Role of Marketing Flashcards
What is the strategic role of marketing?
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, relationship marketing, and demonstrating CSR
Why is the marketing approach the most effective?
Before producing or selling something, 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 market?
The businesses that produce raw materials (e.g. farmers, miners)
What is an industrial market?
Businesses that manufacture products (e.g. cars, steel, soft drink)
What is an intermediate market?
Business that re-sell products (e.g. JD, Woolworths)
What is a consumer market?
Individuals buying products to use (e.g. people who buy from Woolworths or Uber)
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)
