Please enable JavaScript.
Coggle requires JavaScript to display documents.
Introduction to marketing - Coggle Diagram
Introduction to marketing
Key definitions
Concentration ratio
The concentration ratio is an indicator of the degree of competition in an industry by calculating the sum of the market share held by the largest specified number of firms in the industry.
Market growth
Market growth refers to the rate at which the size of a market is increasing, typically expressed as the percentage increase in the market size of an industry per year.
Market leadership
Market leadership is the position of a business which has the largest market share in a given market for a particular good or services.
Market orientation
Market orientation is a marketing approach adopted by businesses that are outward looking by focusing on making products that they can sell, rather than selling products they can make.
Market share
Market share measures an organization's portion of the total
value of sales revenue in a specific industry.
Market size
Market size refers to the magnitude of an industry, usually measured in terms of the value of sales revenue from all the businesses in a particular market, per time period.
Marketing
Marketing is the management process of predicting, identifying and meeting the needs and wants of customers, usually in profitable ways.
Product orientation
Product orientation is a marketing approach used by businesses that are inward looking as they focus on selling products that they can make, rather than making products that they can sell.
Advantage of market leadership
Premium prices can be charged
Lower production costs exist due to economies of scale
The market leader enjoys longer product life cycle
benefits from favourable distribution
terms as more retailers and intermediaries
more publicity and brand exposure
easier to attract and recruit highly qualified
employees
Concepts
Market growth Formula
Market share
Formula
How to increase
The promotion of their products to develop brand value and brand loyalty
Product development, product improvements and innovations
Motivation and training of the workforce (see Chapter 10) in order to deliver better customer service.
Establishing intellectual property rights, such as the use of trademarks, copyrights and patents
Use of more efficient channels of distribution
Product and market orientation
Market orientation
Advantages
Greater flexibility
Lower risk
Disadvantage
very expensive
no guarantee
Product orientation
Advantage
Assured quality
Competitive advantage
Disadvantage
market are ignored
High risk
