It consists of a combination of factors that can be controlled by a company in order to influence the customers to purchase their products.
Such strategies include:
- Market Development: Selling existing products in new markets.
- Product development: Selling new products in existing products.
- Diversification: Selling new products in new markets.
- Product innovation: refers to the objective of launching an original or new product onto the market.
The business focuses on these factors for this purpose: Product, Place, Price and Promotion.
A term coined by Jack Trout in 1969, is a visual tool that reveals customer perceptions about a product or a brand in relation to other substitutes in the market. It is a two-dimensional diagram, used for plotting customer perceptions using certain criteria such as price and quality.
Certain terms to know:
- Premium products: are of high quality and high price such as, Lexus.
- Economy Products: are of low quality but at appropriate prices such as supermarkets supply no frills own label to attract price-sensitive customers.
- Bargain products: are of high quality but low prices.
- Cowboy products: poor quality yet highly priced.
This map allows businesses to identify any gaps in its product portfolio, which is a collection of all the products and services offered by the business.
Advantages and disadvantages:
- It helps us better understand market segments
- To find out how the target market perceives the brand in the market
- To be able to monitor the changes in consumer preferences over time.
- To be able to evaluate the performance of recent marketing campaigns and other marketing mix changes that have occurred.
- To confirm whether how consumers perceive the company fits with their positioning goals or product profile.
- To check that the brand has a clear positioning space in the market.
- To track how successfully the new products have been positioned into the market.
- To help the organization identify gaps in the market.
- These maps often simplify consumers’ purchase decision to two attributes.
- More relevant for individual brands rather than for corporate brand image.
- There sometimes is a difference in consumer’s awareness of the brand’s benefits and the reality.
There are mainly five types of market systems:
1- Perfect Competition:
There are certain conditions for this:
- There should be many firms in the market.
- The firms must be able to enter or exit the market easily.
- Each firm should sell a non-differentiated homogeneous product in the market.
- Each firm must be a price-taker. (A price taker can’t control the prices of the goods it sells)
- In a Monopolistic market, there’s only one firm large in size unlike in perfect competition where all the firms are small in size.
- There’s only one firm in the market. There are high barriers to enter.
- There are no close substitutes, the monopoly doesn’t face any competition.
- There are different types of barriers to entry:
- Patents: If a firm holds a patent on a production process, it can legally exclude other firms from using the same process for a number of years. If there isn’t an alternative production process, the firm that holds the patent will have a monopoly.
- Large start-up costs: In some markets, firms while entering will face large start-up costs, and if they are large enough, most of the firms will be discouraged from entering the market.
- Limited access to resources: A monopolistic market structure will arise when access to resources needed for production is limited.
- A few of the monopolies also arise naturally, where there are large economies of scale, example, a local telephone company, as the networks increase, it requires more workers. This is how economies of scale work.
- The demand curve is steep.
- This kind of market structure only a few large firms. This makes this system different from a monopoly where there is only one large firm.
- It has high barriers to entry.
- May produce either differentiated or homogeneous products.
- It is a market setting where there are a lot of sellers offering differentiated products to a large number of buyers.
- In this market system, the sellers have some control over the prices.
- There are no barriers to enter or exit.
- Demand curve is flat.
- There is one buyer and many sellers.
- Maximising profit:
- The marginal cost of employing one more worker will be higher than the average cost as in order to employ one more worker the firm has to increase the wages of all the other workers.
- To maximise the level of profit, the firm employs Q2 of workers where the marginal cost of labour equals the marginal revenue product MRP = D
- In a competitive labour market, the firm would be a wage taker. If they tried to pay only W2, workers would go to other firms willing to pay a higher wages.
A market for a particular good or service consists of different types of customers, subdivided into market segments (distinct subgroups). A market segment refers to a distinct group of customers with similar characteristics (such as age or gender) and similar needs and wants.
By dividing the market segment into different groups, it is easy to identify which group of customers buy the product hence target them more distinctively.
Targeting refers to each distinctive market segment having its own specific marketing mix. For instance, air travelers and different classes.
Consumer profiles are demographic and psycho-graphic characteristics of consumers in different markets, such as their age, gender, occupation, income level, religion, martial status and purchasing habits. This knowledge helps a business to identify the needs and wants of its customers and to identify any segments that might be overlooked.
There are mainly 2 types of enterprises, for-profit and non-profit:
1- A business or other organization whose primary focus is making money (a profit)
2- The organization can be a company, a partnership, entity or a sole proprietorship firm.
3- Leaders: Business owners, sole-proprietors or partners.
4- Profit is transferred to capital accounts
1- It focuses on goals such as helping the community, only concerned with money as much as necessary to keep operating.
2- The organizations which are non-profit type include, clubs, trusts and society.
3- Leaders include: trustees, governing bodies or committee members.
4- Profit is transferred to capital fund accounts.
An intrapreneur is a a manager/employee within the company who promotes marketing and goes beyond his usual tasks. On the contrary, an entrepreneur is the one who sets up a business, taking up financial risks to promote his ideas or to initiate his plans.
The technical differences between the two terms:
1- The intrapreneur is an employee, however, an entrepreneur is the leader of the operation.
2- intrapreneurs are usually found in enterprises that encourage experimentation, tolerate failure, recognize success and share the wealth.
3- In intrapreneurship, there are collaborative decisions made to execute dreams, whereas entrepreneurship is about independent decisions to execute dreams.
Why do Intrapreneurs exist?
They mainly exist for organizations to increase the creativity and innovation to sustain in the competitive market, successfully. As when the managers have the chance to go beyond their usual tasks, they explore new horizons providing the company with increased sales or benefits.
A business without a plan might not ever be successful. Along with this, we all are also aware that it is essential to look through the pros and cons before taking up a certain project. But have you ever wondered what is the right method to do so?
Using a SWOT analyser can provide you with detailed analysis of whether taking certain step for a project, will be advantageous or disadvantageous. SWOT stands for:
How to use it?
In what terms you should think while filling up these attributes:
Your strengths, weaknesses as a company varies from others, thus, while considering these attributes, you should also brainstorm about what facility you don’t have as a company and what is needed in order to fulfil a necessary step of the project.
A SWOT Analysis of Le Meridien Barbarons Hotel | Swot …http://www.bing.com/cr?IG=2C210495573F4C2098043203330A61F0&CID=2DE5DFF212FA66671CDED432135C67FC&rd=1&h=jWFIcVtqx79TQQzBZWHqNz3S-BlrV7NXp_Ypp45PRIc&v=1&r=https://www.scribd.com/doc/36249204/A-SWOT-Analysis-of-Le-Meridien-Barbarons-Hotel&p=DevEx,5055.1.
LEADERSHIP AND MANAGING CHANGE – Culcukegbus. http://www.bing.com/cr?IG=3FD8C36FC0EB4D0F979EF5AEF487AEFA&CID=0F9B86BAC6B26858397D8D7AC71D69E2&rd=1&h=qxeFpjLaJ-21P9RqbeWFTSBfVIlErQwUqFAgZc4ztoQ&v=1&r=https://culcukegbus.wordpress.com/2016/09/17/leadership-and-managing-change/&p=DevEx,5049.1.