Marketing
Marketing is a total system of interacting activities designed to plan, price, promote and distribute
products to present and potential customers.
Role of marketing
Strategic role of Profit maximisation - occurs when there is a maximum difference between the total
marketing goods revenue coming into the business and total costs (expenses) being paid out.
and services A business creates a marketing plan that sets out a series of goals and strategies
to be used to attain this financial goal.
Marketing plan - template for future action including goals and strategies to achieve
marketing objectives.
1. Marketing plan outlines the strategies to be used to bring the buyer and seller
together
2. Satisfying existing customers wants, leading to repeat sales
3. Marketing is the revenue-generating activity of any business (making sales)
Interdependenc Operations Finance Human Resources
e with other key
business Marketing Marketing involves Marketing involves Human resources recruits
functions bringing customers bringing money into individuals with degrees in
into the business to the business marketing to market the
sell the products in creating profit and products of the business.
the operations cash flow.
Operations Production Need staff within the
processes are an business to carry out the
expense to the processes within operations
business.
Finance Have to pay employee wages
(expense to the business).
Interdependence – mutual dependence the key business functions have on each other
Marketing Concept – ‘business philosophy’ stating that all sections of business are involved
in satisfying a customer’s needs and wants while achieving business goals
Production, The sales approach – emphasised selling because of increased competition
selling,
marketing Production approach (1820s-1920s) - focussed businesses on the production of
approaches goods and services. Industrial Revolution created burst of industrial output which
saw demand for goods, exceeding production capabilities of businesses.
Selling approach (1920s-1960s) - emphasised selling because of increased
competition. After WW1 production and productivity became more efficient.
Marketing approach (stage 1 from 1960s-1980s)- focuses on finding out what
customers want, through market research and satisfying that need. Australian’s
had discretionary income that allowed for more spending and saving after being
bale to buy basic necessities.
Marketing approach (stage 2 from 1980s-now) - changing economic and social
conditions over the last three decades have seen a modification to the marketing
approach. This approach aimed to satisfy customers:
Corporate social responsibility (CSR) - growing concern over environmental pollution
and resource depletion came a shift in marketing plans. External pressure from customers,
environmental organisations and political forces is presently influencing the marketing
plans including an increase demand for ecologically sustainable products.
Customer orientation - refers to the process of collecting information from customers and
, basing marketing decisions and practices on customers' wants and interests to achieve
customer satisfaction. This requires customer satisfaction which measures how goods and
services supplied by a business meet or exceed customer expectation.
Relationship marketing - the development of long-term and cost-effective relationships
with individual customers. Aim to create customer loyalty and repeat sales, achieved
through rewards programs, customer care and good after sale services
Types of Market – group of individuals and organisations that:
markets – Need or want a product
resource, Have money to purchase product
industrial, Willing to spend money to obtain product
intermediate, Social and legally authorised to purchase product
consumer,
mass, niche Resource market - consists of those individuals or groups that are engaged in all
forms of primary production, including mining, agriculture, forestry and fishing.
Industrial market - includes industries and businesses that purchase products to
use in the production of other products or in their daily operations.
Intermediate market - consists of wholesalers and retailers who purchase finished
products and resell them to make profit.
Consumer market - consist of individuals - members of a household who plan to
use or consume the products they buy.
Mass market - the seller mass produces, mass-distributes and mass-promotes one
product to all buyers.
Niche market - a narrowly selected target market segment. Also known as a
concentrated or micro market.
Marketing
Marketing is a total system of interacting activities designed to plan, price, promote and distribute
products to present and potential customers.
Role of marketing
Strategic role of Profit maximisation - occurs when there is a maximum difference between the total
marketing goods revenue coming into the business and total costs (expenses) being paid out.
and services A business creates a marketing plan that sets out a series of goals and strategies
to be used to attain this financial goal.
Marketing plan - template for future action including goals and strategies to achieve
marketing objectives.
1. Marketing plan outlines the strategies to be used to bring the buyer and seller
together
2. Satisfying existing customers wants, leading to repeat sales
3. Marketing is the revenue-generating activity of any business (making sales)
Interdependenc Operations Finance Human Resources
e with other key
business Marketing Marketing involves Marketing involves Human resources recruits
functions bringing customers bringing money into individuals with degrees in
into the business to the business marketing to market the
sell the products in creating profit and products of the business.
the operations cash flow.
Operations Production Need staff within the
processes are an business to carry out the
expense to the processes within operations
business.
Finance Have to pay employee wages
(expense to the business).
Interdependence – mutual dependence the key business functions have on each other
Marketing Concept – ‘business philosophy’ stating that all sections of business are involved
in satisfying a customer’s needs and wants while achieving business goals
Production, The sales approach – emphasised selling because of increased competition
selling,
marketing Production approach (1820s-1920s) - focussed businesses on the production of
approaches goods and services. Industrial Revolution created burst of industrial output which
saw demand for goods, exceeding production capabilities of businesses.
Selling approach (1920s-1960s) - emphasised selling because of increased
competition. After WW1 production and productivity became more efficient.
Marketing approach (stage 1 from 1960s-1980s)- focuses on finding out what
customers want, through market research and satisfying that need. Australian’s
had discretionary income that allowed for more spending and saving after being
bale to buy basic necessities.
Marketing approach (stage 2 from 1980s-now) - changing economic and social
conditions over the last three decades have seen a modification to the marketing
approach. This approach aimed to satisfy customers:
Corporate social responsibility (CSR) - growing concern over environmental pollution
and resource depletion came a shift in marketing plans. External pressure from customers,
environmental organisations and political forces is presently influencing the marketing
plans including an increase demand for ecologically sustainable products.
Customer orientation - refers to the process of collecting information from customers and
, basing marketing decisions and practices on customers' wants and interests to achieve
customer satisfaction. This requires customer satisfaction which measures how goods and
services supplied by a business meet or exceed customer expectation.
Relationship marketing - the development of long-term and cost-effective relationships
with individual customers. Aim to create customer loyalty and repeat sales, achieved
through rewards programs, customer care and good after sale services
Types of Market – group of individuals and organisations that:
markets – Need or want a product
resource, Have money to purchase product
industrial, Willing to spend money to obtain product
intermediate, Social and legally authorised to purchase product
consumer,
mass, niche Resource market - consists of those individuals or groups that are engaged in all
forms of primary production, including mining, agriculture, forestry and fishing.
Industrial market - includes industries and businesses that purchase products to
use in the production of other products or in their daily operations.
Intermediate market - consists of wholesalers and retailers who purchase finished
products and resell them to make profit.
Consumer market - consist of individuals - members of a household who plan to
use or consume the products they buy.
Mass market - the seller mass produces, mass-distributes and mass-promotes one
product to all buyers.
Niche market - a narrowly selected target market segment. Also known as a
concentrated or micro market.
Marketing
