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3.1 Marketing competition and the customer (Market segmentation (very few…
3.1 Marketing competition and the customer
marketing is to ensure that business product meets customer needs. Also , to develop customer loyalty through developing a relationship with customer to ensure that there is repeat purchase which develop brand loyalty
Market Orientated
Business focus on what consumer wants
Product orientated
Business designs a product and then convince customer that they want the product
Satisfying customer need
adding value
creating unique selling points
seeking first mover advantage
Markets are regularly change as technology , fashion , economy , trend and income change . Business must be able to adapt to all these to survive
Changing customer need
they can gain a competitive advantage by understanding current spending patterns and predicting future spending patterns
failing t predict future spending patterns can doom a business
adapt to its current product
create new products
sell current product into new markets
shutting down products
How can business respond to increase competition
invest in market research
new product development
promotion
Niche market
uses skill labour and craftmanship to produce the product .
Advertise more specifically to their customer
Market segmentation
very few goods are truly mass market production , most are differentiated to some degree. the products are targeted at a specific group of consumer with similar characteristics
Dividing markets into :
age
gender
-ethnicity
income
family characteristics
Lifestyle
Level of education
Geographic Location
Socio economic status
benefit from segmentation
;
Use marketing budgets
Target customer with marketing
Identify areas of need and create opportunities
Differentiate products from competitors
Geographical segmentation
based on where people live
demographic segmentation
based on age , gender , ethnicity , income , family characteristics , education and occupation
Socio demographic segmentation
Social class
Mass market
have more machinery involve . tend to advertise more in public