Business

The Nature of Marketing

concept of supply and
demand.
What Is the Law of Supply and Demand?

The law of supply and demand is the theory that prices are
determined by the relationship between supply and demand.

If the supply of a good or service outstrips the demand for it,

prices will fall. If demand exceeds supply, prices will rise.
Why is supply and demand
important?

• Supply and demand have an important relationship

because together they determine the prices and
quantities of most goods and services available in a
given market. According to the principles of a
market economy, the relationship between supply
and demand balances out at a point in the future.
 Market orientation is an
approach that focuses
on identifying the needs and
wants of consumers and
creating products that satisfy
them. Essentially, finding out
what customers want and
giving it to them. The
opposite is a product
oriented or a “take it or leave
it” approach, where a
business focuses on making
the best product, but does
not consider consumer needs.
Product Orientation Definition

• Product orientation is a marketing management

concept that emphasizes the promotion of high-
quality items to increase sales. The corporation
considers product quality to be a determinant of
market demand. A product-oriented corporation
focuses on creating high-quality articles and pricing
them appropriately so that customers can recognize
and acquire the company’s products.
Advantages of product
orientation include:
• Focus on creating and offering high-quality
goods and services
• Innovative products that focus on providing the
best user experience
• Better market research leading to a reduced risk

Disadvantages include:
•Potential for missed market opportunities
•Product obsolescence due to technology developments
•Difficult to pull off if a product isn’t unique
Market orientation
definition

• This approach
prioritises identifying
consumers’ needs and
delivering products and
services to satisfy them.
• For instance, a business with a marketing orientation recognises that customer service
demands are continually evolving. Consumers demand more personalisation from
businesses, alongside omnichannel support strategies that allow communication across
digital channels, including phone, email, and social media. As a result, that business might
implement a contact centre solution to serve their customers better.
The advantages of this approach include:

•Promotes brand loyalty through strategies

that increase customer satisfaction
•Flexible production based on customer
demand/wants/needs
•Links customer needs to organisational
capabilities.
•Boosts internal marketing and
communications

some disadvantages:
•Can high operational costs as the company reacts
to customer demand, rather than shapes it.
•Unpredictable
To examine the concepts of mass marketing &
niche marketing.
 Niche Marketing:
• Niche marketing is defined as a marketing strategy that is
proposed to catch moderately numbered buyers in the
market.

• This type of marketing includes the strategy to target a

specified market which means that the marketer is aware of
the group in which he has to target for its product.
 Example niche marketing
• The word niche can be defined as a special
area of demand for a product or a service. For
example, Wholefoods is a food store that
specifically targets organic food customers.
• So it is clear that they want to target the
customers who want organic food. A specific
part of consumers is targeted in this type.
Niche Marketing Advantages

• Targeted Approach: Niche marketing allows

businesses to focus on a specific target audience and
create products or services that cater to their unique
needs. This targeted approach can result in higher
conversion rates, as customers are more likely to
purchase products that meet their specific needs.
• Less Competition: Niche markets typically have
fewer competitors, which can make it easier for
businesses to establish themselves as leaders in their
field. This can result in higher profit margins and a
more stable customer base.
• Better Branding: Niche marketing allows businesses
to create a strong brand image that resonates with
their target audience. By focusing on a specific group
of people, businesses can create messaging and
branding that is more personalized and relatable to
their customers.
Niche Marketing Disadvantages

• Limited Customer Base: Niche marketing

targets a specific group of people, which means
that the customer base is smaller than with
mass marketing. This can limit the growth
potential of the business and make it more
challenging to reach a wider audience.
• Limited Product Range: Niche marketing
requires businesses to create products or
services that cater to a specific target audience,
which can limit the range of products or services
that can be offered.
• High Costs: Niche marketing requires
businesses to create customized messaging
and branding, which can be costly. The cost of
market research and developing a product or
service can also be higher due to the specialized
nature of niche markets.
 Mass Marketing:
• Mass marketing is defined as a marketing strategy in which the
company tries to capture a large audience for its services.

• They don’t restrict themselves while marketing the product and focus
on capturing the whole customer base. the main objective behind this
type of marketing is to find the supreme number of potential
customers for their needs.
Example Mass marketing

For example, Coca-Cola is a brand that

supports mass marketing, the goal of
marketing is to capture a large number
of users. All the consumers are targeted
for this marketing irrespective of the
marketing factors.
Mass Marketing Advantages
• Wide Reach: Mass marketing allows businesses
to reach a broad audience, which can result in
higher sales volumes and increased brand
awareness. The broad appeal of mass marketing
can also make it easier to enter new markets.
• Economies of Scale: Mass marketing can benefit
from economies of scale, which means that the
cost per unit of production decreases as
production volumes increase. This can result in
lower costs and higher profit margins.
• Greater Flexibility: Mass marketing allows
businesses to promote a range of products or
services, which can make it easier to adapt to
changing market conditions or customer needs.
Mass Marketing Disadvantages
• Limited Targeting: Mass marketing uses general
messaging that appeals to a broad audience, which
can result in lower conversion rates. This can be due to
the fact that the messaging may not resonate with all
customers, resulting in a lower return on investment.
• Intense Competition: Mass markets can be highly
competitive, with many businesses vying for the
attention of a broad audience. This can result in lower
profit margins and a more volatile customer base.
• Brand Dilution: Mass marketing can dilute a brand
image, making it more difficult for businesses to
establish a strong brand identity. This can be due to
the fact that mass marketing often relies on generic
messaging that is not tailored to specific target
audiences.
niche marketing and mass marketing are two fundamentally different
marketing approaches that are suitable for different types of businesses.
While mass marketing is a good fit for businesses that want to reach a
broad audience, niche marketing is more suitable for businesses that
want to cater to the unique needs of a specific target audience.

Understanding the differences between niche marketing and mass

marketing can help businesses choose the right marketing strategy to
achieve their goals.
 Market Research
Market research is defined as process of collecting, recording and
analysis of data about customers, competitors and the
market/product/service
Market research allows a company to explore a target
market and get opinions and other feedback from
consumers about their interest in the product or service.
CONCEPT
PRIMARY RESEARCH
• Primary market research is research
data that is collected first-hand for a
specific research purpose.
• Primary research provides reliable
and accurate data because it comes
directly from the target audience.
SECONDARY RESEARCH
• Secondary research is also called desk
research. In this type of research, the
researcher will not collect any primary
data and rely on existing sources of
data. Marketing research reports,
census, company websites, news
reports, magazine articles are some of
the sources of secondary data.
• Secondary research is not always
reliable because it relies on existing
data sources that may not be up to
date.
 To explore the benefits of primary research & secondary research.
PRIMARY MARKET SECONDARY MARKET
• Examples of primary research methods • Advantages
• Common methods of obtaining primary market research include: • Convenience is usually convenient for researchers as it is carried
out at home, in libraries, and other similar places. Going through
• Focus groups a pile of books, magazines, journals etc.. Home environment and
• Interviews (online & in-person) access to amenities are very useful which many researchers like
very much.
• Surveys & questionnaires
• Affordable is usually cheaper than primary research. As the
• Mystery shoppers research is carried out mostly indoor, it does not usually cost that
much.
• Product testing and product trial
• Availability of information Due to the advancement of
technology, information is available online. Researchers can
• Advantages download a lot of documents very quickly with minimal efforts.
Therefore, research can be conducted instantly.
• Directly focused on research objectives = fit for purpose
• Tends to be more up-to-date than secondary research
• Disadvantages
• Provides more detailed insights – particularly into customer
views • Old information may sometimes include information which is not
valid any longer. Therefore, the researchers may waste their time
by going through those data. Just imagine a study that was
conducted a long time ago which may not have any relevance
• DisAdvantages today.
• Time-consuming and often costly to obtain • Not specific may not be specific sometimes. In many cases, it is
• Risk of survey bias – research samples may not be representative not presented in a way that would exactly address the
of the population researchers’ needs.
 To analyze the advantages and disadvantages of using the internet in gathering market research data

The advantages of conducting marketing

research on the Internet
• The limitations of market research via
• the relatively low cost of the study due to the Internet
eg. the lack of necessity of remunerating
interviewers,
• Ease of communication • Large Amount of Information Available
• the ease of doing international • Virus Threats
research,
• reaching out to a large group of
respondents at the same time,
• the possibility of obtaining hard to
reach categories of respondents, a
greater chance for answers to sensitive
issues,
• reducing costs through the ability to
test a product that has not yet been
made,
Marketing Mix:
Product
 To explain
the concepts
of brand and
branding.
 A brand is the meaning that people attach to your organisation,
product or service.

Branding is the management of a brand’s meaning.

• Your brand identity is anything
that can identify your brand, and
that includes your logo

Simply stated: everything that you

see (visual language) is considered
a brand identity, however it does
also include other sensory
elements such as sound, touch and
even smell.
 What is
Branding?

Branding is more than just a logo or a website. It’s an entire

process of taking the business and creating a name and image
that helps it stand apart from its competition, among many
more benefits as outlined in the image above.
 To explain the concept of New Product Development

New product development (NPD) is the overall process of conceptualizing, designing, planning, and commercializing a
new product in an effort to bring it to market.

can be defined as the process of innovating and inventing new ideas and concepts,
with a view to developing a successful new product in the anticipation of customer
needs.
The following decisions
are important in new
product planning :

• Improving the existing product lines and

services,
• Weeding out unprofitable items in the
product line (simplification),
• Expansion of the current product line
• New product development for the present
customers, and
• New product development for new
customers
What is the impact of strong brand image

can help you build trust with customers, increase your market share, and drive sales. A
strong brand can also improve your company's overall value, attract top talent, and
create a sense of unity among your employees.

Increases Brand Recognition

Improves Customer Loyalty to Your Brand

Positive Word of Mouth Marketing

Higher Advertising Effectiveness on Customers

Lower Price Sensitivity

More Applicants That Want to Work for Your Brand

Engaged Employees Who Are Proud to Work at Your Company

 Product Life Cyle
A product life cycle is the length of time from a product first being introduced to
consumers until it is removed from the market.

Product life cycle (PLC) is the process of a product's growth, maturity, and decline over time. It consists of four

stages: introduction, growth, maturity, and decline. During each stage, the product experiences different levels of

sales and profits. The stages of the product life cycle can be used to determine when, where, and how a company

should invest in marketing and product development.

What are the 5 stages of
the product life cycle?

• Introduction: The introduction stage

is where the product is launched into
the market.
• Growth: During the growth stage, the
product becomes more popular and
starts to gain more attention.
• Maturity: At this stage, the product is
established and is reaching its peak in
terms of sales and profits.
• Decline: The decline stage is where
the product starts to lose popularity
and sales start to decline.
• Exit: The exit stage is where the
product is discontinued and no longer
produced
What are the uses of PLC in manufacturing industry?

Product life cycles are used by management and marketing

professionals to help determine advertising schedules, price
points, expansion to new product markets, packaging
redesigns, and more.

What is the importance of product life cycle in manufacturing?

Product life cycle management (PLM) is crucial for industrial manufacturing
facilities to stay competitive and profitable in today's market. Effective
implementation of PLM helps organizations optimize their production processes,
reduce costs, improve product quality, and respond quickly to changes in the
market.