Outcome 1: Marketing Assessment Notes

Definition-“The management process which identifies, anticipates and supplies customer

requirements efficiently and profitably.” Chartered Institute of Marketing, “The performance of
business activities that direct the flow of goods and services from the producer to the customer”,
Committee of Definitions. It is finding out what the customer wants and providing it. Marketing
- Marketing involves satisfying customer needs or desires. To study, must understand concept of
product and consumer (or market). Marketers must identify which markets are we selling to and
what are their needs. To be successful, marketers must understand consumer needs and develop
products to satisfy those needs.

Marketing - Once identified consumer needs an appropriate price must be identified, product must
be available to the buyer in the marketplace. The role of marketing must also inform, motivate and
remind the customer to buy. In the music business this involves suppling consumers with the
music they desire. A key marketing concept to remember is that a product is defined as something
that will satisfy the customer’s want or need. 4P’s - refers to a blend of product, distribution,
promotion and pricing strategies made to produce mutually satisfying exchanges with target
market. 4C’s - update of 4ps, useful for a business with small audience, business looks at the
customers perspective. Market Orientation - also used for mass markets - Product (goods/services
made to satisfy customer needs), Price (what customers exchange for product), Place (how to
deliver&distribute product), Promotion(Customer value), Cost, Convenience, Communication.
Marketing mix - 4P&4C.Convenience to buy: Instead of place, consider how customer want to buy,
must think of convenience to buy not place to buy, music industry - where do customers consume
music? In-store, download, stream, at gigs.

Development of marketing - ProductionO-The focus for the business is to reduce costs through
mass production. A business orientated around production believes that the "economies of
scale" generated by mass production will reduce costs and maximise profits. A production
orientated business needs to avoid production efficiency processes which affect product design
and quality. Compromising product design and quality for the sake of production is likely to reduce
the product's appeal to customers. Ford is an example of mass produced products.

Product Orientated - Product orientated business are characterised by their focus on introducing
new products/services first without establishing whether their customers actually want or need
them. When a business bases its orientation on its internal strengths, it is 'product orientated’.
Benefits of being product orientated Firms can focus on internal quality, Technological investment
can be applied to a wide range of products, Economies of scale can more easily occur, Allows
outsourcing of production mean the Apple is essentially a design house, not manufacturer.

Sales Orientated - When a business bases its ability to make profits on using powerful selling
techniques to persuade people to buy its products, rather than on meeting customer wants/needs.
Short term process.

Marketing orientated - An approach where a business anticipates and reacts to what customers
want. The decisions taken are based on solid market research, rather than what the business
thinks is right for the customer. Most successful businesses take a market-orientated approach.
Marketing orientated business characteristics : Function-Activity - Identify customer needs - Market
Research | Developing products - Research & development | Deciding product value - Pricing |
Making it available - Distribution | Informing and reminding customers - Promotion

PRODUCT - The marketing mix starts with the product/service. It would be difficult to create a
strategy for the other components without a clear understanding of the product to be marketed.
The marketing mix should stimulate creative thought and help define what a business is trying to
achieve.
-customer needs are getting more specific, will have to target customers more individually.You
can't develop products and then try to sell them to a mass market. You have to study consumer
wants and needs and then attract consumers one by one with something each one wants.
Independent Record Label - Market & Product Orientation. Promoter - Market Orientation.
Music Steaming - Marketing & Sales Orientation . Price is only a part of the total cost to satisfy
a want or a need. example, buy a gig ticket, consider: travel cost, cost of time spent acquiring
ticket, cost of conscience, example, maybe guilt of pricey ticket purchase. You have to consider
communication instead of promotion. Communication requires compromise between buyer and
seller, this could be feedback via social media for example. Important to listen to customer and
react to what they are tell you.