Unit 5-Questions 1 -4 1. What are the differences between a market and a target
ID: 434541 • Letter: U
Question
Unit 5-Questions 1 -4 1. What are the differences between a market and a target market? Which is broader? Which do companies want to focus on and why? 2. A frm's marketing activities are affected by a number of external and generally uncontrollable environment? Explain each and then provide an EXAMPLE of a product and how it would be impacted in each marketing environment situation. 3. Select the make at each phase of the cycle in order to successfully manage and market the product? forces. What are the forces that make up the extemal marketing link to view this video. Discuss the four stages of the product life cycle. What important decisions does a company need to 4. Describe the major elements of a promotion mix. Assume you own a trendy clothing boutique. Explain how you would use each of the elements in the promotion mix. Be specific in your examplesExplanation / Answer
1. A market is the place where transactions and exchange of goods and services take place. It involves buying and selling in exchange for money.
A target market is group of customers with similar characteristics like same demographics, location, culture etc. The target market segmentation is done by a business based on similar needs of customers.
2.The forces that make up the external marketing environment are Political, Economical, Social, Technological, Legal .
Political forces are factors like tax, laws, regulations and policies which are dependent on the political institutions like government and political parties.
Economical forces are the economic growth, inflation, standard of living and expenditure by the consumers, GDP
Socio Cultural Factors are factors like various beliefs and values of the consumers which impact their buying behaviour. Culture based effects like demand for traditional products or revolutionary products is also based on culture.
Technological Factors like Innovations and new technology also affect the demand of a product or service in the market.
Legal factors are the functioning of legal system, their role and laws implemented in a particular area affecting the business and demand of a product or service.
Environmental factors like climate, seasonality also affect the market for a product.
Example of a product impacted by these external environmental forces is food grains like Rice. If the political factors like the minimum price offered for this product is changed by government it impacts the demand and supply in the market. Economic forces like the inflation, economic condition of the consumers, export, import of the product will have a affect on consumer demand of rice. Socio Cultural factors like consumption patterns of the consumers or local population, their health and lifestyle will affect the demand and supply of the product. Legal factors like the compliance standards, consumer rights, quality obligations affect the market and supplier of the product. Environmental factors like season and climate affect the production of rice, quality and availability of the foodgrains.
3.The four stages of product style are Introduction, Growth, Maturity and Decline stage .
Introduction stage - It needs establishing a new concept or product in the market and lot of promotions and investment to start the distribution, spread awareness and increase the demand of the product.
Growth Stage - It is a phase when the demand of the product increases and more options and variety can be added to the product to meet the customer demand and expand the market. There is competition and need for increased marketing efforts to sustain the growth of market share.
Maturity Stage - This phase in the product life cycle has a stable demand and the product is established in the market. The product needs to be differentiated from the market and customers need to be given incentives fr increasing loyalty. Customer Service is important to retain the market share as well as expand it through innovative methods of promotions like sharing customer experiences and rewards.
Decline Stage - It has the demand of the product decreasing due to technological changes, competition or lack of change in the product or customer satisfaction. The product can be redesigned or modified with a new image or use to continue the sales. The promotion may include giving discounts and incentives to buy the product.
4.Major Elements of promotion mix are Advertising, Sales Promotion, Public Relations and Personal Selling.
Advertising involves paid promotion through TV , radio, print or online mediums through images or videos. Boutique can give ads in local newspapers or share the creative of ads through digital mediums.
Sales Promotion includes banners, coupons, gifts and events in the store or at selling location. The boutique can do it by giving incentives to customers to buy the services or products.
Personal Selling inludes interacting with the customer directly explaining the benefits of the product to encourage sales. At the boutique, interaction with customers and customization to their needs can be done for promotion.
Public Relations - It includes sharing the news, various developments and public activities of the product with consumers in public domain. This can be done at the boutique by sharing news about the various awards, recognitions, customer reviews about the boutique
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.