Marketing
Marketing is discovering what potential customers want and then supply it (at a profit).
Types of Organizations
• Product orientation- this approach develops a product first and then markets it.
• Customer orientation/ market orientation- this approach puts the customer first.
Market Objectives and strategies
A marketing objective is the goal of the marketing department.
Types of marketing objectives
• Size- this can be measured by sales or market share. Eg: actual sales- 4 million kit kats sold per day or a percentage of the market share.
• Market positioning- what market segment is a business trying to appeal to. Eg: coke zero is targeting men
• Innovation/ increase in product range. Eg: Ben and Jerry’s ice-cream is always trying to find new products
• Creation of brand loyalty. Eg: the McDonalds logo.
• Improving brand awareness. Eg: coke zero is still undergoing a promotional campaign.
Market size, share and growth
Market size
The size of a market can be calculated by the total sales of all businesses in the market.
There are two ways to calculate the size of the market.
• Value- the total amount spent by customers buying products. It will be shown in pounds.
• Volume- the physical quantity of products which are produced and sold.
Market growth
Market size can increase as a result of extra sales of good or persuading customers to pay more. In growing markets, there is more scope for increased sales, but competition will become fiercer. Market growth can be affected by:
- Economic changes
- Social changes
- Technological changes
- Demographic changes. Eg: changes in the age structure.
Market share
This is the proportion of a particular market that is held by a business, a product, a brand or a number of businesses.
It can be calculated by sales of a business (100%
Total sales in the market
It compares the sales of a firm with...