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MARKETING
Marketing
Marketing is the term used to describe the
activities intended to attract a profitable demand
for a product.
Marketing is about identifying, anticipating and
satisfying customer demands.
It implies an ongoing process of researching,
planning, implementing and reviewing strategies
to meet customers’ needs.
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Selling and Marketing
The selling concept assumes that consumers
have to be persuaded by vigorous selling
techniques to buy non-essential goods and
services.
The marketing concept assumes that the
producer’s task is to find wants and fill them, i.e.
you don’t sell what you make, you make what
will be bought.
Practically, marketers also anticipate and create
new needs, as well as satisfying existing needs.
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Marketing
Market Segmentation: marketing is
based on the theory that similar people will
buy similar products.
Most common ways in which a market can
be segmented are by:
- Age (young vs old customers)
- Gender (women’s clothes and jewellery)
- Ethnic groups (food products)
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Marketing
- Income groups (buyers are divided into 6
socio-economic groups, according to their
income) *
- Area (different products in different areas)
- Lifestyle (family/individial needs)
- Amount of use (heavy users vs light
users)
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Marketing
* Socio-economic groups:
1) Upper middle class: doctors, lawyers,
company directors;
2) Middle class: bank managers, teachers,
accountants;
3) A) lower middle class: shop assistants,
secretaries, police officers;
B) skilled working class: skilled manual
workers as train drivers, electricians, cooks;
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Marketing
4) Working class: semiskilled or unskilled
workers as packers, assembly line
workers;
5) The poorest: state pensioners,
unemployed, casual workers.
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Market Position
Before planning future business strategies and in
order to understand its position in the market, a
business carries out a
SWOT Analysis, i.e. Strengths and Weaknesses
(inside the business, such as reputation and
resources) and Opportunities and Threats
(external factors, such as actions by
competitors).
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MARKET RESEARCH
Before launching a product, most companies
undertake market reasearch.
They collect and analyse information about the
size of the potential market and about the
consumers’ reactions to particular products, as
well as about competitors.
They try to aswer questions like:
- Who will buy my product?
- What price will buyers be prepared to pay?
- When is it best to sell it?/What type of
promotion? / What about competitors?
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MARKET RESEARCH
They collect two types of data: quantitative and
qualitative data.
Quantitative market research produces
numerical statistics (e.g. how many scooters
were sold in 2013 or what percentage of
teenagers buy a certain type of clothes);
Qualitative market research looks into
consumers’ feelings and motivation (e.g. what
customers like about a product).
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MARKET RESEARCH
To this purpose there are two types of
market research: primary market research
and secondary market research.
Primary market research involves
collecting information directly from
potential or existing customers. Most of
this information is collected by market
research surveys.
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MARKET RESEARCH
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Surveys may be carried out:
by personal interview
by telephone
by post
by online questionnaire
in groups
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MARKET RESEARCH
Secondary Market Research :
gathering information which has already
been published (e.g. financial accounts,
sales records, customer records,
marketing reports, specialist journals,
trade associations, government reports
and statistics, the Internet).
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MARKETING MIX
The factors involved in marketing a
product can be grouped into four main
categories, (marketing mix) best known as
the
‘Four Ps’ : product, place, promotion,
price.
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MARKETING MIX
1)Product: businesses have to take
decisions as to: image, name, packaging,
branding (i.e. brand name= registered
name for a product).
2)Place: i.e. how the product is distributed;
it includes factors such as distribution
channels, locations of points of sale,
transport, inventory size, etc.
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MARKETING MIX
3) Price: a business has to take into
consideration
a) whether the price will cover production
costs;
b) what prices are charged by competitors;
c) how prices can be used to increase
sales.
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MARKETING MIX
4) Promotion: it gives customers
information about the product, its price and
the place where it is sold.
It concerns the way in which a firm
persuades customers to buy. There are
various techniques: advertising, personal
selling, public relations, sponsorship of
sports events and sales promotion. N.P.
Selling and Marketing
Feedback:
1) What’s the difference between selling
and marketing?
2) What does market research consist in?
3) Describe the ‘marketing mix’.
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