Market and marketing
Factors of production: land, labor, capital and business
Pure market economy characteristics: private ownership of factors of production, except
for the labor force will need to purchase 2 in the society within the law, the choice of full
liberalization, they want to produce goods This means that companies can produce and
develop them want to The price of egoism is the main motive for competition between the
supply of products or services are the basic characteristics of the market economy do not
purchase products or services, then you can not sell products or services provided there
is no market
Price elasticity of demand = the quantity demanded changes / changes in the prices
Number of changes = changes in the number of / the original number of
Price changes = change in the price / original price
Factors affecting the price elasticity of demand: a real income available to the necessities
and luxuries of alternatives 4 low-priced products habits supplies
Difference performance between the market: a market on the sale of products of the
consumer and their buying behavior to follow a different approach in the geographical
distance between the various markets to make them to each other relative to the
difference between some artificial barriers, the market separation
The best use of economic resources closely related to the cause of the free market: a
market system to provide a very effective way, this approach coordinated market
economy allowed only in a high degree of flexibility and adaptability two free market and
economic growth there is the necessary link free-market decision-making freedom free
market with efficient use of resources is closely linked
Reasons of market failure: a signal provided through the price mechanism may not
understand, or it may be misinterpreted due to the existence of large enterprises able to
exert influence on the market, may reduce competition among producers to consumers
information may be incorrect or misleading, which will lead consumers do not make strong
the best decisions to produce private consumption products producer does not provide
the public consumption of products
Government intervention in economic reasons: 1 need to provide protection for individuals
in order to reduce the inequalities that may arise in the market economy in order to pursue
such equitable social goals, try to build a more caring society
Marketing is divided into three types: a consumer goods marketing, industrial marketing
services marketing
Marketing to reach business goals: one of the companies want to sell products to the
market recognition, or recognition of the part of the market, also known as market
segmentation market positioning decisions knowledge of the consumer consciousness to
develop a range of products needs continuous improvement of enterprise products and
corporate commitment
Market research trying to solve: one who will buy the product who have purchased the
product 3 who use four consumers to purchase products for a long time a five-why
consumers to buy specific products where consumers purchase products how consumers
the main competitors of the product 8 Who 9 how it compares to competitors products
Companies develop major marketing decisions, including: a production and the number of
products and how to produce two pricing levels the most effective form of marketing
where sales of products and the distribution of the most effective way
The internal departments of enterprises have a lot of information: detailed information of a
customer's sales records provided by the sales staff, marketing department report on
competitive products and manufacturing enterprises on the economy and may affect the
sales report
A good survey of the characteristics: 1 length to be short 2 just lists the required
information should not be asking personal questions 4 should not be offensive to others
Questionnaire can be used: face to face, telephone, mail, network
The corporate market research will report the following information: what products what
type of people willing to buy products, products should be how to design, packaging and
marketing only to the buyer the most attractive four products should be sold where
The main way to present data: a Data Form 2, line chart pie chart and bar graph graphic
New product development sequence: a creative screened three commercial analysis of
the four test marketing in the development of five 6 release
Be screened need to be resolved: whether the legitimacy of a product or service products
or services meet the target business have a technology 4 If the enterprise has the
technology to provide products or services, access to the technology costs how
enterprises to enhance their the level of competition in products or services the possibility
of profitable product or service difficulty of existing and potential market size can be
expected
Market test marketing technology: a representative of the city to persuade the store to
save the new products from carefully selected public for product testing, analysis of their
feedback, and improve the product
Boston product matrix will be divided into: a star product is very profitable products, has a
high market share, market growth rate is also high 2 Taurus products are those products
have good market reputation, and only need very little product promotion or advertising 3
thin dog products is those low market share, market growth rate is very low 4 products in
question in those markets high growth rates, but low market share of products
Promotion involves developing strategy, promotional mix must: ensure that aroused the
attention of customers and took note of the product by notifying the customer, the
information should be strong enough to arouse customer interest information and interests,
can make customers think he needs to This product, resulting in a demand 4 because of
the need goods, customers start to buy this product or service
Trade promotion: a special discount, especially for large orders to provide incentives for
customers to buy products to other means to attract customers reward vendors
Consumer promotion: a free gift, a special price of 3 free samples 4 competition, holidays,
cars and other prizes personalization of promotional low-cost or interest-free installments,
especially for expensive products for
Product promotion: a display of product features and benefits seminars and exhibition
catalog, technical and other promotional loose-leaf three commercial show 4 free training,
and five special credit terms often used in computer sales
Advertise to potential consumers, factors to be considered: the use of a media-media
innovation who watch specific TV shows or read the newspaper media user-friendly
The main forms of advertising: 1 newspapers and magazines, TV movie four commercial
radio stations are not in all countries be allowed five outdoor advertising, including 6 flyers
catalogs and brochures of the large billboards or roadside posters advertising methods
The role of the advertising agency: a market research and accounting management of the
two media planning innovative production of advertising
The role of public relations: the development of corporate image and reputation of a
positive and constructive manner to make up 3 show the organization of the wrong
policies and the corporate image of a leader or innovator in its field to inform the public of
corporate social responsibility, and concerned about the interests of its clients and team
action and policy recommendations to cultivate good relations with employees to inform
the public
Pricing objectives: profit, yield, growth, competition, market share
Glossary:
Opportunity cost: the price paid to give up in order to select a product to another product
Scarce resources: under certain economic conditions, availability of resources are not
infinite, and therefore the use of various resources, they can get the resources are limited
Production: This is a production system with limited resources to produce as much as
possible of the products, thus able to satisfy the desires and needs more
Traditional economy: in the form of this economic decision-making on what is produced
and how the distribution of products or services are determined by the traditional, more
customs and habits of
Planned economy: In this economic form, by a government agency to decide how much to
produce, how to produce and who should produce products or services
Mixed economy: The economy of economic policy is determined by the market system
and government agencies
Individual needs: consumers are willing to buy a certain price, product or service in a
certain period of time, the total
Market demand: all consumers are able to generate the total amount of consumption, the
total demand is the sum of the individual needs
Freedom of choice: If consumers are able and willing to buy, companies can provide any
products they want and the price they want, and can develop
The expansion of demand: the purchase of a large number of products will lead to the
reduction of the price level, so the demand curve will move
Demand crunch: a small purchase will lead to price level increases, so the demand curve
will move
Increased demand: refers to a situation where more products will be purchased in a
variety of prices, because of the potential factors affecting the demand has changed
Reduced demand: refers to a situation that fewer goods will be purchased in a variety of
prices, because of the potential factors affecting the demand has changed
Individual supply: the total in a given period, the independence of the individual
manufacturers to a certain price offered to the market availability of products or services
Supply to expand: in accordance with a given supply curve, the growth of the price level,
leading to more production, and these products easier to sell
The supply crunch: in accordance with a given supply curve, price level of growth, leading
to more production, and these products is also conducive to sales
Increase in the supply: refers to a situation, more products will be manufactured in a
variety of prices, because of the potential factors affecting the supply has changed
Supply reduction: refers to a situation, the more products will be produced in a variety of
prices, because of the potential factors affecting the supply has changed
Equilibrium: demand and supply to achieve the equivalent point in a specific price level at
this time, as long as the impact of the potential demand and supply factors are held
constant, the market situation is not driven by changes in
Completely elastic demand: that such a situation, that is, according to the demand curve,
if the price level remains the same, consumers will buy an unlimited number of products,
of course, if the price rises, consumers will not buy anything
Perfectly inelastic demand: refers to a situation in which, according to the demand curve,
regardless of the prices at what level, there is always a certain amount of products
purchased
Total income: the sum of the amount of money brought in by the enterprises in selling
products, it is actually the results of the sales price of the product multiplied by the total
sales
Average revenue: total revenue per unit of product sales contribution to total revenue, it is
the results of the sales proceeds divided by the total sales revenue, often the market price
level
Marginal revenue: sales outside of the product manufacturers increase in total income is
the marginal revenue
Fixed costs: do not change according to changes in product level production costs, they
are generally related to the use of variable elements
Variable costs: With the changes in product yield and change in production costs, they are
generally related to the use of variable elements
Marginal cost: the cost of production of additional products, resulting in the increase of the
total cost of this additional cost is marginal cost
Breakeven analysis: find the lowest cost when the match of the total revenue and total
cost of selling a certain number of products obtained
The trend of market equilibrium: demand and supply to achieve equal status in a particular
price level, at the same time as long as the potential impact of supply and demand factors
remain the same, there is no change in the state of this equilibrium
Derived demand: that kind of situation, namely the purchase of a product demand,
causing the purchase of another product of necessity
Competing demands: the purchase of two products compete with each other to purchase
one at the same time it means that another can not buy
The free market: fully determined by the demand and supply market conditions of the
market economy, decision-making, the Government is fully involved in the
decision-making process of the economy as a whole
The price mechanism: the market price of the interaction determined by demand and
supply in the free market price mechanism
Welfare economics: a branch of economics, trying to find a solution to maximize the
benefits of social output
Pareto optimal: it describes the ultimate solution is a solution to the problem of economics,
because the most benefits, not for personal gain and the redistribution of small economic
resources
Market failure: is the role of the free market does not produce optimal output from the
economic resources
Consisting of: a cartel by a number of large enterprise groups with each other can be
negotiated such as price levels, market share, including economic organizations
Externalities: Individual arrangements can be to society as a whole have a broad impact,
such a wide range of effects are called externalities, positive externalities and negative
externalities
Micro-economic policies: the policy of the government's single market, the tiny single
market on the demand for government intervention is very significant
Consumer marketing: the consumer market, products or services can be directly sold to
the general public, primarily through retail channels, such as shopping malls, etc.
Industrial marketing: refers to the industrial product sales to the company and the
manufacturer's place, they manufacture these industrial products eventually be able to
sell products and services to the public
Service banking, insurance, hospitals, equipment leasing, office cleaning and
maintenance, travel, transportation and other services marketing: service provided by the
market, of course, can also contain other consumer and industrial markets
Market Segmentation: from the market as a whole or part of the market to identify the
object of commodities and products to sell
Marketing mix: the market portfolio is to use the 4Ps various ways to maximize, in a
variety of situations to achieve the target market
Market research: the systematic collection, recording and analysis of data on products
and services on the market
Scale: one used to derive the strength of the respondents interviewed, mainly by those
interviewed to evaluate their own answers rather than give a correct answer range
Concept: the tangible and intangible characteristics of packaging products, making
consumers interested in buying
Brand: the brand is to the product so that consumers can think of identity, it is usually the
name or characteristics of the product linked, such as the mark and the reputation of the
manufacturer
New product development: A new features to provide customers with the benefits of the
process, its scope to cover new products and improvement of existing products
Business Analysis: involving potential sales, product cost, market density, existing and
past product similarity overall course of the investigation
Market saturation: one has reached the sales peak of the market can not continue to grow.
Its sales to retain only consumers replace their existing products
Boston matrix: a specific analysis package, mainly based on the comparison of product
market growth and market share analysis
Taurus products: a product on the market can be a good market situation, with a high
market share, sales growth in the market is not the largest, and the mature stage in the
product life cycle is linked
The products in question: a no growth in the market the best products, has a lower market
share, but at a higher growth phase, these products have significant growth potential in
the future, and the product life cycle into phases in the
Star product: the product has received very good market acclaim and a large market
share, but at present not yet experienced the greatest period of growth, and product life
cycle stages of growth.
Skinny dog products: the product has been successful in the market, but is gradually
losing its market share, while sales of the product can not be an increase in the market,
this phenomenon can be linked to recession and product life cycle
Ansoff matrix: An analysis of the product package, according to the characteristics of its
position in the matrix analysis. Including market penetration, new product development,
market extension and diversification of
Market penetration: a way to increase sales of existing products in existing markets, the
company sought
Advertising: advertising to potential customers publicity company can offer products and
services, which of course may also include special information and promotions
Advertising medium: the different methods used by the companies advertise their
products or services, if a company wants to promotions across the country, it will use a lot
of media coverage of the national media such as television and newspapers can
Concept: consumers can feel the degree of product information, this information includes
the company's information and the company plans on new products
Public Relations: This is part of a comprehensive marketing, generally used in large
companies, because they can pay from the expert fees, and have the ability to set up a
public relations department, they appear in the company when needed, and the ability to
retain existing customers and help the company attract new customers
Skimming pricing: this approach is the emphasis on high-yield high prices, the general
enterprise of this pricing strategy has produced a demand for innovative products and
consumers prefer more, until the product market supply before been able to maintain high
prices
Penetration pricing: penetration pricing is a low-price strategy to gain more market share
to penetrate the market. In addition, this pricing strategy is often used for a new product
on the market, of course, the product should have a longer life cycle and the potential
ability to grow
Mixed pricing: This method was originally to be applied skimming pricing, until the
competitive price immediately dropped, and in exceptional circumstances, the enterprises
are likely to lower prices to the cost price is about in order to maintain a high market share
and reduce competition. When these are achieved then the price of re-upgrade
Differential pricing: This method is different pricing for the same product in different areas
or different areas of the market, the bulk buyers usually at the time of purchase
promotions, on the contrary small buyers is the full price. The cost of the additional sales
will purchase to those who live far away, the business transferred to the consumers
Cost-plus pricing: The pricing policy requires companies to calculate all the costs of the
production of a product, including a wide range of product cost and damaging use of fixed
assets depreciation, the final price is determined by the sum of all of these costs
Promotional Pricing: This strategy needs to provide a price lower than the normal price,
often used to launch a new product or improve an existing product sales
Marginal cost pricing: the means that price and additional variable costs equal, which can
be achieved through the production of an additional product portfolio in this way, the fixed
assets of enterprises more efficient use of fixed costs can be derived from larger amounts
of output
Negotiated pricing in the industrial market and street trading: This is very common, the
price is raised by potential consumers, then the seller and then calculate the price he
wants, of course, there is a change, because consumers want to or special goods
Follow the market pricing: mainly used for the requirements of the suppliers with other
suppliers the same price, this price is usually determined by the demand and supply can
be affected by non-human
Distribution: This is the physical process of a flow of goods from producers to consumers,
involving the storage of goods, transport and management
Wholesalers: Wholesalers description middlemen, because they are in the middle part of
the logistics chain, they buy goods and retailers to sell in small quantities, their goods are
stored in the warehouse before the sale
Retailers: retailers often is considered to be the last link in the distribution of commodity
circulation, because they provide products or services directly to consumers
Independent distributors: sole traders often provide personal counter services, they will be
a small grocery store into a large sale of electronic products, but often they have similar
characteristics, they tend to their own independent property rights, and operators often
only with a single sell
Demand shopping malls: optional mall is independently owned property rights, but more
than a collective operation, in order to reduce the operating costs of the mall, allowing
consumers to select their own, and after the completion of the shopping payment
Supermarkets: they tend to also provide on-demand services, is part of a larger business
chain, often to provide a price discount, but does not provide the personal service, the
majority of supermarket food retailers
Large supermarkets: a large-scale supermarkets, often set up in relatively far away from
the town center, sells a variety of large number of products, the sale of various
commodities, including food, electronic goods, clothing, and even include gardening and
decoration products
Department Stores: These stores often located in the center of the town, offers a wide
range of products or services, they are generally individuals independently owned and
private services
Customer Service: this process is to ensure that the consumer's process as pleasant as
possible, there are two points need to be carefully handled things: one is the consumer
complaints, and the other is after-sales service
Justice concept: The basic idea is that by the tilt on consumer protection, consumers as
Group forces balance the interests of vulnerable groups and producers sellers target, it is
the inevitable requirement to achieve substantive justice
Safety concept: the basic content, including avoiding consumers to unreasonable risk of
harm, to prevent consumers from unsanitary conditions of damage, avoid consumers
personal safety compromised.
Order concept: order philosophy is the fundamental idea of the Consumer Protection Law,
Consumer Protection Act, other ideas and values built on the basis of the order of
Effective Idea: State by providing for strict product liability to intervene in the market
behavior, which boot to force the production and management attaches great importance
to product quality problems, thus greatly reducing and even gradually eliminate poor
quality products into the market, which is conducive to the way of maximizing value to be
allocation and use of resources to achieve the purpose to maximize the wealth of society