Chapter 11: Marketing
The market
Any place where goods and services are bought and sold
- Goods are bought by target market
- The market can be electronically or face to face
A product-orientated approach to marketing
Business concentrates on the skills, knowledge and system needed to produce a specific
product.
- Research is conducted and focus on the product and the characteristics of the
product
A market-orientated approach to marketing
Business focusses on satisfying the needs and wants of the customer
- Emphasis is on market research on an on-going basis to ensure changes in
consumers’ needs and wants are continuously identified.
Successful business will combine these 2 approaches
- Combination of both is best for successful business.
THE MARKETING PROCESS
Marketing involves all activities that are aimed at developing and maintaining a
competitive advantage. This department needs to understand the needs of the target
market and predict the future trends in the market place in order to engage in the on-
going development of products and services.
Marketing Activities
- Market research and development
- Promotion
- Logistics/distribution
- Sales
Market research and development
Marketing needs to understand the behaviour patterns and the way in which the
consumers expect the products/service to the delivered.
- Package
- Price people are prepared to pay
- Access to the product/service (place)
- Preferential channels of communication
,Promotion
Informing the target about the product/service or brand that is offered by the business
Logistics/ distribution
Movement of product/services to ensure the product/service reaches the desired market
time
Sales
Transferring ownership of the product from the business to the customer
THE AIMS OF THE MARKETING FUNCTION
Purpose:
Creating and maintain a competitive advantage to increase the market share.
- Developing new products/services or improving the current offering to broaden the
target market.
- Identifying new markets (local/global) for the business will ensure the business has the
opportunity to grow and improve profitability.
UNDERSTANDING MARKET SEGMENTATION
Market segmentation definition
Dividing the overall market into different groups (target marketing)
- In order to Identify an appropriate segment and then gain an understanding of the
chosen segmentation.
Market can be segmented based on a variety of criteria. Big enough to achieve sufficient
returns on investment.
- Income bracket – who can afford it
- Convivence of the product- accessibility
- Geographical area- where people are
- Cultural grouping
Purpose:
Identifying possible gaps in the market which are not yet fulfilled, leading to potential
product/service development which could improve the business success
, THE MARKETING MIX
- Product
- Price
- Place
- Promotion/ marketing communication
1.Product
Characteristics of the product/service, packaging, logo and trade mark.
Product as part of the marketing mix
- Different types of product/service
- Branding
- What makes a product successful
- Developing a product (steps)
- Product Life Cycle
- Importance of packaging as part of the product
Product/services are the most essential element of the marketing mix, without a
product/service a business cannot function. All other marketing mix elements as a result
are directed towards ensuring that the product/service is successful.
The business monitors the product life cycle in order to offer new and relevant
product/services to the consumers.
Different types of products/services
Some are sold to consumers, while others are sold to business for further manufacturing.
- Consumer goods- goods brought by consumers. Food, clothing, furniture and
computers
- Consumer services- purchased by the consumer for personal use. Education,
hairdressing and banking
- Producer goods- sold to other businesses to use the day-to-day running og the
business or for the further manufacturing. Machinery, components used in
manufacturing, nuts, oil and bolts
- Producer services- assist the business with its daily operations. Insurance, banking
and accounting services
Branding (reputation)
Manufactures develop unique features that can be added to the product to make it easy
for the customer to recognise the product.
Brand combination of unique features of the products and the image of the business
The market
Any place where goods and services are bought and sold
- Goods are bought by target market
- The market can be electronically or face to face
A product-orientated approach to marketing
Business concentrates on the skills, knowledge and system needed to produce a specific
product.
- Research is conducted and focus on the product and the characteristics of the
product
A market-orientated approach to marketing
Business focusses on satisfying the needs and wants of the customer
- Emphasis is on market research on an on-going basis to ensure changes in
consumers’ needs and wants are continuously identified.
Successful business will combine these 2 approaches
- Combination of both is best for successful business.
THE MARKETING PROCESS
Marketing involves all activities that are aimed at developing and maintaining a
competitive advantage. This department needs to understand the needs of the target
market and predict the future trends in the market place in order to engage in the on-
going development of products and services.
Marketing Activities
- Market research and development
- Promotion
- Logistics/distribution
- Sales
Market research and development
Marketing needs to understand the behaviour patterns and the way in which the
consumers expect the products/service to the delivered.
- Package
- Price people are prepared to pay
- Access to the product/service (place)
- Preferential channels of communication
,Promotion
Informing the target about the product/service or brand that is offered by the business
Logistics/ distribution
Movement of product/services to ensure the product/service reaches the desired market
time
Sales
Transferring ownership of the product from the business to the customer
THE AIMS OF THE MARKETING FUNCTION
Purpose:
Creating and maintain a competitive advantage to increase the market share.
- Developing new products/services or improving the current offering to broaden the
target market.
- Identifying new markets (local/global) for the business will ensure the business has the
opportunity to grow and improve profitability.
UNDERSTANDING MARKET SEGMENTATION
Market segmentation definition
Dividing the overall market into different groups (target marketing)
- In order to Identify an appropriate segment and then gain an understanding of the
chosen segmentation.
Market can be segmented based on a variety of criteria. Big enough to achieve sufficient
returns on investment.
- Income bracket – who can afford it
- Convivence of the product- accessibility
- Geographical area- where people are
- Cultural grouping
Purpose:
Identifying possible gaps in the market which are not yet fulfilled, leading to potential
product/service development which could improve the business success
, THE MARKETING MIX
- Product
- Price
- Place
- Promotion/ marketing communication
1.Product
Characteristics of the product/service, packaging, logo and trade mark.
Product as part of the marketing mix
- Different types of product/service
- Branding
- What makes a product successful
- Developing a product (steps)
- Product Life Cycle
- Importance of packaging as part of the product
Product/services are the most essential element of the marketing mix, without a
product/service a business cannot function. All other marketing mix elements as a result
are directed towards ensuring that the product/service is successful.
The business monitors the product life cycle in order to offer new and relevant
product/services to the consumers.
Different types of products/services
Some are sold to consumers, while others are sold to business for further manufacturing.
- Consumer goods- goods brought by consumers. Food, clothing, furniture and
computers
- Consumer services- purchased by the consumer for personal use. Education,
hairdressing and banking
- Producer goods- sold to other businesses to use the day-to-day running og the
business or for the further manufacturing. Machinery, components used in
manufacturing, nuts, oil and bolts
- Producer services- assist the business with its daily operations. Insurance, banking
and accounting services
Branding (reputation)
Manufactures develop unique features that can be added to the product to make it easy
for the customer to recognise the product.
Brand combination of unique features of the products and the image of the business
