the role of marketing
definition of marketing
marketing
the mngmt process of getting the right prod to the right cust to the right price to the right place and time
the mngmt task tht links the buss to the cust by identifying and meeting the needs of cust profitably
marketing of goods
the use of 4 p's of prod, price, place n promotion in marketing mix
marketing of services
the use of 7 p's of prod, price, place, promotion, process, people n phy evidence in marketing mix
market size
the total level of sales of all producers within a market
market growth
the % of sales in the total market sold by one buss
market size
important. why?
a mrktg manager can assess whether a market is worth entering or not
firms can calc their own share
growth or decline of the market can be identified
differences
goods
tangible
can be returned
can be stored n consumed later
there is ownership of the prod
easier to compare bc of the similar nature of some prod
serv
intangible
cant be taken back
cant be stored n will need to be consumed immediately
there is no ownership of prod
serv are more difficult to compare bc of dif experiences a cust may get from agiven serv
relationships
operation mngmt
using sales, forecast in market research to prepare prod schedules
develop n launch prod to meet the changing needs of cust
conflict - between longer time period for development whereas shorter time period for quick launch in order to gain high sales revenue
finance
set app budgets
conflict - exceed budgets to get maximize mrktg exposure whereas allocated within their budgetsaware tht extended credit lead to liquidity prob
HR
mrktg data to identify staffing needs
ensure buss hs the right quantity n quality of workers through effective workforce planning to meet the needs and wants of cust
orientation
market
marketing approach used by buss tht are outward looking
focus on making prod tht they can sell
focus on cust in order to identify, design, develop, n supply prod tht meet their needs n wantsgather info from market research
adv
greater flexibility
respond quickly to changes in market
able to anticipitate changing market trends n prepare for any changes
lower risk
more confident their prod sells n more successful
disadv
market research can be expensive
no guarantee that this approach will work due to dynamic nature of buss environment n uncertainty of future
prod
marketing approach adopted buss that are inward looking
focus on sell prod they make
mostly hi-tech prod used this orientation
creative n innovative prod launched onto market and cust tempted to buy these
concentrate on high quality prod
cust willing to pay higher pricece for exclusivity n luxury prod
buss approach that focuses on making the prod first bfr attempting to sell it
buss approach of 1st establishing consumer demand through market research bfr prod n sell prod
social marketing
the use of marketing approaches that help bring about changes in behaviour that ultimately benefit society
wide concept inv oth stakeholders
buss make good marketing dec based on cons' needs and firm's req also on cons' and society's long term interests and welfare
e.g public health campaigns, prov info on dangers of drink-drinking, educate public on eating healthy food
adv
gives firm a competitive adv as cons may perceive the firms socially responsible n buy their prod
charge premium prices for prov goods that society is deriving benefits them
commercial marketing
marketing xtvts tht determine cons needs and wants bfr using app strategies to market the prod
creat, develop, exchange goods / serv that cust need and want
characteristics
value free
not inv make moral judgements on buying habits of cust
strategies
traditional focus
billboards
tv adv
local print media
online marketing campaign
google ad sense
emails
social media marketing
marketing approach adopted by buss that uses social networking websites from Internet to market its prod
marketing tool that incorporates the use of technological conc n techniques with the aim of growing buss with dif media
adv
enables form to get direct feedback - opportunity to ask ques - voice complaints - known as sical relationship management
prov low cost to reach large target areas
enhance firm's brand - already hv large est online communities - gain exposure just by joining the media
market
place / process whereby cust n suppliers trade
exist........
demand for a part product
willingness from buss to supple prod
individuals - consumer markets
cater for org - industrial markets/prodc markets
characteristics
market size
measured by sales revenue
globalisation - size of market not confined to domestic markets
barriers to entry
there r huge set-up costs and existing firms already dominate eith their market power n huge EOS
cust base
alternative measure of market size - refers to sum potential num of cust in a part market
competition
degree of rivalry within a part market
as the firm hs sigignificant market power, the intensity of comp can be very high in markets
geographic characteristic
focus on a part area, region, country
demographic characteristics
dif in gender, religion, age, ethnicity
market growth rate
refers to increase I the size of market per period of time (annually)
usually expressed as % change - indicate the extent of market growth
seasonal n cyclical characteristics
dependent on the cycle of a particular time in dif parts of world e.g textbook dependent academic year
the weather in a part area affect the market which buss operates e.g tourist travel to Swiss Alps for skiing holidays
market share
refers to org's portion of the value of sale revenue within a specific industry
measured by xpressing the firm's sales revenue as % of total sales revenue in industry per time period
+ve relationship between market share n profit
adv high market share
status enjoyed fr beig dominant market player
ability to gain a range of EOS
common obj to increase market share
promotion of brands
prod development, improvement, innovation
motivation n training of workfore to deliver better cust services
est property rghts
use of more efficienr channels of distributions
market concentration
measures a degree of comp that exists within market
calc the market share of largest few firms in industry
the sum of these market share known as CONC RATIO
market obj
spec marketing goals of org
......for-profit
increased sales reveue
by increase cust base / persuade existing cust to buy more
higher market share
more comp to rivsl (might higher sales revenue but slower rate of growth)
increased market leadership
enjoy the benefits hving lager market share in industry
improved product n brand awareness
help buss to promote prod n brands
developing new prod
give buss comp edge over rivals
enhanced brand perception (prod positioning)
existing n potential cust hv +ve perception (opinion, judgement) about buss
obj of social marketing
build membership (support) n connect with oth donors
generate awareness of NPO's cause
improve brand recognitionof NPO
create +ve attention to NPO's operations
demonstrate the value of NPO to local community to general