Introduction to marketing

The process of identifying, anticipating and satisfying customer needs — profitably.

Find out what customers want FIRST, then develop a product to match.

Identifying, anticipating and satisfying customer needs profitably.

Goods = tangible (see/touch). Services = intangible (rely on reputation, trust).

Intangible, harder to standardise, each experience varies.

Develop a product FIRST, then try to sell it.

Research, product development, pricing, promotion, distribution, customer relationships.

Intangible — rely on reputation, reviews and trust.

Market orientation — research confirms demand before you invest.

People, Process, Physical evidence (7 Ps instead of 4).

Connects the business to its customers — identifies needs, develops products, sets prices, promotes, distributes.

Market = customer needs. Product = the product itself.

Smartphone = features/design (tangible). Gym = experience/staff/atmosphere (intangible).

Highly innovative or luxury brands — breakthrough products customers didn't know they wanted.

Identify needs, develop matching products, set right price/place/promotion, build loyalty.

Market orientation — research needs before developing products.

People, process and physical evidence — the extended marketing mix.

Product, Price, Place, Promotion.

'Look what we made!' Most businesses succeed with market orientation.

Sell — marketing connects products to people who need them.

Market share (%) = (Company sales ÷ Total market sales) × 100

(Company sales ÷ Total market sales) × 100

Value = total $ revenue. Volume = total units sold.

Any place where buyers and sellers meet to exchange goods/services — physical or online.

($15m ÷ $60m) × 100 = 25%

One company's sales as a percentage of total market sales.

Buyers and sellers — to exchange goods or services.

Opportunities for expansion — more potential customers and sales.

Volume (units sold) — question will specify which.

Total value ($) or volume (units) of sales in a market.

Fewer customers, tougher competition, harder to grow.

Competitive advantage — gaining ground on rivals.

Shows competitive position — growing = advantage, falling = losing to rivals.

Yes — by taking customers from competitors even as overall market shrinks.

The business with the largest market share.

Value ($) or volume (units).

Higher prices, more investment, stronger brand recognition.

Volume — read the question carefully!

To plan ahead — invest in growth, change strategy in decline.

($100bn ÷ $500bn) × 100 = 20%

Customers repeatedly choosing the same brand — reducing price sensitivity.

A name, symbol, design or reputation that makes a product recognisable and different from competitors.

Loyalty, premium pricing, easier launches, competitive edge, brand value as asset.

Recognisable and different from competitors.

Recognise and recall it.

How well customers recognise and remember a brand — by name, logo, colours or jingle.

Repeat purchases, stable revenue, less price sensitivity.

Customers trust the brand — willing to pay more than for unbranded equivalents.

Existing trust transfers to new products — customers willing to try.

Customers think of your brand FIRST when they need that product.

The financial worth of the brand name alone — appears as goodwill on balance sheet.

Loyalty, premium pricing, easier launches, competitive edge, brand value.

Price sensitivity — won't switch for cheaper rivals.

Advertising, social media, sponsorship, word of mouth — takes time and investment.

Loyalty programmes, consistent quality, good customer service.

Branded trainers cost far more than identical unbranded ones — brand power.

The extent to which customers recognise and can recall a brand by its name, logo or other features.

Makes product stand out in a crowded market.

Awareness → Loyalty → Value. Build awareness first.

Financial — the brand name as an asset.

Dividing a market into groups of customers with similar characteristics, then targeting them with tailored marketing.

Demographic, Geographic, Psychographic, Behavioural.

Products match needs better, marketing more cost-effective, identifies gaps, charge different prices.

Characteristics that influence purchasing behaviour.

Demographic, Geographic, Psychographic, Behavioural.

'Did George Play Basketball?' — Demographic, Geographic, Psychographic, Behavioural.

A group of consumers sharing characteristics that influence purchasing behaviour.

Expensive to research multiple segments, segments may be too small, preferences change.

Market gaps — opportunities for new products.

Age, gender, family size, income level, education, occupation.

Separate research and campaigns for each group costs more than one generic approach.

Tailored products and marketing are more effective — better match what groups want.

Specific groups with tailored marketing.

Lifestyle, values, personality, interests, attitudes.

Segments too small to be profitable — not enough customers per group.

Change over time — segments aren't permanent.

Not everyone fits neatly into defined groups — some fall between segments.

Characteristics that affect purchasing behaviour.

Age/income = demographic. Activity = behavioural.

A group of consumers sharing one or more characteristics that influence purchasing behaviour.