Market: is where buyers and sellers come together to exchange products for money.
Product Orientated
When a company first produces a product and then tries to persuade customers to purchase it. The company does not conduct any market research. This is very suitable when the product is unique and has no competition.
Market Orientated
When a company does market research to find out consumers’ wants and needs, and then produces a product or service to meet those needs. The advantages are the following:
Consumers more likely to buy the product.
More likely to anticipate and meet changes in consumer demands.
Able to change its product or develop new products easily.
What is marketing?
Marketing: the anticipation and identification of consumer wants and needs in order to meet these needs, and to a make a profit.Objectives of Marketing:
- increase sales revenue and profitability
- increase or maintain market share
- maintain or improve the image of products or a business
- target a new market or market segment
- develop new products or improve existing products.
Market Share: the percentage of total market sales held by one brand or business.
SWOT Analysis
SWOT stands for: Strengths, Weaknesses, Opportunities and Threats. This technique is used to help the department to access a product.
Market Segments
Market Segmentation: where the market has been divided up into groups of consumers who have similar needs.Markets can be segmented by: age, region, use of product, income/social group, lifestyle, gender, etc.
Mass market: sell ordinary things to very large numbers of people at quite cheap prices. Business can get high volume sales but at a fairly low profit margin.
Niche market: serve specialist consumers and can give high profit margins. Small businesses are especially suited to niche markets because they can afford to devote lots of time to production which would be unprofitable for a big firm.
