IB Marketing

All processes involved in identifying ans satisfying curstomers needs and wants

A situation where a business prioritieses research and development of high qualoity specialised products rather than prioritising market research.

Advantages:
- Unique selling point + high quality
- Monopoly ( patents--> high revenue)
- Lack of competition

Disadvantages:
- high risk
- high cost

A situation where a business's sole focus is on a market segment's needs and wants, and thus requires extensive and ongoing market research in order to guide all decisions.

Advantages:
-Low risk
-repeat customers.
-good for social enterprises

Disadvantages:
- No unique selling point
- Relaince on market research
- lack of agility (hard to adapt to changing market conditions)

The percentage value of a single company's sales or revenues compared with the sales of all businesses in a market.

The percentage increase in sales revenue or sales volume in an individual market over time

The product or brand with the highest market share

- Brand recognition
- Access to more distribution channels
- Price leadership
- Economies of scale
(BAPE)

Advantages
- Innovation
- price
- increase value

Disadvantages:
- Lack of innovation
- price control
- abuse of power

Business:
- diseconomies of scale
- lack of innovation/ motivation
- attract more competitors due to high profits

Economy, society, and environment:
- Bribe politics for favorable legislations (weaken environment, labor and antitrust laws)
- Bribe politics for support with mergers and acquisitions
- Less impacted by trade unions/ protests for fair wages and conditions
- Finding Tax loopholes

Problem Child: High market growth/ Low market share (Introduction stage)
Stars: High market growth/ High market share (Growth stage)
Cash Cows: Low market growth/ High market share (Maturity)
Dogs: Low market growth/ Low market share (decline)

A document that outlines a companys entire marketing process
1) marketing objectives
2) marekting budget
3) segmenatation and target market
4) market research
5) marekting strategies
6) control tools

Goal that provides direction for the marketing function
--> helps it achive the overall business objectives

Amount of money allocated to the marketing task
Could be set:
1) Objective: estimate of how much money is needed to complete task (flexible)
2) Sale based: allocated percentage of sale revenue
3) Incremental based: use previous years as a guide + inflation

A technique that divides the population based on simlar needs or charcateristics
types:
- demographic
- geographical
- psychographic
- behavioral

- identifify gaps and opportunities in market
- design suitable products for specific groups
- reduce waste of resourceses
- diveristy and spread risks by targeting diffrente customer segments.

- age (baby soup, adult soup)
- gender (mens clothes/ womens clothes)
- income (luxury, moderate, discount )
- level of education
- religion
- profession (role in a company)

- region
- city
- state
- country

- perosnality
- hobbies
- social status
- opinion
- life goals
- values and beliefs
- life style

- spendingf habbits
- purchasing habbits
- browsing habbits
- interactions with brand
- loyalty to brand
- product feedback

Selecting the most appropriate market segment for a market campaign.

Gathering information about customers' needs, tastes, habits, and preferences.
primary: surveys, feedback, and interviews
secondary: using already existing data

- identifying consumers’ needs and wants
- identifying potential changes in the market (changes in consumer spending patterns)
- testing new products
- evaluating existing marketing efforts in attracting consumers
- investigating new possibilities in existing or new markets
- can be conduct with each of the 7 P's to find the most appropriate marketing mix

Gathering data that has not been collected before though:
- surveys
- interviews
- focus groups
- observations

A research method that involves compiling existing data sourced from a variety of channels such as:
- a market analysis
- academic journals
- government publications
- media articles
- online content

Advantages:
- Provides direct information about customers’ tastes and preferences.
- Very personalizable

Disadvantages:
- expensive and time-consuming
- staff may require training to carry out

Advantages:
- lower cost
- provides broader information about the whole economy, population, and general trends
- readily available (easy to conduct)

Disadvantages:
- must rely on exterior methods
- existing information may not be usefull for business
-not specific (different issue, subject, and target market)

tools used to acsess the success of a marketing strategie
ex: sales revenue and profit data, the number of repeat customers, surveys and focus groups

When a business if able to stand out from its competitors by achieving a unique selling point in their marketing mix.

a feature of the company that distringuishes it from its competitiors

A segment of a large market that can be defined by its unique needs, preferences, or identity

ways to define niche market:
-price (luxury, moderate, discount)
- demographic
- quality ( premium, handmade, economical)
- psychographic
- geographic

Advantages:
- Less competition
( high profit margin )
- Suitable for small businesses
(lowere investemnts)

Disadvantages:
- High per unit cost
(less economies of scale)
- less reach
- little growth potential

the process of marketing for an entire market rather than one targeted group
---> mass distributions and mass media
ex: sunscreen

Advantages:
- large market
- low per unit production and marketing costs
( economies of scale)

Disadvantages:
- high cost
- more competition

A technique of selecting a subset of individuals (sample) from a given population to make some estimation or prediction of the population as a whole.

These methods can be:
- random sampling
- quota sampling
- convenience sampling

a sampling method whereby everyone in the population has the same chance of being selected to take part in the research

advantages:
- not effected by bias

disadvantages:
-not always representative
-complex and costly
-low control

A sampling method that involves dividing the population into strata (layers) based on a given characteristic; a proportional sample is then taken from each stratum.

advantages:
- representative (if quotas are done correctly)
- high control

Disadvantages
- affected by bias
- costly and complex

A sampling method where the sample is made up of whoever is willing to take part in the research.

advantages:
- cheap
-easy to do

disadvatages:
- not representative

Mean- average
Mode- most frequent
Median- middle value (in an ordered list)
pie chart- percentage out of 100%
Standard deviation- deviation from the mean value:
σ= (((x1-mean)^2+(x2-mean)^2+(x3-mean)^2+...(xn-mean)^2)/(n-1))^(1/2)

Product Life Cycle is a model that helps businesses make decisions about a product's marketing mix, as it shows product's typical trend in sales over time, through all stages.

- Research and development (R&D)
- Introduction
- Growth
- Maturity
- Decline

the process of creating a distinct identity for a business in the minds of your target audience and the general population

-Brand awareness- degree to which customers recognize a product
-Brand development- building brand awareness by cultivating the business's values and consumer perceptions of the product.
- Brand loyalty- when customers continue to buy a particular brand, even where alternatives exist.
- Brand value- how much the brand is worth as an intangible asset

can be used to :
- protect the product
- communicate information
- promote product (communicate USP)
- facilitate use of product

is a pricing strategy by which the selling price of a product is determined by adding a specific fixed percentage (a "markup") to the product's unit cost.

Advantages:
- simple and easy to use
- justifiable (customers trust more)
- all costs are covered

Disadvantages:
-doesn't always equate to value
- isn't able to adapt to market changes

A pricing strategy where the business sets a very low price on a new product or service to encourage customers to buy it; later the price is increased.

Advantages:
- obtain market share
- attract customers + establish loyalty

Disadvantages:
- low profit margins
- customers may not accept price rise later on

When a company sells stable products at a loss or minimal profit to attract customers, and entice them to buy other items with higher profit margins

Advantages:
- large boost in sales revenues
- increases brand awareness (attracts customers)

Disadvantages:
- only possible for multi-product retailers
- low profit margin or even loss in some products

A pricing strategy where a business sells a product or service at such a low price that other businesses cannot compete and are forced to leave the market; is illegal in many countries.

Advantages:
- eliminates competitors
- increases market share
- allows for increased prices later on

Disadvantages:
- Illegal
- the company has to take on losses

A pricing strategy where a business sets the price of its products higher to create the impression that the products are higher quality or value than their lower-cost equivalents.

Advantages:
- higher profit margins
- improves public perception

Disadvantages:
- can only be applied to a target market (low chance of working in a mass market)
- customers may prefer cheaper options/ only attracts higher income (lower customer base)

Promotion aimed at mass audiences, generally not targeted. (high reach/ low impact) increases brand awareness

exp. television, newspaper, magazine, radio, outdoor (billboards)

Promotion aimed at specific segments and do not rely on mass market techniques. (low reach/ high impact) increases sales

exp. direct marketing (emails), sales promotion, loyalty cards, after-sales service, merchandising (pens, hats, key rings), exhibition and trade fairs

An integrated marketing approach that includes both above the line and below the line elements. (high reach/ high impact) increases both brand awareness and sales

exp. (digital marketing, 360- degree marketing ( uses email, social media, multi-channes, etc..)

producer can use or not intermediaries: A person or business that acts as a go-between in a transaction.

types of intermediary: wholesaler, retailer and an agent

direct distribution- no intermediary
indirect distribution- with intermediary

importance of cultural differences in customer service (customers feel more represented)

Types of processes:
- placing and paying for orders
-delivery systems
- customer feedback (process to gather feedback)
- after-sales service (maintenance and help)

everything that affects the senses