Chapter 20: Marketing MARKETING CONCEPT The

Transcript:Chapter 20: Marketing MARKETING CONCEPT The:
Chapter 20: Marketing MARKETING CONCEPT The marketing concept ensures that the business always focuses on the needs of consumers first, before it develops a good or service. MARKETING Marketing is the business processes that are used to understand, anticipate and satisfy consumer needs and wants both now and in the future. Marketing requires the business to: Conduct market research Develop a marketing strategy and marketing plan Formulate the marketing mix. MARKETING STRATEGY AND MARKETING PLAN Marketing Plan Role of the Marketing Plan in a Business MARKETING SEGMENTATION The market is divided into different sections (segments). Benefits of Market Segmentation TARGET MARKET A target market is the specific group of consumers who have common needs and wants. The business aims its products and services at this market. 1 Less Competition There is less competition in a niche market, as other businesses focus on the larger general target market. 2 Consumer Loyalty Consumers are loyal to the goods and services that satisfy their specific needs in a niche market. This can help to increase business sales and profits. 3 New Products A business selling in a niche market may be able to launch new products into the market more easily. Consumers trust the brand and are willing to try new products from the firm. 1 Economies of Scale The business might not benefit from economies of scale as it produces goods in smaller quantities. 2 Competition Larger competitors enter the market and the smaller business may be unable to compete on price. It may lose market share to the larger firm. 3 Growth As niche markets tend to be small, the business may find it difficult to grow. Profit margins are also lower in smaller markets. PRODUCT POSITIONING Creating a positive image for the product that stays in consumers’ minds. MARKETING MIX 1. Marketing Mix – Product This is a good or service provided by a business to satisfy consumer needs and wants. 1. Marketing Mix – Product A. Product design When designing a product, a business should carefully consider the: B. Brand Name A distinctive name given to a business and the goods and services it develops. Many firms also develop a brand logo: images, words or shapes used to identify a brand and its goods and services. B. Brand Name Own-Brand Products These are products that are sold by retailers under the retailer’s name and logo. They are often referred