MARKETING: Role of marketing Flashcards
Describe the role of marketing as a key business function
The role of marketing as a KBF focuses on designing interactive activities to plan, price, promote, and distribute products to present to potential customers
Outline what is meant by a marketing plan, as well as purpose
The marketing plan outlines the strategies to be used to bring the buyer and seller together. The core of marketing is satisfying existing customer wants, which should lead to repeat sales. Marketing is the revenue-generating activity of any business.
Analyse the interdependence of marketing with other KBF
Operations ensures efficient production or delivery of goods/services based on marketing insights and customer demands. With marketing interdependence, provides information on customer preferences and market trends, guiding operations on what to produce, how much, and when.
Finance provides funding for marketing activities like advertising, market research, and product development. With marketing interdependence,
generates revenue through sales, directly impacting the company’s financial performance.
Human resources recruits and trains employees crucial for executing marketing strategies, such as sales representatives and customer service agents. With marketing interdependence, this influences HR policies by shaping the company’s brand image and reputation, which affects employee morale and retention
What does the production approach focus on? Provide an example
The production approach focuses on the production of goods and services, due to the industrial revolution after WWI. The focus is on mass production of products.
For instance, Henry Ford focused on ways to produce motor vehicles more quickly and cheaply, confident that the people would buy them.
What does the selling approach focus on?
The selling approach focuses on selling due to increasing competition, due to production becoming more efficient along with increase in productivity. Through advertising the products and hiring sales representatives to convince customers to buy products. This approach focuses on generating demand rather than satisfying the existent needs and wants of customers.
What does the marketing approach focus on (first stage)?
Focuses on finding out what customers want through market research and then satisfying that need. Customers are now placed at the centre of marketing activities.
What does the marketing approach focus on (second stage)?
Refers to developing relationship marketing for customers (such as Flybuys, Maccas App). CSR (Corporate Social Responsibility) has been taken into consideration with growing customer’s awareness of environmental pollution and resource consumption.
Recall relevant case study for CSR, marketing?
> The McDonald’s Corporation has committed to reducing greenhouse gas emissions to net zero by 2050. The company will employ LED lighting, energy-efficient kitchen equipment, sustainable packaging and recycling.
The installation of time-flow taps that allow for slower flow rates of water and automatically switch off after 7 seconds.
In terms of logistics, McDonald’s has a network that spans 400 km annually. In order to minimise the impact of harmful emissions of trucks, the company responded with implementation of biodiesel which comes from the recycling of used cooking oil.
McDonald’s is partnered with Ronald McDonald House Charities that support families in need or seriously ill (legally not required, yet the business does it to support the local community)
McDonald’s uses Australian made beef only in order to boost local economy and provide greater local job opportunities (again it might be more expensive but the business does it for the community)
What is a market?
A group of individuals that need or want the product, have a purchasing power, willing to spend the money on the product.
Recall the type of markets
- Resource
- Industrial
- Intermediate
- Consumer (mass/niche)
Define each of the market types. Recall examples
Resource Market: individuals engaged in primary production.
E.g farmers purchasing seed and fertiliser
Industrial Market: Businesses that are either secondary or tertiary. It includes industries that purchase products to use in the production of other products.
E.g Tip Top Bakery buying flour; Sony purchasing plastics and metals.
Intermediate Market: Wholesalers and retailers buying finished products for resale to make profit.
E.g Coles and Woolworths purchasing products and resalling them
Consumer Market: household members purchasing products for personal use or consumption. Consumer market is subdivided into mass and niche markets.
E.g Adrian buying a ruler to measure his pp
> Mass market: the seller mass produces, mass-distributes and mass-promotes one product to all buyers. It includes selling undifferentiated products that are high in demand.
E.g fruit and veggies
> Niche market: Customer base is narrower and more specific, with less frequent sales but usually higher-priced goods
E.g handmade chocolates or organic skincare products
