catatan

What is market?

Market is where consumers exchange their money to products. Market not only can be referring to place but also the way consumers make agreement with sellers. When talking about the place, market occurs in traditional market or modern market such as mini market, department store, super market etc. The way consumer exchange money to product can be done by telephone by calling or send message and by internet services such as online shop. Nowadays, there are increasing transactions done by internet as well as increasing of smart phone users connected by internet or more easily internet access for consumers.

Product orientation vs. market orientation

There are two ways for producer making the product. Firstly, producer directly creates the product and sells to consumer. It is called as product-orientation. Secondly, producer does market research to find consumer requirement and creates product. It is called as market-orientation. When producer does market research means that product will be created fulfil consumer’s want and need. Without doing market research producer might fail to satisfy consumer’s want and need due to consumer’s taste has been changing. Market research gives producer opportunity to be more successful.

Niche market and mass market

There are two types of product offered by producer to consumer. Niche market is small sales of product and more specialised. This product has small market share due to small of sales in certain industry. Sometimes this product is created for consumer who has special requirement that distinctive from general consumer. Lamborghini is one of example of niche market in car industry. Opposite niche market is mass market. When product has large number of sales and more generalised it is mass market. Meaning product has big market share in certain industry and appointed to all consumers. Toyota can be used for mass market due to almost of its car reachable for general customers.

  

Market share

Percentage of sales holds by one brand in certain industry is market share. For example car industry in Indonesia on 2012, Toyota has market share 25%, Daihatsu has market share 20%, Nissan has market share 15%, Suzuki has market share15%, Honda has market share 20% and the rest hold by another brand such as Ford, BMW, etc. If on 2012 car industry in Indonesia has succeeded selling for 1 million car meaning Toyota has sold 250.000 cars a year and became market leader. 

Market segmentation

Every product creates by different objective based on consumers’ needs and wants. Meanwhile producer has to divide up consumer who has similar need and characteristic. There are six ways to segmenting consumers:

What is marketing?

Marketing is activity held by producer to sell product to consumer. That is, making budget plan to satisfy current consumers’ want and predict future consumers’ want. There are four factors in marketing that is called by marketing mix. That is, product, price, promotion and place.

Marketing department

There are four departments in marketing division.

There are some functions of marketing:

Marketing objectives

What is the different between function of marketing and marketing objectives? That is:

Reference: Karen Borrington and Peter Stimpson, IGCSE Business Studies third edition

Deky Suprianto
Kubu Raya, August 31, 2013