T1 Business HSC

Purpose of marketing

Profit maximisation. Generate sales, cover costs, increase return and grow.

• Competitive advantage

• Promote brand awareness

• Increase marketshare

What is marketing

Set of interrelated activities to plan, price, promote and distribute to both current and potential customers.

Role of marketing strategies

Planning and R&D as well as the decision which go into marketing strategies market segmentation and the 7 p’s 

Marketing Timeline

1. Develop and implement marketing plan at satisfying customer needs

2. Increased sales and achievement of goal

3. Successful marketing strats increase brand awareness and customer satisfaction 

4. Generate sales

5. Profit maximalisation 

How does marketing depend on other business functions 

Operations - Marketing work together to ensure products are of right standards and available at the right time (Satisfies customers)

Finance - Providing marketing funds to undertake activities like promotion (Achieve profitability)

HR - Ensures staff are confident and qualified 

(Desirable good or service, satisfactory experience)

Production, Selling, Marketing approach

Production focuses on manufacturing the most goods and services possible.

Focused on sales, pushing the most sales possible. E.g Hiring Sales associates and expanding to advertisement in films, radio

Focus on creating products that meet customer’s wants and needs. E.g Balances customers wants and needs along with production and sales.

Marketing approach

Focuses on customer wants through market research then satisfy that need

• Marketing concept must be customer orientated

• Develop long term customer relationships

• Prioritises indentifying/satisfying customer needs BEFORE production

Societal Marketing approach 

More socially responsible, moral and ethical model of marketing

• Closely related to CSR and sustainable development, used to improve brand image 

• Emphasises social responsibilities as well as importance of maintaining wellbeing of customer and society 

NIKE CASE STUDY ON MARKETING APPROACH

Nike established a production approach, but over time as competition increased. They adapted to a marketing model to prioritise and satisfy customer wants and needs

APPLE CASE STUDY ON MARKETING STRATEGY

Simple marketing strategies, e.g not including price, features, special effects. Straightforward method of communicating to the customer.

1. Create mystery around new product launches in order to generate excitement

2. Advertise people having a great time with the products rather than the product detail

3. Effective product placement, increases brand awareness and displays features

Resource Market

 Supply and purchase of raw materials from primary industry. E.g mining, agriculture, foresting and fishing

Industrial Market

Businesses that purchases materials to produce their own goods and services. E.g Bakery buys flower to make bread

Intermediate Market

Wholesalers/Retailers who purchase finished product and sell them to make a profit. e.g JB Hifi buys phone

Consumer Market

Indiviuals/Members of a household that intends to consume the product they buy.

Mass Market

Standard products with a large demand. Mass produced, distributed and promoted. Addresses a broad need and wants

Niche Market

Smaller segment, directed towards customers with specific needs Lower volume, higher quality for unique needs

Influence on marketing

• Marketing decisions and strategies are affected by a range of influences.

• These can be Internal (e.g., the ethics of the business) or External (e.g., laws and consumer choice).

• These influences can limit the style of marketing a business uses.

Factors Influencing Customer Choice:

• Refers to the buying behaviour, decisions, and actions of customers when they search for, evaluate, select, and purchase goods and services.

• Businesses try to influence customer choice by modifying their marketing strategies to appeal to customer motives.

Psychological Factors (1)

• Perception: An individual’s personal view or interpretation of a brand or product.

• Motives: The internal reasoning that drives an individual to take an action.

• Attitude: A person's overall feeling about an object or activity, which can determine the success or failure of a marketing strategy.

Psychological factors (2)

• Learning: Changes in an individual’s behaviour caused by information and past experiences.

• Personality: The collection of all behaviours and characteristics that make up that individual.

Economic Influences

Economic conditions affect a business’s ability to compete and customers’ willingness to spend. These conditions fluctuate between booms and recessions.

Booms and recession during economic influences

Boom: Characterised by high employment, rising income, strong consumer spending, and optimism.

Recession: Marked by low employment, decreased income, reduced spending, and consumer pessimism.

Government influences:

• Laws and policies can make certain products illegal or restrict how consumers use them.

• Depending on the economic state, the government may introduce policies to expand (stimulate growth) or contract (control inflation) the economy.

Regulations and laws, such as the Competition and Consumer Act 2010 (CCA), set standards for ethical business conduct and influence marketing behaviour

Sociocultural Influences

These are the social and cultural factors that affect consumer behaviour, including values, lifestyle, and socioeconomic status

Main Socio cultural influences

• Social Class (Socioeconomic Status): Determined by education, occupation, and income. It influences the type, quality, and quantity of products purchased.

• Culture: The shared values, beliefs, behaviours, and traditions of a society. It strongly shapes buying behaviour as it guides everyday lifestyle choices

• Family and Roles: Individuals play different roles within families and social groups (e.g., parent, child, friend), which affect purchasing decisions.

• Reference (Peer) Groups: Groups with whom individuals identify or aspire to belong. People often adopt similar attitudes, values, and buying behaviours to fit in or gain acceptance.

Government Role:

• Both federal and state governments have introduced laws to protect consumer rights and clarify the rights and responsibilities of businesses.

• Marketers must understand and stay up to date with these laws that regulate marketing activities — ignorance of the law is not an excuse.

• Businesses must apply legal requirements to their marketing practices and make necessary adjustments to ensure compliance.

Australian Consumer Law (ACL, 2011):

• A single, national consumer law introduced to harmonise consumer protection across Australia.

Forms Schedule 2 of the Competition and Consumer Act 2010 (CCA).

Competition and Consumer Act 2010 (CCA):

• Enforced and administered by the ACCC (Australian Competition and Consumer Commission),
  state and territory consumer agencies, and ASIC (for financial services).

• Aims to promote fair trading, competition, and consumer protection

ACCC (Australian Competition and Consumer Commission):

• Protects consumers against unfair and undesirable business practices.

• Regulates trade practices that restrict competition.

• Can issue public warning notices to inform consumers of suspected illegal activity.

ASIC (Australian Securities and Investments Commission):

• Enforces consumer protection laws for financial products and services.

ACL penalties

• Companies: Up to $10 million or more, depending on profit or turnover.

• Individuals: Up to $500,000 per person.
  Breaches also lead to

• Legal fees and compensation claims from consumers.

• Reputational damage and loss of trust.

Unconscionable Conduct

• Refers to practices that are unreasonable, exploitative, or unethical — often illegal under the ACL.

Misleading and Deceptive Conduct

• Illegal under the Competition and Consumer Act 2010.

• Businesses must ensure all representations (direct or implied) are accurate and not likely to mislead consumers.

Common Types of Misleading Advertising:

• Bait and Switch Advertising: Advertising a product at a low price to attract customers, then directing them to a higher-priced item once the cheaper product runs out.

• Dishonest Advertising: Making false or exaggerated claims about a product’s qualities or benefits.

• Fine Print / Implications: Hiding key terms or limitations in small print to mislead or confuse consumer

Price discrimination:

Involves charging different prices for the same product/service based a customer is believed to be willing to pay. Based off demographics or perceived value to the customer.

Illegal if it substantially reduces competition

ACCC:Australian Competition & Consumer Commission

Introduced national consumer guarantees, giving consumers rights to remedies if goods or services fail to meet standards.

Applies to both retailers and manufacturers.

Implied conditions :

Unwritten or unspoken terms assumed to exist in a contract, even if not explicitly stated.

Automatically apply to consumer transactions under the Australian Consumer Law (ACL).

Products must also

• Match description made by the salesperson, packaging + labels, and in promotions/advertising

• Match any demonstration model/sample 

• Be fit for the purpose 

• Not carry any hidden debts or extra charges 

• Meet any promises made about performance condition, and quality

Services must be 

• Be provided with acceptable care, skill, and technical knowledge.

• Take necessary steps to avoid loss or damage.

• Be fit for the agreed purpose or deliver expected results.

• Be delivered within a reasonable time if no specific timeframe is agreed.

Warranties

Promises made by a business that they will correct any defects in the goods that they produce or in service that they deliver. Promise to repair or replace faulty products

Must be clearly stated so customers understand rights. Shows a business confidence in product and can be a selling point if better competitors 

• Illegal under CCA to make false or misleading warranty claims, and the law protects consumers rights to refund and exchanges

Refund and exchanges (Returns)

A business is required by law to offer a refund if products are 

• Faulty

• Do not match description or a sample

• Fail to do the intended purpose

Accurate signs of refund policies must be displayed 

Ethical behaviour

Conduct that goes beyond legal requirement. Some marketing strategies might be legal, they are still considered wrong/unethical

Criticism 1 and 2

Material: Individual desire to constantly acquire possessions, large business uses powerful/sophisticated marketing strategies e.g ads to persuade and manipulate customers to buy whatever the firm wants to sell.

Stereotyping: The way groups of people are portrayed in advertisements does not always fully represent reality. Common examples include gender, facial stereotypes and children

Criticism 3,4,5

• Use of Sex to Sell Products

  • Overuse of sexual themes and connotations.

  • Suggests products increase attractiveness through sex appeal.

• Product Placement

  • Advertising embedded in entertainment media.

  • Blurs the line between advertising and entertainment due to its concealed nature.

• Invasion of Privacy

  • The growth of online advertising raises ethical concerns.

  • Trading of user data for targeted advertising.

Main Unethical Processes

• Untruths / Concealed Facts – misleading by omitting important details, undermining consumer trust.

• Exaggerated Claims (Puffery) – unreasonable exaggerations that mislead consumers.

• Vague Statements (Weasel Words) – ambiguous language used to make products sound better without proof.

• Invasion of Privacy – trading consumer information for targeted marketing

Case Studies Volkswagen, Puffery and KFC

Misleading Advertising: Volkswagen fined $125 million under ACL for false claims about diesel emissions standards. Promoted an “eco‑friendly” mode that was not actually used.

Puffery: Ice cream advertised as “makes you happy” criticised for linking mood to high‑fat, high‑sugar products.

KFC BAD AD: Objectifies women and sexist ideas on boys will be boys.

Ethical Business standards

Product Safety: All products must comply with mandatory standards before sale.

Consumer Guarantees (ACL): Unsafe products entitle consumers to a refund or compensation, with liability usually on the retailer.

Product Recalls: Serious injury risks must be reported within 2 days.

Government Regulation: Ban on advertising during preschool programs.

Emerging Issues: Social media platforms using unregulated methods to market junk food.

Engaging for competition

• Businesses compete to attract customers and increase profits.

• The Competition and Consumer Act (CCA) requires fair competition and includes provisions to prevent anti‑competitive conduct.

Examples of engaging for compeition

Monopolies: Competitors cannot agree to act together to dominate a market.

Contracts/Arrangements: Provisions that reduce competition are prohibited as they limit choice, mislead customers, and harm business reputation.

Misuse of Market Power: Businesses with significant market power cannot engage in conduct that substantially lessens competition

Resale Price Maintenance:

• Illegal for suppliers to force retailers to sell at a set price.

• Suppliers may recommend prices, but retailers must be free to set their own.

• Illegal to set minimum or maximum prices that restrict competition.

Mergers and Acquisitions:

Prohibited if they substantially reduce competition.

Sugging: Process of selling under a guise of a survey

• Raises concerns about privacy and deception 

• Primary aim ios top engage in sales, promotion

• Targeting customers based off behavior 

• Code of ethics: Aus association of national advertisement 2023 AANA more legal adv 

SWOT

• Business must constantly monitor external changes, look for any opportunities to exploit and avoid threats

• Internal force operates from inside org within business control

• Better understand Ext and Internal with SWOT

Analysis indicates business position compared to competitors, and the marketing plan should be modified to reflect this info.

Market Research

Systematically collecting, recording and analysis concerning a specific marketing problem. 

• Marketing strategies perform best based on accurate, up-to-to-date, detailed and relevant info. 

• Well-informed about market aspects, especially buying behavior of existing and potential customers establishes a strong business position. 

Benefits of market research

Market research

• Reduces risk 

• More accurate and responsive marketing plan

• Identify and outline opportunities + problems and evaluate implementation of marketing plans. 

• Without accurate, reliable and direct information, businesses expose themselves to market embarrassment.

3 steps of the market research 

1. Determining information needs

2. Collecting data from primary and secondary research 

3. Analysing and interpreting data 

Elaborated steps of market research

• Step 1: Determine information needs – Identify the issue to investigate so businesses can design strategies that meet target market needs, achieve objectives, and increase sales and profits.

• Step 2: Collect data – Use primary research (surveys, observation, experiments/test marketing) and secondary research (existing data from internal sources like sales reports and external sources like ABS, media, industry reports). Observation shows what happened but not why.

• Step 3: Analyse and interpret data – Process and examine data (e.g. averages, trends, deviations) to draw insights that guide marketing decisions.

Secondary data: Comprises info collected by some other person/organization

1. Internal

• Collected from internal sources, inside business e.g 

• customer feedback, sales, management/research reports. 
  

2. External 

• Published data from outside sources. E.g magazines, industry associations, newsletters, internet sources and ABS.

Data analysis & interpretation. 

• Raw data is of little value until it has been analysed and interpreted.

• Statistical interpretation analysis is the process of focusing on data that represents average, typical or deviations from typical patterns.

Establishing market objectives

Realistic measurable goals to be achieved through marketing plan. Should be aligned to overall goals, and concerned with products and markets. 

Common objectives

1. Increase market share

2. Expand product range

3. Maximise customer service

Increasing Market Share

Business share is the total industry scale for a particular product

• Increasing MS is an important objective for businesses that dominate the market; small market gains often translate to large profits. 

E.g 7 News increases the market share of viewership as measured by the rating of a program. 

Expanding product range: Range of g/s business offers.

• Expand products to increase profits long term

• Product adaption to TS to be competitive 

• Coca cola offers diet, zero, vanilla for different markets

Maximising customer service 

• Responding to needs of customer 

• High level results in improved satisfaction and positive reflection from purchases. 

• Investigate what competitors are offering and then expanding product mix 

• Customer and sales orientation 

Identifying target markets

Primary: Major segment where majority of resources are invested

Secondary: Smaller less important

Why: Uses marketing resources efficiently = cost/time effective

• Promotion material is more relevant to customers

• Better understanding of buying behaviour 

Different target market

Mass marketing - Large range, assumes similar needs. E.g products with no variation and for everyone 

Market segmentation 

- Group divided into common characteristics 

- Segmenting the market allows it to meet the needs of a uniform group. 

Niche 

• Narrowly selected TS

• Needs of specific consumers that are neglected 

CASE STUDY: Fila changing TS from 30-40 to younger audiences

The 4 p’s in the marketing mix

Product, Price, Promotion, Place 

• Business controls 4 functions and uses them to reach its target market

• Business considers which variable to emphasise

• Determined by where product is positioned or stage in product lifecycle. 

Product and price

Product: Deciding which product to produce 

• Product quality, packaging, design and guarantee 

• Customers buy products not just for needs and wants but to have the intangible feelings such as prestige, security and satisfaction. 

Price: The amount of money the customer is prepared to offer 

• Consider costs, deductions and customer demand 

• Set price above, below or even with competitors 

Promotion and Place

Promotion: Materials used to inform, persuade and remind customers about products 

• Advertising, personal selling, relationship selling, sales promotion, publicity, public relation 

• Technology is important on how to promote products

Place/Distribution: Channels of delivering products to customers. 

• Intermediaries e.g wholesaler or retailer. Customers also have limited knowledge of the roles, operations of intermediaries.

• Number of intermediaries chosen determines how wide the distribution is 

• E.g limited is gucci, as wide as possible is coca cola 

Distribution includes retail, supermarket, vending machines 

Implementation, monitoring and controlling

Definition: Process of putting strategies into operations, involves daily, weekly and monthly decision to maintain efficiency. How, where and when to be done.

Marketing plan must be carefully monitored and controlled

Monitoring

• Monitoring: observing marketing plan progress

• Requires the marketing department to gather info and report on important changes, problems and opportunities that arise

1. Establish marketing objective

2. Monitor performance 

3. Evaluate performance 

4. What to achieve 

5. What's happening

6. What is good/bad - Why 

7. Corrective action - What should be done

Monitoring and controlling

Gathering of info on performance of the marketing plan 

• Business uses this info to measure performance. Compare with projected performance 

• Controlling involves reflection and taking corrective actions to make sure objectives are achieved.

Key Performance Indicator (KPI)

Forecast level of performance which actual performance can be compared. E.g Increase marketing sales by 5%. Without KPI, marketing manager is unable to understand/ evaluate effectiveness of the campaign 

Must ask 2 questions constantly

1. What does business want to achieve - objectives

2. Are the objectives being achieved 

Financial forecasting and Revising the marketing plan 

Financial Forecasting: However not too accurate, forecasts are essential for businesses to engage sensibly in the marketplace.

• A business must develop financial forecasts outlining the costs and revenues of each strategy. By comparing projected sales and revenue (benefits) with anticipated expenses (costs), the business can determine the most viable option using cost‑benefit analysis. 

Financial forecast requires two steps

1. Cost estimate - Marketing plan expected cost. 4 major components market research, product development, promotion, packaging/distribution. 

2. Revenue estimate - Revenue expected income. Forecasted by assessing how much customers are expected to buy and at what price, + sales and staff predictions. Compared with actual Rev to evaluate effectiveness of marketing strategy.

Marketing (Internal): In business control so easy

Revenue (External): Outside of control so harder

KPI to measure success of marketing plan

1. Sales analysis : Sales data to evaluate business current performance and marketing strategy effectiveness. More sales are broken down it is easier to see each performance, 

2. Market share analysis: allows a business to compare its marketing performance with competitors. By examining changes in market share, the business can determine whether sales increases or decreases are due to its marketing strategies or external factors beyond its control.

3. Marketing profitability analysis: examines sales and market share by breaking total marketing costs into specific activities (e.g., advertising, transport, administration, order processing). By comparing each activity’s cost with the results achieved, managers can assess effectiveness and determine where marketing resources should be allocated in the future

Revising marketing plan 

Once results of sales, market share and profitability market analysis has been calculated, businesses can assess which objectives are met. Based off this marketing plan can be revised. 

3 main ways

1. Modify marketing mix - Adaption of elements of marketing mix. Price changes, product modification, change of promotional stratgies and distribution 

2. New product development - Limited lifespan products, new products contribute to success of business

3. Product deletion - as products are developed. Eliminate outdated products to preserve the image of new products.

Market segmentation, product/service differentiation and positioning 

 Division of the market for product according to customer characteristics, can be based on demographic, psychographic, geographic or behavioural aspects.

APPLE INTEGRATION

Demographic: Primarily targets urban consumers aged 18-45 with high disposable income. Also targets emerging markets (e.g., India) with models like the iPhone SE.

Psychographic: Focuses on attitude, lifestyle, and values, positioning its products as status symbols and expressions of personal identity. Emphasizes exclusivity and premium quality, though faces competition from Android on functionality, battery life, and cost.

Geographic: Adapts designs (e.g., larger screens for Asia) and distribution regionally. Is shifting production to India to diversify from China. Faces challenges like regulatory differences, local consumer preferences, price sensitivity, and economic volatility.

Behavioural: Segments customers based on product usage, loyalty, and response to marketing. Analyzes upgrade cycles, ecosystem reliance, and spending habits (e.g., upgrade programs). Tailors products, pricing, and promotions to adapt to economic pressures and changing consumer behaviour.

Product differentiation

Product differentiation: changes such as more complex, additions or features to make product seem superior or different to customers

product/service position: How marketers try to create the image or identity of a product

Branding

 Allows customers to easily identify the product they like, establishes the quality of a product, reduces risk when seeing a reputable/high quality brand, psychological reward that reflects prestige.

Effectiveness of branding

• Enables repeat sales through product recognition 

• Encourages customer loyalty

• Signifies the trademark and the brand is registered 

Packaging

• Preserves product

• Attract attention

• Transportation and storage functionality 

Apples product

• Focus on quality, design and appearance

• IOS operating system

• Wide range of apps on app store

• Other device compatibility 

• Ai assistance

• Tiered product mix

• High visible logos on products

• Apple pay/wallet 

Pricing methods

Cost-based pricing : cost of producing a product and then adding a markup

Market based pricing : Pricing based off the supply and demand of the market

Competition based pricing : Price is compared to competitors price

Pricing Strategies

Price leader: Major price influence

Bundle pricing: Higher perceived value with added products 

Price penetration: Lowest price possible to achieve market share

Loss leader : product sold lower or at cost price 

Price point: Sold at predetermined price

Apple pricing Strategies

• Price skimming - New iphone released, positioning it as leading edge, quality product

• When a model is upgraded, older model is reduced to be more competitive aligned with lates samsung model

• EMI (monthly payment plans) make high price of products more affordable 

• Buy back program and discounted price on older models 

• Growing challenge to maintain premium pricing in price-sensitive markets

Promotion and its aim

 Strategies used to inform, persuade and remind customers of the product

Aim

• Attract new customers

• Increase brand loyalty 

• Encourage existing customers to buy the product\

Promotion methods

Advertising - A paid, message communicated through mass media (such as television, print, online, or radio) to inform, persuade, or remind a target audience about a product/servcice.

Sales Promotion - Short-term incentives or activities designed to encourage the immediate purchase or sale of a product or service. Common examples include discounts, coupons, buy-one-get-one-free offers, contests, samples, and loyalty rewards.

Personal selling - Sales representative directed to a customer to make a sale, inform and persuade about a product, allows business to learn about customers encouraging relationship marketing Louis Vuitton has sales representative

Opinion leaders - Influences, celebrity endorsement is powerful as an opinion leader method 

Place / Distrubution

• Activities that make the product available to customers when and where they want to purchase them from 

• Allows for the product to reach consumers in number of areas 

Distrubution channels

• Method used by business to deliver g/s 

•  Producer to consumer (Direct)

• Produce to retailer to consumer (Indirect)

• Producer to wholesaler to retailer to consumer (Indirect)

CASE STUDY APPLE

• 40% of apple sales are made direct through online+apple stores and 70% through indirect channels such as retailers (JB hifi and officeworks.

People

People

• Quality of interaction between the consumer and those who are within the business who deliver the service 

• Businesses need to recruit the right coworkers to leave good impressions and create positive images

CASE STUDY APPLE

• Employs customer orientated, empathetic employees which lead to customer satisfaction and repeat purchases

Processes

Flow of activities that business will follow in delivery of service

• Must be specified efficiently such as communicating with customers and ensuring a sense of progress

CASE STUDY: Efficient instore and online ordering system, each of which offers free ios upgrade 

Physical evidejnce

Physical evidence

• Refers to everything the customer sees when interacting with a business, environment, location and materials

CASE STUDY

• Store visitors experience a no- pressure environment, which build relationship with the brand

E-marketing

Broad form of marketing that involves use of technology to directly liaise with and communicate with customers

• Caters to diverse group of customers, allows business with online operatIons to reach global audience 

Adv and Dis of E-marketing

Adv

• Allows wide reach to potential customers quickly

• Low costs

• Effective for reaching ™

Dis

• Tarnish name brand if bad execution

• Business must be constantly engage

• Messages being misinterpreted 

CASE STUDY APPLE

• Growth of digital marketing in current day, product e-marketing e.g “shot on iphone” Promotion is displayed on their well developed website

Global marketing

• Business marketing plan must be modified/adapted to suit overseas markets if they decide to go global

Global Branding

• The worldwide use of name, term, symbol, or logo to identify the sellers product to build familiarity across markets 

Global pricing

How business coordinate pricing policies across different countries

• Customized pricing: WHenever consumer in different countries are charged different prices for smae product

• Market customised pricing: Prices according to local market conditions

• Standardized pricing: Practise for charging customers same price for a product anywhere in the world

Standardisations

• Global marketing strategy that assumes the way the product is used and the needs it satisfies are same around the world

Customisation

Global marketing strategy that assumes the way the product is used and the needs it satisfies are different between countries

Competitive positioning

• How business differenTIate products in order to gain competitive advantage