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2. Marketing

environment of thecompanyDr Anna Iwacewicz- Orowska

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Which market is good for ourcompany?

Which market is not good for ourcompany?

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Difference betweenmarketplace and marketspace

Traditionally, a market was a physicalplace where buyers and sellers meettogether gathered to exchange goods

The marketplace - is physical, as whenone goes shopping in a store.

The marketspace - is digital, as when onegoes shopping on the Internet.

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Needs, Wants, and Demands Needs describe basic human requirements such as food,

air, water, clothing, and shelter, recreation, education,and entertainment.

People needs food but wants a hamburger, French fries,and a soft drink.

Demands are wants for specific products backed by anability to pay. Companies must measure not only howmany people want their product, but also how manywould actually be willing and able to buy it.

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A product is any offering that can satisfy aneed or want,

A brand is an offering from a knownsource.

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Market segmentationThe division of a market into differenthomogeneous groups of consumers

Market Segment Should be: measurable accessible by communication anddistribution channels different in its response to a marketing mix durable (not changing too quickly) substantial enough to be profitable

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Types of market segmentation: Geographic - Based on regional variables

such as region, climate, populationdensity, and population growth rate.

Demographic - Based on variables such asage, gender, ethnicity, education,occupation, income, and family status.

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Types of market segmentation: Psychographic - Based on variables such as

values, attitudes, and lifestyle

Behavioral - Based on variables such asusage rate and patterns, price sensitivity,brand loyalty, and benefits sought

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Step in Planning ASegmentation Strategy1. Determining characteristics and needs of consumers forthe product category of the company

2. Analyzing consumer similarities and differences

3. Developing consumer group profiles

4. Selecting consumer segment (s)

5. Positioning companys offering in relation to competition.

6. Establishing an appropriate marketing plan

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A Simple Marketing System

Resources markets

Producers (Industry) Households

Product markets

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Resource markets are markets for the inputs producers use to make

products.

For example: resources are labour, raw materials.

Consumers are the owners of economic resources

that are offered for sale to producers in exchange formoney.

Consumers try to sell their resources at the highestpossible price;

Firms seek resources at the lowest possible cost;

The interaction between producers and consumersmakes equilibrium price for resources.

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Product markets are markets for economic goods that consumers

use to satisfy their wants.

Consumers seek to maximise satisfaction

from the goods they buy; they look for firms offering goods at thelowest prices,

Firms wants to maximise profits offer theirgoods to the highest possible prices,

Equilibrium prices arise from theseinteractions between buyers and sellers.

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2.2. Offered products andservices What products does the company offerto?

Why should the customer buy ourproducts?

What is distinguish us from thecompetition?

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2.3. SWOT Analysis is a strategic planning method used to

evaluate the Strengths, Weaknesses,Opportunities, and Threats

Internal (in the company, region etc.):

the Strengths, Weaknesses

External (outside the company,region):Opportunities, and Threats