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Markets - Coggle Diagram
Markets
New Technology
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Examples include:
- search engine optimisation (SEO)
- social media
- viral marketing
- digital display boards
- SMS messages
- targeted feeds
- online advertising
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Types of Markets:
1) Mass market = applies to a large aspect of markets e.g. Cadbury chocolate
2) Niche market = only appeals to certain aspects of markets e.g. vegan chocolate (priced higher)
3) Service = non-physical, non touchable or intangible
4) Seasonal market = sales peak at certain seasons of the year e.g, cheese, strawberries, shorts
5) Trade/ Consumer = selling to another business or private individuals
Seasonal marketing will have a huge influence on the activities of businesses involved in these industries as each will have a critical sales period, which can make or break a business. Few businesses are totally immune to seasonality of sales. Lines of stock are adapted and changed - the big supermarkets have titled seasonal isles.
Trade marketing is the marketing role that focuses on selling and supplying to distributors, retailers, wholesalers, and other supply chain businesses instead of the consumer. The objective of trade marketing is the increased demand for products/ services supplied within the supply chain.
Mass marketing involves a business aiming products at a whole market, rather than particular parts of them, for example, tomato ketchup, tea bags, ITV, Vauxhall Astra, washing powder.
Advantages:
- a company can produce large numbers of relatively standardised products - the cost per unit should be low so can benefit from economies of scale
- non targeted marketing can be used, such as in national newspapers and on national television
- low cost operations, heavy promotion, widespread distribution and the development of market leading brands are key features
E-Tailing and M-Commerce
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M-Commerce or Mobile Commerce is the ability to communicate and trade directly with the target market through hand held devices e.g. mobile phones and tablets
Market Segmentation = dividing the market into different sections/ groups, this can be divided into gender, location, lifestyle and income
1) Market Size = all the firms in the market added together
2) Market Share = business sales / Market size X100
3) Market Growth = New Market Size - Old Market Size / Old Market Size X100
Methods Include =
- Demographic = looks at the social and economic characteristics of individuals and households
- Geographic = defines market categories based on where people live e.g. regions, cities or neighbourhoods
- Income = defines subgroups of the market based on their levels of income and profession
Glocalisation = used to describe a product or service that is developed and distributed globally but is also adjusted to accommodate the user or consumer in a local market
Social Media
Changes have been made in marketing to reflect social trends and use of social media, this includes:
1) Viral Marketing
- use of social media to encourage the spread of promotional activities and increases brand awareness
- use blogs and online forums
2) Social Media
- use of virtual communities to communicate with actual and potential customers
3) Emotional Branding
- building a brand that will directly tap in to the consumers feelings, personal psychological needs and aspirations e.g. presents a feeling of belonging or success
- a brand sells a status or a lifestyle choice
New Technologies
The value of digital marketing, E-Retailing and E-Commerce include:
- access to a global market
- 24/7 exposure and convenience
- greater analytics leading to more detailed data to inform decisions and target customers
- improved customer relations and understanding of buying habits
- greater two way communication
- greater word of mouth publicity through blogs and review sites
Global Markets = global marketing is all about selling goods or services to overseas markets. Different marketing strategies are implemented, based on the region or country the company is marketing to
Advantages:
- higher earnings - likely to be higher earnings, if margins in overseas markets exceed those at home
- spread risks - by moving into new markets risks are now spread
- economies of scale - this move into global markets is likely to lead to increased economies of scale
- survival - some businesses need to be global to be able to survive
- saturation of the home market - the business may have the finance to expand, but be unable to do so because of competition so they take advantage of entering a new market
Competition includes:
1) Monopoly - when there's only one supplier
2) Competitive advantage - a feature of a business that allows it to perform more successfully than others in a market
Market = a meeting place between buyers and sellers where goods and services are exchanged, usually for money