Professional Documents
Culture Documents
Role of Marketing
Operations is core business function and has close link with marketing.
Products have a product life cycle
Towards end of product life cycle operations and marketing will work together
to design and develop new products which can be marketed successfully.
Marketing and HR
Marketing relies on HR to hire train and develop employees who work in the field
of selling the products of the business. It is the responsibility of well-trained
marketing employees to connect the customers successfully with products.
Finance is responsible for providing bus. With financial information. They will
provide information and work with marketing in developing the right products and
provide marketing budgets.
1850 1920s
Mass market and low cost
production
Shape customers to suit
product
Selling Approach
1930s 1950s
Use of persuasive selling
techniques
Also does not attempt to
understand customers needs and
wants
Marketing Approach
1960s Present
Customer focus
Customer orientation
Relationship Marketing (brand
loyalty)
Shape product to suit customers
Industrial Market
Intermediate Market
Consumer Market
Mass
Niche
Resource Market
Industrial Market
Intermediate Market
Wholesalers and retailers who purchase products to sell them for a profit
E.g. Subway buys bread to make and sell sandwiches
Consumer Market
Mass Market
Sellers mass produce and mass promote one product to a large number of
consumers
Niche Market
Influences on Marketing
Psychological
Perception:
The process through which people select, organise + interpret info. to create
meaning.
Businesses must be aware of varying perceptions to create a postive view of their
product
Created through advertising
Motives:
Reasons that encourage consumer decision making
Main motives include: Comfort, health, safety, ambition, taste and fear.
Advertising attempts to manipulate motives
Attitudes:
A persons overall feeling about an object or activity
Personality + self image
Personality is collection of all behaviours + characteristics
Self image is how a person views themselves or wants to be viewed.
Sociocultural
Roles within families determine buying behaviour e.g. mum buying shopping, dad
buying chain saw
Peers
A person or group whom a person identifies with + adopts attitudes, values +
beliefs
Economic Influences
-
Government Influences
-
Use policies that directly and indirectly influence business activity + consumer
spending habits
Laws such as:
o Competition + Consumer Act 2010
o Sales of Goods Act 1923 (NSW)
o Fair Trading Act 1987
(NSW)
Influence marketing decisions
Consumer Laws
- Deceptive and misleading advertising
- Price discrimination
Implied Conditions
Warranties
Examples:
Price Discrimination
Implied Conditions
The Trade Practices Act implies the following conditions for any consumer
purchase:
o Merchantable Quality Products must meet a basic level of standard and
performance.
Takes into account price and description
Products must be free from defects
Products should be fit for purpose, product should do what is said to do.
Warranties
-
o Refunds/ Exchanges
-
Ethical truth, accuracy and good taste in advertising, products that may damage
health, engaging in fair competition, sugging
Use of terms such as special, low fat or light can be interpreted in many
different ways.
Main unethical marketing practices include untruths due to concealed facts,
exaggerated claims, vague statements and invasion of privacy
o Good taste in advertising
Good Taste is subjective
Within society, there is recognition of the growing role that media is playing in
childrens lives. Therefore marketers are targeting children more then ever.
o ASB
Role of ASB is to regulate advertising
They do this by having the ASB + Advertising Claims Board.
Sugging
Marketing Process
Situational Analysis
Crucial step of the marketing plan is that management has a precise understanding
of the businesses current position.
This is done by a SWOT analysis
SWOT
-
A SWOT analysis involves the identification and analysis of the internal strengths
and weaknesses of the business and the opportunities in and threats from, the
external environmental
Product Lifecycle
The product lifecycle consists of the stages a product passes through: Introduction,
growth, maturity and decline.
o Introduction:
Business attempts to increase awareness and build a market share
for their new product.
Product brand + reliability established
Price is often lowered
Promotion directed at early buyers and to educate consumers.
o Growth
Brand acceptance and higher market share
Product quality needs to be maintained
Price per unit is maintained as the demand from consumers
increases
Promotion seeks a wider audience
o Maturity
Sales reach a plateau
Price quality may need to be adjusted to maintain consumer
demand
o Decline
Product sales being decreasing
Market Research
Data
Facts and figures relevant to the
marketing problem
Secondary
Primary
The target market is the section or segment of the whole market that the business
is targeting its product at
Market research is used to help identify the target market
Research should identify the potential customers + their needs and wants.
Market segmentation is how the business divides the total market into smaller
sections with slightly different demands.
Example: Different cars made for different people. Families 4wd single Ferrari
etc.
Different products are targeted at each different market segment
Consumers can be grouped together by businesses based on:
1. Demographics: Gender, age
2. Sociocutural: Cultural background, religion
3. Geographics: Location, urban + rural
4. Psychographics: Lifestyle, personality, non rational decision making
marketing strategies
market segmentation,
identifying niche markets within a mass market by grouping people with similar
characteristics. Demographic (age, sex, education etc.), Geographic (location),
Psychographic(why- lifestyle, social class, personality), Behavioural (consumer
loyalty, purchase occasion)
product/service differentiation how businesses separate themselves from the
competition
promotion
elements of the promotion mix
- Advertising To persuade a target market, TV, radio, online, print etc. Advertising which
often aims to build brand image is a more long term process than sale promotions
- Personal selling and relationship marketing Sales representative persuades customer
through depth of knowledge and personal characteristics, message can be tailored to suit
customer
- Sales promotions Short term attempts for customers to buy more of a product e.g. price
reduction, cash back, gifts. Can be below-the-line (non-media communication) especially for
new products e.g. food samples
- Publicity and public relations Planned establishment of goodwill, promotion of a
business/products in most favorable light. made most credible by an outside source e.g.
magazine
the communication process opinion leaders (individuals, typically held in high esteem,
often more influential than the media, seen as trustworthy. E.g. sportspeople, experts,
celebrity spokesperson) word of mouth (argued that customers put more weight on WOM
rather than TV/newspaper)
place/distribution -> how it gets to the customer
distribution channels (business/s involved in moving goods from manufacturer to point of
sale intermediary allows to reach new/smaller markets, more efficient less of companies
resources, help match supply/demand)
channel choice (direct/indirect (use of intermediaries) intensive (available everywhere e.g.
soft drinks), selective(easily available but manufacturers choose where), exclusive (limited
supply for elite image or require specialist installation e.g. Ferrari)
physical distribution issues transport, warehousing(storing products), inventory(quantity of
products available for sale)
people, (having the right staff e.g. customer service, product knowledge) processes (total
experience of buying the product meeting expectations) and physical evidence (physical
appearance across all aspects of presentation, can mean clothng, office)
e-marketing Internet marketing, fastest growing in Aust. e.g. youtube, email, pop ups, adds
on sites, competitions benefits: reach, interactivity, immediacy
global marketing
global branding brands have the same meaning in another language, easier to promote a
brand vs. product. recognizable
standardization a business may not need to alter its product for different countries/cultures
customization in some situations it is more effective to differentiate some aspects of a
product to suit different cultures
global pricing should add to the reputation of the brand with awareness of currency
exchange/transport, loss leader strategy can be used an made up in other markets
competitive positioning-how a business differentiates its products. It centers on how a
business will carve out a place in the competitive marketing environment.