Role Of Marketing

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What is marketing?

- The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives.

4 main features of marketing

* Involves a wide range of activities

* is directed at a wide range of foods, services and ideas

* stresses the importance of satisfying exchanges- something in return

* is not limited to the activities of businesses

Strategic role of marketing goods and services

translating a goal into a reality

common goal- profit maximization (occurs when there is a maximum difference between the total revenue coming into the business and total costs being paid out)

* the customer should always be the central focus of the marketing plan

* multi-faced activity

* Customer oriented marketing - Viewing the business through the customers eyes

* Key to success is to develop a marketing plan based on careful research and design

* Marketing is undertaken by the business with the intention of generating sales by satisfying customers needs and wants

* Marketing plan- Document that lists activities aimed at achieving particular marketing outcomes in relation to a good or service. The plan provides a template for future action aimed at reaching business goals such as profit maximization.

Interdependence with other key business function

Interdependence- The individual functions are unable to do without other functions

Marketing Concept- A business philosophy that states that all sections of the business are involved in satisfying a customers needs and wants while achieving the businesses goals.

- Marketing

- Operations

- Finance

- Human Resources

Production, selling, marketing approaches

Production Approach- (1820's- 1920's) focused businesses on the production of goods and services.

- Business was production oriented

- Production design was based more on the demands of mass production

- Product design was based more on the demands of mass production techniques than on customer needs and wants

- Henry Ford - Focused on ways to produce motor vehicles more quickly and cheaply, confident that the people would buy them. Marketing consisted of taking orders and delivering the products.

The Sales Approach- (1920's- 1960's) Emphasized selling because of increased competition

- Businesses faced the challenge of persuading customers to buy specific brands

- High-pressure tactics to convince consumers to buy products

The Marketing Approach- (1960's to present) Focuses on finding out what customers want- through market research and then satisfying that need.

- The emphasis shifted to the development of a marketing concept based on four principles:

* customer- oriented

* Supported by integrated marketing strategies

* Aimed at satisfying customers

* Integrated into the business plan so as to achieve the business's goals

Changing economic and social conditions over the last three decades have seen a modification to the marketing process including:

- social responsibility: especially in regards to ecological sustainability

- Customer orientation: The process of collecting info from customers wants and interests

- Relationship marketing: the development of long-term and cost-effective relationships with individual customers

Types Of Markets

Market- Usually refers to the total population or mass market that purchases products. A group of individuals, organisations or both that:

- need or want a product (good or service)

- Have the money (purchasing power) to purchase the product

- Are willing to spend their money to obtain the product

- Are socially and legally authorized to purchase the product

Marketing plans and strategies vary depending on the intended market. Marketing managers need to understand the main characteristics of these six different types of markets.

Resource Market- Consists of those individuals or groups that are engaged in all forms of primary production. I.e mining, agriculture, forestry, fishing

Industrial- Industries and businesses that purchase products to use in the production of other products or in their daily operations. I.e bakery purchases flour to make bread.

Intermediate- Consists of wholesalers and retailers who purchase finished products and resell them to make profit. I.e Subway

Mass- The seller mass- producers, mass- distributes and mass- promotes one product to all buyers. I.e basic food items, electricity, water

Consumer- Consists of individuals- that is, members of a household who plan to use or consume the products they buy (Do not buy goods or services to make a profit). Consumer market include: - Housing - Clothing - Food - Entertainment - Appliances - Music - Cars - Personal services

Niche- 'Concentrated' or 'Micro market' Narrowly selected target market segment. I.e Magazines, cars, sex, high/low income, lifestyle