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Chapter 28 Effective Marketing - gmbusiness

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Chapter 28 Effective Marketing - gmbusiness Powered By Docstoc
					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                        Disadvantages
•Large-scale production           •Fixed capital
•High revenues                    •Changes in demand
•Barriers to entry                •Effects of standardisation
•Research & development           •Competition
•Brand awareness                  •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

				
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posted:3/5/2013
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