AQA AS Business studies chapter 32- Marketing and competitiveness

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Preview of AQA AS Business studies chapter 32- Marketing and competitiveness

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Chapt
er
32:
Mar
ket
ing
and
compet
it
iv
e ness
Compet
it
ors
The
p r
ice
a f
ir
m set
s mu st
t
ake account
of
comp eti
tor
's
pri ces.
If
compe t
it
ors
are of
feri
ng a si
mi l
a r
pr
o duct
or
serv
ice
an d
it
i
s easy
to
sw i
tc
h
f
rom one t
o the
other,
f
irms ar
e
li
kel
y t
o
set
simil
ar
pri
ces.
Wh erever
possibl
e a f
ir
m w i
ll
s t
ress
the par
ti
cular
benefi
ts
o f
w hat
i
t
is
off
eri
n g
so
it
can
just
if
y a hi
gher pr
ice.
I
f
a cust
ome r
be l
i
e ves
a produc t
provi
des bet
ter
value
for
mo ne y
then he
/
she
wi
ll
may st
il
l
bu y
i
t even
if
i
t i
s mo re
e xpensi
ve.
Ef
fect
ive
mar
ket
ing
Market
ing i
den t
if
yi
n g
and me et
ing
customer needs
Ni
che marketi
ng
w hen a
fi
rm f
ocuses on a
specif
ic
segme n t
wi
th
w hi
ch t
he
major
competi
tors
are
no t
concer
ned ,
can speci
al
me et
ing in
me et
ing
specif
ic
needs
of
the
ma rket
Mass market
ing takes
place
w hen
a f
irm ai
ms
a product
or
ser
vice
at
mo st
of
t
he market
,
mu st
be abl
e
to
produce goods
at
a
lar
ge scal
e
Niche marketing
Respond
qui
ckl
y t
o needs
and
mar
ket
s Pot
enti
al
for
sal
es/
ma rk
e t/
business
growth
is
l
i
mited,
might
not
be
succ essf
ul
in
long
ter
m
Hi
g h
pro du ct
s
co sts
me ans
there are more Di
ff
icul
ti
es
in
breaki
ng even qui
cker t
han you
li
ke
pr
ofi
t f
or t
he b usi
n ess which
me ans
that
the
busi
ness
w i
l
l impro ve by
usi
n g
skimmi ng
st
rat
e gy
Opportun it
y t
o dev el
op compe t
it
ive of
fi
rst
R equir
es sp eci
ali
st
staf
f
w hi
ch
is
labour
mover ad vant age intensi
ve
Developi ng
mo re
e ff
ecti
ve cust
ome r
servi
ce D i
ff
icul
ti
es in devel
op i
ng br
and name
which
inc reas es
th ei
r
brand l
oyalt
y a warenes s
Reduces
comp eti
tion
so can have
mo nopoli
sti
c U nawa r
e t
o
benefi
t
of
economies of
scal
e
power (
2 5%)
Mass marketing
Ai
ming
at
w i
der
t
ar get
ma r
ket
,
oppor
tuni
ty
to I
ncreased compet i
ti
on gi
v e
`choi
ce'
t
o
gai
n mar
ket
shar
e consumers so
the
busine ss needs
to
develop
USP
to
stand out
Pri
ci
ng
of
product
s l
ow (
penet
rat
ion
pri
ci
ng Assume s
everyon e
is
the same but
everyone
st
rat
egy)
have
dif
ferent
nee ds
an d wants
which
is
missed
opport
unit
ies
of
ta r
geti
n g
B enefi
ts
fr
om economies
of
scal
e e.
g.
bul
k Capit
al
int
ensive
s o coul
d
have f
inanci
al
issues
b uyi
ng di
scount
s,
techni
cal
economy
Depends
on
technol
ogy
a l
ot
so
it
's
ri
sky

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Page 2

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Ned
to
develop
int
ell
ectual
pr
opert
y as
it
's
real
ly
compet
it
ive
so needs
to
be prot
ect
ed!
C onsume r
ma rk et
ing
creat
ing and del
iver
ing pr
o ducts
to
so l
ve
c onsume r
's
nee ds
B usi
ne ss
ma r
ke t
ing
servi
ng t
he
nee ds
of
a
busin ess
or
busines ses wit
hin
on e
or
mo r
e
industr
ie s
Ma rket…read more

Page 3

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Here's a taster:

Deve l
op brand l
oyalt
y which i
ncrease sal
es a nd V ery
comp et
it
ive
ma r
ker makes i
t
dif
fi
cult
for
ea rl
y
l
eads
to qui
cker br
ea k
even an d
high p r
ofi
t n ascent
I(e me r
gin g)
busi
n esses
as ot
h er
c omp ani
es
alr
e ady have f
ir
st
mo ver
ad vant
age
Can be
incor
p or
ated…read more

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