, The market
marketing involves a range of activities that helps a
examples of market: business sell its products.it involves:
• Consumer goods markets • Identifying consumer's needs and wants.
• Market for services • understanding threats and informing customer
• commodity market eg raw materials. about products.
• Financial market. • charging right price and persuading customers
Mass market Niche market
• Business sells the same product to • A small segment market untouched by
all consumers and market in the larger businesses. Its involves selling to a
same way. small customer group with specific needs.
• For example, crisps, breakfast • Small firms survive through niche them are
cereals, coca-cold Lao competitions and it is easier to focus on
consumers needs it also allows them to
• Huge customer base especially if charge premium prices if there's no
products are sold globally. = lower competition.
unit cost by exploiting economics of
scale. = higher sales and profit. • if successfully exploit noche= attract
competition and due do its small nature =
• Lot of competition and therefore would be unable to support many competing
more money spent on marketing. firm. = large business can overran small
business, relying on niche may be
• real-world example: Advertising age vulnerable as they are re not spreading risk.
reported that Coca-Cola company Market may collapse if they lose their grip
spent $13.3 billion on global and do not have other product or market as
advertising in 2013. back-up.
• real-world example: zumiez, sells products
related to surfing, skateboarding, and
snowboarding
, 2: market research
difference between product oriented and Market oriented business.
market orientated
product orientated (PO)
(MO)
• Businesses that continually identifies, • means the business focuses on the
reviews and analyses consumers' needs production process and the product
and led by the market. itself
• Most likely to be engaged in effective • puts efforts into developing and
marketing. making its products which it believes
consumer wants and which will sell
• For example, Henry ford identified The well.
price at which he believed he could sell
large number of model ts. = • for, example, (businesses) -producing
becomingpart of the mass market radios and television and (industry) -
eg machine tool industry which
• Sony and iPhone 6 is also an example produces machines used in production
of market oriented approach and of goods has to produce a final product
product being developed according to which exactly matches a technical
consumers wishes. specification. However, due to
increased competition , such firms
• Advantages: respond quickly to have forced to take customers' needs
changes in the market because of its use into account. It also requires a great
of market information, strong position deal of market research.
to meet challenge of new rivals, able to
anticipate market changes, confident
that a launch of new product will be MO approach will not always guarantee
success. success. For escape, coloroll attempt to
enter DIY burglar alarm market was a
failure.
market research- produce the product in qty set the price consumer
consulting consumer that consumer want to buy is willing to pay.
continually..
what must a business do for a market - oriented
approach.
design the product according to distribute the product according to
consumer wishes consumer buying habit and
delivery requirement.
, marketing mix - element of a business marketing
designed to meet the needs of customers. The four
element are called 4 ps' - product, price, promotion and
Place.
policy decision
nature of the product
• where objectives are on technical quality or
if a business operate at the edge of innovation, safety, emphasis on production. (PO)
such as, biotechnology.it must innovate to • Where objectives and on market share,
survive and may try to anticipate consumer emphasis on marketing(MO)
demand though ' pure demand.
Factors a ecting Business decisions in terms of
MO and PO approach
View of those in control nature and size of the market
e.g managing director might place
emphasis on cash flow and profit fore- if production cost are high then a company is
cast (MO) and production engineer= likely to be mo only by being so can they avoid
unsold good and possible losses.
technical quality and control (PO)
degree of competition
• lack of competition - focus resources on research
with little concern about loss of market share= PO
• Competitive market- spend more on marketing due
to fear of losing market share = MO
more product oriented more market oriented
E.g coal mining business, E.g clothing retailer, soap
wheat farmer, water supply powder manufacturer,
business. supermarket chain
ff
marketing involves a range of activities that helps a
examples of market: business sell its products.it involves:
• Consumer goods markets • Identifying consumer's needs and wants.
• Market for services • understanding threats and informing customer
• commodity market eg raw materials. about products.
• Financial market. • charging right price and persuading customers
Mass market Niche market
• Business sells the same product to • A small segment market untouched by
all consumers and market in the larger businesses. Its involves selling to a
same way. small customer group with specific needs.
• For example, crisps, breakfast • Small firms survive through niche them are
cereals, coca-cold Lao competitions and it is easier to focus on
consumers needs it also allows them to
• Huge customer base especially if charge premium prices if there's no
products are sold globally. = lower competition.
unit cost by exploiting economics of
scale. = higher sales and profit. • if successfully exploit noche= attract
competition and due do its small nature =
• Lot of competition and therefore would be unable to support many competing
more money spent on marketing. firm. = large business can overran small
business, relying on niche may be
• real-world example: Advertising age vulnerable as they are re not spreading risk.
reported that Coca-Cola company Market may collapse if they lose their grip
spent $13.3 billion on global and do not have other product or market as
advertising in 2013. back-up.
• real-world example: zumiez, sells products
related to surfing, skateboarding, and
snowboarding
, 2: market research
difference between product oriented and Market oriented business.
market orientated
product orientated (PO)
(MO)
• Businesses that continually identifies, • means the business focuses on the
reviews and analyses consumers' needs production process and the product
and led by the market. itself
• Most likely to be engaged in effective • puts efforts into developing and
marketing. making its products which it believes
consumer wants and which will sell
• For example, Henry ford identified The well.
price at which he believed he could sell
large number of model ts. = • for, example, (businesses) -producing
becomingpart of the mass market radios and television and (industry) -
eg machine tool industry which
• Sony and iPhone 6 is also an example produces machines used in production
of market oriented approach and of goods has to produce a final product
product being developed according to which exactly matches a technical
consumers wishes. specification. However, due to
increased competition , such firms
• Advantages: respond quickly to have forced to take customers' needs
changes in the market because of its use into account. It also requires a great
of market information, strong position deal of market research.
to meet challenge of new rivals, able to
anticipate market changes, confident
that a launch of new product will be MO approach will not always guarantee
success. success. For escape, coloroll attempt to
enter DIY burglar alarm market was a
failure.
market research- produce the product in qty set the price consumer
consulting consumer that consumer want to buy is willing to pay.
continually..
what must a business do for a market - oriented
approach.
design the product according to distribute the product according to
consumer wishes consumer buying habit and
delivery requirement.
, marketing mix - element of a business marketing
designed to meet the needs of customers. The four
element are called 4 ps' - product, price, promotion and
Place.
policy decision
nature of the product
• where objectives are on technical quality or
if a business operate at the edge of innovation, safety, emphasis on production. (PO)
such as, biotechnology.it must innovate to • Where objectives and on market share,
survive and may try to anticipate consumer emphasis on marketing(MO)
demand though ' pure demand.
Factors a ecting Business decisions in terms of
MO and PO approach
View of those in control nature and size of the market
e.g managing director might place
emphasis on cash flow and profit fore- if production cost are high then a company is
cast (MO) and production engineer= likely to be mo only by being so can they avoid
unsold good and possible losses.
technical quality and control (PO)
degree of competition
• lack of competition - focus resources on research
with little concern about loss of market share= PO
• Competitive market- spend more on marketing due
to fear of losing market share = MO
more product oriented more market oriented
E.g coal mining business, E.g clothing retailer, soap
wheat farmer, water supply powder manufacturer,
business. supermarket chain
ff
