Business AS · Marketing. The idea in plain words, the rules to remember, the mistake to avoid and a worked example, written and checked by Mega Lecture.
Marketing means finding out what customers want and supplying it at a profit. Marketing objectives, such as raising market share, must support the corporate objectives of the whole business.
Price is set by demand and supply. A change in the product's own price causes a movement along the curve. A change in anything else, such as income, tastes or costs, shifts the whole curve.
A customer-orientated firm starts with market research; a product-orientated firm starts with the product. Firms choose between a mass market and a niche market, and use segmentation to divide customers into groups with similar needs. Customer relationship marketing aims to keep existing customers loyal.
A firm's sales can rise while its market share falls. This happens when the whole market grows faster than the firm, so always compare the firm's growth with the market's growth.
Answer: The market grew by 10% and the firm's share rose from 15% to 16%.
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