The role of Marketing - 3.1 Flashcards
(42 cards)
Marketing
The management task that links the business to the customer by identifying and meeting the needs of customers profitably - it does this by getting the right product at the right price to the right place at the right time
What management function does marketing include?
Market research
Product design
Pricing
Advertising
Distribution
Customer service
Packaging
Marketing relationship with Finance
Needs to fund the increased promotion budget.
Marketing relationship with Human resources
Additional employees are likely to be required.
Marketing relationship with Operation
Market research data will be used by operations to determine the preferences of consumers for the future product mix.
How can market be differentiated?
Market size
Market growth
Competitors and ease of entry
Differentiated or homogeneous products
Segmentation
Market size
The total level of sales of all producers within a market
Why is market size important?
A marketing manager can assess whether a market is worth entering or not
Businesses can calculate their own market share
Growth or decline of the market can be identified
How to measure market growth
By volume
By value
Market growth
The percentage change in the total size of a market over a period of time
Ease of entry
The lack of barriers for the establishment of new competitors in a market
What factors affect market growth?
Economic growth
Changes in consumer incomes
Development of new markets
Changes in consumer tastes
Technological change
Saturation of market
What makes it easier to join a market?
If there is more competitors
Issue with homogeneous products
Cannot be distinguished and therefore difficult for a business to charge higher prices
Homogeneous products
Goods that are physically identical or viewed as identical by consumers
Segmentation
Dividing a market into distinct groups of consumers who share common tastes and requirements
Target marketing
Focusing marketing activity on particular segments of the market
Mass marketing
Selling to the whole market using a standardised product and the same marketing activities
What differences do managers responsible for selling services need to recognise between goods and services?
Consumed immediately - cannot be stored
Services cannot be repaired - services need to be good quality the first time
Consumers find it more difficult to compared services. Promotion has to be informative and detailed
People are very important to the successful marketing of services
Important things to remember when selling services
Building trust
Time for delivering the service
Deliverability
Relationships
Services need a perceived value - emotional connection
Market orientation
An outward looking approach basing product decisions on consumer demand, as established by market research
Product orientation
An inward looking approach that focuses on making products that can be made - or have been made for a long time - and then trying to sell them
Benefit of market orientation
Chances of new products failing is less likely
More likely to survive
Constant feedback from consumers
Why is product orientation still being kept in some businesses?
Invent products in the belief that they will find consumers to purchase them.
Innovation
Concentrate their efforts on efficiently producing high quality goods
