Role of Marketing Flashcards
What is marketing?
The process of developing a product and implementing a series of strategies aimed at correctly promoting, pricing & distributing the product to a ore group of consumers
What is the strategic role of marketing?
The ability of the business to create goods & services that develop long-term relationships with specific customers, and in doing so, generate sales and revenue for the organisation
What are the aims of marketing?
Choice
Marketing aims to attract consumers to the business’s products in preference to competitors
Standard of Living
To ensure businesses are providing consumers with goods that appeal to the ‘want’ element of human behaviour, marketing will aim to promote products that enhance customer’s lives
Employment
To provide a product to consumers, a business must employ labour to research innovative methods of improving and enhancing the product
Marketing provides employment to millions of Australians each year
Brand Awareness
Marketing should seek to increase a brand’s visibility within the commercial environment
Allows a product to remain in the mind of consumers & influence their purchasing decisions
Market Share
Refers to the percentage of total sales a business has compared to its competitors
Increasing market share increases a business’s sales and profitability
What is the relationship of marketing to operations?
Incorporates product features customers will respond to positively
Marketing must develop strategies to sell the product created by operations
What is the relationship of marketing to finance?
Determines the funds that marketing will have available to run campaigns
What is the relationship of marketing to human resources?
Marketing determines the skills required for employees to produce the desired product
What is the production approach to marketing?
Assumes that consumers seek goods based on the level of quality
Places emphasis on ensuring production methods are consistent with quality expectations
Marketing focuses on the good’s production, with higher prices merely reflecting quality
What is the selling approach to marketing?
Involves strategies aimed at convincing customers of the need to buy a product
Believes a good cannot be sold solely on the basis of its quality
The aim is to take the product and its benefits to consumers via promotion
What is the marketing approach?
An integrated approach to selling
Incorporates a strategy to make the consumer desire the product and think it caters to needs
Promotes the good appropriately and prices it strategically to ensure that consumers are willing to buy the good without concerns about its quality
How does McDonald’s use the marketing approach?
As consumerism evolved, McDonald’s adopted a marketing approach which puts greater emphasis on the needs of its customers
In 2015, McDonald’s Corporation CEO Steve Easterbrook stated that the company plans on being “customer-centric” and to bring “the customer voice to the heart of the business”
What are the different types of markets?
Resource Markets
Markets in which the production and sale of raw materials (including labour) occurs
Examples include BHP Billiton & Rio Tinto
Industrial Markets
Markets where goods that are used as supplies in the production process are traded
Intermediate Markets (Wholesalers)
Markets where retail businesses purchase products produced by other organisations
Example include Aldi purchasing wine, which it then markets as its own
Consumer Markets
Markets in which businesses sell their products directly to consumers
Examples include Myer & David Jones
McDonald’s is a retail business selling its goods for individual consumption, making it a part of the consumer market
Mass Market
Market where products are aimed at all consumers irrespective of age, gender or income
Examples include petrol, electricity and water
Market Segmentation
An area of a particular market that businesses choose to target
Niche Markets
A smaller section of a larger market segment, with a narrow customer base
Products sold in this market are usually higher-priced than those in broader markets
