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    Chapter 10 - Marketing, Competition, Customer

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    Shayna Butt
    This document discusses key aspects of marketing, competition, and customers. It covers the marketing department and its roles in identifying customer needs, conducting market research, and product promotion. It also examines how businesses can identify and satisfy customer needs to build loyalty, as well as how they must respond to changing customer preferences and increased competition. The document also defines markets and market segmentation, and explores mass markets versus niche markets.

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    Chapter 10 - Marketing, Competition, Customer

    Uploaded by

    Shayna Butt
    33 views2 pages
    This document discusses key aspects of marketing, competition, and customers. It covers the marketing department and its roles in identifying customer needs, conducting market research, and product promotion. It also examines how businesses can identify and satisfy customer needs to build loyalty, as well as how they must respond to changing customer preferences and increased competition. The document also defines markets and market segmentation, and explores mass markets versus niche markets.

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    Chapter 10 — Marketing, Competition, Customer

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    This document discusses key aspects of marketing, competition, and customers. It covers the marketing department and its roles in identifying customer needs, conducting market research, and product promotion. It also examines how businesses can identify and satisfy customer needs to build loyalty, as well as how they must respond to changing customer preferences and increased competition. The document also defines markets and market segmentation, and explores mass markets versus niche markets.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    33 views2 pages

    Chapter 10 - Marketing, Competition, Customer

    Uploaded by

    Shayna Butt
    This document discusses key aspects of marketing, competition, and customers. It covers the marketing department and its roles in identifying customer needs, conducting market research, and product promotion. It also examines how businesses can identify and satisfy customer needs to build loyalty, as well as how they must respond to changing customer preferences and increased competition. The document also defines markets and market segmentation, and explores mass markets versus niche markets.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Chapter 10 — Marketing, Competition and the Customer.

    1. The Marketing department.

    - marketing = identifying customer wants and satisfying them profitably


    - customer = person, business or other organisation which buys goods or services from a
    business
    - sales team = responsible for sales = separate regional sections
    - market research = finds out customers’ needs, market changes and competitors’ actions
    - promotion = organises advertisement and design for products + a marketing budget
    - distribution = transports products to the market.

    2. The Role of Marketing.

    - identify customer needs = products? prices? where? how? after-sale services?


    - satisfy customer needs = sold profitably, must be the right product/place/price
    - maintain customer loyalty = keeping in touch with customers and maintaining customer
    relationships, and adjusting to demand changes quickly, easier to keep old customers
    than make new ones
    - build customer relationships to gain information = market research information used to
    understand why customers buy products and how they use those
    - anticipate changes in customers needs = identify new trends and gaps in the market to
    satisfy those demands
    • enables business to:
    - raise customer awareness
    - increase/maintain market share
    - improve/maintain the image of the business
    - target market segments
    - enter new markets
    - develop new products/improve existing products.

    3. Understanding Market Changes.

    • why spending patters change:


    - consumer tastes and fashions change
    - changes in technology
    - change in incomes
    - ageing populations
    • why have some markets become more competitive?
    - globalisation
    - transportation improvements
    - internet/e-commerce
    • power and importance of changing customer needs:
    - if businesses fail to respond to customer needs, business will be likely
    - the customer is the ‘king’, as businesses must observe their changing wants closely and
    respond to those immediately.

    shayna butt 1 2022-2023

    4. How can businesses respond to changing spending patterns and increased competition?

    - maintain good customer relationships = cheaper to keep existing customers than gain
    new ones
    - keep improving its existing product = business will be know for differentiated products
    - bring out new products to keep customers’ interest = business can increase/maintain
    market share
    - keep costs low to maintain competitiveness = attracts more customers.

    5. What is meant by a Market?

    - market = total number of customers + potential customers + sellers

    A. Mass Market.
    - mass market = very large number of sales for a product
    - the products are designed to appeal to the entire market, generalised
    • advantages:
    - the total sales of the market are very high
    - the business benefits from economies of scale
    - risks can be spread since the business probably has multiple different products
    - there are many growth opportunities as well
    • disadvantages:
    - high competition levels
    - high costs of advertising and promotion
    - standardised products and services are produced = may not respond to individual needs.

    B. Niche Market.
    - niche market = small, usually specialised segment of a much larger market
    - luxury products, small businesses that offer personalised goods and services
    • advantages:
    - small business can sell successfully since there’s less competition
    - the needs of the customers can be focused on closely, leading to good customer loyalty
    • disadvantages:
    - small, so limited sales and limited scope for growth within the niche market
    - specialisation could lead to business failure if the product isn’t in demand anymore.

    6. Market Segments.

    - market segmentation = when a market is broken down into sub-groups which share
    similar characteristics
    - a lot of thought and money is put into market research, advertising and packaging
    - it is cost-effective, brings high sales and profits, and assists to neglected segments
    - segmentation needs detailed analysis of the market, maintenance of company image and
    standard, and identification of costs of entering each segment.
    segmenting by = socio-economic group, age, location, gender, use and lifestyle
    • benefits: more sales, different brands for different small unidentified groups, wider
    choice of shops, clever advertising and packaging.

    shayna butt 2 2022-2023

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