Chapter 17: The nature of marketing Flashcards
(51 cards)
Marketing objectives
The goals set for the marketing department to help achieve corporate objectives
4 P’s and 4 C’s
Product - Customer solution
Price - Cost to customer
Place - convenience to the customer
Promotion - Communication with the customer
Marketing
Identifying and meeting customer needs and wants profitably by getting the product at the right price, right place at the right time
Corporate objectives
Well-defined and realistic goals that are set for the whole company. These produce the marketing objectives
Marketing involves
Market research
Product and package design
Pricing, advertising and distribution
Customer services
Marketing should result in
Increased market share
Increase in total sales
average goods sold per customer
Shopping frequency by loyal customers
Customer loyalty
number of new customers
customer satisfaction
brand identity
Marketing objectives should be
Linked to achieving corporate objectives
Determined by senior management
Realistic, motivating, achievable, measurable and communicated to all departments
Why are marketing objectives important?
Provide a sense of focused direction
Can help measure business success
They can be broken down into regional and product sales targets
They form the basis of marketing strategy
Marketing strategy
A plan of action detailing how a business intends to achieve its marketing objectives by creating a competitive advantage
Examples of marketing strategy
Penetrating existing markets
Entering new markets in other countries
Developing new, or updating products
Coordination of marketing with the finance department
The finance department will rely on marketing’s sales forecasts for cash flow and budget planning.
Finance must secure adequate capital to cover the approved marketing budget for promotional expenses.
Coordination of marketing with the HR department
HR will use sales forecasts to develop a workforce plan, which may include hiring more sales and production staff to boost sales.
HR must ensure the recruitment and selection of qualified and experienced workers
Coordination of marketing with the operations department
Market research data will play a key role in new product development
The operations department will use sales forecasts to plan the capacity needed.
Demand
The quantity of a product that consumers are willing and able to buy at a given price in a specific time period.
Supply
The quantity of a product that firms are prepared to supply at a given price in a specific time period
Equilibrium price
The price level at which demand is equal to supply
Demand curve
A downward slope that shows, for normal goods, the lower the price the more the demand. It has an inverse relation with price.
Supply curve
The higher the price the higher the quantity supplied. It has a positive relation with price.
Market segment
A subgroup of a market iwhere customers have similar characteristics
Industrial market
The selling of products from one business to another, aka B2B
Consumer market
Selling of products from businesses to consumers, aka B2C
Customer/market orientation
An outward-looking approach that bases product decisions on consumer demand as established by market researcher
Benefits of customer orientation
Low chances of newly developed products failing
More profitable products with longer lifespan because it is based on customer needs
Constant feedback means market research never ends
Product Orientation
An inward-looking approach on making products that can be made for a long time and then trying to sell them
