4.1 role of marketing.pptx

8/18/2019 4.1 Role of Marketing.pptx

1/28

opic 4.1 Role of Marketing

Marketing and Advertising are Not the Same Thing


2/28


Learning Obectives

!OL 1 Attit"des # $erceptions

In this topic we will examine the role, definition and nature of marketing.

Topics incl"de%

• Marketing and its relationship with other business functions – AO1• he differences between marketing of goods and marketing of ser!ices – AO"• Market orientation !ersus product orientation – AO"• he difference between commercial marketing and social marketing – AO"• #haracteristics of the market in which an organisation operates – AO1

• #alculate Market share – AO$• he importance of market share and market leadership – AO%• he marketing ob&ecti!es of for'profit organisations and non'profit organisations –

AO%• (ow marketing strategies e!ol!e as a response to changes in customer preferences –

AO%

• (ow inno!ation, ethical considerations and cultural differences ma) influencemarketing practices and strategies in an organisation – AO%


3/28


Role of Marketing

!OL & !eclarative 'no(ledge

)t is tempting to belie!e we know all about marketing as we are surrounded b) it

e!er) da). *o(ever , firms are more scientific in their approach than we might alwa)s

assume and the ps+cholog+ of marketing has been de!eloped and tested o!erman) )ears.

There is considerable debate o!er the extent to which we, as consumers, can be

manip"lated, but there is little doubt that marketing is highl+ infl"ential in the

wa) we beha!e and that it impacts on o"r p"rchasing behavio"r and

intentions.

Marketing can be !iewed as both a f"nctional aspect of an organisation and a

b"siness philosoph+. he marketing philosoph+ or concept is an approach that

stresses the achie!ement of b"siness goals thro"gh c"stomer satisfaction.

he complex range of acti!ities that define marketing are applicable to all firms,

large or small, new or established and e!en applies to non,profit making


4/28


-hat is Marketing


Marketing is the process of identif)ing a target market, defining what that target

market needs and*or (ants and organising the firm to meet those needs andwants.

!OL /.4 )nd"ctive Reasoning

Marketing is the process of researching into identif+ing cons"mers needs

and emplo)ing appropriate price0 prod"ct0 place and promotion strategies in

order to satisf) these needs profitabl) Stimpson0 &22&3.

Marketing is the process of learning abo"t +o"r c"stomers and

competitors, so that )ou can pro!ide the right prod"cts at the right price in the

right place, promoted in the right (a+ to achie!e )our business ob&ecti!es

Marco"se et al0 &22/3.


5/28


-hat is Marketing

!OL /.4 )nd"ctive Reasoning

Marketing is not a function it is the (hole b"siness seen from the c"stomers

point of !iew $eter !r"cker3.

Marketing is a management process in!ol!ed in identif)ing, anticipating and

satisf+ing cons"mer re+uirements profitabl) *all05ones0 and Raffo0 &22/3

So (hat is the common elements in all these vie(s on marketing


6/28


Marketing # Other 6"nctional 7entres

!OL 4.8 S+stems Anal+sis

!isc"ss the relationship between the marketing department and the other

f"nctional departments in an organisation.

Marketing

*"manReso"rces

OperationsManagement

6inance

Finance is for budgetingand funding forpromotion. Humanresources are are neededto account for stangneeds. Operations is for


7/28


7"stomer 6oc"sed Organisation


o )s fo"nded on the belief that profit can best be achie!ed b) identif)ing, anticipatingand satisf)ing customer needs and wants.

o A compan+ which adopted this concept and philosoph) places the customer at the

centre of all business decisions.

o 7"stomers need to permeate all le!els and functions in the organisation. .

o 7o,ordinate and integrate all marketing acti!ities that might affect the customer.


8/28


The Market


A market is a place or process which allows b"+ers and sellers to meet and

e9change goods0 services and information.

Markets exist to facilitate trade between collections of people who share a want or

need and are motivated to enter into vol"ntar+ e9change processes to satisf)that want or need.

Markets can be local0 national or international, but the marketing concepts

co!ering all marketplaces are relati!el) similar. 7"stomers for a firm can be private

individ"als0 other b"sinesses or governments.

Markets that cater for private individ"als are referred to as cons"mer

markets, while those ser!ing organisations are ind"strial or commercial

markets. )t is important to recognise that trade between businesses, commonl)

referred to as :&: business to business- is much larger in val"e than sales topri!ate indi!iduals.


9/28


The Market

!OL /.1 7omparing 'no(ledge

A b"siness is interested in three elements of the market%

!efine each of these three terms in the graphic organiser


10/28


Market Si;e


O"tline the three main (a+s market si;e can be determined

7"stomer :ase :arriers to


11/28


Market =ro(th


12/28


Market =ro(th

!OL & Ac>"ire # )ntegrate

Topic 1.8$


13/28


Market Share


14/28


Market Share


Market concentration measures the degree of competition within a market b)

calc"lating the market share of the largest firms in a market. The s"m of these market shares

is known as the concentration ratio.

7alc"late the market share of each A"stralian bank gro"ps3 and the

concentration ratio of the :ig 6o"r.

Loans and Advances to *o"sehold on :ooks of )ndivid"al A"stralian :anks A? Million3:anks otal Market Share

@

-estpac :anking 7orporation &10B4C

7ommon(ealth :ank of A"stralia &880D81

National A"stralia :ank Limited 1B/0B28

A"stralia and Ne( Eealand :anking =ro"p Ltd 1B20C&

Total Other !omestic :anks 1&&08C


15/28


$rod"ct vers"s Market Orientation

!OL /.1 7omparing 'no(ledge


16/28


$rod"ct vers"s Market Orientation

!OL /.D Anal+sing $erspectives

!isting"ish bet(een prod"ct orientation and market orientation

!isc"ss advantages and disadvantages of each

$rod"ct Orientation Market Orientation


17/28


Social Marketing

http%FF(((.+o"t"be.comF(atchvGH&1eH)EBIohttp%FF(((.+o"t"be.comF(atchvG"EcDDJ'&7(I


18/28


Social Marketing ): Learner $rofile 7aring # $rincipled


Social Marketing seeks to influence social behavio"rs not to benefit the

marketer, but to benefit the target a"dience and the general societ). It uses

mainstream marketing methods to achie!e the benefits of social change.

Social Marketing or the societal orientation was born as a discipline in the 1/0s,

when $hilip 'otler and =erald Ealtman realised that the same marketingprinciples that were being used to sell products to consumers could be used to sell2

ideas, attitudes and beha!iours. )t gre( o"t of an increasing concern about

Kcons"merism where firms pander to the needs of the consumer howe!er, wasteful

and undesirable the conse+uences. The maor impet"s to social marketing was

increasing environmental a(areness.

Social Marketing differs from other areas of marketing onl) with respect to the

ob&ecti!es of the marketer and his or her organisation. )t has naturall) been adopted b)

the non,profit sector , such as 34Os, health trusts and training and education


19/28


Social Marketing ): Learner $rofile 7aring # $rincipled


The role of research here is to disco!erthe consumers6 perceptions of theproblem and the product through marketresearch, and to determine how importantthe) feel it is to take action against the

problem.

The social marketing 7product7 is notnecessaril) a ph)sical offering. Acontin""m of products exists, rangingfrom tangible0 ph)sical products e.g.

condoms-, to services e.g. medicalscreening-, practices e.g. health) eating-to more intangible ideas such as organdonation, rec)cling and en!ironmental

protection.


20/28


Social Marketing

!OL 4.& $roblem Solving

*ealth promotion campaigns in thelate 1/8s began appl)ing social

marketing in practice. Notable earl)de!elopments took place in A"stralia.hese included the 9ictoria #ancer

#ouncil de!eloping its anti'tobaccocampaign I"it 1/88-, andS"nSmart 1/88-, its campaignagainst skin cancer which had the

slogan Slip Slop Slap


21/28


Social Marketing


$ricing decisions are more problematic for thesocial marketer. )f the price or costs of actionoutweigh the benefits for an indi!idual, the

percei!ed !alue of the offering will be low and it

will be unlikel) to be adopted. *o(ever , if thebenefits are percei!ed as greater than their costs,

chances of trial and adoption of the product is

much greater.

$lace is also an important element of the marketing mi9 for social marketing.he issue is deciding how to ensure accessibilit) of the offering while maintaining

the >"alit+ of the ser!ice deli!er). :) determining the acti!ities and habits of thetarget a"dience, as well as their experience and satisfaction with the existingdeli!er) s)stem, researchers can pinpoint the most ideal means of distrib"tion forthe offering. 7harities are aware that the 6gi!ing6 process must be made relati!el)simple. !onations can be made online, with credit card or b) bank transfer or madethrough direct debit arrangements. Apart from ha!ing their own websites, 34Os

ha!e a presence on social networking sites such as 6acebook and T(itter .


22/28


Asset,led Marketing


Asset,Led Marketing a business strateg) based on the core strengths core

competencies3 of the firm. :"sinesses that adopt this approach use their core

assets, such as brand name, to de!elop and launch new products.

Asset,led marketing uses elements of both a market orientated and prod"ct

orientated approach to business. Asset,led marketing focuses the business;marketing strateg) on the business; main assets and uses these strengths to as a ke)element of their marketing strateg).

:"siness


23/28


Asset,led Marketing


)ncreasingl+ firms are market orientated i.e. the) start with the customer and

work backwards. The+ deliver what the customer wants and not &ust what the) canproduce.

*o(ever , there has been a change in focus in recent )ears. 6irms are now adopting

an asset,led orientation. he) disco!er customer needs and wants, but onl)

produce those products or ser!ices matching the firm;s strengths and experiences. $"t

bl"ntl+ the business in!ests time and mone) into what it knows it can produce and

produce well. This ens"res that the business concentrates on its core

competence rather than being drawn into markets where it lacks the necessar) skills

and experience. O"tline the advantages of asset,led marketing


24/28


Marketing of =oods # Services

The marketing mi9 are theingredients put together to make a

successful product in terms of both

sales and profits. he ingredients in

a marketing mix will !ar) from

product to product, &ust like different

food recipes re+uire different+uantities and t)pes of ingredient.

*o(ever , the marketing mix wasde!eloped essentiall) for

manufactured products, not for

ser!ices, and some !ital ingredientsor elements are missing from the mix

for a ser!ice, especiall) in the not,for,profit sector . In recent )earsthe $?s; ha!e been extended to

include elements more suited to the

features of a ser!ice. hese include@


25/28


Marketing of =oods # Services

!OL /.1 7omparing

!efine and e9plain these additional $s in the marketing mi9 for ser!ices


26/28


Marketing in Non,$rofit Organisations


The not,for,profit sector in man) de!eloped countries is significant and large

n"mbers are emplo+ed b) organisations such as N=Os non'go!ernmentalorganisations*charities-, go!ernment departments and religious organisations.

At one time marketing b) non,profit organisations was +uite amateurish.7harities often used !oluntar) labour or emplo)ed those with little business

knowledge. *o(ever , there has been a revol"tion in the last decade as

re+uests for donations for 6good causes6 ha!e become e!er more competitive.

As a conse>"ence, marketing experts ha!e been emplo)ed within large 34Os andthe ser!ices of external marketing consultants hired. Man+ charitable organisations

ha!e looked for additional (a+s of raising income. hese ma) include the

provision of services more commonl) seen in the profit sector . 7harities ma)

run retail outlets, or sell newspapers to raise funds. *ere the normal marketing

approaches associated with selling products appl).


27/28



!OL /.D Anal+sing $erspectives

The difference between profit and non,profit organisations comes down to

ob&ecti!es and terminolog). The creation of an appropriate image is important for

an) organisation, and so promotion needs to be effecti!e. 6irms in the private

sector ma) ha!e the ob&ecti!e to ma9imise re!enues and profits. 7harities ma)

ha!e the ob&ecti!e of maximising fund raising for their client groups. $rofit or s"rpl"sma), in realit), be !er) similar. he more charitable organisations sell, the more the) canfund their pro&ects.

!isting"ish bet(een social marketing strategies and marketing,led strategies


28/28




!efine and e9plain the follo(ing terms

7atchphrases slogan3%

!e,marketing%

$"blic Relations%

4.1 role of marketing.pptx

Documents