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4.1: The Role Of Marketing (Market Characteristics (Diferences Between…
4.1: The Role Of Marketing
Marketing & its Relationship With Other Business Funcitions
integration & coordination with main business factors
Finance
: funds budget
HR
: recruit new staff & train them
Operations
: needs market research
Market Characteristics
Market Size
total level of sales of all producers within market
Measured in two (2) ways
Volume of Sales (units sold)
Value of Goods Sold (revenue)
Reasons of Importance
assess if a market is worth entring or not
calculate own market share
identify growth or decilne of market
Market Growth
percentage change in total size of market over period of time
some markets grow faster than others
Depends on
economic growth
changes in customer incomes
development of new markets
changes in customer tastes
technological change
market saturation
Competitors & Ease of Entry
lack of barriers for establishment of new competitors in market
always aware of size of competitor
scope for product diferenitation
Differentiated or Homogeneous Products
goods that are physically identical or viewed as identical by consumers
EXAMPLES
Milk
Corn
Botteled water
:forbidden: stand out
difficult to change prices from "going rate"
Segmentation
dividing market into groups of customers who share tastes & requirements
target marketing
: focus market activity on particular segments of market
mass marketing
: sell to whole market using standarised product & same markeing activities
Diferences Between Marketing: Goods & Services
Services
consumed immediately
can´t be repaired or replaced
can´t store them
quality must be right first time
more difficult to compare qualities
informative promotion
trained & approachable people
Building Trust
for both goods & services
sell confidence
always deliver service promises
Time for Delivering Service
no way to provide service without spending time with customer
maintaining time frame of service
effective time management
Deliverability
convince customers quality results can be delivered within period of time
testimonials and case studies
Relationships
service relies on building long term relationships with customers
provide long term revenue
positive feedback
Perceived Value
make customer feel easier, richer or better
emotional connection is key
set right price level
most service providers don´t compete on price
price cutting leads to devaluation of service
Marketing Approaches
Market Orientation & Product Orientation
market orientation
: base product decisions on consumer demand as established by market research
product orientation
: make products that can be made and try to sell them
requires market research
customer is put first
:check:
reduce fail of new products
meeting consumer needs lead to survival of product & higher profits
constant feedback from customers
asume there will always be a market for what they produce
consumers not aware of what they want
pharmaceutical & electronic industires
belief quality will be prefered over market fashion
Social Marketing
social marketing
: considers demands of consumer & effects on all members of society involved in some way
memebers of the public (stakeholders)
employees
shareholders
suppliers
competitors
government
community
natural environment
products not the cheapest
meet society's long term interests
attempt to balance three
(3)
concerns
company profits
consumer wants
society's interests
competitive advantage
Market Share & Market Leadership
market share
: percentage of sales in total market sold by one (1) business
measured in units (volume) or sales value
most effective way to measure marketing strategy success
market leadership
: business with highest market share
:check:
sales higher than other competition
retailers stock & promote best selling brands
promotion
Importance
Internal Measures of Marketing Success
customer satisfaction
brand awareness
loyalty
profit margins
being most popular can be convincing argument
position with suppliers & retailers
recruit high-class employees is easier
investors & banks more conviced to finance buisness
Marketing Objectives
marketing objectives
: goals set for marketing department to help business achieve overall objectives
For-Profit Organisations
:arrow_up: market share
:arrow_up: total sales
:arrow_up: average # of items purchased per visit
:arrow_up: frequency customer shops
:arrow_up: % of returning customers
:arrow_up: # of new customers
:arrow_up: customer satisfaction
:arrow_up: brand identity
Objectives Should
Fit with overall aims & mission
Be determined by senior management
Be realistic, motivating, achievable, measurable & clear to all departments
Importance
provide sense of direction
monitor progress
break down to targets
basis of marketing strategy
Non-Profit-Making Organizations
no external shareholder
no distribution of dividends
objectives include social, cultural, philantropic, welfare or environmental dimension
Market Research
Identify most effective communication with donors
Assess effectiveness of promotions & campaigns
Maintain high ethical standards
Constant feedback on success
Free publicity for events & stunts
Objectives
maximise revenue
:arrow_up: recognition by society
promote works & aims to wide audience
Marketing Strategies
Strategies evolve to changes in customer preferences
not always respond to fashion pasajera
Innovation
guerrila marketing
internet marketing
Ethical Considerations
arguments for & against basis of discussion
Cultural Differences
fail to respond lead to bad feeling & bad publicity
local tastes & sensibilities
Cecilia Martínez A01197738