Y1 BUSINESS RECAP- MARKETING SECTION 3
- Created by: ameliab2001
- Created on: 15-10-21 12:47
View mindmap
- Marketing
- What is marketing?
- a mutually beneficial exchange between a business and a customer - the business gains profit whilst the customer, satisfaction.
- a market is anywhere with buyers and sellers. nature can vary. examining particular characteristics is known as market analysis
- The link between business and customer, building a relationship so they remain loyal (aka relationship marketing)
- Decision making to improve performance
- 1. Analyse market data 2. make marketing decisions 3. implement 4. review 5. set objectives
- these decisions ensure the business continues to meet the needs and wants of the customer. therefore remaining competitive
- example: Steve Jobbs disbelieved data collected from customers as he thought his designers had a better concept of what they wanted.
- Ethics and marketing
- should they market to children? (pester power)
- should they promote harmful products? eg tobacco, alcohol
- these are legal, but the business must choose whether it is right to undertake them or not.
- growing issue with more concern over how employees and suppliers are treated and how product is produced. e.g. concerns over trawler fishing
- Marketing objectives
- sales volume and value: value of sales measured by how much is spent on a product (£), volume is number of units sold.
- brands can be sold to the stronger, the higher gain
- sales growth: managers want to measure how much they are increasing. could be as % from last year.
- market share: sales of this product ÷ total market sales x 100
- often given as a target instead of the absolute level of sales as it reflects market conditions
- high market share suggests: relatively high sales + profit (depends on costs), power over suppliers, high prominence
- brand loyalty: how many return to use the business again, keeping is cheaper and easier than attracting new
- sales volume and value: value of sales measured by how much is spent on a product (£), volume is number of units sold.
- External influences
- Business example: eBay founded in 1995 but couldn't of happened earlier as the technology didn't exist.
- the political/legal environment: regulation on info sellers provide, where can be built on and how it is designed
- economic change: cost of borrowing, new emerging markets over-seas, living wages
- tech change: comms with customers and tracking their behaviour e.g. reviews
- competitive environment: degree of competition, internet makes it easier for customers to access competitors
- social change: whats considered acceptable and what is expected from a product
- internal influences
- the overall business strategy
- e.g. focussed on growth > target level of sales might be higher than if strategy was to maintain size
- managers ambitions
- ambitious and optimistic managers set demanding targets to push the business forward
- existing position of the business
- ensuring objectives aren't unrealistic as this can demotivate, if they are too easy the business may of been able to achieve more
- amount the business can produce
- capacity utilisation and ability to expand
- finance available (budget)
- employees of the business
- affect quality of design, customer service, range of services and therefore target level of sales.
- the overall business strategy
- What is marketing?
Comments
No comments have yet been made