Marketing - Role

Definition : A system of interrelated activities to plan, price, promote and distribute products / services to current / potential customers.

Features of Marketing

  • Involves wide range of activities

  • Directed at variety of goods and services (C&S)

  • Highlights importance of trade

  • Not limited to business

Strategic Role

  • Translate goal into reality

  • Non-profit organisations → inform people (aims, goals, issues)

  • Profit organisations → generate sales satisfying customer needs and wants (n&w), goal to maximise profits

  • 4 main purposes:

    • Achieve competitive advantage (decreasing price)

    • Increase market share (sales promotion)

    • Improved brand awareness (media / TV saturation)

    • Increase sales and maximise profits (customer expectations met)

Marketing plan

  • Short and long term focuses

  • Helps identify:

    • Market status

    • Customers

    • Reason of purchase

    • How often bought

Interdependence with other Key Business Functions

  • All sections of business are involved in outcome

  • Marketing plan NEEDS to be integrated into all aspects of business

Production, Selling, Marketing Approaches

  • Production approach → take orders, deliver goods / perform services

  • Sales approach → advertise, train sales force, take orders, deliver goods / perform services

  • Marketing approach → research customer w&n, adopt a marketing concept, advertise, train sales force, take orders, deliver goods / perform services

Customers first (Customer - Orientated Marketing)

  • Customer w&n → marketing

  • Not focused on product / service → operations

  • Not focused on cost → finance

Types of Markets

Resource

  • Wide range of raw material products

  • Large amount of competition → producers aim to provide high quality product at cheapest price

  • Marketing usually done as a whole industry

  • E.g. land, equipment

Industrial (secondary or tertiary)

  • Purchase raw materials for further production

  • Quality and reliability of supply is important (input)

  • Features:

    • Large ongoing raw supplies

    • Large businesses can use power to influence raw supply

    • Post-production sales often made through team of sales reps. who negotiate with buyers and arrange delivery

  • E.g. steel, ingredients for baking

Intermediate

  • Wholesalers and retailers who buy finished products

  • Many prefer this market to focus on manufacturing process part

  • E.g. fridge, car

Consumer

  • Individuals / households intending to use / consume products bought

  • Sellers use variety of marketing techniques for profit

Mass

  • Standard and undifferentiated products for large demand

  • Aim to keep lots at low cost to stimulate sales and profits

  • Global expansion easy → products appeal to large market

  • Mass production → high automation level by computers and robotics

  • Strong use of branding and innovative promotional campaigns

Niche

  • Lower volume, high value products → specific customer w&n

  • Small group of customers → target market

  • Often small businesses responding to w&n of customers in this market

  • NOT a form of diversification