4.

1 The Role of Marketing

Marketing
The management process responsible for the identifying, anticipating and satisfying of
customer requirements profitably.

Market Orientated Approach

A business strategy that focuses on the needs and wants of consumers and develops
products to meet them. ex. McDonalds

Advantages:
- Less risk of failure
- Higher survival rate
- More interactive with the market

Product Orientated Approach

The business develops products based on what it is good at making or doing, rather than
what a customer wants. ex. Apple, Ferrari

Commercial Marketing
The use of marketing strategies to meet the needs and wants of customers in a profitable
way. Often "value-free", and focuses more on profit than social aspects.

Social Marketing
A concept involving other stakeholders. It ensures that businesses make good marketing
decisions based not only on customers' wants and the firm's requirements, but also on
society's long term interests and welfare. ex Public Health Campaigns

Advantages:
- Premium Price
- Competitive Advantage

Market Research
The gathering and analysis of information on the size, location, and makeup of a product
market
Market
An arrangement where buyers and sellers interact and services are exchanged. It includes
actual, as well as potential buyers or customers of a product whose needs or wants are
satisfied by sellers or supplies in the exchange process.

Fast Growing Market - Cryptocurrency, Electric Cars

Slow Growing Market - Gaming Consoles
Declining Market - DVD, Diesel Engines

Market Share
% of sales of a market that 1 company has

𝐹𝑖𝑟𝑚 𝑆𝑎𝑙𝑒𝑠
Formula: 𝑀𝑎𝑟𝑘𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
* 100

Market Leader - A firm with the highest market share in a given market

Market Leader Advantages:

- Growth
- Branding
- Economies of Scale
- Advertising

Marketing Goods and Services

Intangibility - Goods are tangible, whilst services are intangible. Service purchases
generally made by trust. Easier to market a good.

Inseparability - Means it is not possible to separate the production and consumption of a

service. Services are consumed at the time of purchase

Heterogeneity - Mass production of standardised goods (homogenous). Services are

different for different customers (heterogeneous)

Perishability - Services cannot be stored. Goods are generally durable and can be stored.

Product Strategy - Many businesses provide value-added services to attract customers,

like Free Wifi or Delivery

Price Strategy - Get right pricing strategy to attract customers and also covers production
costs and generates profit

Promotional Strategy - Promoting a service can be a challenge for marketers as it is

intangible. Businesses often use the physical environment to promote their services like
hotels, gyms and schools
Place Strategy - The location decision is vital for the marketing of services as customers are
unlikely to visit restaurants, hotels, theatres, banks and retailers in highly inconvenient or
remote locations. ost goods can be ordered online so the location decision is less important
provided there are effective distribution channels to deliver the products to customers

Marketing and other Business Functions

Operations - Marketing forecasts sales and operations ensure demand is met by capacity.
Work together to research, develop and launch products
Finance - Work together to calculate budgets for marketing, and also prices to meet profit
targets
Human Resources - Identify staffing needs together, and HR will employ more if necessary