Marketing - Role

Definition

A system of interrelated activities to plan, price, promote and distribute products / services to current / potential customers

Marketing plan

Short and long term focuses. Helps identify market status, customers, reason of purchase, how often bought

Strategic role

Achieve competitive advantage, increase market share, improved brand awareness, increase sales and maximise profits

Interdependence with other key business functions

All sections of business are involved in outcome, marketing plan needs to be integrated into all aspects

Production approach

Take orders, deliver goods / perform services

Sales approach

Advertise, train sales force, take orders, deliver goods / perform services

Marketing approach

Research customer w&n, adopt a marketing concept, advertise, train sales force, take orders, deliver goods / perform service

Customer - Orientated Marketing

Customer w&n focused

Resource market

Wide range of raw materials, high competition - producers aim to provide high quality product at cheapest price. E.g. land, equipment

Industrial (Secondary or Tertiary) market

Purchase raw materials for further production, quality and reliability of supply is important. E.g. steel, ingredients

Intermediate market

Wholesalers and retailers who buy finished products. E.g. fridge, car

Consumer market

Individuals / households intending to use / consume products bought. E.g. food, couch

Mass market

Standard and undifferentiated products for large demand, aim to keep costs low to stimulate sales and profits, global expansion easy - large market appeal, mass production - high automation levels by computers and robotics

Niche market

Lower volume - high value products specific to customer w&n (target market), NOT a form of diversification