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)