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Business Chapter 10: Marketing, competition and the customer (Changing…
Business Chapter 10: Marketing, competition and the customer
The Marketing Department
different sections
sales team
distribution of product
responsible for sales of product
market research
finding out cutomers' needs
finding out market changes
finding out competitors' actions
report information to Marketing Director
promotion
advertising of products
distribution
transports products to the market
Role of Marketing
central role of marketing
gain information about customers
by building customer relationships
maintain customer loyalty
maintaining close customer relationships
identify customer needs
satisfy customer needs
anticipate changes in customer needs
success will enable business to
raise customer awareness
increase profit
increase or maintain market share
improve image products
target new markets
develop existing product
enter new markets
Understanding Market Changes
why customer spending patterns change
tastes and fashions change
changes in technology
change in incomes
ageing populations
power and importance of changing customer needs
why some markets become competitive
globalisation
transportation improvements
internet/e-commerce
Changing Spending Patterns and Increased Competition
maintain good customer relationships
keep improving existing product
bring out new products to keep customers' interest
keep costs low to maintain competitiveness
Market
mass marketing
advantages
total sales are very high
business can benefit from scale economies
risks can be spread
opportunities for growth
disadvantages
high levels of competition
high costs of advertising and promotion
may lead to lost sales
niche marketing
advantages
reduce competition
high levels of consumer loyalty
high levels of good customer relations
disadvantages
usually have limited sales potential
risks not spread
Market Segments
how segmenting market helps
make effective marketing expenditure costs
enjoy higher sales and profits
offer opportunities to increase sales
most common segmenting ways
by socio-economic group
by age
by region/location
by gender
by use of the product
by lifestyle
potential benefits
to sell more products
increase sales
influence how products are packaged
improve advertising of product
affect choice of shops
factors to consider
detailed analysis of market
company image and brand image
cost of entering each segment