4.1 The Role of Marketing (Market Characteristics ( Market size can be…
4.1 The Role of Marketing
- the management task that links the business to the customer by identifying and meeting the needs of customers profitably - it does this by getting the right product at the right prices to the right place at the right time
Marketing does involve a number of related management functions
Marketing & its relationship with other business functions
- This department needs to fund the increased promotion budget.
2. Human resources
- additional employees are likely to be required if the additional marketing & promotion activity is successful. These eployees will be required in operations, administration and finance
- the links between marketing & operation are vital.
can be measured in two ways;
volume of sales (units sold)
value of goods sold (revenue)
The market size is important for 3 reasons:
A marketing manager can assess whether a market is worth entering or not.
Business can calculate their own market share.
Growth or decline of the market can be identified.
- the % change in the toal size of a market (volume or value) over period of a time
Competitors & ease of entry
- the lack of barriers for the establishment of new competitors in a market
Greater number of competitors & easier for new ones to join a market, the ore price competition there will be.
Differentiated or homogenous products
- goods that are physically identical or viewed as identical by consumers
cannot be distinguished between even though they may come from different suppliers.
- dividing a market into distinct groups of consumers who share common tastes and requirements
recognises the diversity of customers & does not try to satisfy them all with the same good & service. The definition for
is focusing marketing activity on particular segments of the market
(opposite of target marketing) - selling to the whole market using a standardised product & the same marketing activities.
-looking approach basing product decisions on consumer demand, as established by market research
The chances of newly developed products failing in the market decreased
If consumer needs are being met with appropriate products, then they are likely to survive longer & make higher profits comapred to product-led approach.
Constant feedback from customers
-looking approach that focuses on making products that can be made or have been made for a long time - & then trying to sell them
product-led marketing still exists and these following instances help to explain why:
1.Product-oriented business invent & develop products in the belief that they will find consumers to purchase them.
Product-oriented business concentrate their efforts on efficiently producing high-quality goods.
- this approach considers not only the demands of consumers but also the effects on all members of the public (society) involved in some way when firms meets these demands
It is an attempt to balance three concerns: company profits, consumer wants, society's interests.
May be a difference between short-term consumer wants ( low prices) and long-term consumer & society welfare. Social marketing consider long-term welfare.
Businesses should still aim to identify consumer needs & wants & to satisfy these more efficiently than competitors do
Using this concept could give a business a significant competitive advantage.
A ocial marketing strategy, if successful, could lead to the firm being able to charge higher prices for its prodcts as benefiting society becomes a unique selling point.
Difference between commercial marketing & social marketing
- satisfying customers' need for profit.
- aims to satisfy custimer needs