Market is a group of customers or potential customers.The market starts with the total
population, then Potential markets that have an interest, then Available
markets that have the money, then Target markets that are the
customers the company has determined to serve (the served market), then
finally the Penetrated markets who have already bought your
products and/or services.
Marketing Department’s key responsibilities is to determine the needs,
which represent items such as food, housing, and clothing, and wants which
represent cultural based items such as makeup or vacations.
needs to know how their decisions could lead to problems for other
departments within the company. Microenvironmentdeals
with internal factors that can influence the company directly.Macroenvironmentdeals
with the external factors outside of the company’s direct control.
Research helps companies understand and analyze their customers.Market research mostly focuses on the
following four types of information: Demographic characteristics,
which would include the age, race, sex, education, marital status,
housing, income, and number of children.Buying behaviors, whichstudies how customers buy
products such as in a retail store or online.Lifestyle or psychographics that researches the type
of hobbies, sports, and even personality traits and sexual
Satisfaction, which surveys on the perceived value of the overall
product, and whether they are likely to purchase more product in the
are basically two types of market research; primary market research,
which involves surveys, observations and experimental approaches, and secondary
market research, which involves checking articles in newspapers,
magazines, and books.
strategies marketers use as a competitive edge is to best determine if
they are Market leaders whoare looking to dominate the
industry, Market Challengers whoare looking to challenge
the market leaders, Market Followers who are happy to stay at their
current position, andMarket Nichers who are looking at just
a few specialized target markets.
Segments are parts of a market that are different from one another.Six common segmentation strategies are
Geographic, Demographic, Psychographic,Behavioristic, Product, and
P’s of the Marketing Mix refers to the Product, Price, Place, and
Promotion.They are the foundation
to the marketing mix.There is
also the 7 P’s, which include People, Process, and Physical Evidence
(including Packaging).Positioning, which is also sometimes known as one of the P’s, can
be part of the marketing mix as well.
strategic decision companies face is to choose whether they will compete
on price or quality.Marketing
would then focus its efforts on the results of that decision.Companies also compete on service such
as post-sales support and warranties.
a new product is released, 2.5% of the buyers will be the innovators,
13.5% will be the early adopters, 34% will be the early majority, 34% will
be the late majority, and 16% will be the laggards.This tends to follow the product
life-cycle curve in which in the introduction phase, the sales are
slow and the challenge is finding the innovators and early adopters.In the growth phase, the sales
rise and the challenge is to beat the competitors getting to the early
adopters.In the maturity
phase, sales growth levels off and in the decline phase, the sales
decrease.These last two phases
hold the late majority and laggards.
difference between marketing and sales is basically; marketing sells the
idea of a product and/or service to everyone, whereas sales sells the
product and/or service one-on-one.
different possible sales types are Order Takers, Active Selling,
Inside Sales, and Outside Sales.The sales force needs to be properly organized, motivated and compensated
in order to have the right size to do the workload, alignment to cover all
needs, and keeping them happy and selling.A common system used by marketing and sales to learn more about customers' needs and
behaviors, is CRM or Customer Relationship Management.
LESSON 10 - BUSINESS BASICS PART III - MARKETING & SALES
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