Business Studies Marketing Notes

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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 marketing goods and services
A common goal in business is profit maximisation. The strategic role of marketing is to translate this into a reality. The business will look to how it can increase its sales, and that means there will be an increase in profits. The marketing plan helps show strategies in how profits can be achieved in the short-term, and in the long-term. o Marketing plan is a document that lists activities aimed at achieving particular marketing outcomes in relation to goods or services. The plan provides a template for future action aimed at reaching business goals, such as profit maximisation.

• Interdependence with other key business functions
Businesses now use the customer-orientated approach which has significantly changed the role of marketing and the need to develop a marketing concept. Marketing concept is a business philosophy that states that all sections of the business are involved in satisfying a customer’s needs and wants while achieving the business’s goals.

← Management and Administration: Customer relations, meeting marketing needs, strategic planning ← Financial planning- budget preparation, financial analysis, resource allocation ← Operations- product/service design, supply chain management ← Employment relations- reliable employees with integrity and experience

• Production, selling, marketing approaches
Production Approach (1820s-1920s) - focused businesses on the production of goods and services. They went by the catchphrase “If we make it, they will buy it”. Businesses were usually able to sell all their output. Sales Approach (1920s-1960s) - emphasised selling because of increased competition. Products became higher in quality and brand names were trusted more. Salespeople played an important role in this era, but marketing played a secondary role. The marketing approach: stage one (1960s-1980s) – the marketing approach focuses on finding out what customers want- through market research- and then satisfying that need. Families also had discretionary income which is disposable income that is available for spending after an individual has purchased their needs.

This developed the marketing concept which must be:
o Customer-oriented
o Supported by integrated marketing strategies
o Aimed at satisfying customers
o Integrated into the business plan – to achieve business goals The marketing approach: stage two (1980s- present) - Changing economic and social conditions have seen a modification to the marketing approach. This includes: o Social responsibility: especially in regards to ecological sustainability. o Customer orientation: the process of collecting information from customers and basing marketing decisions and practices on customers’ wants and interests. o Relationship marketing: the development of long-term and cost-effective relationships with individual customers.

• Types of Markets- resource, industrial, intermediate, consumer, mass, niche A market is a group of individuals, or both that:
o Need or want products (goods or services)
o Have the money (purchasing power) to purchase the product o Are willing to spend their money to obtain the product o Are socially and legally authorised to purchase the product.

Resource Market- the 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- the industrial market includes industries and businesses that purchase products to use in the production of other products or in their daily operations. For example Tip Top bakery buys flour to make bread, and Sony buys plastics and metal to produce televisions.

Intermediate...
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