Chapt 1B - Markets and Mktg

8/3/2019 Chapt 1B - Markets and Mktg

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Chapter 1BMarkets and Marketing

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3.1 Market forces

The market forces are as follows:

- Motivation of consumers

- Trade motivation and attitudes trade structure and practices

- Competition analysis refer to course book for list of competition

analysis questions

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A competitor orientationA competitor orientationis veryimportant for an organization asit must develop an awareness

and understanding of itscompetitors, their strengths and

weaknesses and the essence oftheir strategic approach.

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What is a marketing mix?What is a marketing mix?

The marketing mixmarketing mixis probably the mostfamous marketing term. Its elements

,marketing plan. Also known as the FourP's, the marketing mixelements areprice, place, product, and promotion.

Source: http://marketingteacher.com/lesson-store/lesson-marketing-mix.html

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Marketing

Mix

The Four CsThe Four Cs

3.2 The ingredients of the marketing mix

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Product

Price Promotion

Place

CustomerSolution

Customer Cost Communication

Convenience

2000 Prentice Hall


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What is a product?What is a product?

A productis what the

consumer buys. Aproduct is composed ofa bundle of features

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3 Level s of a Total Product

Figure 1 Three levels of product


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3.2 The ingredients of the marketing mix (contd)

- The core product is the most basic description of the product

- The actual roduct includes physical features such as powerful engine,comfortable seats and sun roof

- The augmented product Core product plus the benefits which come with it such as

delivery, servicing, warranties and credit facilities for buyers.

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When setting prices, what aspects

must companies think about?

- Costs fixed cost the do not chan e over a iven level of roduction or sales e. . factor rent

&staffs salaries

variable cost they do change with a level of production e.g. manufacturer spends more on

materials to meet the increased production, more on light, heat and power and more ontransportation.

- Competitors prices

- Consumers perceptions of value some consumers expect to pay a high price because they suspect that a cheap

product will be of low quality.

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Can you sell anything without getting in

touch with your customers?Organizations rely on third parties to reach customers:

- Merchantsa e e o e goo s, a s ey ecome owners o e goo s. ey en rese em.

Wholesalers and retailers are in this category.

- Agents and brokers They do not own the goods but merely assist in the transfer of ownership from say the

manufacturer to customer. E.gs. insurance brokers and estate agents.

- Franchising Is a means of gaining distribution for a product or service. Operator invests their own money and receives guidance and support from the company

behind the operation. E.g. The Body Shop, Kentucky Fried Chicken.

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How could a potential buyer be

influenced, informed or persuadedby you?

The different ways of promoting your product using promotional mix are:- Sales promotion- Advertising- Direct marketing

- Personal selling and- Publicity

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Refer to course book pg 24 fora list of constant attempt to

promotional expenditure.

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You need to match the companys strengths to the

customers needs more effectively than thecompetition can do.

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Definition:

A serviceA serviceis any activity orbenefit by one party to another

w yand does not result in theownership of anything physical.E.g. seat on an aircraft.

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Special characteristicsof services are:

- Intangibility- Variability- Inseparability

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Additional marketing mixfor services are:- Process

- Physical evidence- People

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4.1 Marketing management

Definition:

Marketing managementis

e process o ev s ng,implementing and monitoring

the marketing plan. It involvesanalysis, planning and control.

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4.2 The development of marketingdepartments

4.3 Relationship with otherdepartments

- Read course book page 28 & 29.

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5.1 Societal marketing and social responsibility

Definition:

The societal marketing conceptis a managementorientation that holds the key task of the organizationis to determine the needs and wants of target markets

satisfactions more effectively and efficiently than itscompetitors in a way that preserves or enhances theconsumers and societys well-being.

Social responsibilityis accepting responsibilities tothe various publics of an organization which gobeyond or legal requirements.

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All firms have a responsibility to society as

a whole and to the environment.(a) Some products which consume energy (e.g. motor cars)

should perhaps make more efficient use of the energy theyconsume.

(b) It may be possible to extend the useful life of certainproducts

(c) Other products might be made smaller, so that they makeuse of fewer materials (e.g. products made using microtechnology)

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Read course page 30 to 32 for 5.2 Social

responsibility, business objectives andethics.

.Responsibilities to stakeholders(customers; community; employees;suppliers; competitors).

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Chapt 1B - Markets and Mktg