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4.1: The role of marketing - Coggle Diagram
4.1: The role of marketing
Marketing: Process of identifying what consumers want and the ways to spread the message.
Characteristics of a market
Market Size: Measurement of ALL the sales of ALL the companies within the defined market
Market Growth: Development or decline of the market overtime - %
Market Share: Proportion of the total market held by one company or product - volume/value
Relationships with other business functions:
Operations Management: Production and Marketing work closely together as R&D from the market research better supports production volume.
Finance: Marketing budgets are planned by the department and C & R are usually closely monitored.
For-Profit
Identify, design and develop marketing strategies that will be profitable to the business. Market-led approach focuses on the needs and wants of the market
Non-Profit
Maximise revenue from trading activities. To increase recognition of the organisation by society; to promote the work and aims of the organisation to a wide audience.
Human Resources: Data obtained by the marketing department can help HR identify staffing requirements; therefore, helping them plan ahead.
Ethical vs Cultural
Ethical: Marketing needs to be kept in line with ethics to ensure that the business is not seen in a negative light by its target market.
Cultural: Failing to respond to cultural differences can lead to bad publicity and local rejection of the company
Product vs Market Orientation
Market Orientation: Focused on making a product to fill a market gap. Made for customer satisfaction
Product Orientation: Focused on the development of a product that a company believes will be bought upon market introduction
Social vs Commercial Marketing
Social: Aimed at influencing a positive change in individual behaviour and improvements in societal well-being - main focus: SOCIAL GOOD
Commercial: Satisfying needs for profit. - main focus: FINANCIAL RETURN