-Marketing is the process of developing, pricing, distributing and promoting the goods and services that satisfy the customer needs
-Combines market research, product development, advertising etc.
-Marketing is supposed to "make the customer buy the product"
-The market is divided into several market segments and target markets are identified, where the company then offers products
-Marketing also tries to create new demand with new products and the right marketing mix (the various elements of a marketing programme) → Product, Price, Place and Promotion
-Product: quality, brand name, size, services, guarantee
-Price: list price, discounts, lenght of payment period, credit terms
Place: distribution channels, coverage of the market, locations of points of sale, inventory size
Promotion: advertising, sales promotion, direct marketing, personal selling etc.
-Marketing involves regulating the level, timing and character of demand
-Market Segmentation: deviding a market into distinct subsets of customers with different needs according also to geographical factors, age, sex, family size, education, social class, income
-If only one brand existed in the market, it would position itself in the centre to attract the most customers
-new competitors either fight the existing company or try to target smaller segments, which is then often more profitable for them (risk: the small segment might disappear or a large competitor might attack it)
-At the begin of a products lifecycle: undifferentiated marketing, later: differenct brands, different segments
Introduction stage: slow growth, only a few innovative people buy the product, no profits because of heavy advertising and sales promotions to introduce the product into the market → market skimming strategy: high price, market penetration strategy: low price -- trade off between high current profit and market share
Growth period: sales rise quickly, creating profits. the producer starts to benefit from economies of scale, competitors will enter the market, making it necessary to lower prices, but the awareness for the prodct will rise
Maturity stage: most potential customers have tried or accepted the product, sales stabilize at the replacement purchase rate, sales only increase if the population increases. The marketing manager tries to create brand loyalty. The maturity stage lasts several years, where the product is modified, advertised and new customers are searched
Decline period: product is replaced by new ones, companies will leave the market, increasing the sales of the still existing companies for some time
marketing startegy depends on the companys size, position in the market, recources, strategies of competitors, behavior of customers, stage in the product lifecycle and macro economic environment
Market leader will try to protect and increase his market share, by finding new customers, stimulating more usage of the product or find a new usage. A company can also innovate in products, reduce the price, improve quality and services, reduce manufacturing costs, intensify advertising etc
market challengers either attack the leader or attack market followers
market followers are often a target and will lose price wars, but they can e.g. imitate the product of the market leader
A good strategy is to concentrate on a niche that is large enough to be profitable and likely to grow, that doesnt interest the leader → could be a geographical region, a particular group pf users etc.