principles of marketing.

• Marketing involves understanding customer needs.

• Marketing involves ensuring that the customers are the most important thing to a/the business.

•  Businesses use marketing to understand customer needs.
•  They use marketing to keep ahead of competitors
• àBusinesses use marketing to increase sales and profitability.

•  Corporate objectives are aims a business wants to achieve
•  An example of a corporate objective for a business is to increase the market share, this is a realistic target.

S- pecifc
M- easurable
A- chievable
R- ealistic
T- ime based

• An objective that follows SMART is clear (specific) so you know exactly what needs to be achieved.
• You can tell when it has been achieved (measurable) because you have a way to measure end.
• And a SMART objective is likely to happen because it is an event that is achievable.

• B2B:Business to business:

 selling their products to industrial buyers or retailers.

• Some marketing activities forB2Bare

- presentations to industry buyers.
- stands at trade fairs
E.G. TRADE FAIRS.

• B2Cis business to consumers.
•  It helps businesses to sell to private individuals, door to door.
•  Some marketing activities for B2C are:
• - Advertising the Brand.
• - Promotion to tempt customers to buy.
• E.G. AVON.

• a plan to communicate more openly with customers has marketing implications of increased customer satisfaction.
• Changes in product design or business processes have marketing implications, such as increasing customers' use and future purchases of a product.

• CONSUMERS ARE THE ONES WHO CONSUMERor use the product.
• WhilstCUSTOMERS ARE INDIVIDUALS who make the purchase of the product.

•  The difference between goods and services is:
•  A goods market isCONCERNED WITH THE PRODUCTS.
•  And a service market isCONCERNED WITH THE SERVICE.

• The difference between goods and services is:

• A goods market is CONCERNED WITH THE PRODUCTS.

•  And a service market is CONCERNED WITH THE SERVICE.

• Capital goods are goods that help make the product(s)

• Consumer goods are goods that the consumer bought in shops or online.

• niche market is when a business identifies a gap but the targets are small but well-defined section of the market
• An advantage is it isGOOD QUALITYand it isBESPOKE.
• Adisadvantage is it isQUITE EXPENSIVEfor customers to purchase.
• AN EXAMPLE OF A NICHE IS WHOLE FOODS. For healthy people.

•  A mass market is when a business targets a large proportion of the population.
• advantages of mass are there’s aHIGHER MARKET SHAREand theyADVERTISEmeaning there is more customers
• disadvantage of mass is there areMORE COMPETITORS.

AN EXAMPLE OF MASS MARKET IS NEW LOOK.

• A business model is a way in which a businessMAKES MONEYorADDS VALUE.
• There are3types of business models they are:

- SALES MODEL
- ADVERTISING MODEL
-MARKETING MODEL

•  What is the focus of sales model:SELLING GOODS
• What is an advantage of this model?:STAFF OFTEN GET BONUSES & COMMISSION
• Where does the revenue come from?:FROM SALES
•  What is a disadvantage of this model:CUSTOMERS CAN ONLY CHOOSE FROM GOODS ON OFFER.

AN EXAMPLE OF SALES MODEL IS COSMETICS SOLD AT PARTIES. 

• What is the focus of advertising model?:OBTAINING REVENUE FROM ADVERTS
• What is the revenue of this model?:COMES FROM ADVERTISERS
• What is an advantage of this model:?ADVERTISERS REACH THEIR TARGET MARKET EASILY.
• What is a disadvantage of this model?:BUSINESS DOESN’T HAVE CONTROL OVER ADVERTISERS.

AN EXAMPLE OF ADVERTISING MODEL IS COMMERCIAL T.V. E.G. ITV.

• What is the focus of marketing model?:MEETING CUSTOMER NEEDS
• Where does the revue come from?:COMES FROM SALES TO LOYAL CUSTOMERS.
• What is an advantage of this model?: CUSTOMERS  GET EXCELLENT SERVICE.
•  What is a disadvantage of this model?: TIME CONSUMING AND COSTS A LOT OF MONEY.

EXAMPLE OF MARKETING MODEL ARE INDEPENDENT BUSINESSES, ‘KELLOGS’.
 

• There is two type of orientations:MARKET ORIENTATION & PRODUCT ORIENTATION.

• A product orientated business is led by innovation.
•  A product orientation is used to convince the consumers to want it.

 For example, ‘DYSON’ as a product orientated business.

• Businesses identify the needs of their customers then make and sell their products.
• Market orientated business is led by research.
• The business first identifies what their consumer wants then designs their offering to meet these.

EXAMPLES OF MARKET ORIENTATED BUSINESSES ARE ‘TESCO’ OR ‘JOHN LEWIS’- started selling pet supplies to meet the respond to customer demand in 2003.

•  Branding is important to businesses because it makes thebusiness memorable.
• Branding enables it tostand out from other competitorsand bebespoke.

• Components that make the branddifferent from othersas itgives an identitymaking itinstantly recognisable, whichreinforces the idea/ image toconsumers.

• BRAND DIMENSIONSare the components that make a product instantly recognisable.
• It reinforces its image in the mind of consumers.
•  Brand dimensions include:

-colour (reflects the brand image.)
-symbol (an emblem that represents the brand.)
-logo (a distinct design or lettering.)
-celebrity endorsement (a famous name will increase sales.)
-image (gives a visual appearance to the brand.)