Marketing: Role of Marketing Flashcards
what does the strategic role of marketing mean
refers to the long term, broad aims of marketing- affects all business areas
what is profit maximisation
the maximum difference between the total revenue coming into the business and costs being paid
what is the overarching goal of business
profit maximisation
what are the two roles of marketing
- develop a relationship with customers to increase sales and market share
- develop an effective marketing plan that has strategic goals integrated and interdepends on other business functions
how does a business develop a relationship with its customers
through a costumer orientated marketing approach
what is the marketing concept
a business philosophy that states all sections of the business are involved in satisfying a customers wants and needs
how does marketing interdepend with other business functions
it affects finance as it raises capital
affects operations as it determines how much stock is necessary
affects HR as it determines how many employees are necessary
when was the production approach to marketing in place
1820s-1920s
what was the focus of the production approach
producing goods and services, regardless of needs/wants of the customer
no need for marketing as the demand outweighed the supply
when was the sales approach in plac
1920s-1960s
what was the focus of the selling approach
selling goods and services, as there was increased competition and advertisement due to radio and cinema being introduced
how did the selling approach often market to their customers
through door to door sales representatives, and needs/wants of customers were still ignored
when did the first stage of the marketing approach occur
stage 1: 1960s-1980s
what was the focus of the first stage of marketing approach
finding out what customers want
how did the first marketing approach find out the wants of customers, and did it satisfy the wants?
through market research and yes
when did the second marketing approach occur
1980s-present
what three elements were added to the marketing approach in the 1980s
- corporate social responsibility
- customer orientation (focus on customers)
- relationship marketing
define corporate social responsibility (CSR)
business actions based on respect, community and the environment.
involves doing more than just comply by laws and regulations.
concept was orchestrated due to the change of focus throughout the community to be more environmentally-focused
define customer orientation
process of collecting information from customers and basing marketing decisions and practices on customers wants and interests
define relationship marketing
the development of long-term and cost effective relationships with individual customers.
this benefits as incentives to customers to return
what is the resource market
Factors of production (land, labour, capital & enterprise) are sold/exchanged. These resources are then sold to firms producing goods/services for consumers.
eg. farms purchase mining, seed and fertiliser
what is the industrial market
Goods/services that go into the production of other products.
eg. Car company sourcing parts to complete vehicles
what is the intermediate market
Buy goods/services to resell/rent them to others eg wholesalers.
eg. Car hire company
what is the consumer market
Market for goods at their final point of consumption
eg. Department store
what is the mass market
Market for goods appealing to the majority of customers.
eg, Milk, electricity, bread
what is the niche market
Smaller markets for more specialised goods/services, appealing to fewer people.
eg. Vet
