BBA1 English Track – Consumers and Markets
CONSUMERS AND MARKETS – MIDTERM REVIEW
1 – Introduction to Marketing
“Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large” – American Marketing Association
Types of marketing:
• B2C – Business to Consumers
• B2B – Business to Business
• Nonprofit and social marketing
Today’s marketing context involves technology, globalization, and social responsibility.
To define a market is to select among products and buyers those on which the company will
operate. Market delineation allows a company to set a plan of action – who they will target and
how they will attract them.
Needs to be specific à Market of soft drinks in France in 2021 à Market of colas in France in
2021 à Market of diet colas in France in 2021
3 approaches to market definition – according to PRODUCTS, NEEDS, or SUPPLY & DEMAND
Defining the market according to products
• Products can be material/tangible/good, or non-material/nontangible/service.
• There can be pure services (hairdressers, medical services) or services accompanying
products (after-sales services, warranty, etc.)
1
, BBA1 English Track – Consumers and Markets
Defining the market according to needs:
1. Market of the product = principal market, this is where the other products are
technically identical, aka direct competitors.
2. Market of substitutes = similar products satisfying the same needs and wants
3. Generic market = principal market + market of substitutes
There is also the market of complementary products – something that goes along with the
product, like an accessory, or that can be used together.
i.e. the coffee market
Defining the market according to SUPPLY and DEMAND
- This involves looking at the UPSTREAM and DOWNSTREAM markets
- UPSTREAM à Supply: resources, raw materials, suppliers
- DOWNSTREAM à Demand: customers (non-consumers relative—here there is
potential--, non-consumers absolute)
2
CONSUMERS AND MARKETS – MIDTERM REVIEW
1 – Introduction to Marketing
“Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large” – American Marketing Association
Types of marketing:
• B2C – Business to Consumers
• B2B – Business to Business
• Nonprofit and social marketing
Today’s marketing context involves technology, globalization, and social responsibility.
To define a market is to select among products and buyers those on which the company will
operate. Market delineation allows a company to set a plan of action – who they will target and
how they will attract them.
Needs to be specific à Market of soft drinks in France in 2021 à Market of colas in France in
2021 à Market of diet colas in France in 2021
3 approaches to market definition – according to PRODUCTS, NEEDS, or SUPPLY & DEMAND
Defining the market according to products
• Products can be material/tangible/good, or non-material/nontangible/service.
• There can be pure services (hairdressers, medical services) or services accompanying
products (after-sales services, warranty, etc.)
1
, BBA1 English Track – Consumers and Markets
Defining the market according to needs:
1. Market of the product = principal market, this is where the other products are
technically identical, aka direct competitors.
2. Market of substitutes = similar products satisfying the same needs and wants
3. Generic market = principal market + market of substitutes
There is also the market of complementary products – something that goes along with the
product, like an accessory, or that can be used together.
i.e. the coffee market
Defining the market according to SUPPLY and DEMAND
- This involves looking at the UPSTREAM and DOWNSTREAM markets
- UPSTREAM à Supply: resources, raw materials, suppliers
- DOWNSTREAM à Demand: customers (non-consumers relative—here there is
potential--, non-consumers absolute)
2
