Marketing - Role of marketing Flashcards
Define marketing.
Marketing is a total system of interacting activities designed to plan, price, promote and distribute products to present to potential customers by finding out what customers want then attempting to satisfy their needs.
What are the strategic roles of marketing?
Profit maximisation by maximising revenue (profit centres) and minimising costs (cost centres) where profit = revenue - costs
Outline the strategic role of marketing management and the development of a marketing plan.
Involves coordinating with the other business functions to contribute to the achievement of the business’s strategic goals. A marketing plan details business activities to maximise sales, increase brand awareness and improve customer satisfaction for long term and short term goals.
Define the term marketing concept.
Refers to a business philosophy that states that all sections of the business are involved in satisfying a customer’s needs and wants while achieving the business’s goals. Thus, the marketing concept must be embraced by all employees of the business.
Explain the importance of operations in interdependence with marketing.
- Works closely with the marketing department to
incorporate product features that consumers will respond
positively to. - Marketing brings in revenue to conduct & improve
operational activities. - Marketing designs products and operations produce prototypes and final products.
Explain the importance of finance in interdependence with marketing.
- Funds need to be supplied from the company to cover
market research & marketing costs. Financial forecasts will
have to be made as part of the marketing process. - Marketing helps bring in financial resources that will go back into the marketing function.
- Activities in the marketing plan will cost money. Finance will manage financial resources required.
Explain the importance of human resources in interdependence with marketing.
- Ensures there are enough skilled employees available to conduct marketing activities.
- Marketing brings in revenue to manage HR.
- Different marketing activities will require different staff. HR to source appropriate candidates
Define the production approach in marketing.
- 1850s - 1920s Industrialisation era
- production of goods based more on the demands of mass production techniques than on customer needs and wants
- demand > supply, marketing was product oriented
Define the selling approach in marketing.
- 1920s - 1960s after Great Depression and World Wars, saturated market with increased competition
- businesses selling to beat competition by pitching techniques to persuade customers to buy what they sell
- supply > demand, no focus on customer needs and wants
Define the marketing approach in marketing
- 1960s - present, economic boom after WWII
- driven by market research and customer orientation, satisfying needs and wants
- using relationship marketing to achieve customer retention and continual satisfaction
- supply = demand, customer at the centre of all marketing activities
Define the societal marketing approach in marketing
- extends from the marketing approach and emphasises the importance of maintaining and improving the wellbeing of customers and society
- higher focus on corporate social responsibility (CSR): customers are starting to
demand ethically manufactured products
Identify the types of markets in marketing (CRIMIN)
- consumer market
- resource market
- intermediate market
- mass market
- industrial market
- niche market
Define resource markets
Groups engaged in primary production e.g. mining, agriculture, forestry and fishing
Define industrial markets
Businesses that purchase products to use in the manufacturing of other products or in their daily operations (B2B)
E.g Toyota and Apple using parts from manufacturers to make their final product
Define intermediate markets
Wholesalers and retailers who purchase finished products and sell them again to make a profit.
E.g Woolworths, Myer are intermediate markets who buy their products from industrial companies and then sell it directly to the consumer
Define consumer markets
Individuals (members of a household) who plan to use or consume the products they buy. (B2C) The business sells their products directly to consumers
Define mass markets
The seller mass-produces, mass-distributes and mass-promotes one product to all the buyers, promoting to the general public
Define niche markets
Narrowly selected target market segment
E.g Luxury goods promoted to a niche market (upper class, high-income individuals)
