Marketing, competition and the customer
What marketing does
- Marketing finds out what customers want, then makes, prices, sells and promotes products at a profit.
- It keeps and grows sales and market share, and builds customer loyalty.
- Keeping a customer is far cheaper than finding a new one.
Practice
Why is keeping existing customers important?
Winning new customers needs costly advertising; keeping loyal customers is cheaper.
Markets and segmentation
- a niche market is small with special needs (left-handed tools); a mass market is large (soft drinks).
- Market segmentation splits buyers into groups (by age, income, gender, location), so the business targets each group and spots gaps.
Practice
A niche market is:
A niche market is small with special needs; a mass market is large with many similar buyers.
Practice
Market segmentation means splitting a market into:
Segmentation groups similar buyers so the firm can target each group.
You've got it
Key idea
- marketing = meet customer wants at a profit; keeping customers beats finding new ones
- niche (small, special) vs mass (large) markets
- segmentation = split buyers into similar groups to target them