Subject: Business Studies

Topic: The role of marketing

Pages: TB 177 – 180
Objective:
To understand the importance of marketing
Key terms:
Market – all the producers and consumers of a
given product.
Marketing – the anticipation, identification,
creation and satisfaction of consumer needs and
wants.
Product-oriented firm – a business that focuses
on production processes and products.
Market-oriented firm – a business that focuses
on identifying consumer needs and wants using
market research.
Marketing mix – the combined elements of a
marketing strategy focused on the design, price,
promotion and place of sale of a product.
Niche marketing – a marketing strategy aimed at
a small, specialized market.
Niche market – a small part or segment of a
large market consisting of consumers with
specialized tastes of preferences.
What is marketing? Marketing involves
anticipating, identifying and satisfying consumer
needs and wants.

For marketing to be successful it must be able

to:
• Identify consumer needs and wants.
• Satisfy consumer needs and wants.
• Anticipate changes in customer needs and
wants.
• Create and maintain customer loyalty.
• Generate revenues and profits.
Difference between a product oriented firm and a market oriented firm
Product –oriented firms
Develop products and then try to find or
create a market for them. This can be a
risky strategy if ultimately consumers do
not want their products.
Product-oriented firms produce
foodstuffs and materials, such as corn,
cotton and steel, that do not require
fancy packaging. They do not spend
much money on advertisement. Their
consumers are much concerned about
the products’ price, quality and
availability.
Businesses introducing advanced
technologies for the first time may also
be product oriented because until the
new technology has been tried and
tested there will be no market for it.
Market-oriented firms
First investigates whether or not there will
be enough consumer demand for its
product.
. They try to avoid the risk of producing
products that consumers will not buy
because of their large scale production.
They continually review and analyse market
trends and modify their product design,
pricing strategies and other marketing
activities to ensure that they continue to
satisfy consumer wants. They are also able
to identify when new market opportunities
arise and try to be the first to take
advantage of them.
 Objectives of marketing includes the following:
1. Raise consumer awareness of a product of the
organization.
2. Improve the image of a product or the organization.
3. Improve the design and quality of existing products.
4. Develop and introduce new products.
5. Maintain or increase market share.
6. Enter new markets at home or overseas.
7. Encourage repeat purchases and maintain customer
loyalty.
8. increase and sustain higher levels of sales and
profits.
 Question and answer session
1. Define the term “marketing”
2. What does marketing involve?
3. List two differences between product-
oriented firm and market-oriented firm.
4. List five objectives of marketing.