Knowt
4.1 The Role of Marketing
Identify needs, what to produce, and promote (inform and persuade) the customers to buy.
4P – tangible products (important in creating customers’ satisfaction)
7P – intangible products
People- employees (representing the company)
Processes- delivery
Physical evidence- the physical store
Product-oriented approach
To produce the product and then persuade the customers to buy.
Supply creates its demand (say’s law)
Advantages | Disadvantages |
High-quality products. (high customers’ loyalty) | Ignoring trends. (increase risks of failure) |
Good reputation in the market. |
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Have more control over its activities. |
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Market-oriented approach
Produce products that will meet the needs.
Advantages | Disadvantages |
Increase chances to sell the products. | Market research costs money and time |
Have the latest information on the market. | Hard to satisfy frequently changing consumer tastes. |
Get feedback from consumers. | Uncertainty about the future. |
Different types of marketing
Commercial marketing: to determine consumers’ needs and wants. (Ads)
Social marketing: to influence a positive change in individual behavior and improvements in societal well-being.
Social media marketing: to market a firm’s products. (YouTube videos)
Markey Size:
Volume: quantity.
Value: the dollars consumers spend.
Market Growth:
(Final market size-initial market size)/initial market size x 100%
Market Share:
(firm’s sales/market size [total market sales]) x 100%
Profit (maximize profit) and non-profit (maximize social causes) organizations.