4.1 Introduction to Marketing

What is marketing?

the management process involved in identifying, anticipating and satisfying consumer requirements profitably

main objectives of marketing

products, price, place, promotion

products

right _______ are supplied to meet the customer’s wants and needs

price

set the correct ________ so products are affordable and so customers don’t buy from rival businesses

place

distribute the products conveniently for the customers to purchase

promotion

make sure there is _________ promotion to convince the customer to buy the product

marketing requires _____ and _____

responsibility and decision-making

how are needs and wants identified

market research and data analysis

what factors do customers look at when assessing the value on a product

price availability and quality

marketing is about earning profit. true or false?

true

market orientation

looks to the market to see what consumers need and want (what the market wants)

product orientation

looks at what they can make instead of making products that they can sell (what they hope the market will want)

advantages of market oriented firms

greater flexibility and lower risk

disadvantages of market oriented firms

market research and no guarantee it’ll work

advantages of product oriented firms

assured quality and more control over operations

disadvantages of product oriented firms

needs of market are ignored, high risk and high failure, and high research and development costs

whether a business adopts market or product orientation depends on…

the market, organizational culture, and barriers to entry

how to calculate market share

MS = (firm’s sales revenue / industry sales revenue) x 100

what’s market share?

refers to an organization's share of the total value of sales within a specific industry

ways to increase market share

brand promotion, product development, motivating and training the workforce, establishing intellectual property rights, and using more efficient channels of distribution

how to calculate market growth rate

MGR = ( (current market size - original market size) / original market size ) x 100

what’s market growth?

refers to the rate at which the size of a market is increasing

market growth is often used to measure…

success of a business in relation to market share

growth is a…

common business objective

market leadership

refers to the position of the business having the largest market share in a given market

benefits of being market leader

premium pricing, economies of scale, longer product life cycles, favorable distribution terms, greater publicity and brand exposure, easier to attract and recruit highly qualified employees

operations management

Work together to research, develop and launch products to meet needs and wants of customers

finance

Work together to set appropriate budgets that fulfill marketing and finance objectives

human resources management

Ensure the firm has the right quantity and quality of workers to meet the needs and wants of customers

marketing ethics are the…

moral aspects of an organization’s marketing strategies

unethical marketing exists when…

moral codes of practice are not adhered to and when such activities offend the general public