charged. (right price)
Marketing and promotion are different terms
marketing is everything regarded to planning out
their marketing strategy.
Promotion is only publicising a product, organization
or activity

To understand the market, you can also use the SWOT and STEEPLE analysis.

If it is a service, the following terms also apply:

Physical evidence Tangible aspects of the service (stakes of the service)

Process How the service is delivered

People Contact of the business with the customer (right service)

Market products are 4Ps

Market services are 7Ps

Product and market orientation

Product orientation: Focuses on the production process. Contact with consumer is

only at a final stage. USP = unique selling point

innovative (patents), USP (differentiation), investment in technology, low competition,

economies of scale,
risk of market, expensive research, more opportunities, branding is narrow, risk of
becoming obsolete

Market orientation: Focuses in the market being effective. Continually indetifies reviews Social enterprises are usually market
and analyzes consumers needs. oriented.
Products are likely to conform needs, Focused production and strategy, quality is
improved, long-term profitability
no unique, competition, market research is important, challenges in market changes, risk
of underestimating market, Quick Adaptation or Agility is needed

Aim of the Market

Mass Marketing: When a business targets the general audience (major part of the market)

Niche Marketing: When a business targets a specific small part of the market (This is
usually exclusive or from a segmented market)

benefits of niche marketing:

customer loyalty, less competition, higher prices,
high unit cost, less reach( less profits), little growth potential
benefits of mass marketing:
less expensive, large market, possible high quantity of sales
high cost in promotion, more competiton in the market

mass markets usually consist above the line promotion

Target Audiences

B2C Business to consumer sales

B2B Business to business sales

Types:

Commercial determines consumer and uses strategies

Social delivers value in order to create a change to benefit society

Social Media the use of Internet to market a product / service

Tools of Market

PEST
SWOT
P Lifecycle
BCG Matrix
Ansoff Matrix

Characteristics

Market Size the total size of all firms

Market Growth the change in % of growth in revenue or volume of a market

Market Share the % of one firm in the total market (by volume or revenue)

Market Leader a firm with the highest market share in a market.

Calculation of market stuff:

Market share = PRODUCT SALES / TOTAL MARKET SALES

this is measured as a percentage. 50% of the market.

T1= year 1
T2 = year 2

Market growth = Market sales T2 - Market sales T1 / total market sales T1

^
It is important to remark that market growth may be seen as an external factor, (STEEPLE),
since business seek to sell in growing markets.

Advantages of being market leader:

Retailers, (resale products), are more likely to stock on products from market leaders.
People are more likely to recognize the products from the market leader (brand
recognition).
They may possess economies of scale which will help dominate market.
They possess price leadership and competitors must react to the actions of the market
leader.
It may experience diseconomies of scale if it gets too big.
Dominance of power may be abused into other markets.
Businesses may keep for themseves higher profits.
Little competition > less incentive to innovate.

MarketingÊPlan
Is a plan of action, details marketing activities of a company. If successful, it should help
in business objectives.

Contains:
marketing objective, marketing budget, segmentation and target market, market research,
marketing strategies, control tools

Marketing Budget

objective based: an estimate of how much is needed to achieve

sales based: a fixed percentage of the firm's sales allocated ot marketing

incremental based: using last year's budget and increasing to cover inflation
Control tools:

Managers are able to use control tools in order to see how sucessful are their current
strategies. Data may be gathered from: sales revenue , profit data, repeated customers,
surveys and focus groups

PROVIDE BASIS FOR NEW OBJECTIVES

Marketing Cycle:

MarketÊResearchÊÊandÊsegments
Market research gathers information about needs, tastes, habits nad preferences to aid
marketing decisions. THIS HELPS BUSINESSES ADAPTTT (CONSIDER A SPECIFIC TARGET
MARKET)

They gather this type of information in form of segments.

Types of market segmentation

geographic: Location (Urban, City, language, local nterests)

behavioral class: How they act in relation to your product

demographic: Gender, social class, age income, ethinicity or religion

psychographic: Lifestyle/personality

Advantages of segmentation:

Identify gaps and opportunities present in the market

Define suitable products for specific groups in order to increase sales.
reduce waste.
diversify and spread risks through different segments.
Positioning maps:

Business may use a positioning map tool in order to identify market segments which
contain opportunities, or to learn their closest competitiors and/or threats.

Differentiation:

How a specific business differs from the competition USP.

types of gaining USP

Product-oriented business being the first to enter a new market.

Price USPS businesses with big economies of scale may offer very low prices that
outmatch the competition
Place Having a convenient location or offering big networks. DISTRIBUTION CHANNEL
People Positive interactions with exceptional customer service
Physical Evidence Layout, physical product, temperature, design, ambient
Process Speed of service, reputation of the business. Avoid high delivery times and so