Marketing and the competitive environment
- Marketing:- the action of promoting and selling products or services, including market research and advertising.
- Niche Market:- The market which provides goods and service which satisfy the needs of a small and specific section of a market, with a unique selling point.
- Mass Market:- operating within a market which caters for a large scale market.
- Market:- is where goods and services are sold.
- Business to business (B2B):- businesses which provides products and services to only business. An example is Ca-pita.
- Business to consumers (B2C):- firms that ultimately sell to consumers. An example is Fly Emirates.
- Product Differentiation:- When a mass marketing sells specifically tailored goods for wholesalers and Business to business firms.
Effective Marketing MIx Mufc
Manchester United Products:
- Tv rights
- Training clothing
- Personalised Goods
- Charity Work
- Community service
- TV adverts
- Indirect Promotion - news and tv channels
- Old Trafford
- Sports shops
- Cost plus pricing:- Percentage above the cost to guarantee profit
- Price skimming:- New Products can be put up at high prices to start off with, to maximize profit.
- Penetration Pricing:- New products are set at low prices to capture as much of the market share as possible.
- Price leaders:- They have the largest share of the market so they can dictate the price. eg. Asda or Tesco
- Price takers:- Companies in a competitive market that have a small market share and have less control of the price and have to take whats given to them. eg. Newsagent
Marketing Mix: Products
What is Product development:
Changing aspects of goods and services to meet the changing needs of existing customers or to target a different marketing.
USP: this is the unique selling point which is the thing that makes a product stand out.
Factors which influence Product development:
- Advances in technology
- The actions in competitors
- The entrepreneurial skills of managers and owners –how much risk are they willing to take? Do they have the skills to develop products?
- Financial situation
Product Portfolio: this is when you have a range of different types of products.
A method of analyzing how successful a businesses products is doing in the market.
Using Marketing Mix: Promotion
- PR stands for public relation, it means to shape and maintain the image of a company.
- 3 methods Of PR are :
- Publicity stunts
- Product Placement
Role publicity officers are to make sure the company has a good relationship with local communities and local organisation.
PR is potentially more effective than advertising as public relation create a good relationship with the public this therefore enables customers to trust the company and this will mean governments are more likely to back the company.
A brand is a type of product manufactured by a particular company under a particular name.
An example of a brand is SDC