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3.1 Marketing, competition and the customer - Coggle Diagram
3.1 Marketing, competition and the customer
3.1.1 The role of marketing
Identifying customer needs
Satisfying customer needs
Maintaining customer loyalty
Building customer relationships
3.1.2 Market changes
Why consumer patterns may change:
• Income (affordability)
• Competition – (cheaper alternatives, alternatives with higher quality)
• Price – (price changes and how demand changes along with it)
• Advertising and promotion – If businesses spend money on advertising and promotion, it encourages consumers to demand the products and changes their spending habits.
• Fashion – If there is a specific popular fashion, this can create consumer demand for certain products or services.
The importance of changing customer needs
• Adapting their products
• Launching new products
• Selling their current products in new markets
Closing down unprofitable products/locations
Why some markets have become more competitive
• Globalisation – The increase in trade between countries and the sales of products all over the world has led to increased competition.
• Technology – Changes in technology have meant that more businesses can trade through the internet, making it easier for customers to access a variety of products.
• Government regulation – Changes in laws have made it easier for businesses to enter specific markets. This is called deregulation. In addition, some changes may lower the operating costs of a business, such as reduced business taxes.
• Communication – Changes in communication technology and methods, such as the use of social media (Facebook, WeChat, Twitter, WhatsApp, etc.), allow customers to share information about products.
3.1.3 Concepts of niche marketing and mass • marketing
3.1.4 How and why market segmentation is undertaken