MARKETING

Sunday, October 24, 2021 5:39 PM

Marketing is all about 'anticipating, identifying and satisfying

customer needs - at a profit'.
It is more than just advertising and promotion.
It involves the following:
• Market research - identifying and anticipating needs;
• Product - developing the product to meet the needs;
• Pricing - setting a price customers are willing to pay;
• Place - making sure the product is available when and
where customers want it;
• Promotion - making sure customers know the product
exists and create interest in it.
• Businesses aim to create a USP (Unique Selling Point)
• Businesses should benefit from first mover advantage.
MARKET CHANGES
• CONSUMER SPENDING PATTERNS
○ The economy
○ Technology
○ Fashion
○ Ageing population
• CHANGE IN SPENDING PATTERN OF AN INDIVIDUAL
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 • CHANGE IN SPENDING PATTERN OF AN INDIVIDUAL
○ Age
○ Life stage
 Single
 Couple
 Empty-nesters
 DINKY (Double Income No Kids Yet)
 NILK (No Income Lots of Kids)
 WOOF (Well Off Older Folk)
○ Income

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The role of marketing

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The role of marketing

• Identify the customer needs

• Satisfy customer needs
• Maintain customer loyalty
• Building customer relationships
○ Customer relationship management (CRM):
using marketing activities to establish successful customer
relationships so that existing customer loyalty can be
maintained.
• COMPETITIVE MARKETS
○ Changes in technology making it easier for firms to enter a
market.
○ Changes in regulation that make it less costly to start a
business
HOW DO CUSTOMERS BENEFIT
○ Lower prices
○ Wide choice
○ Frequent promotions
○ Improvement in the quality
HOW DO BUSINESSES RESPOND
○ Training
○ Improving operations management to speed up delivery times
○ Research to develop new products
○ Launching a promotional campaign to increase sales

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 ○ Using pricing strategy to increase competitiveness
○ Using customer relationship to develop brand loyalty
• Marketing strategy
○ Sell a small number of goods at a higher price. (Niche market)
○ Sell a large number of goods at a lower price. (Mass market)
• Mass marketing (undifferentiated marketing)
○ It is a market with large numbers of customers.
○ Usually sells a standardised product.
○ Prices tend to be lower due to more competition.
○ Large volume of sales allows for economies of scale which
favour larger businesses.
• Niche market (Focused marketing)
○ It is a smaller section of a larger market, usually selling a more
specialised product.
○ Small level of sales.
○ Prices tend to be higher in niche markets.
○ Suits small businesses who can give time to focus on needs of
their customers.
○ Small number of sales can deter large businesses as they are
not as profitable.
○ Small market means limited potential for growth.
○ Specialist market - high risk if demand falls.
• Market Segmentation
Splitting up the market into particular groups of people is called
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 ○ Splitting up the market into particular groups of people is called
segmentation.
1) Geographical segmentation
i. Defence
ii. Nazimabad
iii. Bahadurabad
2) Demographic segmentation
i. Age
ii. Gender
iii. Ethnic group
iv. Income
v. Family characteristics
vi. Education
vii. Occupation
3) Socio demographic segmentation
i. Upper middle class
ii. Middle class
iii. Lower middle class
iv. Skilled working class
v. Working class
vi. Poorest in the society
• BENEFITS OF SEGMENTATION
• Develop products that better match specific customer
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• Develop products that better match specific customer
requirements to increase sales and profits.
• Spot gaps in the market that provide opportunities to increase
sales

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