Marketing -- This is the process of identifying, predicating and satisfying customer.

Market orientated -- This is where a product is developed based on customer needs and market research.

Segmentation -- This is the process of identifying different groups with similar needs.

Demographics (e.g age, sex, gender)

By segmenting the market managers can ensure that products will be aimed at the correct segment of the population instead of just treating the market as a whole.

Should enable more effective marketing.

Targeting -- This is the process of deciding which segment of the market to focus on.

Targeting should enable a business to better focus its products and marketing to the demands of the consumer.

Mass market -- this is where a product is aimed at a large proportion of the market, rather than a particular segement.

This enables the business to achieve higher sales, but may be more costly as marketing must be focused at more people.

Niche marketing -- this is where a product is aimed at a small subection or unexploited gap within the maket.

This can enable a business to gain a first mover advantage on its competitors and thus help brand loyalty.

Positioing -- this is where the product is placed within a market relative to its competitors.

Internal strengths such as an innovative product design department.

External enviroment such as if the economy is going into recession you may not want to launch an expensive product.

Marketing mix -- this is the combination of elements used by the business to enable it to meet the needs and expectations of customers.

i.e how is making contact with the customer and deleviering the product?

Physical enviroment -- this is the look and feel of the are where a customer actually buys the product. This can infleunce a customers shopping expeirence and impact if they come again.

Process -- these are the steps a customer must go through to complete a transaction. Easier transaction = happy customers.

Industrial products -- these are products that are sold to other businesses which then use them in their own processes. This means there is a small consumer base that is less swayed by flashy marketing.

These are products that are widely distributed and customers will not travel far to buy them, if they can't get a brand near them they will likely just switch brands.

To be successful the business should ensure products are widely accessible.

These are products that customers may spend some time comparing different options before they make a purchase.

To be successful these products need to show that they are better then rival products.

These are products that customers consider luxuary (sports cars and Rolexs) and this means customers will cosnider buying them for months/years.

Customers are willing to travel for these products and the physical enviroment is a key part of their decision (although the product and brand are also very important).

Product portfolio analysis -- this is the process of assessing each product or brand within a busines so as to help determine the right marketing strategy for it.

Businesses aim for products within all 4 catagories, but businesses aim to have only a few dogs.

Product life cycle -- this is a model that shows the stages a product geos through durring its life.

The shape and duration of the model varies for different products.

Asses wealth/income of target market.

Anylse demand, cost, profit relationship.

Price takers -- these businesses must follow whatever the market price is.

Price makers -- these businesses are able to set the price to whatever they like.

Price leaders -- market leaders who's price changes are followed by price changes by rivals.

Price followers -- these businesses follow the changes in pricing that the price leader deos.

Markup pricing -- this is where the business takes the cost of a product then adds a percentage increase onto those costs to get the price. This ensures that each sale will cover its unit costs.

May not take into account the pricing strategies of competition.

Profit is lost if the price is set below what the customer is willing to pay.

Sales are lost if the markup is to high and the price is greater then what the customer is willing to pay.

This is where prices are set delibaartely high with the aim to maximise early profits with customers willing to pay a high price for the product.

Common in the tech industry where 'early adapoters' are eager to have the best products early on.

Promotion -- this is the component of the marketing mix that aims to inform and persuade customers so that they buy a product.

Branding -- this is a method that creates an indenty for a business that distinquishes that business from the others.

Actions of the Advertisng Stanards Authority and the Committee of Advertising Stanards.

Attention -- a business needs the attention of a customer or they can't inform the customer.

Interest -- once the customers attention has been drawn it must maintian the customers interest.

Desire - advertising must generate some desire within the customer for a product.

Action -- if the advertising has been successful the customer will take action (i.e buy the product).

Population of the area (how many potential customers are there).

Distribution -- this is the process of moving products around so that they are in the right place at the right time.

Distribution channel -- this is how a product moves through the stages from production to the customer having it.

Multichannel distribution -- this is where a business uses more than one channel of distribution.

Enables higher revenue as it reduces the chances customers just can't buy the product.

There is a potential for channel conflict and canibalistion of market share.

There is a chance that the pricing strategy becomes confused and different distributers are charging different prices for the same product.

Producer ➡ Wholesaler ➡ Retailer ➡ Consumer

Producer ➡ Distributor/agents ➡ Customer

Retailer -- this is a business that interacts directly with consumers and is the final step in a distribution channel

Wholesalers -- these are businesses that buy in bulk from producers and then sell this bulk (at a markup) to smaller businesses.

Reduces the producers transport costs because they only have to ship to a few wholesalers.

Distributors -- these are businesses that sell products and act as a local sales point. These businesses are usaully specialists in one industry (such as building supplys).

Agents -- these are specialist forms of distributors that do not hold stock and who are paid on commission. They usaually operate in the tertiary sector in areas such as travel and insurence.

Direct -- this is where the producer and consumer deal directly with eachother without the involvement of an intermedary.

This is an increasingly popular method of distribution, espically since businesses may use e-commerce to sell their products globally.

Indirect -- this is where the producer and consumer interact with eachother through intermedaries.

Other businesses may be more effiencent at delivering products.

Different segements of a market may be better reached by different distribution methods.

Customer service is of growing importance (espcially in the service industry) and staff need to be well trained, motivated and good comunicators.

Good physical enviroment can motivate employees as well as make customers happy.

Intergrated marketing mix -- this is the process where each part of the marketing mix works in conjecture with each other.

New products recive more marketing then older ones (unless extension strategies are used).

Rising stars need more focus then dogs.

E-commerce -- this is where products are sold via the internet.

E-commerce can enable a business to reach customers alround the world at all times of day.

Search engine optimisation (paying for our website to appear first).

Can provide large amounts of data on customers/website interaction.