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Theme 1 - Marketing and people, 1.1 Meeting customer needs - Coggle Diagram
Theme 1 - Marketing and people
1.1 Meeting customer needs
Introduction to marketing
Marketing Objectives
A
marketing objective
is a marketing target or gaol that an organisation hopes to achieve, such as to boost market shar from 9 to 12 percent within 2 years.
To be effective, these objectives should be quantifiable and measurable
Marketing Strategy
Marketing strategy
is the medium to long term plan on how to achieve your marketing objectives.
Firms think their strategies through the
marketing mix - product, price, promotion and place
Characteristics of effective marketing:
Identifying your target market
- know and understand the customers within your target market and understand their wants and needs.
Focus your market research
- only interview people who make up your target market for more reliable findings.
Focus you advertising spending
- focus advertising on those who are most likely to buy your products
Segment your markets
- Consumers wants and needs can be very different in your target market, so it is important to segment your market based on these wants and needs.
A coherent brand image through a coherent marketing mix
- Firms that market their products successfully use the marketing ix in an integrated manner to crease a coherent and attractive brand image that appeals to the target market
The Market
Mass Marketing
:
Mass marketing is the attempt to create products or services that have a universal appeal rather than marketing a specific type of customer.
Mass marketing leads to the creation of
generic brands
which are brands that are so well known that customers say the brans when they mean the product
Mass Marketing
leads to
High Sales
which leads to
Mass Productions
which leads to
Lower costs and Higher profits
Niche Marketing
:
A Niche market us a very small segment of a much larger market. It involves identifying the needs of the customers that make up the niche.
Someone who wants to set up a niche market business must.
Identify a group of people who share a taste for a product or service.
A product or service must then be designed.
The niche must be large enough to support a profitable business.
Niche operators lack the
economies of scale
required to compete on price with larger established operators.
Economies of scale:
Factors that cause costs per unit to fall when a firm operates at a higher level of production
Market Share:
Nothing is more important to a marketing department than
market share
of its key brands.
Market share is largely the decided by the product of the marketing department's successes or failures.
Brands
A brands can be given a personality which helps it to be recognised and remembered.
It is the heart of
product differentiation which is the extent to which consumers perceive your brand as being different from others
Dynamic Markets:
Four key factors to consider in dynamic markets:
Online retailing
How markets change
Innovation and market growth - Innovation means bringing new idea to life, such as launching a new product or service onto the market
Adapting to change
Market Research
Prout and market orientation
:
Effective marketing is usually based around an approach that is market-orientated. In this, managers take into account the needs of the consumer before making any decisions
Product-orientation is when managers focus on what the form does best.
Primary research:
Gathering info directly from people within your target market.
Methods:
Interviews
Questionnaires
Surveys
Focus groups
Secondary Research:
Unearthing data that already exists
Methods:
Internet
Government-produced data
Trade press
Key Terms:
Bias: A factor that causes research findings to be unrepresentative of the whole population or target market.
Primary research: Finding info first-hand that doesn't already exist.
Secondary research: Finding out info that has already been gathered.
Market Positioning
Market Mapping:
Done in two stages
Identify the key features that characterise consumers within a market
Place every brand on a grid
Key terms:
Market Map: A grip plotting where each existing brand sits on scales based on two important features of a market and is used to identify gaps in the market
Unique selling point - A consumer benefit that no rival can match
Price elasticity - A measurement of the extent to which a product's demand changes when its prices change.
Creating product differentiation:
A unique design
A unique product function
A unique taste
Ergonomic factors
Superior performance