Marketing

Marketing

1. Market and product orientation

   • Market orientation is a marketing approach used by businesses that are outward looking. They focus on making products that they can sell, rather than selling products that they can make. Market orientation focuses on the customer in order to identify, design, develop and supply products that meet their needs and wants.
   • Product orientation is a marketing approach adopted by businesses that are inward looking. They focus on selling products that they make, rather than making products that they can sell.
   • The two main advantages to a business in being market orientated are:
     • • Greater flexibility Firms can respond quickly to changes in the market as they have access to relevant data and information about customers. Market orientated businesses are also more able to anticipate changing market trends and hence prepare for such changes. • Lower risk Market orientated firms can be more confident that their products will sell and be more successful. Without proper market research and analysis, the cost of marketing a product is much more likely to be a gamble.

2. Marketing objectives

   • Marketing objectives are the specific marketing goals of an organization. The marketing objectives of for-profit (profitseeking) organizations include:
     • • Increased sales revenue • Higher market share - • Increased market leadershiphare in the industry. • Improvedproduct and brand awareness. • Developing new products • Enhanced brand perception

3. Marketing is fundamental to the success of a business as it affects the sales and profits of the organization. However, marketing alone does not ensure success. Its relationship with other business functions should also be considered:

   • Human resources Marketing data can help the HR department to identify staffing needs. For example, the introduction of a new product might require hiring extra production staffand sales personnel. Market orientation is a marketing approach used by businesses that are outward looking. They focus on making products that they can sell, rather than selling products that they can make
   • Finance The marketing department works closely with the finance department to set appropriate budgets. Again, there can be conflict between these departments. For example, marketers might wish to exceed their budget to get maximum marketing exposure. However, the finance team wants all departments to work within their allocated budgets.
   • Operations management The production department works closely with the marketers in using sales forecasts (from market research) to prepare their production schedules.

4. The market

   • Amarket isa placeor processwherebycustomersand suppliers trade. A market exists where there is demand for a particular product (such as textbooks, flowers, laptops or taxi services) and where there is a willingness from businesses to supply these products.

5. Commercial marketing and social marketing

   • Commercial marketing is the use of marketing strategies to meet the needs and wants of customers in a profitable way. Unlike social marketing, commercial marketing is largely value free, i.e. ethics playa small role, if any at all
   • The main differences between social marketing and commercial marketing include:
     • Purpose - The intention of commercial marketing is selling physical goods and intangible services for a profit. Social marketing aims to influence or persuade a desired change in social behaviour or attitudes. • Benefits - Commercial marketing exists to satisfy individual needs and wants, and thus reaps profit for the business. Social marketing, if successful, satisfies the needs and desires of the general public, and thus reaps benefits for communities. • Main users - Commercial marketing is used mainly by private sector businesses (although many social marketing campaigns use aspects of commercial marketing strategies). Social marketing is used mainly by the government and non-governmental organizations (NGOs).

6. Market share

   • Market share refers to an organizations portion of the total value of sale revenue within a specific industry. It is measured byexpressing the firm's salerevenue as a percentage of the total sales revenue in the industry, per time period
     • Market share = Firm's sales revenue Industry's sales revenue X 100
   • Market concentration measures the degree of competition that exists within a market by calculating the market share of the largest few firms in the industry, i.e. those with market leadership. The sum of these market shares is known as the concentration ratio.

7. Marketing exists to address peoples needs and wants. It is about making customers want to buy the products of a particular business. It therefore looks at the reasons behind peoples decisions, such as the price and the product's features