Basics of Marketing

• Marketing involves settings where buyers and sellers exchange goods and services.

Purposes of Marketing

• Marketing aims to establish, maintain, and enhance long-term customer relationships for profit, ensuring objectives are met through mutual exchange and fulfillment
• Marketing involves providing the right products to the right consumers at the right price, place, and time
• Attracting and retaining customers at a profit is a key function of marketing
• Marketing includes planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services, aiming to create exchange and satisfy objectives
• Marketing satisfies consumer needs so that they continue buying the product/services
• It anticipates market opportunities, identifying trends
• It identifies consumer requirements
• It competes effectively to generate revenue and profit

Finding Consumers and the Right Market

• A key role of marketing is creating a customer group to whom a business can sell its products
• A market describes all consumers interested in buying a product with the financial means
• A potential market describes all consumers interested in buying and is financially viable
• Target markets describe consumers who are the focus of the group's marketing efforts
• The term "market" describes the type of customer purchasing goods or services
• Consumer markets are the final consumers, while industrial markets are other businesses

Type of Consumer and Consumer Decisions

• "Type of consumer" defines a market segment
• Different customer types buy specific products, excluding them as target markets for others
• For example, newborn food interests parents but not students without kids

Changing Market Dynamics

• The business environment and consumer preferences constantly evolve
• Consumer patterns shift due to factors like product price, trends, and advertising
• Consumer income plays a role, as well as changes in age and circumstances such as a change in fashion

Market Segmentation

• A market segment is a portion of the whole market and has one group of consumers that want a particular product
• Consumers have differing needs because of culture, gender, religion, and taste
• Demographic segmentation uses factors like age, gender, income, and ethnicity
• It is useful for businesses like toy or medical product companies
• Geographical segmentation divides the market by location, language, or client base
• It is relevant for businesses like agriculture
• Psychographic segmentation considers interests, values, beliefs, and opinions
• It is useful for industries (veganism )and industry entertainment
• Behavioral segmentation considers routines, occasions, and customer loyalty
• This is interesting to groceries as a sector of the market

Vending Machine Target Consumers

• Characteristics of target consumers for vending machines include demand for snacks and drinks, affordable prices, healthy lunch alternatives, chewing gum, stationery for lessons, easy-to-eat bread and sandwiches, candies, nuts, and non-perishable foods

Mass and Niche Marketing

• Niche marketing is a very small part of the whole market
• A business which specialises in supplying hand tailored suits is a niche market
• Mass marketing sells the same products to the whole market
• Apples, bananas, pasta, and toothpaste are mass market items

Advantages of Niche Marketing

• Small firms can survive and earn profit in niche markets
• Consumers usually pay more for high-status, exclusive products
• There is less competition in these markets
• Firms focus on the needs of consumers who prefer individuality

Disadvantages of Niche Marketing

• Small changes in consumer spending patterns have a significant impact on companies and their profits
• The opportunity to earn high profits might attract competitors, reducing prices and future profits

Advantages of Mass Marketing

• Changes in consumer spending have less impact on companies
• Large-scale production often reduces unit costs
• A large market has the potential for high sales and profits

Disadvantages of Mass Marketing

• There is much more competition in the market, which lowers prices and profits.
• Small firms are less likely to survive in this market because of the competition
• Avitourism described as one of the fastest growing nature-based tourism activity in the world

Niche Market

• Avitourism is a niche market because locations are far away and only 3M trips are taken as well as the need to spend a lot on these trips

Market Research

• Market research is the collection and analysis of data relating to the marketing and consumption of goals and services.
• Businesses use market research to determine what to produce

Primary Research

• Primary research involves collecting new data
• The researcher collects new data
• Surveys (online/offline), interviews, experiments, and watching how customers shop in a store are examples of primary research

Secondary Research

• Secondary research involves collecting and analyzing existing data
• External publications and internal reports are examples of secondary research

Advantages of market research

Primary

• Primary research is up to date
• It provided more reliable data
• You design the experiment/interviews to fit your needs

Secondary

• Secondary market research is cost effective
• The information is easy to find and quick

Cons of market research

Primary

• Primary research is time consuming to collect and analize due to having to design

Secondary

• Secondary research can be out of date or unreliable
• It also is accessible to everyone and can be used by competitors

Market Research Article

Market Research Helps Businesses

• Market research helps businesses understand customers, competition, and pricing

Key Aspects of Market Research

• Understanding cultural, social, and economic contexts is crucial
• Quick, effective research can be done by looking at competitors online

4Ps of Marketing

• The Marketing Mix consists of strategies designed to meet customer needs, guided by answering questions about products, advertising, distribution, and pricing

Product Policy

• Product policy involves development, service, packaging, and brand awareness
• Functionality, appearance, and quality influence product design
• Packaging serves purposes like gift presentation or practicality of product

Pricing Strategy

• The long term strategies of pricing depends on costs, competitors etc
• Companies consider their costs, competitors' prices, market segment, consumer perception, demand, and product portfolio revenue

Cost-Plus Pricing Strategy

• Cost-plus pricing covers all costs and ensures profitability
• It's easy and transparent for customers, allowing quick price setting
• Cons
• it is bad when prices are too high, consumers might cease to continue purchasing

Penetration Pricing

• Penetration pricing involves setting prices low initially and increasing them later
• PROS -Attracts consumers and creates brand awareness
• CONS -Consumers become loyal when they have to later pay more

Market Skimming

• Market skimming maximizes early profits to cover certain research costs
• High price aids in creating positive brand image
• May encourage competitors to enter the market with high profits

Price Discrimination

• Price discrimination may make some feel unfairly treated and not want to buy anything anymore
• PROS -it increased customer loyalty, it ensures they come back in the future as well as getting deals

Psychological Pricing

• Psychological pricing attracts customers who think the price looks cheap
• Downside is, customers may be used to it and ineffective

Customer-Value Pricing

• PROS include higher profits, boosting premium/quality image
• Downside, when prices are high, the number of clients decrease

Short-Term Pricing Strategies

• Tactics include special offers, setting deliberately low prices, offering discounts, and making introductory offers

Effective Strategies

• Psychological pricing for a new pizza takeaway
• Customer-value pricing for a luxury hotel

Marketing facilitates exchanges between buyers and sellers. It focuses on building lasting customer relationships. Marketing also involves understanding consumer needs, and identifying opportunities to compete effectively and generate revenue.