Marketing - Role of marketing Flashcards
define marketing
a total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers
what is the strategic role of marketing
the strategic role of marketing is to develop a mix of strategies to maximise sales, increase brand awareness and improve customer satisfaction
= profit maximisation
what is a marketing plan
a document that lists activities aimed at achieving particular marketing outcomes in relation to a good or service, therefore, providing a template for future action
what are benefits of good marketing?
- provides consumers with choice
- increases brand awareness
- increased market share
interdependence with KBF
operations
- branding can influence mkt
- may outsource for logo designs
- mkt data influences operations
finance
- provides funds for mkt
- pricing influences profitability
HR
- provides hr needed for mkt
- training for mkt staff roles
what is the production approach?
“if we make it they will buy it”
- production based on mass production techniques than on customer needs and wants -> production oriented
- very little marketing efforts involved in this approach
what is the selling approach
- emphasises selling because of increased competition - to stimulate demand for g&s, businesses increased their spending on advertising
- sales representatives were hired and trained
what is the marketing approach
- focuses on finding what customers want - though market research - and then satisfying that need
- as a result the marketing approach is characterised by the importance placed on identifying and satisfying customer needs and wants prior to introducing the goods or services
- relationship marketing
what are the 6 types of marketing
resource, industrial, intermediate, consumer, mass and niche
define a resource market
- consists of individuals/ groups that are engaged in all forms of primary production eg. mining, agriculture, forestry and fishing
define an industrial market
- includes industries and businesses that purchase products to use in the production of other products or in their daily operations eg. tiptop buys flour to make bread, sony buys plastics and metals to produce TV’s
define an intermediate market
- consists of wholesalers and retailers who purchase finished products and sell them again to make a profit
- the vast majority of goods sold to consumer marketings are first sold to a intermediate market eg. subway is a retailer that buys goods to make into sandwiches for sale to consumers
- resellers are an intermediate market
define a consumer market
- consists of individuals who plan to use or consumer the products they buy
- consumers do not intend to use the products to make other goods and services eg. products such as housing, clothing, food, entertainment
- marketing managers closely examine the behaviour of consumers so they can better understand what makes an individual purchase a particular product
- they also try to influence consumer behaviour by developing a mix of marketing strategies
define a mass market
- where the seller mass produces, mass distributes and mass promotes one product to all buyers
- doesn’t target its products to a specific group of buyers
- the assumption is that all customers in the market have similar needs and wants
- due to greater choice, higher personal incomes and customers seeking for individualised products, the mass market has been replaced by segmented to niche markets
define a niche market
a narrowly selected target market segment aka. concentrated or micro market
- the mass market is divided into smaller market segments consisting of buyers who have specific needs or lifestyles - this smaller group of consumers becomes the target market
