knowt logo

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.

 

Have more control over its activities.

 

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

  1. Commercial marketing: to determine consumers’ needs and wants. (Ads)

  2. Social marketing: to influence a positive change in individual behavior and improvements in societal well-being.

  3. 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.

A

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.

 

Have more control over its activities.

 

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

  1. Commercial marketing: to determine consumers’ needs and wants. (Ads)

  2. Social marketing: to influence a positive change in individual behavior and improvements in societal well-being.

  3. 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.