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Unit 4.1 the Role of Marketing
Chapter Goals you will understand …Marketing & how it relates to other business
functionsMarketing of goods vs. marketing of servicesMarket orientation v. product orientationCommercial marketing, social marketing,
social media marketingElements that characterize a marketMarket share; Market leadershipMarketing objectives profit v. non-profitsHow marketing strategies evolveHow innovation, ethics & culture influence
marketing practices and strategies
Definitions Essential to the success of any business.Quotes – page 247Kotler (1994) “Marketing is meeting the
needs of your customer at a profit”Getting the right product to the right
customers at the right price at the right time
Marketing impacts . . .All marketing decisions are affected by other
business functions:Finance and marketing – marketing costs $$HR – good marketing can increase demand;
may result in extra staff neededOperations – production & marketing work
together
Marketing goods v. servicesGoods Services
Are tangible Are intangible
Can be returned Can’t be returned – e.g. a bad haircut
Can be stored and consumed later
Cannot be stored; need to be consumed immediately
There is ownership of product No ownership of product
Easier to compare because of similar nature of products
More difficult to compare because of different experiences
• When selling goods, businesses focus on specific features.• When marketing a service, focus on customer service
Marketing Mix for Goods
ProductPricePlacePromotion
3 additional aspects discussed laterPeople; Processes; Physical Evidence
Product- v. Market-OrientedProduct-oriented
Inward-looking; focus on making the product 1st, then trying to sell
Product-led; assumes supply creates its own demand. Produce innovative products; tempt customers to buy
Market-oriented approachOutward-looking – carrying out market
research 1st; making products that can sellMarket-led; focused on establishing consumer
demand to supply products to meet consumer needs & wants
Product v. Market OrientedProduct-oriented approach
Microsoft, Ferrari, Dyson, Apple
Market-oriented approachFord, Sony, Samsung, Nokia
Look at benefits and limitations, page 250
Commercial MarketingCreating, developing and exchanging goods
or services that customers need and wantMarket research conducted to establish
consumer demand, and businesses supply what is demanded.
Commercial marketing is value-free and doesn’t involve moral judgments
Strategies used are tailored to product being sold
Strategies include traditional or online focusAlso, mass marketing or targeted marketing
Social Marketing“Use of commercial marketing concepts &
tools .. designed to influence individuals’ behavior to improve their well-being and that of society”
Wide concept involving many stakeholdersFocus on society’s long-term interests and
welfare.Examples – public health campaigns
Anti-smoking, drug & alcohol dangers; healthy eating
Social Media MarketingA marketing approach that uses social
networking sites to market productsBenefits:
Enables a firm to get direct feedback from customers
Low-cost way to reach a large target audienceCan enhance a firm’s brand
Most businesses use it as a supplement to other marketing methods and not as a replacement
Characteristics of the MarketMarket – an arrangement where buyers & sellers
exchange goods & services – Measurements:Market Size
By volumeBy value
Market GrowthPercent change in the market size over a period of
timeMarket Share
Percent of one firm’s share of total market salesMarket Leader – has many benefits
Marketing in Non-ProfitsDifferent from marketing in a profit
organizationNPOs engage in marketing more for social
marketing reasonsIncreasingly, NPOs are using more complex
marketing strategies to achieve their aimsUse marketing to inform and influence
behavior changeMajor drawback of most NPOs – limited
financing
Marketing StrategiesEvolve as a response to changes in customer
preferencesMarketing strategies must adapt to remain
relevant
Innovation, Ethics, Cultural DifferencesSpecific companies highlightedInnovation
Apple; NokiaEthics
Exxon, BPCultural Differences
Rolls Royce, Aston martin, McDonalds, KFC
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