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IB BUsiness And MAnagement:
Key Learning Outcomes:
Marketing: The management task that links the business to the customer by identifying and meeting the needs of customers profitably – it does this by promoting the right product at the right price at the right place to the right customers.
Market size: The total level of sales of all producers within a market.
Market growth: The percentage change in the total size of a market (volume or value) over a period of time.
Market share: The percentage of sales in the total market sold by one business.
Market Size and Market Growth
China has overtaken the US to become the world's largest car market.
Want to learn more? http://onforb.es/MolVD for a look at General Motors and their marketing strategy for China.
‘Firm’s sales’ and ‘total market sales’ can be measured in either units (volume) or sales value in this market.
Market share, and increases in it, is often the most effective way to measure the relative success of one business’s marketing strategy against that of its competitors.
If a firm’s market share is increasing, then the marketing of its products has been relatively more successful than most of its competitors. The product with the highest market share is called the ‘brand leader’.
The benefits of being the brand leader with highest market share include the following:
Key Concepts in Marketing Planning:
This can be measured in two ways: volume of sales (units sold) or value of goods sold (revenue).
The size of a market is important for three reasons:
Some markets are obviously growing faster than others; some, such as non-HD TVs, are declining rapidly. Is it always better to be operating in a rapidly growing market?
In many cases, yes, but not always – there might be many competitors entering the market at the same time so profits might not be high. The pace of growth will depend on several factors including economic growth, changes in consumer incomes, development of new markets, changes in consumer tastes and technological change, which can boost market sales through innovative products.
The rate of growth will also depend on whether the market is ‘saturated’ or not. In most western countries, the sales of washing machines are not rising each year as most households already have one – most purchases are, therefore, replacement models. Sales of laptop computers are still rising in India and China as most potential consumers have yet to purchase one, but falling everywhere else.
This is calculated by the following formula:
Types of Markets
Consumer markets: Markets for goods and services bought by the final user of them.
Industrial markets: Markets for goods and services bought by businesses to be used in the production process of other products.
Other types of marketing:
Asset-led marketing: An approach to marketing that bases strategy on the firm’s existing strengths and assets instead of purely on what the customer wants.
Social (societal) marketing: This approach considers not only the demands of consumers but also the effects on all members of the public (‘society’) involved in some way when firms meet these demands.
The social marketing concept has the following implications:
Types of Marketing Orientation
Market orientation: An outward-looking approach basing product decisions on consumer demand, as established by market research.
Product orientation: An inward-looking approach that focuses on making products that can be made – or have been made for a long time – and then trying to sell them.
The benefits of market orientation are threefold:
Constant feedback from consumers – market research never actually ends – will allow the product and how it is marketed to be adapted to changing tastes before it is too late and before competitors ‘get there first’.
Competition between firms
Firms will have other rivals in the market place. Getting the marketing planning right will see the right PRODUCT in the right PLACE at the right PRICE, with the right PROMOTION in place will increase market share .
examples of some very clever social marketing
4.1 The Role of Marketing I:
4.1 The Role of Marketing
Progress check - test your understanding by completing the activities below
You have below, a range of practice activities, flash cards, exam practice questions and an online interactive self test to ensure you have complete mastery of the IB Business and Management requirements for the Marketing 4.1 The Role of Marketing topic.
IB Business and MANAGEMENT Quizzes and TWO Classroom games
Test how well you know the IB Business and Management Marketing - 4.1 The Role of Marketing topic with the self-assessment tool. Aim for a score of at least 80 per cent.