Transcript Chapter 28: Effective Marketing

Chapter 28: Effective
Marketing
Purposes of Marketing
• Anticipating customers’ wants (Market research)
• Satisfying customers’ wants in a way that delights
customers (Marketing Mix 4 Ps – plan a suitable
product, charge an attractive price, put the product
into the right location or place, and use promotion to
make customers aware of the product.)
• Meeting the needs of the organisation (enables a
business to satisfy its own wants – corporate aims
and objectives)
MARKETING – the anticipating and satisfying of
customers’ wants in a way that delights the consumer
and also meets the needs of the organisation.
Marketing Objectives
• The goals of the marketing function in an
organisation
• Types of marketing objectives:
– Size (measured by sales or market share)
– Market Positioning (a company’s appeal to
particular market segments)
– Innovation / Increase in Product Range
– Creation of Brand Loyalty / Goodwill
– Security / Survival
Business-to-business (B2B)
marketing
• Where a firm sells its products to another
business
• Main features of B2B marketing:
– Larger transactions
– Specialist buyers and sellers
– Quality
– Informative advertising
– Pricing
– Buyer-seller relationships
Niche Marketing
• Targeting a product or service at a small
segment of a larger market
• Advantages:
– Less competition
– Costs
– Small-scale production
– Tailor-made products
– Targeting customers
• Disadvantages:
– Lower profits
– Changes in demand
– Market entry
Mass Marketing
• Aiming a product at all (or most) of the market
Advantages
•Large-scale production
•High revenues
•Barriers to entry
•Research & development
•Brand awareness
Disadvantages
•Fixed capital
•Changes in demand
•Effects of standardisation
•Competition
•Adding value
• In order to compete in a mass market, a business needs to
make sure its product is different from competitors’ products. If
consumers value this difference, it will benefit the firm in two
ways: 1) Increased sales volume; 2) Greater scope for charging
a higher **This is often achieved through Product Proliferation
– when a variety of products are produced to serve
different tastes