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IBBusinessDPBusiness ManagementHLFlashcards4. Marketing4.1 Introduction to Marketing

4.1 Introduction to Marketing (DP IB Business Management)

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  • What is a market?

    A market is any place where buyers and sellers meet to conclude a transaction.

  • What is the aim of marketing?

    The aim of marketing is to help identify, anticipate, and satisfy consumer needs and wants profitably.

  • What are needs?

    Needs are considered to be essential, such as shelter or food.

  • Define the term wants.

    Wants are desires which are non-essential, even if consumers consider them to be essential, such as designer trainers or foreign holidays.

  • Define the term product orientation.

    Product orientation is an approach to marketing that focuses on the characteristics of the product rather than the needs of the consumer.

  • Define the term market orientation.

    Market orientation is an approach to marketing that focuses on the needs of consumers, using this information to design products that meet their needs.

  • Define the term niche market.

    Niche markets are where products are aimed at a clearly-defined subset of the larger market.

  • Define the term mass market.

    A mass market is one where products are aimed at broad market segments.

  • What is a market segment?

    A market segment is a group of consumers who share similar characteristics, such as age, lifestyle, or income.

  • True or False?

    Niche markets typically have low average costs due to large-scale production.

    False.

    Niche markets typically have high average costs due to small-scale production.

  • Why do niche markets rarely remain small?

    Profitable niche markets rarely remain small for long as their potential attracts competition which increases sales volumes.

  • Define the term market share.

    Market share is the percentage of the whole market that the business sales of a product achieve.

  • State the equation used to calculate market share.

    Formula.

    Market space share space equals space fraction numerator Sales space of space straight a space business space or space product over denominator space Market space size end fraction cross times space 100

  • What does an increase in market share indicate?

    An increase in market share indicates that a business has made effective use of marketing strategies to increase sales and gain customers from competitors.

  • Define the term market growth.

    Market growth is the percentage increase in the overall size, value or volume of a market over a period of time.

  • State the formula used to calculate market growth.

    Formula.

    Market space growth space equals space fraction numerator This space year apostrophe straight s space market space sales space minus space Last space year apostrophe straight s space market space sales over denominator space Last space year apostrophe straight s space market space sales right parenthesis space end fraction cross times space 100

  • True or False?

    A negative market growth rate indicates an expanding market.

    False.

    A negative market growth rate indicates a contracting market.

  • Give one way used to measure market size?

    Common ways to measure market size include:

    • Sales volume

    • Sales revenue

    • Number of customers

  • Define the term sales volume.

    Sales volume is the number of products sold.

  • What is the formula used to calculate sales revenue?

    Formula.

    Sales space revenue space equals space Price space cross times space Quantity space sold

  • Give one reason for market growth.

    Reasons for market growth include:

    • Increased demand for products

    • Advances in technology

    • Population growth

    • Changes in tastes and preferences

    • Favourable economic conditions

    • Media attention

Previous: 3.7 Investment AppraisalNext:4.2 Marketing Planning

    1. Topic 1

      1.1 What is a Business?

    2. Topic 2

      1.2 Types of Business Entities

    3. Topic 3

      1.3 Business Objectives

    4. Topic 4

      1.4 Stakeholders

    5. Topic 5

      1.5 Growth & Evolution

    6. Topic 6

      1.6 Multinational Companies (MNCs)

    1. Topic 1

      2.1 Introduction to Human Resource Management

    2. Topic 2

      2.2 Organisational Structure

    3. Topic 3

      2.3 Leadership & Management

    4. Topic 4

      2.4 Motivation & Demotivation

    5. Topic 5

      2.5 Organisational (Corporate) Culture

    6. Topic 6

      2.6 Communication

    7. Topic 7

      2.7 Industrial Relations

    1. Topic 1

      3.1 Introduction to Finance

    2. Topic 2

      3.2 Sources of Finance

    3. Topic 3

      3.3 Costs & Revenues

    4. Topic 4

      3.4 Final Accounts

    5. Topic 5

      3.5 Profitability & Liquidity Ratio Analysis

    6. Topic 6

      3.6 Efficiency Ratio Analysis

    7. Topic 7

      3.7 Cash Flow

    8. Topic 8

      3.8 Investment Appraisal

    9. Topic 9

      3.9 Budgets

    1. Topic 1

      4.1 Introduction to Marketing

    2. Topic 2

      4.2 Marketing Planning

    3. Topic 3

      4.3 Sales Forecasting

    4. Topic 4

      4.4 Market Research

    5. Topic 5

      4.5 The Marketing Mix (7 P's)

    6. Topic 6

      4.6 International Marketing

    1. Topic 1

      5.1 Introduction to Operations Management

    2. Topic 2

      5.2 Operations Methods

    3. Topic 3

      5.3 Lean Production & Quality Management

    4. Topic 4

      5.4 Location

    5. Topic 5

      5.5 Break-Even Analysis

    6. Topic 6

      5.6 Production Planning

    7. Topic 7

      5.7 Crisis Management & Contingency Planning

    8. Topic 8

      5.8 Research & Development (R&D)

    9. Topic 9

      5.9 Management Information Systems

    1. Topic 1

      6.1 The Business Management Toolkit