4.1 The Role of Marketing
• Marketing - the management process responsible for identifying, Relationships with other business functions
anticipating and satisfying customer needs and wants profitably
• B2C - business to consumer, the customer has to be convinced in a • B2C - business to consumer, the customer has to be convinced in a very
very short space of time between entering the store and leaving again, short space of time between entering the store and leaving again, this relies
this relies on the four ps and the interrelationships between the business on the four ps and the interrelationships between the business functions
functions • Human resources
• whether the business has the right quantity and quality of staff to meet its
marketing objectives
• sales forecasts needs to be synchronised with HR to ensure recruitment
The Market and training processes are effective
• if the marketing department forecasts growth for a product, then HR will
• a place where buyers and sellers come together and interact need to begin the process of recruiting additional staff
• a location • Finance
• a type of product • marketing activities are limited by the business’ marketing budget
• A place where buyers and sellers come together and interact • the design of the product will determines the cost of raw materials and
• sellers of goods gather in an attempt to sell their goods to local direct costs
consumers • advertising is expensive and does not always yield desired results
• examples - farmers market, supermarket, eBay, the stock market, a • Operations Management
shopping mall • market research will tell the operations management department where to
• A location focus its research and development
• sales figures can be broken down into much smaller areas such as • sales forecasts will have to be passed on to the operations management
geographical markets functions so that they can ensure there is sufficient capacity to meet the
• certain products will be sold only to certain markets forecast demand
• sometimes products are changed according to location and the
culture of the regions in order to satisfy customers
• A type of product
• differentiating by product type, for example, the market for mobile Social Marketing
phones or soft drinks
• aims to influence behaviour in a way that benefits society, for example, the
dumb ways to die game and ad produced by Metro Trains Melbourne
• Differences between social and commercial marketing
Market Orientation vs Product Orientation • marketing objectives
• commercial marketing
• Product Orientation • the aim of commercial marketing is to meet customers’ needs
• prioritise research and development over market research. • focuses on increased market share, brand recognition and creating
customer loyalty
• Ground breaking products and designs can be quickly patented, so
rivals cannot copy ideas • social marketing
• advantages • the aim of social marketing is to change people’s behaviour
• products are innovative and can apply for patents • protecting the environment
• Unique selling proposition • promoting public health
• likely to be investment in technology at the firm • reducing anti social behaviour
• little threat from competition • raising awareness of an individual issue
• may be economies of scale • public vaccinations
• disadvantages • smoking, alcohol, and drug misuse
• no guarantee that the product will be sold • control tools
• expensive to conduct research and development • commercial marketing campaigns are usually assessed using data such as
sales figures and customer surveys
• may be other opportunities that are missed
• branding is narrow • the success of social marketing campaigns depends on its cause, for
example if it is to promote public health, numbers of people catching the
• risk of the product becoming obsolete
specific disease would be looked at. However, it can be difficult to obtain
data to assess the success of social marketing campaigns for example for
• Market Orientation
CO2 emissions
• the needs of the customer are put before everything else, extensive
and ongoing market research will be central to decision making
• advantages
• products are likely to satisfy customers needs and result in sales
Evolution of marketing
• results in more focused production and strategy Market share and market leadership strategies
• the quality of marketing activities is improved because market needs
are understood
• market share = (product sales / total • external environment
• disadvantages market sales) x 100 • main factors that cause
• products are less likely to be unique • calculation can also use sales volume companies to update
• there is more competition • Market leadership marketing strategies
• becomes important to get market research right • the business with the highest market • changing customer
• challenges in quickly responding to changed to the market share preferences
• risk of underestimating the customer or the market • advantages • carry out market research
• ease of access to channels of to keep up with the latest
distribution - retailers will want to trends in fashion and
stock the products of market technology
leaders, this can create a cycle • Innovation
where high market share leads to • keep up with product
Marketing Objectives orientated companies who
wide distribution and strong sales spend billions on research
• brand recognition - should lead to and development of new
• an objective is a goal that is set for part or the whole of the business.
increased sales products
Objectives can be corporate, divisional or departmental
• economies of scale - cost savings • Ethical considerations
• marketing objectives give direction and accountability to the marketing
that come from selling a large • develop a USP
function
number of products such as bulk • selling green products -
• should be set with the corporate objective in mind Low CO2
purchasing which decreases unit
• SMART objectives - specific, measurable, achievable, realistic, timed • Worker treatment - good
costs
• general marketing objectives for profit organisations conditions and pay
• price leadership - have a greater
• increase market share, increase sales, growth, brand recognition, • Supplier treatment - paid
control of the selling price of their on time and not
customer loyalty, customer satisfaction, product development
products, the price they set is pressurising for economies
• general marketing objectives for non-profit organisations
likely to be seen as the right price of scale
• fundraising, improve awareness, reduction in the use of harmful
for the product category, can • cultural difference -
products, political action
provide a competitive advantage understand, important in
globalised world
• Marketing - the management process responsible for identifying, Relationships with other business functions
anticipating and satisfying customer needs and wants profitably
• B2C - business to consumer, the customer has to be convinced in a • B2C - business to consumer, the customer has to be convinced in a very
very short space of time between entering the store and leaving again, short space of time between entering the store and leaving again, this relies
this relies on the four ps and the interrelationships between the business on the four ps and the interrelationships between the business functions
functions • Human resources
• whether the business has the right quantity and quality of staff to meet its
marketing objectives
• sales forecasts needs to be synchronised with HR to ensure recruitment
The Market and training processes are effective
• if the marketing department forecasts growth for a product, then HR will
• a place where buyers and sellers come together and interact need to begin the process of recruiting additional staff
• a location • Finance
• a type of product • marketing activities are limited by the business’ marketing budget
• A place where buyers and sellers come together and interact • the design of the product will determines the cost of raw materials and
• sellers of goods gather in an attempt to sell their goods to local direct costs
consumers • advertising is expensive and does not always yield desired results
• examples - farmers market, supermarket, eBay, the stock market, a • Operations Management
shopping mall • market research will tell the operations management department where to
• A location focus its research and development
• sales figures can be broken down into much smaller areas such as • sales forecasts will have to be passed on to the operations management
geographical markets functions so that they can ensure there is sufficient capacity to meet the
• certain products will be sold only to certain markets forecast demand
• sometimes products are changed according to location and the
culture of the regions in order to satisfy customers
• A type of product
• differentiating by product type, for example, the market for mobile Social Marketing
phones or soft drinks
• aims to influence behaviour in a way that benefits society, for example, the
dumb ways to die game and ad produced by Metro Trains Melbourne
• Differences between social and commercial marketing
Market Orientation vs Product Orientation • marketing objectives
• commercial marketing
• Product Orientation • the aim of commercial marketing is to meet customers’ needs
• prioritise research and development over market research. • focuses on increased market share, brand recognition and creating
customer loyalty
• Ground breaking products and designs can be quickly patented, so
rivals cannot copy ideas • social marketing
• advantages • the aim of social marketing is to change people’s behaviour
• products are innovative and can apply for patents • protecting the environment
• Unique selling proposition • promoting public health
• likely to be investment in technology at the firm • reducing anti social behaviour
• little threat from competition • raising awareness of an individual issue
• may be economies of scale • public vaccinations
• disadvantages • smoking, alcohol, and drug misuse
• no guarantee that the product will be sold • control tools
• expensive to conduct research and development • commercial marketing campaigns are usually assessed using data such as
sales figures and customer surveys
• may be other opportunities that are missed
• branding is narrow • the success of social marketing campaigns depends on its cause, for
example if it is to promote public health, numbers of people catching the
• risk of the product becoming obsolete
specific disease would be looked at. However, it can be difficult to obtain
data to assess the success of social marketing campaigns for example for
• Market Orientation
CO2 emissions
• the needs of the customer are put before everything else, extensive
and ongoing market research will be central to decision making
• advantages
• products are likely to satisfy customers needs and result in sales
Evolution of marketing
• results in more focused production and strategy Market share and market leadership strategies
• the quality of marketing activities is improved because market needs
are understood
• market share = (product sales / total • external environment
• disadvantages market sales) x 100 • main factors that cause
• products are less likely to be unique • calculation can also use sales volume companies to update
• there is more competition • Market leadership marketing strategies
• becomes important to get market research right • the business with the highest market • changing customer
• challenges in quickly responding to changed to the market share preferences
• risk of underestimating the customer or the market • advantages • carry out market research
• ease of access to channels of to keep up with the latest
distribution - retailers will want to trends in fashion and
stock the products of market technology
leaders, this can create a cycle • Innovation
where high market share leads to • keep up with product
Marketing Objectives orientated companies who
wide distribution and strong sales spend billions on research
• brand recognition - should lead to and development of new
• an objective is a goal that is set for part or the whole of the business.
increased sales products
Objectives can be corporate, divisional or departmental
• economies of scale - cost savings • Ethical considerations
• marketing objectives give direction and accountability to the marketing
that come from selling a large • develop a USP
function
number of products such as bulk • selling green products -
• should be set with the corporate objective in mind Low CO2
purchasing which decreases unit
• SMART objectives - specific, measurable, achievable, realistic, timed • Worker treatment - good
costs
• general marketing objectives for profit organisations conditions and pay
• price leadership - have a greater
• increase market share, increase sales, growth, brand recognition, • Supplier treatment - paid
control of the selling price of their on time and not
customer loyalty, customer satisfaction, product development
products, the price they set is pressurising for economies
• general marketing objectives for non-profit organisations
likely to be seen as the right price of scale
• fundraising, improve awareness, reduction in the use of harmful
for the product category, can • cultural difference -
products, political action
provide a competitive advantage understand, important in
globalised world
