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marketing, competition and the customer (the role of marketing (identify…

- - - - fashions may change for clothes and so consumers may want different styles of clothes to those they wore last year
    - - with new products being developed, such as iPads or notebooks, sales of standalone computers have fallen in many countries
      - new products means that old products do not have high sales anymore
    - - if an economy has high unemployment then many consumers will buy cheaper products
      - if the economy then grows and unemployment falls the sales of more expensive products will increase
    - - the age structure of the population in may countries is changing to a greater percentage of older people
  - - - to meet customer needs and it also provides market research information about customers
    - - by making goods it sells very different from those produced by competitors the business will become well known for differentiated products
    - - this will help maintain or even increase their market share
    - - as this should help keep low prices
- - - - the sales to these markets are very large
      - the firm can benefit from economies of scale
      - risk can be spread, as often as the business will sell several different variations of products to the mass market, if one variety of the product fails, then the other products may still sell well
      - opportunities for growth of the business due to large potential sales
    - - high levels of competition between firms
      - high cost advertising
      - standardised products or services are produced and so may not meet the specific needs of all (potential) customers, therefore leading to lost sales
  - - - small firms are able to sell to niche market as large firms may not have identified them but concentrated on the mass markets instead. This may avoid competition from larger businesses
      - needs of the customers can be focused on and therefore targeted by the firm in a niche market
    - - niche markets are small and therefore have a limited number of sales, which means only small business can operate in these markets
      - often businesses in a niche market will specialise in just one product. this means that if the product is no longer in demand the business will fail as the business does not have spread risks
- - - - income groups can be defined by growing people's jobs according to how much they are paid
    - - products in different age groups will not be the same
    - - in different regions of a country, people might buy different products
    - - some products bought only for women or by only men
    - - for example, cars can be used by consumers for domestic or business use. the advertising media and promotions methods used will differ
    - - for example, a single person earning the same income as a married person with three children will spend that income differently, buying different products