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    Chapter 10 Business Studies

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    Hameed Ahmed Khas Kheli
    The method of segmentation that should be used depends on factors like: - Analyzing the size and potential profitability of each market segment - Ensuring the segmentation aligns with the company's image and brand positioning - Considering the costs associated with marketing, producing and distributing to each segment Choosing the most appropriate segmentation method allows a business to maximize sales opportunities while minimizing expenses. Thorough research is needed to select the optimal approach.

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    Chapter 10 Business Studies

    Uploaded by

    Hameed Ahmed Khas Kheli
    28 views24 pages
    The method of segmentation that should be used depends on factors like: - Analyzing the size and potential profitability of each market segment - Ensuring the segmentation aligns with the company's image and brand positioning - Considering the costs associated with marketing, producing and distributing to each segment Choosing the most appropriate segmentation method allows a business to maximize sales opportunities while minimizing expenses. Thorough research is needed to select the optimal approach.

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    The method of segmentation that should be used depends on factors like: - Analyzing the size and potential profitability of each market segment - Ensuring the segmentation aligns with the company's image and brand positioning - Considering the costs associated with marketing, producing and distributing to each segment Choosing the most appropriate segmentation method allows a business to maximize sales opportunities while minimizing expenses. Thorough research is needed to select the optimal approach.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    28 views24 pages

    Chapter 10 Business Studies

    Uploaded by

    Hameed Ahmed Khas Kheli
    The method of segmentation that should be used depends on factors like: - Analyzing the size and potential profitability of each market segment - Ensuring the segmentation aligns with the company's image and brand positioning - Considering the costs associated with marketing, producing and distributing to each segment Choosing the most appropriate segmentation method allows a business to maximize sales opportunities while minimizing expenses. Thorough research is needed to select the optimal approach.

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    © All Rights Reserved
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    of 24

    Chapter 10:

    Marketing,
    competition and the
    customer
    What is meant by Marketing?

     IDENTIFYING
    CUSTOMERS WANTS
    AND SATISFY THEM PROFITABLY
    THE
    Most MARKETING
    businesses DEPARTMENT
    will have a Marketing department, which will have
    a Marketing Director. He will be in charge of things such as advertising
    research and development, distribution and pricing.

    Sales department: Responsible for sale and distribution of products for


    each region..

    Research and Development department: Responsible for finding out


    consumer wants and developing new products. They also need to find
    ways to improve an existing product.

    Promotion department: In charge of advertising and promotion. It will


    need a marketing budget which limits the amount of money it can spend.

    Distribution department: It transports products to their markets.


    MARKETING
    DIRECTOR

    MARKET
    SALES RESEARCH
    PROMOTION DISTRIBUTION

    REGIONA
    REGIONAL ADVERTISI PROMOTIO
    L SALES
    SALES NG N
    MANAGE
    MANAGER
    R
    OBJECTIVES OF MARKETING
     To increase sales revenue and profitability.

     To increase market share (percentage of sales a product has in a market).

     To maintain or improve image of a product or company.

     To target a new market or market segment.

     To develop new products or improve existing ones.

     Raise customers awareness about the product


    ROLE OF MARKETING

     IDENTIFY CUSTOMERS NEEDS- MARKETING DEPARTMENT FINDS OUT WHAT


    CUSTOMERS WANT
     SATISFY CUTOMERS NEEDS- MARKETING ENSURES CUSTOMERS GET RIGHT
    PRODUCT AT RIGHT PRICE AND RIGHT TIME SO THAT THEY ACHIEVE SALES
     MAINTAIN CUSTOMER LOYALTY- MAINTAIN LONG TERM RELATIONSHIP WITH
    CUSTOMERS
     GAIN INFORMATION ABOUT CUSTOMERS- MARKETING DEPARTMENT KNOW
    HOW CUSTOMERS USE THEIR PRODUCTS AND FROM WHERE THEY BUY FROM
     ANTICIPATE CHANGES IN CUSTOMERS NEEDS-BY KNOWING NEW TRENDS IN
    CUSTOMERS DEMANDS BUSINESSES CAN TRY PRODUCING THOSE PRODUCTS
    WHICH ARE CURRENTLY NOT PRODUCED
    UNDERSTANDING MARKET
    CHANGES
     WHY CUSTOMERS SPENDING PATTERNS CHANGE?
    DUE TO
     CHANGES IN TECHNOLOGY
     CHANGES IN INCOMES
     AGEING POPULATION
     CHANGE IN TASTE AND FASHION
     WHY HAVE SOME MARKETS BECOME MORE COMPETETIVE?
    DUE TO
     GLOBALISATION
     TRANSPORTATION IMPROVEMENTS
     INTERNET/E-COMMERCE
    How can a business respond to changing
    consumers spending patterns and
    increased competition?

     MAINTAINING GOOD CUSTOMER


    RELATIONSHIPS
     IMPROVING ITS EXISTING PRODUCTS
     BRING OUT NEW PRODUCTS TO KEEP
    CUSTOMERS INTEREST
     MAINTAIN COMPETITION BY KEEPING THE PRICE
    LOW
    WHAT IS MARKET?

    A market for a product is made up of


    total number of customers and sellers of
    that product
    MARKET

    MASS NICHE
    MARKET MARKET
    MASS MARKET

     A MARKET WHERE THERE IS A VERY LARGE NUMBER OF SALES OF A PRODUCT


     EXAMPLE- SOAPS, SHAMPOOS, TOOTHPASTE
     IT IS A MARKET WHERE MANY PEOPLE WILL BUY THE PRODUCT
     ADVERTISEMENT AND PROMOTIONS ATTRACTS THE CUSTOMERS

    ADVANTAGES DISADVANTAGES
     SALES ARE VERY HIGH  HIGH COMPETITION
     ECONOMIES OF SCALE  HIGH COST OF ADVERTISING
     RISKS CAN BE SPREAD  NOT ALL SPECIFIC WANTS OF
     SCOPE FOR GROWTH THE CUSTOMERS WILL BE
    SATISFIED
    EXAMPLES OF MASS
    MARKET

    TOOTH PASTE WASHING POWDERS COOKING OIL


    NICHE MARKET

     IT IS A SMALL AND SPECIALISED SEGMENT OF A LARGER MARKET


     EXAMPLE- ROLCE ROYCE AND BRANDED CLOTHING , SHOES

    ADVANTAGES
    DISADVANTAGES
     SMALL FIRMS SELLS
     THEY ARE SMALL AND
    SPECIALISED
    HAVE LIMITED SALES
    PRODUCTS TO FEW
    PEOPLE  NO SCOPE OF
    SPREADING THE RISKS
     CUSTOMERS NEEDS
    AS THEY ARE
    CAN BE RESPONDED
    SPECIALISED IN FEW
    EASILY DUE TO THE
    PRODUCTS
    SMALL SIZE OF THE
    EXAMPLES OF NICHE MARKET

    BRANDED LUXURIOUS CARS


    BAGS
    HOME WORK

     WRITE FEW EXAMPLES OF MASS MARKET AND


    NICHE MARKET
    MARKET SEGMENTATION
    IT IS WHEN MARKET IS BROKEN DOWN INTO SUB-
    GROUPS WHICH SHARE SIMILAR
    CHARACTERISTICS

    MARKET SEGMENT
    IT IS AN IDENTIFIABLE SUB-GROUP OF A WHOLE
    MARKET IN WHICH CONSUMERS HAVE SIMILAR
    CHARACTERISTICS
    EXAMPLES OF
    SEGMENTATION
    SOAPS
    CHOCOLATES

    BEAUTY BABY MEDICATE


    SOAPS SOAPS D SOAPS YOUNG MIDDLE
    TEEN
    AGE AGE AGE

    APPEALING
    ADVERTISEMENT
    EXAMPLE-

     A SOAPS MARKET MAY BE SEGMENTED INTO BABY


    SOAPS,BEAUTY SOAPS,MEDICATED SOAPS
     CHOCOLATES ARE EATEN BY YOUNG,TEENAGERS
    AND OLD PEOPLE BUT CHOCOLATES MARKETS
    DIVIDES THE MARKET IN SUCH A WAY THAT ITS
    APPEALING TO EVERY AGE GROUP
     MARKET SEGMENTATION CAN BE SUCCESSFUL
    WITH THE HELP OF AN ATTRACTIVE
    ADVERTISEMENT
    WAYS OF SEGMENTING A
    MARKET
     BY SOCIO-ECONOMIC GROUP- BY INCOME
     BY AGE- YOUNG OR OLD
     BY REGION/LOCATION-BY PLACE
     BY GENDER-BY MALE OR FEMALE
     BY USE OF THE PRODUCT-FOR DOMESTIC OR COMMERCIAL
    USE
     BY LIFESTYLE- MARRIED OR SINGLE PERSON

    AFTER SEGMENTING THE MARKET MARKETING MANAGER WILL CHOOSE A PROPER WAY
    OF ADVERTISING THE PRODUCTS
    SEGMENTING A MARKET
    HELPS A BUSINESS TO..
    ADVANTAGES

     ENJOY HIGHER SALES AND PROFITS


     MAKEMARKETING EXPENDITURE COST-EFFECTIVE BY A
    PRODUCING A PRODUCT WHICH IS CLOSE TO
    CUSTOMERS DEMAND
     IDENTIFY
    A MARKET SEGMENT OR GROUP WHOSE NEEDS
    ARE NOT BEING MET(MARKET GAP)
    DISADVANTAGES

     HIGH ADVERTISEMENT COST


     HIGH STORAGE COSTS
     BRAND IDENTITY MAY BE AFFECTED IF ONE THE SEGMENT FAILS
    Which method of segmentation
    should be used?

     Detailed analysis of each market segment


     Company image and brand image
     Cost of entering each segment

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