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

Mass market

have more machinery involve . tend to advertise more in public

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