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1. Marketing,
Competition and
the Customer
Business Studies 7115
Mudassir Raza

2. Topics on
our Agenda
What we are going to discuss and analyze
how to recommend and justify an appropriate
method of segmentation in given circumstances
the role of marketing 01
02
03
04
05
06
how business can respond to changing customer
needs and increased competition
market changes
the concept of niche marketing and mass
marketing -
market segmentation

3. The Marketing
Department
Marketing is identifying customer wants and satisfying them
profitably.
Marketing
A customer is a person business or other organisation which
buys goods or services from a business.
Customer

4. The Role Of Marketing
Identifying
customer
needs
01
Satisfy
customer
needs
02
Maintain
Customer
loyalty
03
Build
Customer
Relationship
04
Anticipate
changes in
customer
needs
05

5. Market share
Market share is the percentage of
total market sales held by one brand
or business
Customer loyalty
When existing customers continually buy
products from the same business.
Consumer
A consumer buys goods or services
for personal use not to re-sell.

6. Understanding
Market
Changes

7. Why customer/consumer
spending patterns change
Consumer tastes and fashions change
Changes in technology
Changes in incomes
Ageing populations

8. The power and
importance of changing
customer needs

9. Why have some
markets
become more
competitive?

10. Maintain good
customer
relationship
Bring out new
products to keep
customers interest
keep improving its
existing product
Keep cost low to
maintain
competitiveness
How can businesses respond to changing
spending patterns and increased
competition?

11. What is meant by a market?

12. Mass Marketing
Mass market is where there is a very large number of sales of a
product.
Total sales in these markets are very high.
The business can benefit from economies of scale.
Risks can be spread
Opportunities for growth of the business
Advantages:

13. Mass Marketing
Mass market is where there is a very large number of sales of a
product.
High levels of competition between business selling
similar products
High cost of advertising and promotion
Standardise products or services are produced and so
many not meet the specific needs of all customers or
potential customers, therefore leading to lost sales.
Disadvantages:

14. Niche Marketing
A niche market is a small usually specialized, segment of a much
larger market.
Small businesses may be able to sell successfully in niche markets as larger
businessess may not have identified them but concentrated on the mass markets
instead. This will reduce competition from the larger business in niche markets.
The needs of consumers can be more closely focused on, and therefore targeted,
by businesses in a niche market. This may lead to high levels of consumers loyalty
and good customer relations.
Advantages:

15. Niche Marketing
A niche market is a small usually specialized, segment of a much
larger market.
Niche markets are usually relatively small and therefore have limited
sales potential.
Often businesses in a niche market will specialize in just one product.
Disadvantages:

16. Market Segment
Market segment is an identiifiable subgroup of a
whole market in which consumers have similar
characteristics or preferences.

17. Ways of segmenting market
By socio-economic group
By age
By region/location
By gender
By use of the product
By lifestyle
1.
2.
3.
4.
5.
6.

18. Potential benefits of segmentation to
business.
Which method of segmentation should
be used?

19. Thank you!
Feel free to approach us
if you have any questions.