- •2.Marketing concepts
- •Production Concept
- •Product Concept
- •Marketing Concept
- •Factors leading to Marketing Concept:
- •Societal Concept
- •Competitors
- •8. Market system
- •9.Demand Curve
- •10.Customers Behaviour
- •This is called 'High Involvement'.
- •11.Custom Loyalty
- •12.Swot Analysis
- •Simple rules for successful swot analysis.
- •What’s brand wars?
Competitors
a)Every company faces a wide range of competitors.
b)A company must secure a strategic advantage over competitors by positioning their offerings to be successful in the marketplace.
c)No single competitive strategy is best for all companies.
8. Market system
Market consists of:
Consumers - create a demand for a product
Demand
the amount consumers desire to purchase at various prices
Not what they will buy, but what they would like to buy!
Effective demand – must be willing AND able to pay
Market demand – consists of the sum of all individual demand schedules in the market
Ось x Quantity Bought and Sold (000s)
Ось У Price
S- A shift in the demand curve to the left will reduce the demand to 300 from 500 at a price of £5. Suppliers do not have the information or time to adjust supply immediately and still offer 600 for sale at £5. This results in a market surplus (S > D)
D- In an attempt to get rid of surplus stock, producers will accept lower prices. Lower prices in turn attract some consumers to buy. The process continues until the surplus disappears and equilibrium is once again reached.
Квадрат-shortage Orange line- D
Ось x- Quantity Bought and Sold (000s)
Ось y – Price
9.Demand Curve
Market demand – consists of the sum of all individual demand schedules in the market
Represented by a demand curve
At higher prices, consumers generally willing to purchase less than at lower prices
Demand curve – negative slope, downward sloping from left to right
Ось x Quantity Demanded (000s)
Orange line The demand curve slopes downwards from left to right (a negative slope) indicating an inverse relationship between price and the quantity demanded. Quantity demanded will be higher at lower prices than at higher prices. As price falls, quantity demanded rises. As price rises, quantity demanded falls
The Demand Curve 2
The level of demand – determines where on the graph it sits
Low demand – nearer the origin
High demand – further from the origin (assuming same scale)
Dependent on a variety of factors
Demand curve moves in response to changing factors
The Demand Curve 3
Factors influencing demand
D = f (Pn,Pn…Pn-1, Y, T, P, A, E)
Where:
Pn = Price
Pn…Pn-1 = Prices of other goods – substitutes and complements
Y = Incomes – the level and distribution of income
T = Tastes and fashions
P = The level and structure of the population
A = Advertising
E = Expectations of consumers
The Demand Curve 4
Changes in any of the factors other than price causes the demand curve to shift either:
Left (Less demanded at each price) or
Right (More demanded at each price)
The Demand Curve 5
Ornage line- D1
D1Changes in any of the factors affecting demand other than price cause the entire demand curve to shift to the left (less demanded at each price) or to the right (more demanded at each price).