Unit 10: marketing, competition and the customer.

The marketing department

- The Sales department: is responsible for the sales product.
- The Market Research department: is responsible for finding out customers
needs, market changes and the impact of competitors actions.
- The Promotion department: deals with organizing the advertising for
products.
- The Distribution department: transports the products to the market.
The role of marketing
Identify customer needs by finding out what kinds of products or services
customers want, the prices they are willing to pay, where and how they want
to buy, etc.
Satisfy customer needs in order to achieve sales of their goods or services.
Maintain customer loyalty by building customer relationships.
Gain information about customers to meet their changing needs and to
establish a long-term relationship with them.
Anticipate changes customer needs by identifying new trends in customer
demand so that the businesses can produce goods or services which are not
currently available.
Understanding market change
Why customer / consumer spending patterns change?

Consumer tastes and fashion change

Changes in technology
Change in incomes
Ageing populations

The power and importance of changing customer needs

Why have some markets become more competitive?
Globalization of markets
Transportation improvements
Internet / e-commerce so they can buy overseas market.

How can businesses respond to changing spending patterns and increased

competition?

Maintain good customer relationships

Keep improving its existing product
Bring out new products to keep customers interest
Keep costs low to maintain competitiveness.

What is meant by a market?

Mass marketing advantages:
The sales to these markets are very large.
The firm can benefit from economies of scale.
Opportunities for growth the business due to large potential sales.
Disadvantages:
High levels of competition between firms.
High costs of advertising
Standardized products are produced so may not meet the specific needs of
all customers.
Niche marketing advantages:
Small firms are able to set to niche markets as large firms may not have
identified them.
The needs of consumers can be focused on.
Disadvantages:
Niche markets are small and therefore have a limited number of sales.
Often businesses in a niche market will specialize in just one product.
Market segment
The market for a particular good or service is made up of the total number of
customers and potential customers for that particular goods or service.