Unit 10: Marketing, competition and the customer
The Marketing Department
The Sales department is responsible for the sales of the product
The Market Research department is responsible for finding out customers' needs, market changes and competitions
The Promotion department deals with organizing the advertising for the products
The Distribution department transports the products to the market
The Market Research department is responsible for finding out customers' needs, market changes and competitions
The Promotion department deals with organizing the advertising for the products
The Distribution department transports the products to the market
The role of marketing
Identify customer needs by finding the products and services customer wants
Satisfy customer needs to achieve sales of goods and services
Maintain customer loyalty by making the better relationship with customer
Gain information about customer to know their changing and to build a long term relationship
Anticipate changes in customers needs by identifying new trend in customer
Satisfy customer needs to achieve sales of goods and services
Maintain customer loyalty by making the better relationship with customer
Gain information about customer to know their changing and to build a long term relationship
Anticipate changes in customers needs by identifying new trend in customer
Market share is the percentage of total market sales that is held by a business
EFFICIENT IN INCREASING THE MARKET SHARE
- Target a new market
- Enter new markets at home or abroad
- Improve or maintain the image of the products or a business
- Increase or maintain market share
- Increase sales and profit
- Develop new products or the existing products
Why customer/consumer spending patterns change?
- Consumer tastes and fashions change
- Changes in technology
- Change in incomes
- Ageing population
The power and importance of changing customer needs
If the business doesn't have the responsibility with customer needs, it will make the business fail
Why have some markets become more competitive?
Globalization of markets: Increasingly sold all over the world
Transportation improvements: easier to get the products that far away
Internet/E-commerce: consumers can use internet to research and buy products
Transportation improvements: easier to get the products that far away
Internet/E-commerce: consumers can use internet to research and buy products
How can business respond to changing spending patterns and increased competition?
Maintain good customer relationship
Keep improving its existing products
Bring out new products to keep customers' interest
Keep costs low to maintain competitiveness
Keep improving its existing products
Bring out new products to keep customers' interest
Keep costs low to maintain competitiveness
Where the sales of a products are large is called mass market
Advantages of mass market:
Advantages of niche market:
Advantages of mass market:
- The sales of these market are very large
- Benefit from economies of scale
- Risks can be spread
- Opportunities for growth of the business
- High levels of competition
- High costs of advertising
- May not meet the specific needs of all customers
Advantages of niche market:
- Avoid competition
- The needs of customers can be focused
- Limited number of sales
- No longer in demand
Market segment is when a market is broken down into sub-groups which consumers have similar characteristics
Segmenting a market can help a business to:
=> By finding out the different segments in a market, a business can sometimes identify a segment whose needs whose needs are not being met
Segmenting a market can help a business to:
- Make marketing expenditure cost effective by producing only one targeting and it must closely meets the needs of customers
- Enjoy higher sales and profits for the business because of cost-effective marketing
=> By finding out the different segments in a market, a business can sometimes identify a segment whose needs whose needs are not being met
Ways of segmenting a market
- By socio-economic group: income group
- By age
- By region/location
- By gender
- By use of product
- By lifestyle
a/ The customers needs that being satisfied are: Everyone needs food and healthy food for the developed markets
b/ Customers know that coffee are not good for their health
Increasing demand in healthy food from developing countries
Increasing supplies
c/ To give customers have wider choice. Customers have more chance to choose different kind of food they want
Customers' income is increased. Because now customers know that fruit is good for their health and they have more money to buy expensive which is healthy
d/ Keep improving its existing products. Because customers don't want lots of danger chemical in their food so the business may need to find how they could have fresh fruit without using chemical
Keep cost low to maintain competitiveness. Every customers want to have enough money to buy healthy food and if we keep cost low enough, we can sell the products for many socio-economic group
e/ No. I think instead of changing product, we can keep selling coffee and fruit at the same time. Because some of customers still like coffee more than fruit or some people has to work all day so they will need coffee to keep their mind working well
b/ Customers know that coffee are not good for their health
Increasing demand in healthy food from developing countries
Increasing supplies
c/ To give customers have wider choice. Customers have more chance to choose different kind of food they want
Customers' income is increased. Because now customers know that fruit is good for their health and they have more money to buy expensive which is healthy
d/ Keep improving its existing products. Because customers don't want lots of danger chemical in their food so the business may need to find how they could have fresh fruit without using chemical
Keep cost low to maintain competitiveness. Every customers want to have enough money to buy healthy food and if we keep cost low enough, we can sell the products for many socio-economic group
e/ No. I think instead of changing product, we can keep selling coffee and fruit at the same time. Because some of customers still like coffee more than fruit or some people has to work all day so they will need coffee to keep their mind working well