Marketing - Business HSC

Marketing

A total system of interacting activities designed to plan, promote and distribute products and/or services to present and potential customers

The strategic role of marketing

To implement a marketing plan which sets out a series of strategies to achieve higher sales and the goal of long term profit maximisation.

The marketing plan

A document that lists activities aimed at achieving particular marketing outcomes in relation to goods or services.

Interdependence

The mutual dependence a business' key functions in order to achieve their long term goals

The relationship between Operations and Marketing

The relationship between Finance and Marketing

The relationship between Human Resource and Marketing

Production approach

(1820's - 1920's) The approach which was focused on producing goods and services in an attempt to create demand rather than respond to customers.

Selling / Sales approach

(1920's - 1960's) The approach which used sales representatives to highlight the positive attributes and qualities of a product to convince a customer.

Marketing approach

The marketing approach aimed at identifying customer wants through market research in order to develop relationship with the customer.

Societal Marketing approach

Businesses focus on corporate social responsibilities (care for environment), the importance of maintaining and improving the wellbeing of customers and society (prioritise customer loyalty and continal satisfaction)

Resource market

Individuals/groups that are engaged in all forms of primary production (eg: A logging company sells raw timber to a paper factory for production)

Industrial market

Industries/businesses that purchase products to use in the production of other products or in daily operations (eg: A bakery buys flour to bake bread for sale)

Intermediate market

Wholesalers and retailers who purchase finished products and resell them to make a profit (eg: A supermarket buys soft drinks from Coca-Cola to resell to customers)

Consumer markets

Individual who plan to use or consume the products they buy (eg: A student buys a new iPhone to use for study and entertainment)

Mass market

Products in widespread use (eg: A company produces and sells white table salt to all households)

Niche market

Concentrates or micro-market, a narrowly selected market segment which consist of buyers who have specific needs or lifestyles (eg: A company sells high-end shoes specifically designed for professional ballet dancers)

Customer choice

The decisions of customers when they search for, evaluate, select and purchase goods and services (based on Psychological, Sociocultural, Economic, Government influences)

Consumer Law

Laws that protect customers from unfair business practices, scams, or faulty products.

Australian Consumer Law (ACL)

1. Promotes fair and competitive behaviour in the market place

2. Attempts to prevent deceptive and misleading behaviour towards consumers

Competition and Consumer Act 2010 (CCA) (Cwth)

1.) Protecting consumers against undesirable practices
2.) Regulating trade practices that restrict competition

Focus on: deceptive advertising, price discrimination, implied conditions, warranties

Australian Competition and Consumer Commission (ACCC)

A government body that enforces consumer laws and ensures businesses compete fairly.

Deceptive and misleading advertising

1. hide important information in the small fine print that is difficult to read

2. use misleading before and after advertisements

Bait-and-switch advertising

An illegal tactic where a businesswhere a business advertises a product at a very low price (the "bait") to attract customers but intends to sell them a more expensive product instead (the switch) (eg: Qantas advertised and sold tickets for flight that had already been cancelled, agreed to pay $20 million in compensation to over 86,000 customers)

Dishonest advertising

Using false, misleading, or deceptive claims to sell a product or service.

Price discrimination

The setting of different prices for a product in separate markets (are allowed if: the markets are geographically separated / product differentiation within one market, not allowed if it reduces competition or against Racial Discrimination Act)

Implied conditions

The unspoken and unwritten terms of a contract.

Warranties

A promise by a business to repair or replace faulty products (can be used as an aggressive tool if it includes superior options to those of a competitive product)

Ethical Influence

The practice of a business going beyond legal requirements to do what is morally right, honest, and socially responsible to influence consumer behavior. (Result: creates a positive image of the business, customers will reward ethical business by purchasing more of their products, attract staff, investors..)

Ethical criticism

1. Creation of needs - Materialism

2. Use of stereotyping

3. Use of sex to sell products

Ethical requirement

1. Truth and accuracy

2. Restricting Marketing of products that damage health (junk food, sugary drinks)

3. Restricting Sugging (Selling under the guise of a survey - pretending to conduct a survey to collect customer data, then using it to make a sales pitch chào hàng)

4. Good taste (not offensive)

5. Engaging in fair competition