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IB - Marketing revision notes

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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.

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