MARKETING Role2 Flashcards
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What is the strategic role of marketing?
ensures ongoing success of a business through sales revenue/To increase sales revenue in order to maximise profit
How can marketing achieve the strategic role of marketing?
- Understand what customers want
- Attract customers to buy more
- Entice customers to be willing to pay more
What are the 3 maretking approaches?
- Production approach
- Selling approach
- Marketing approach
What is the production approach?
Focus on producing and delivering the product (if people want it, they’ll buy it)
What is the selling approach?
Focus on convincing customers to buy it with salespeople and advertising
What is the marketing approach?
Focus on satisfying the customer, with market research to know what they want, good customer service, and demonstrating CSR
Why is the marketing approach the most effective?
Marketing as it focuses on finding out what customers want and then targets that
What is a market?
The interaction between buyers and sellers of a product
What is a Resource ( primary) market?
Where a business sells to other businesses that produce raw materials (e.g. selling seeds to farmers or drills to mining companies)/ energy and earth materials
What is an industrial market?
Where a business sells materials to a manufacturing business (e.g selling a computer chip to Apple, or sugar to Coca-Cola)
What is an intermediate market?
Where a business sells to a retailer that will re-sell the product (e.g. selling shoes to JD, or cereal to Woolworths)
What is a consumer market?
Where a business sells to individuals (e.g. Woolworths selling to a customer, Uber selling to individuals)
Why is it important to consider which type of market you are selling in?
Different marketing strategies will be more effective in different markets. E.g. personal selling is very effective when selling to another business, whereas advertising is effective when selling to consumers.
What is a mass market?
Selling to a large amount of people with many different characteristics (e.g. selling electricity or petrol)
What is a niche market?
Selling to a very narrow segment of the market (e.g. vegan makeup, a t-shirt for a video game, medicine for a specific condition)
Why would a business choose to sell to a niche market instead of a mass market?
Rather than trying to sell a few products to anyone, you target a specific group of people who will all want to buy it and will be willing to pay more for it.
Benefits:
- Appeal to their preferences
- Design advertising that targets them
- Charge higher prices
- Increase customer loyalty
- Reduce advertising and distribution costs
What is marketing?
Plan, promote, and distribute products to present and future customers
What are the 2 main STRATEGIC GOALS
- Profit Maximisation
- Customer orientation ( customer satisfaction)
Marketing INTERDEPENDENCE with OPERATIONS
Production needs to create the designs produced by the marketing function as per market research.
Marketing ensures the product is advertised correctly and sets price so that sales of the product is exceeded production costs
why are good and/or service are central to both marketing and operations?
Operations rely on marketing to conduct primary and secondary market research to understand customer needs and wants. This research helps in designing products that align with customer preferences, leading to increased profits, revenue, and market share. For example, Qantas relies on its marketing department for pricing research, product design, and promotion of services.
