Production, Selling and Marketing Approaches

1. Describe the three marketing approaches:

a) Production approach: focused on the production of goods and services; focuses on

maximising production efficiency and reducing costs; it assumes that consumers will
prefer products that are widely available and affordable, and that the key to success
lies in mass production and widespread distribution; this approach was popular
during the 20th century, when the supply was limited and the demand is high.

b) Sales approach: emphasises selling techniques and high-pressure tactics to

persuade customers to buy a product; this approach is typically used for products
that are difficult to sell, have high competition or are expensive; more focused
towards generating sales by emphasising the product’s features

c) Marketing approach (stage one): identifying customer’s wants and needs through
market research and satisfying those wants and needs; thus reaching customer
satisfaction
d) Marketing approach (stage two):
i) Corporate social responsibility (CSR): Producing
ecologically sustainable products (development and use of
methods of production including minimising packaging and
recycling) makes marketing practises ethical and helps attract
more customers to buy the business’s products. Minimising
carbon emission - businesses are aiming to reduce their carbon
footprint because of issues of climate change.

ii) Customer orientation: involves collecting information from

customers and basing marketing decisions and practices
(marketing strategies) on customers’ wants and interests. By
listening to what customers want the businesses are more likely to
maximise their sales and profits.

iii) Relationship marketing: focuses on encouraging repeat

business by building personal, long term bonds with its existing
 customers . It is a concept based on individualised treatment of
customers. It is aimed at creating customer loyalty to generate
repeat sales.

2. Using your laptops research one business that has adopted corporate social responsibility
and discuss the outcomes for this business (Body shop, Woolworths): Also focus on Apple and
its social responsibility.

The company has implemented a range of CSR initiatives that align with its mission to make a
positive impact on people and the planet. Here are some examples of how The Body Shop has
adopted CSR:

a. Ethical sourcing and fair trade practices: The Body Shop sources its raw materials
from suppliers who adhere to ethical and fair trade practices. The company ensures that
the suppliers pay fair wages, provide safe working conditions, and use environmentally
sustainable practices.
b. Animal welfare: The Body Shop is committed to using only cruelty-free and vegetarian
ingredients in its products. The company does not test its products on animals and
advocates for animal welfare globally. Environmental sustainability: The Body Shop has
implemented several initiatives to reduce its environmental impact. For instance, the
company uses renewable energy, sources sustainable materials, and promotes
recycling.
c. Community engagement: The Body Shop actively engages with local communities and
supports various social causes. For instance, the company supports campaigns against
gender-based violence, partners with organisations that promote mental health, and
supports community projects.

The outcomes of The Body Shop's CSR initiatives have been positive for the business in
several ways. Firstly, the company has built a strong reputation as a socially responsible brand,
which has helped to attract and retain customers who value ethical and sustainable practices.
Secondly, the company's CSR initiatives have helped to reduce costs, increase efficiency, and
drive innovation, which has improved the bottom line. Lastly, The Body Shop's CSR initiatives
have enabled the company to make a positive impact on society and the environment, which
aligns with its core values and mission.
3. Match the type of orientation to marketing, with the scenario given. Use (P) for production, (S)
for selling and (M) for marketing.

Making goods first with the expectation that they will sell. P

An emphasis on selling technique. M

Researching customer preferences prior to creating a new product M

design.

Door-to-door retailing. S

Telemarketing (calling people over the phone). M

Offering a customised service. S/M

Creating a new factory to mass-produce identical items for a global P

market.

Designing a new advertising campaign that emphasises the need for M

the product of an ageing population.

Working on an approach that helps people to answer ‘yes’ to a series M

of questions prior to propositioning them with the product.

Bruce’s Juices Pty Ltd manufactures and sells a range of fruit drinks. The business has been
successful because it undertook extensive market research to find out the needs and wants of
the consumer before any products were made. That is, it focused on the marketing concept. As
a consequence, the business developed a range of drink products to meet the needs and wants
it identified through its research .

4. Assess why it is important to understand the needs and wants of the customer when
marketing a product or service.

Knowing the customer's needs and desires is critical when marketing a product or service for
various reasons:

By knowing the customer's needs and desires, firms can tailor their product or service to match
the specific needs of their target audience. This guarantees that the product or service matches
the expectations of the customer, leading to increased customer happiness and loyalty.

As well as, understanding the requirements and desires of customers allows organisations to
create marketing strategies that resonate with the target demographic. Businesses may
effectively communicate the value of their product or service by designing advertising messages
and campaigns that respond to the customer's pain areas and wants.

5. Describe what relationship marketing involves.

Relationship marketing is a marketing strategy that prioritises long-term client relationships over
new customer acquisition. It entails developing and maintaining consumer relationships through
personalised interactions, communication, and involvement.

Relationship marketing seeks to develop and maintain strong customer connections by

recognising and addressing each client's unique needs and preferences. This is accomplished
by gathering and evaluating data on customer behaviour, preferences, and feedback, and then
tailoring marketing efforts to each customer's individual needs

Loyalty cards
In the 1990s, a manager at Wal-Mart, the massive US discount retailer, noticed a correlation between
the purchase of nappies and beer: on Friday afternoons, men aged between 25-35 bought both
products. The manager decided to put beer next to nappies, and sure enough, beer sales increased
spectacularly.

Although this may only be an urban legend, it does illustrate how insightful marketing, which acts on
consumers’ shopping behaviour, can increase sales and profitability. A loyalty program helps companies
with insightful marketing, but on a much larger scale than the Wal-Mart example. Scanned data shows
what items are bought, when and how, as well as which items are purchased together. Loyalty program
data, however, gives much deeper insights, showing who buys what and their behavioural shopping
patterns, and then links this data to customer demographic and psychographic information. This is
known as data mining, and begins with the information you give the store when you apply for the
loyalty program.

Advanced analysis of this data, coupled with your shopping history and behavioural tracking, allows
different groups of consumers to be profiled. “Customers can be segmented on any number of
attributes using loyalty card data,” says Carla Ferraro, Research Fellow at the Australian Centre for
Retail Studies at Monash University. “For example, functional shoppers visit when they need to and
typically only buy what is on their shopping list; social shoppers visit more often as part of their
broader leisure activity and buy more impulse items; and value-conscious shoppers visit and typically
purchase when products are on sale or are attached to a sales promotion.”

Stores can now design targeted marketing material according to consumers’ specific spending habits,
which you’re more likely to read and act upon by coming into the store. Woolworths, for example,
recently sent out a personalised offer to selected customers giving them the chance to win one million
frequent flyer points if they bought three Nestlé products before a specified date and presented their
Everyday Rewards card.

Myer has the numbers to prove that customers with loyalty cards – and especially those who receive
marketing emails – spend more. While this could be because customers who are high spenders are more
likely to sign up for loyalty programs, it’s interesting to note what difference it makes if they receive
email marketing material: Myer customers spend an annual average of $795 in store, while loyalty card
customers spend $822. Loyalty card customers who’ve registered their email address top the list, with
an annual spending average of $971 per year.

Supermarkets are gearing up for similar results. Their goal is to encourage consumers to buy specific
products, get you into the shop more often to spend larger amounts and ultimately reinforce their
relationship with you (and discourage you from shopping at their competitors). And the evidence
suggests supermarket loyalty programs are getting there. “The total basket size has jumped up for
customers who have linked their Everyday Rewards card to the Qantas Frequent Flyer scheme,” says
Richard Umbers, Woolworths’ General Manager of Customer Engagement.

6. Analyse the benefits of relationship marketing for the above businesses: