Unit 5 : Marketing: individuals or groups obtain what they need and want through creating, offering, exchanging products and services that satisfy individual and organizational goals.

10 types of entities

persons

places

events

properties

experiences

organizations

services

information

goods

ideas

marketing network: with whom company build mutually profitable business relationships

suppliers

distributors

employees,

retailers

customers

ad agencies

the company and its supporting stakeholders

university scientists

marketplace: physical, such as a store you shop in

Marketspace is digital, as when you shop on the Internet

4 basic methods for segmenting a market

Psychographic: attitudes, lifestyle, opinions, values, self-image

Geographical: region, postcode

Demographic: age, gender, education, family life cycle, income

Product –related: comfort, safety, luxury, good value-for-money, convenience, durability

Product life cycle

Growth Stage (a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production

Maturity Stage (the most competitive time for most products and businesses need to invest wisely

Introduction Stage (the most expensive ,

Decline Stage (due to the market becoming saturated

WHY IS “WORD OF MOUTH” AN EFFECTIVE WAY OF ADVERTISING

In conclusion, a word-of-mouth approach costs little while it effectively spreads recommendations for our business.

advantage:

help grow sales without the ad spend. (save costs for companies compared to investment in other massive and
expensive means of media)

create brand
loyalty (Higher engaged customers buy more often and recommend their friends more often)

high level of reliability (trust suggestions from family and friends)