2. Lesson objectives
Describe what marketing is
Explain the different markets that businesses operate
within
Analyse the importance of marketing to business
3. Mantle of the Expert....
Everyone likes to show off.....this is your golden opportunity to
show what you know....
Write down anything you know about marketing...
Who is going to be the mantle of the expert???
4. Marketing is About…
Understanding the needs of customers
Meeting the needs of customers
Delighting customers so they…
Buy from you again
Recommend you to their friends and family
Become loyal to your products and brands
MARKETING IS ALL ABOUT THE CUSTOMERS!
5. Formal Definition of Marketing
“The process of identifying, anticipating (predicting) and
satisfying customer needs profitably”
What does it mean?
6. Marketing
Identifying – finding out by using marketing research about
current products, the possibility of new products, and current
markets and new markets
Anticipating (predicting) – analysing the data collected to
judge what might happen in these markets and how the
products might be suited or changed, adapted or updated
Satisfying customer needs – making sure the person,
business or government are happy with what they are buying,
will not complain and will be happy to buy again
Profitably – adding value to the product so when sold, the
price of a product is greater than cost of making it
7. Four Main Kinds of Market
Industrial markets
The market for manufactured products aimed at businesses, i.e.
capital goods e.g. engineering, construction
Consumer markets
The market for goods and services that are sold to households
e.g. clothing, shampoo, holidays (see next slide for ways in
which consumer markets can be categorised in more detail)
Commodity markets
The market for primary products or raw materials e.g. steel, coal,
coffee
Financial markets
The market for services that dealing with money e.g. banking,
insurance, accounting
8. Consumer Markets
Most of the markets you will study are consumer markets. They
can be sub-divided into even more categories!
Fast-moving consumer goods (“FMCGs”)
These are high volume, low unit value, fast repurchase
Examples include: Ready meals; Baked Beans; Newspapers
Consumer durables
These have low volume but high unit value. Consumer durables are
often further divided into “white goods” (e.g. fridge-freezers; cookers;
dishwashers; microwaves) and “brown/black goods” (e.g. DVD
players; games consoles; personal computers)
Soft goods
Soft goods are similar to consumer durables, except that they wear out
more quickly and therefore have a shorter replacement cycle. Examples
include clothes, shoes
Services
E.g. hairdressing, dentists, childcare
9. Measuring the Market
Not all markets are the same
Some are very large, some small
Some markets are focused on a particular location; others operate
around the world
We need a measure of a market – most often we talk about
“market size”
Market size means the number of customers in the market (either
current or potential buyers) and the amount (value or volume) that
they buy.
One business rarely sells to all the customers in the market. They
will have a share of the market with the rest shared out amongst one
or more competitors.
Market share by value: using sales in a specific period (usually one
year)
Market share by volume: using units sold or bought as a measure of
size
Market share is an important idea. There is lots of evidence to show
that businesses that enjoy a large share of a market achieve higher
profits than smaller competitors.
