3. role of marketing Flashcards
(34 cards)
What is marketing?
Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives.
- Total system of interacting activities designed to plan, price, promote and distribute products to present to potential customers.
- Process of developing a combination of strategies that can be used to maximise sales, increase brand awareness and improve customer satisfaction in order to achieve profit maximisation
- Process of satisfying consumers wants & needs
What are the four main features of marketing?
- Involves a wide range of activities
- Directed at a wide range of goods, services and ideas
- Stresses the importance of satisfying exchanges
- Not limited to activities of businesses
What is the strategic role of marketing?
Develop a combination of strategies:
1. Maximise sales
2. Increase brand awareness
3. Improve customer satisfaction
4. Overall profit maximisation
What is a marketing plan?
- Outlines the strategies to be used to bring the buyer and seller together.
- Gives direction to achieving success
- Based on careful research and design
- Customer is focus of the marketing plan
What is the marketing concept?
philosophy that states all sections of the business are involved in satisfying a customer’s needs and wants while achieving the business’s goals. business should direct all its policies, plans and operations towards achieving customer satisfaction. Marketing plan should be integrated into all aspects and activities of business
How are marketing and operations interdependent?
Marketing involves the design of products and their sale, while operations is responsible for their production. Must communication to ensure standards and customer satisfaction
How are marketing and finance interdependent?
Finance provides funds for marketing activities. Financial budgets are crucial in determining marketing strategies Marketing can achieve profitability by selecting best pricing methods and promotional strategies.
How are marketing and human resources interdependent?
Human resources supplies the marketing function with skilled and qualified employees. Vital to create desirable good/service and satisfactory experience
What is the production approach?
Focused on the production of goods and services. Marketing consisted of simply taking orders and delivering the products.
What was the historical factors of the production approach?
Industrial revolution - burst of industrial output, demand exceeded production capabilities. This meant businesses would usually sell all their output This occurred up until WWI.
What is an example of a business that had a production approach to marketing?
Henry Ford - focused on ways to product motor vehicles more quickly and cheaply, confident that people would buy them.
What is the sales approach?
Emphasised selling because of increased competition. Creating demand instead of researching customer needs and wants
What were features of the selling approach?
Increased spending on advertising through new systems like radio and film to stimulate demand Had to persuade customers Sales representatives hired and trained Marketing still secondary to production and finance.
What is the marketing approach?
Focuses on using market research to find out what the customers want and then satisfying that need. Place customer at centre of all marketing activities characterised by the importance placed on identifying and satisfying customer needs and wants prior to producing the goods or services
What are the principles of the marketing concept?
Customer orientated Aimed at satisfying customers Integrated into the business plan to achieve business’ goals Aimed to develop long term relationships with customers.
What is customer orientation and customer satisfaction?
customer orientation: the process of collecting information from customers and basing marketing decisions and practices on customers’ wants and interests customer satisfaction: measures how goods and services supplied by a business meet or exceed customer expectation
What is relationship marketing?
The development of long-term and cost-effective relationships with individual customers Customer loyalty to generate repeat sales Reward programs, customer care or after sales service
What is the societal markeitng approach?
emphasises social responsibilities and suggests that to sustain long-term success, a business should develop a marketing strategy to maintain and improve the wellbeing of both customers and society. Business should make good marketing decisions whilst balancing consumers wants, business profits and society’s long term interests.
What catalysed the development of the societal marketing approach?
In the 1960s and 70s the unethical practices of many companies became public. Increased public concern on environmental pollution and resource depletion Social marketing - socially responsible, moral and ethical model of marketing closely related to corporate social responsibility and sustainable development implemented by several companies to improve their public image.
What is a market?
A group of individuals and/or organisations that: Need or want a product Have the purchasing power to buy the product Are willing to spend their money to obtain the product Are socially and legally authorised to purchase the product.
What are the six main types of markets?
Resource Industrial Intermediate Consumer Mass Niche
Why do marketing managers need to understand different types of markets?
Their different characteristics will determine the marketing plans and strategies depending on the intended market.
What is the resource market?
consists of those individuals or groups that are engaged in all forms of primary production, including mining, agriculture, forestry and fishing.
What are some statistics on the resource market in Australia?
resource market makes up over 8% of Australia’s economy Generates over $264 billion in exports Accounts for more than 60% of Australia’s exports As a group, this market in Australia is made up of over 180 000 enterprises or customers and has a large purchasing power
