• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

IB - Marketing revision notes

Extracts from this document...

Introduction

Marketing Marketing = is the management that’s responsible for identifying, anticipating and satisfying the requirements of customers profitably. To understand the marketing philosophy, consider some alternative approaches (tactics) : 1. Production-oriented firm = Concentrates on efficient low-cost productionï goods will find a market as long as the price is low enough. Strives for productive efficiency rather than responding to customer needs. 2. Product-oriented firm = Assumes that the supplier knows best, they produce high-quality goods and expect customers to buy them. 3. Sales-oriented firm = Makes a product and then considers how customers can be persuaded to buy it (“LURA”). MARKETING ORIENTATION VS PRODUCTION ORIENTATION Issues Marketing orient. Production orient. The product make what they can sell try to sell what they make Attitude to Customers plans determined by customers needs “they should be glad we exist” Innovation (förnyelse) To identify new opportunities To cut costs THE MARKETING MIX = describes various marketing activities! Market research = Must be carried out to see what sort of product – what design, what colours, what size, what price, etc – is demanded by customer. Package = The product must be attractively packaged. Advertising and sales promotion = for example discounts, to bring peoples attention. ...read more.

Middle

METHODS OF MARKET RESEARCH DESK RESEARCH (secondary search): existing sources of information to research into the market: 1. Its own sales statistics 2. Investigate competitors products already on the market 3. Government and other sources of statistics (ex. On population and on spending patterns) to asses trends taking place. 4. Desk research 2 advantages over field research: 1. Less expensive 2. Information is already availableï QUICKER FIELD RESEARCH (Primary search): new information about the market by going “into the field” & asking people. 1. Questionnaires (interview) = designed specifically for the task, holding interviews. 2. Test marketing = where a potential product is marketed in one area of the country, study reactions 3. Using Consumer panels = selected people are given the product and asked to comment in detail on it. 1. Field research Major advantage over desk research: 1. Done specifically for the new product in question. PRICING DECISIONS 1. Internal factors = cost of production. 2. External factors = prices of competing products on the market. HIGH-PRICE STRATEGY 1. Skimming strategy = a firm launches a new and a unique product and decides to charge a high price to “skim” the market. ...read more.

Conclusion

Undifferentiated marketing = Compared to a shotgun. It ignores the existence of segments and offers a single mix to the market. 2. Concentrated marketing = A particular segment is targeted. The firm adopts a mix that it considers most effective and appropriate for that particular segment. 3. Differentiated marketing = A separate mix is developed for each segment of the market. Consumer Behaviour Opinion leaders = Early buyers that affect other people to buy. They are trendsetters. Innovators = young, high status, high income Laggards = Low income groups Early adopters = influential within a local area, they are ?influentials? Early majority = taking time to decide Late majority = below average incomes THE PRODUCT LIFECYCLE 1. A basic fact of business life is that all products and services pass through a number of phases from introduction to eventual elimination. STAGES OF THE PRODUCT LIFE CYCLE: Research and development 1. High cost phase 2. Most ideas are rejected Launch and introduction 1. Low sales 2. High price, if technical products Growth 1. Purchased by Early adopters 2. Brand loyalty develops Maturity 1. Purchased by Early majority 2. Sales revenue rising, but slowly Saturation 1. Purchased by the Late majority 2. Price reductions are likely to maintain sales Decline 1. Purchased by Laggards 2. Sales and profits falls 1. Death ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. Advance Professional Development

    to achieve targets * apply suitable approaches and put in extra effort if required in order to meet tight deadlines * work without close supervision and use own initiative * identify resources required to complete a set task * harness motivation and hard work to assist in the completion of work objectives 6.

  2. Analysing Job sectors in Canada. Identify trends in employment and occupational demand patterns for ...

    Roughly 37% were 40 years of age or under. * The Pie Chart below shows the percentages of dentists in different areas * In June 2007, there were 57.5 dentists per 100,000 people in Canada. There were wide variations from province to province.

  1. Business plan for a manufacturer of luxury, eco-friendly cars.

    The target market will not have been realised as of yet. They would be people who are willing to spend around �65,000 on a car, and are looking for green credentials without compromising luxury. By targeting older people, who tend to care more about comfort and quality than speed, and

  2. Marketing. In my project, I am going to be looking at how Nestls Smarties ...

    Market segments - the different categories that you can divide the consumers into. E.g., age, Socio economic group, gender. Niche marketing - finding a gap in the market. A product or service that is not provided yet but is needed.

  1. MG 309 Strategic Management

    and business markets including dial-up access, broadband service, dedicated high-speed solutions, hosting, and Internet application development.

  2. Thai Tuan Textile Company, Vietnam - Marketing Strategies

    Obviously, most of people philosophy was "An chac mac ben", meant that I cared my foods in quantity rather than quality, I bought my clothes if they could be used in long time rather than fashionable. A decade later, people income was remarkably increased plus a wide integration with the world.

  1. Kentucky Fried Chicken Marketing Mix Report

    Fish Zinger, Zinger burger, Twister, Col.Chicken Burger, and Sub 60), Desserts & Beverages (including Scoop of Walls, Fruit Salad, Large Drink, Mineral water regular, Mineral water large, Coffee, and Tea), Snacks & Side Orders (including Nuggets, Regular Fries, Large Fries, Corn on the Cob, Arabian Rice, Dinner Roll, Hot Shots, and Cheese).

  2. Organisational Behaviour (in short called as OB) is concerned with the study of the ...

    Advantages ? Maximize efficency ? Faster decision makings ? Develop motivation within the staff Disadvantages ? Increases time for meetings, therefore costs aswell ? Divergence on loyalties among the staff Multidivisional Structure A Multidivisional Structure has the characteristic of having several product line or divisions.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work