Chapter 16

Marketing the management task that links the business to the customer by identifying and
meeting the needs of customers profitably. This is done by getting the right product at the right price to the
right place at the right time
Marketing objectives goals set for the marketing department to help the business achieve its overall
objectives
Marketing strategy long-term plan established for achieving marketing objectives
Market orientation basing product decisions on consumer demand as established by market
research
Product orientation making products that can be made or have been made for a long time and then
trying to sell them
Asset-led marketing bases strategy on the firms existing strengths and assets instead of purely on
what the customer wants
Societal marketing an approach that considers not only the demands of consumers but also the
effects on all members of the society involved in some way when firms meet these demands
Demand the quantity of a product that consumers are willing and able to buy at a given
price in a time period
Supply the quantity of a product that firms are prepared to supply at a given price in a
time period

Chapter 17
Market research process of collecting, recording and analyzing data about customers, competitors
and the market
To reduce the risks associated with new product launches
To predict future demand changes
To explain patterns in sales of existing products and market trends
To assess the most favoured designs, flavours, styles, promotions and packages for a product
Primary research collection of first-hand data as they are being collected by the organization for the
first time for its own needs
Secondary research the use and analysis of data that already existed
Local libraries and local government offices
Newspaper reports and specialist publications
Internal company records
The internet
Random sampling every member of the target population has an equal chance of being selected
Systematic sampling every nth item in the target population is selected
Stratified sampling draws a sample from a specified sub-group or segment of the population and
uses random sampling to select an appropriate number from each stratum
Quota sampling when the population has been stratified and the interviewer selects an appropriate
number of respondents from each stratum
Cluster sampling using one or a number of specific groups to draw samples from and not selecting
from the whole population

Chapter 18
Marketing mix the four key decisions that must be taken in the effective marketing of a product
CRM (customer relationship management) using marketing activities to establish
successful customer relationships so that existing customer loyalty can be maintained
4Ps 4Cs
Product Customer solution
Price Cost to customer
Promotion Communication with customer
Place Convenience to customer
Why product is a key part of the marketing mix
No matter how low the price or how expensive the adverts for it, it will not sell successfully in the long term
unless it meets customers expectations
Durability
Quality
Performance
Appearance
Why price is a key part of the marketing mix
The price of a product determines the degree value added by the business and reflects on the brand image
and identity of a product
PED (price elasticity of demand) measures the responsiveness of demand following a
change in price
Percentage change in quantity demanded = (Difference in quantity/Original quantity) x100
Percentage change in price = (Difference in price/Original price) x100
How managers determine the appropriate price
Cost of production
Competitive conditions in the market
Competitors prices
Business and marketing objectives
Price elasticity of demand
Whether it is a new or an existing product
Pricing Methods
Full-cost setting a price by calculating a unit cost for the product and then adding a
fixed profit margin
Mark-up adding a fixed mark-up for profit to the unit price of a product
Target setting a price that will give a required rate of return at a certain level of
output/sales
Contribution-cost setting prices based on the variable costs of making a product in order to
make a contribution towards fixed costs and profit
Dynamic offering goods at a price that changes according to the level of demand
and the customers ability to pay
Penetration setting a relatively low price often supported by strong promotion in order
to achieve a high volume of sales
Market skimming setting a high price for a new product when a firm has a unique or highly
differentiated product with low price elasticity of demand