Marketing Function
7 P’s of marketing
(product, price, place, promotion) Product
4 Ps of marketing / marketing mix Price
(people, processes and physical environment) Place of distribution
extended marketing mix Promotion
People
7 P’s combined to market a product or service, we use the term 'marketing mix' Processes (policies
procedures)
Features of marketing mix: Physical
environment
1. Product right features (product policy)
2. Price must be right (price policy)
3. Goods must be available in the right place at right time (distribution policy)
4. Promotion – targets group (marketing communications)
5. People involved in delivery of service to customers play a very important role.
Training of staff.
6. Service delivery process +procedures to be followed to deliver good service
7. Physical environment should contribute to a positive experience for the customer
1.1) Marketing function:
performs a number of activities to bridge the various gaps between the
producer or manufacturer and the consumer
MARKET RESEARCH
Market research: reliable info about consumers
- Size of the market
- Consumer’s incomes
- Consumers willingness to spend money
- Age
- Culture
- Location of existing + potential consumers
STANDARDISATION
Is to produce identical goods that meet specific standards, using machinery
- SABS ( south african bureau of standards ) places seal of approval of products and conform
to a specific standard of quality
Grading: refers to agricultural products being given grades E.g Class 1, class 2, etc
STORAGE
Safekeeping of goods until consumers need them
REASONS:
1. Prevent goods from spoilage
2. Balance demand and supply
,TRANSPORT
Goods transported from place of production to the consumer Forms of transport
Rail
FACTORS THAT WILL INFLUENCE THE FORM OF TRANSPORT Water
Road
Cost Must be affordable Pipeline
Air
Type of Heavy product – rail, road
product Light/breakable - air
Travel Air fast
time Water slower
FINANCING
Money is needed from the time the manufacturer starts
producing up to where consumer receives product FORMS OF CREDIT:
Finance provided by:
Credit on open account
Instalment
• Manufacturer
Lease
• Wholesaler Credit card/loan from
• Retailer commercial banks
• Financial institution
INSURANCE
DEF: Contract between two parties insurer √ + insured √ in return for payment of premium by
insured√, insurer agrees to cover the losses by the insured √ as a result of a specified possible event
RISKS:
1. Human risks (theft, breakage)
2. Physical risks (natural causes)
3. Economic risks (price fluctuations)
*Insurance against human + physical risks – not against economic risks
BUYING AND SELLING
- Main aim of marketing = selling of goods/services
- Selling = influencing buyers to buy through effective sales FORMS OF SELLING:
promotion 1. Personal selling
- Wholesalers + retailers buy goods from producers/manufacturers 2. Agency selling
for resale 3. Brokering
- Intermediaries = link between producers/manufacturers and the 4. Other selling: vending
machines, door-to-door, etc
consumers
, 1.2) Product policy:
Includes:
1. Choice of products
2. Design of products
3. Packaging
4. trademarks/ brand names
ONE: types of goods and services
Consumer goods
Goods that satisfy daily needs
Convenience inexpensive item where little shopping effort is needed. Very little thought goes Bread, milk,
goods into buying these goods sugar
Select goods More thought and comparison is required when shopping for these goods. The Jewelerry,
product is usually more expensive and the consumer will consider the price, quality clothing,
and brand name of the product. furniture
Specialty consumers search extensively and they are reluctant to accept any substitutes. A Antiques, car,
goods lot of time and energy goes into buying these goods. These products are expensive wedding dress
and the consumer often makes a once-in-a-lifetime purchase.
Industrial goods
Used in production for other goods
Industrial any products that are used in the production of other goods. This can include a Machinery,
goods wide range of raw materials or semi-finished goods as well as capital goods, such equipment,
as equipment and machines that are used to produce a finished product. trucks
Services
Personal Aimed at final consumer and often carried out by professionals Doctor,plumber,
services hairdresser
auxiliary/ These are all the services involved in taking the goods or services from Transport, banking,
commercial producers to consumers and are often carried out by intermediaries. telecommunications
services
7 P’s of marketing
(product, price, place, promotion) Product
4 Ps of marketing / marketing mix Price
(people, processes and physical environment) Place of distribution
extended marketing mix Promotion
People
7 P’s combined to market a product or service, we use the term 'marketing mix' Processes (policies
procedures)
Features of marketing mix: Physical
environment
1. Product right features (product policy)
2. Price must be right (price policy)
3. Goods must be available in the right place at right time (distribution policy)
4. Promotion – targets group (marketing communications)
5. People involved in delivery of service to customers play a very important role.
Training of staff.
6. Service delivery process +procedures to be followed to deliver good service
7. Physical environment should contribute to a positive experience for the customer
1.1) Marketing function:
performs a number of activities to bridge the various gaps between the
producer or manufacturer and the consumer
MARKET RESEARCH
Market research: reliable info about consumers
- Size of the market
- Consumer’s incomes
- Consumers willingness to spend money
- Age
- Culture
- Location of existing + potential consumers
STANDARDISATION
Is to produce identical goods that meet specific standards, using machinery
- SABS ( south african bureau of standards ) places seal of approval of products and conform
to a specific standard of quality
Grading: refers to agricultural products being given grades E.g Class 1, class 2, etc
STORAGE
Safekeeping of goods until consumers need them
REASONS:
1. Prevent goods from spoilage
2. Balance demand and supply
,TRANSPORT
Goods transported from place of production to the consumer Forms of transport
Rail
FACTORS THAT WILL INFLUENCE THE FORM OF TRANSPORT Water
Road
Cost Must be affordable Pipeline
Air
Type of Heavy product – rail, road
product Light/breakable - air
Travel Air fast
time Water slower
FINANCING
Money is needed from the time the manufacturer starts
producing up to where consumer receives product FORMS OF CREDIT:
Finance provided by:
Credit on open account
Instalment
• Manufacturer
Lease
• Wholesaler Credit card/loan from
• Retailer commercial banks
• Financial institution
INSURANCE
DEF: Contract between two parties insurer √ + insured √ in return for payment of premium by
insured√, insurer agrees to cover the losses by the insured √ as a result of a specified possible event
RISKS:
1. Human risks (theft, breakage)
2. Physical risks (natural causes)
3. Economic risks (price fluctuations)
*Insurance against human + physical risks – not against economic risks
BUYING AND SELLING
- Main aim of marketing = selling of goods/services
- Selling = influencing buyers to buy through effective sales FORMS OF SELLING:
promotion 1. Personal selling
- Wholesalers + retailers buy goods from producers/manufacturers 2. Agency selling
for resale 3. Brokering
- Intermediaries = link between producers/manufacturers and the 4. Other selling: vending
machines, door-to-door, etc
consumers
, 1.2) Product policy:
Includes:
1. Choice of products
2. Design of products
3. Packaging
4. trademarks/ brand names
ONE: types of goods and services
Consumer goods
Goods that satisfy daily needs
Convenience inexpensive item where little shopping effort is needed. Very little thought goes Bread, milk,
goods into buying these goods sugar
Select goods More thought and comparison is required when shopping for these goods. The Jewelerry,
product is usually more expensive and the consumer will consider the price, quality clothing,
and brand name of the product. furniture
Specialty consumers search extensively and they are reluctant to accept any substitutes. A Antiques, car,
goods lot of time and energy goes into buying these goods. These products are expensive wedding dress
and the consumer often makes a once-in-a-lifetime purchase.
Industrial goods
Used in production for other goods
Industrial any products that are used in the production of other goods. This can include a Machinery,
goods wide range of raw materials or semi-finished goods as well as capital goods, such equipment,
as equipment and machines that are used to produce a finished product. trucks
Services
Personal Aimed at final consumer and often carried out by professionals Doctor,plumber,
services hairdresser
auxiliary/ These are all the services involved in taking the goods or services from Transport, banking,
commercial producers to consumers and are often carried out by intermediaries. telecommunications
services
