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Business Studies - Marketing
This section develops an understanding of the importance of Marketing to busi...
Business Studies- AS Level
Marketing - ::. 1 .::
Definitions for Marketing
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American Marketing Association
“Marketing is an organizational function and a set of processes for creating,communicating and delivering value to customers and for managing customer relationships in ways that benefits the organizations and stakeholders.
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Social definition for Marketing
” Marketing is a societal process by which individuals and groups obtain whatthey need and want through creating, offering and freely exchanging products andservices value with others. Some think marketing as an “art of selling”, but if justa part of marketing. Understanding customers and developing products are always better.
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Philip Kotler
“Marketing s the social process by which individuals and groups obtain whatthrough creating and exchanging products and value with others.
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Chartered Institute of Marketing
Marketing is the management process that identifies anticipates and satisfiescustomer requirements profitably.
Difference between selling and marketing
SellingMarketing
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Emphasis is on the product.
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Company first makes the product andthen figures out how to sell it.
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Management is sales volume oriented.
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Planning is short run oriented, in termsof today’s products and markets.
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Needs of sellers are stressed.
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Emphasis is on customers’ wants.
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Company first determines customers’wants and then figures out how to makeand delivers a product to satisfy thosewants.
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Management is profit oriented
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Planning is long run oriented, in terms of new products, tomorrow’s market, andfuture growth.
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Wants of buyers are stressed.
What is marketing?
1
Marketing people are involved in marketing 10 types of entities: goods, services, experiences,events, persons, places, properties, organizations, information, and ideas.
Goods -
Physical goods constitute the bulk of most countries’ production andmarketing effort.
Services -
Focusing on the production of services.Eg—Airlines, Banks, Lawyers, Hotels
Experiences -
By orchestrating several services and goods, one can create, stage,and market experiences.Eg- Walt Disney World’s Magic Kingdom is an experience, Millennium park in Sri Lanka
Events-
Promoting time based eventsEg—such as the Olympics, trade shows, sports events, and artistic performances.
Persons -
Celebrity marketing has become a major business.Eg—Artists, musicians
Places -
Cities, states, regions, and nations compete to attract tourists, factories,company head quarters, and new residents.
Properties -
Properties are intangible rights of ownership of either real property(real estate) or financial property (stocks and bonds). Eg-
Organizations -
Organizations actively work to build a strong, favourable imagein the mind of their publics.Eg - Philips, the Dutch electronics company, advertises with the tag line, “Let’sMake Things Better.” The Body Shop and Ben & Jerry’s also gain attention by promoting social causes.
Information -
The production, packaging, and distribution of information is oneof society’s major industries.Eg- publishers of encyclopaedias, nonfictions books, and specialized magazines;makers of CDs; and Internet Web sites.
Ideas -
Every market offering has a basic idea at its core. In essence, products andservices are platforms for delivering some idea or benefit to s
atisfy a core need.
Marketand product orientation
A
marketing orientated
approach means a business reacts to what customers want. Thedecisions taken are based around information about customers’ needs and wants, rather thanwhat the business thinks is right for the customer. Most successful businesses take a market-orientated approach.A
product orientated
approach means the business develops products based on what it is goodat making or doing, rather than what a customer wants. This approach is usually criticised because it often leads to unsuccessful products - particularly in well-established markets.
2
Most markets are moving towards a more market-orientated approach
because customershave become more knowledgeable and require more variety and better quality. To compete, businesses need to be more sensitive to their customers needs otherwise they will lose sales totheir rivals.
Marketing Objectives
Defined as:
marketing ‘goals’ that the business must achieve in order to meet its wider businessobjectives
Main ones for most businesses tend to be:1.Growth in market share2.Clearer product differentiation
3.
Long term brand value to customers4.Creating and launching new products / services – ‘InnovationExamples of marketing objectives follow:
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Increase product awareness among the target audience by 30 percent in one year.
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Inform target audience about features and benefits of our product and its competitiveadvantage, leading to a 10 percent increase in sales in one year.
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Decrease or remove potential customers' resistance to buying our product, leading to a 20 percent increase in sales that are closed in six months or less.
Niche market Vs Mass Marketing
A
niche market
is the subset of the market on which a specific product is focusing on; Thereforethe market niche defines the specific product features aimed at satisfying specific market needs,as well as the pricerange, production quality and thedemographicsthat is intended to impact
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Business Studies - Marketing
This section develops an understanding of the importance of Marketing to businesses and how it influences
their competitiveness. Knowledge of marketing principles and technique... (More)
their competitiveness. Knowledge of marketing principles and technique... (More)
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