4.1 The role of marketing Flashcards
Needs
essential necessities that all humans must have to survive
Wants
human desires
Marketing
the management process of predicting, identifying and meeting the needs and wants of customers in a profitable manner.
Four main goals/objectives of marketing
the right PRODUCTS are supplied
the correct PRICE
the correct distribution/PLACE of products
adequate and effective PROMOTION
How does marketing work with operations management?
prepare production schedules
Work directly with each other to research, develop and launch products
How does marketing work with human resources?
marketing helps HR identify staffing needs
How does marketing work with finance?
set appropriate budgets
The differences between marketing of goods and services
intangibility inseparability price strategy promotional strategy place strategy product strategy
Market orientation
a marketing approach used by businesses that are outward looking by focusing on making products that they can sell, rather than selling products that they can make.
Market orientation ads + disads
ads:
greater flexibility
lower risk
disads:
market research is expensive
Product orientation
a marketing approach used by businesses that are inward looking as they focus on selling products that they can make, rather than making products that they can sell.
Product orientation ads + disads
ads:
quality can be assured
the firm has more control over its operations
disads:
high risk/failure rate of businesses
expensive
Commercial marketing
the use of marketing strategies to meet the needs and wants of customers in a profitable way
Social marketing
any activity that seeks to influence social behaviour to benefit the target audience and society as a whole
Differences between social marketing and commercial marketing
purpose:
c - Sell physical goods and intangible services for a profit
s - Influence or persuade a desired change in social behaviour or attitudes
benefits
c - Satisfy individual needs and wants, thus reaps profit for the business
s - Satisfies the needs and desires of the general public, thus reaps benefits for communities
main users
c - private sector businesses
s - the government and non-governmental organisations (NGOs)
Market
a place or process whereby customers and suppliers trade
Customer markets
markets that cater for private individuals
Industrial markets/producer markets
markets that cater for organisations
Characteristics of the market
Market size - markets differ in their sie as measured by sales revenue
Customer base - (alternative measure of market size) the total potential number of customers
Barriers to entry - obstacles that determine the number of suppliers in the market
Competition - degree of rivalry within a market
Geographic characteristics - some markets focus on a particular area, country or region
Demographic characteristics - characteristics of consumers (gender, age, ethniticity and religion)
Market growth rate - increase in the size of a market per period of time
Seasonal and cyclical characteristics - some markets are constrained by seasonal factors
Market share
an organisation’s portion of the total value of sale revenue within a specific industry
Formula for market share
firm’s sales revenue / industry’s sales revenue x 100
How to increase market share
Promotion of their brands
Product development, improvements and innovation
Motivation and training of the workforce
Establishing property rights (i.e. the use of trademarks, copyrights and patents)
Use of more efficient channels of distribution
Market concentration
measures the degree of competition that exists within a market by calculating the market share of the largest few firms in the industry.
Marketing objectives of for-profit organisations
Increased sales revenue Higher market share Increased market leadership Improved product and brand awareness Developing new products Enhanced brand perception (product positioning)
The objectives of social marketing
To build membership (support) and to connect with new donors
To generate awareness of the NPO’s cause
To improve brand recognition of the NPO
To create positive attention to the NPO’s operations
To demonstrate the value of the NPO to the local community of society in general
What do successful global businesses do to their marketing strategies?
evolve their organisation and marketing strategies to suit changes in customer preferences.
Why do marketing strategies evolve?
Changing consumer tastes
Shorter product life cycle
Internet and mobile technologies - customers have more choice due to e-commerce
Competitive rivalry - markets are force to adapt and avolve their strategies
Globalisation - businesses and countries are now more interdependent with consumer tastes more integrated
