Chapter 1 Marketing
What is marketing?
- The management process of identifying, anticipating trends, satisfying customer
needs to gain profit
Mass market
- What most people want (necessities)
- Build strong brands (tupperware)
- Goods produced on a larger scale (large market)
Niche market
- People with specific wants and needs
- A small subset of a large market
- Vegan goods, luxury brands etc
Market growth
- (difference/original) x100%
Market share
- Percentage of a market that belongs to a business
- Market Capitalisation - money a business gets through selling shares
Dynamic market
- Market that is always changing
What makes a market change
- Technology
- Innovation
- Entrants
- Globalisation
- Tastes and preferences
E-commerce
- Transactions conducted electronically
E-tailing
- Purchase goods online
- Retailing online
- Wider audience
- Better and easier to track data
Product innovation
- Launching new products to the market
,Process innovation
- Finding better of more efficient ways to produce or better service
First mover advantage
- High prices and profitability
- Added value (more profit by the value of the innovator)
- Build early customer loyalty
Adapting to market change (a shift or change in which a market or economy in the way it
operates)
- Flexibility
- A niche that can be focused
Ways competition affects the market
- Battle for market share
- Pricing wars to set the market
- Battle for competitive advantage with product differentiation
Risk is possibility of things going wrong, uncertainty is uncontrollable and unpredictable
Chapter 2 Market Research
Market research
- Research service
- Market segmentation
- Customer service
- Sales forecasting
- Budgeting
- Cash flow forecasting
Product orientation
- Bring out something that a business is good at
- Focus on creating and offering high quality goods and services
Market orientation
- Responds to what the customer wants or need
- Demanding customers
- Dynamic markets (people want new things)
The importance of market research
- Customers are different (identify what most people can agree on)
- Amount that they are willing to pay
- Quantities they buy
- Media they consume
,All these can be used to plan the right approach to launch a product to increase the chances
of success
Primary research
- A firm conducts its own research
- Qualitative - opinion based (hard to narrow down)
- Quantitative - result based
Secondary research
- A firm conducts research by compiling research done by others
- Cheap and easy to access
Sampling
- Take a small subset of people and hope what they say represents the entire market
- More efficient
- Would go to waste if it doesn't represent the market
- Difficult with dynamic market
- Risk of bias
It during research (data mining)
- Relies on existing data
- Quickly analyse a huge amount of data that can reduce the need of sampling
Market segmentation
- Ways to split up the market
- Lifestyle
- Age
- Gender
- Religion
- Location
- Use of product
- Best market segments depend on:
- The size, and nature of the market
- The firm’s reputation
- Objective
, Chapter 3 market positioning
Market positioning
- Choose a segment to target
- Value (what you gain for doing business with a firm)
- Market position is defined by customers (where a firm stands in the mind of the
customer)
Market positioning map - tool for business to see where they are relative to a market
Taking care of a market cap
- Spots gaps in the market
- Analysing competitors
Possible positioning strategies
- Offer more for less
- Offer more for more
- Offer more for the same
- Offer less for much less
Product differentiation
- What sets a firm’s product apart from others
- Protect the brand
- Add more value
Ways to add value
- Tangible
- Add more features and benefits
- Intangible
- Operate efficiently
- Decrease cost or increase the price (or just do both lol)
Benefits of adding value
- Higher price
- Creates a difference
What is marketing?
- The management process of identifying, anticipating trends, satisfying customer
needs to gain profit
Mass market
- What most people want (necessities)
- Build strong brands (tupperware)
- Goods produced on a larger scale (large market)
Niche market
- People with specific wants and needs
- A small subset of a large market
- Vegan goods, luxury brands etc
Market growth
- (difference/original) x100%
Market share
- Percentage of a market that belongs to a business
- Market Capitalisation - money a business gets through selling shares
Dynamic market
- Market that is always changing
What makes a market change
- Technology
- Innovation
- Entrants
- Globalisation
- Tastes and preferences
E-commerce
- Transactions conducted electronically
E-tailing
- Purchase goods online
- Retailing online
- Wider audience
- Better and easier to track data
Product innovation
- Launching new products to the market
,Process innovation
- Finding better of more efficient ways to produce or better service
First mover advantage
- High prices and profitability
- Added value (more profit by the value of the innovator)
- Build early customer loyalty
Adapting to market change (a shift or change in which a market or economy in the way it
operates)
- Flexibility
- A niche that can be focused
Ways competition affects the market
- Battle for market share
- Pricing wars to set the market
- Battle for competitive advantage with product differentiation
Risk is possibility of things going wrong, uncertainty is uncontrollable and unpredictable
Chapter 2 Market Research
Market research
- Research service
- Market segmentation
- Customer service
- Sales forecasting
- Budgeting
- Cash flow forecasting
Product orientation
- Bring out something that a business is good at
- Focus on creating and offering high quality goods and services
Market orientation
- Responds to what the customer wants or need
- Demanding customers
- Dynamic markets (people want new things)
The importance of market research
- Customers are different (identify what most people can agree on)
- Amount that they are willing to pay
- Quantities they buy
- Media they consume
,All these can be used to plan the right approach to launch a product to increase the chances
of success
Primary research
- A firm conducts its own research
- Qualitative - opinion based (hard to narrow down)
- Quantitative - result based
Secondary research
- A firm conducts research by compiling research done by others
- Cheap and easy to access
Sampling
- Take a small subset of people and hope what they say represents the entire market
- More efficient
- Would go to waste if it doesn't represent the market
- Difficult with dynamic market
- Risk of bias
It during research (data mining)
- Relies on existing data
- Quickly analyse a huge amount of data that can reduce the need of sampling
Market segmentation
- Ways to split up the market
- Lifestyle
- Age
- Gender
- Religion
- Location
- Use of product
- Best market segments depend on:
- The size, and nature of the market
- The firm’s reputation
- Objective
, Chapter 3 market positioning
Market positioning
- Choose a segment to target
- Value (what you gain for doing business with a firm)
- Market position is defined by customers (where a firm stands in the mind of the
customer)
Market positioning map - tool for business to see where they are relative to a market
Taking care of a market cap
- Spots gaps in the market
- Analysing competitors
Possible positioning strategies
- Offer more for less
- Offer more for more
- Offer more for the same
- Offer less for much less
Product differentiation
- What sets a firm’s product apart from others
- Protect the brand
- Add more value
Ways to add value
- Tangible
- Add more features and benefits
- Intangible
- Operate efficiently
- Decrease cost or increase the price (or just do both lol)
Benefits of adding value
- Higher price
- Creates a difference
