Marketing

1. Marketing To develop an understanding of the nature and role of marketing in a bs and the main elements involved in the development and implementation of successful marketing strategies.

2. Students Learn To: • Use existing case studies to investigate and communicate ideas and issues relating to marketing. • The focus of these case studies will be to: • analyse and evaluate marketing strategies for a product or service • analyse the marketing plan of a bs • construct a marketing plan for a single product/service (real or imaginary).

3. nature and role of markets and marketing • What is marketing? • Marketing is the process by which businesses attempt to connect the needs and desires of customers with their own need to fulfil their stated objectives.

4. the role of marketing in the firm and in society • Marketing is the process that forms the link between the needs of a business to achieve it’s objectives and the needs of customers to have their wants satisfied. • This leads to two primary goals: • To increase the demand of goods and services • To increase awareness of the range of goods and services

5. Types of markets – • resource – eg: human, natural and financial resources • industrial –used in the production of goods and services • intermediate – a facilitator eg: broker, wholesaler who assists with the product from producer to consumer • consumer – buy goods for personal consumption • mass – producing one product for the whole market eg: bread, milk • niche – small specialised market eg: Rolls Royce

6. production-selling-marketing orientation • Production – consumers will favour products that are easily available and highly affordable • Selling – bs undertakes large scale selling and promotion • Marketing – consumer needs is the most important factor in this orientation.

7. the marketing concept – customer orientation, relationship marketing • customer orientation – managers organise their marketing according to a consumer’s point of view • relationship marketing – creating and maintaining relationships with consumers (consumer loyalty)

8. marketing planning process • analysing marketing opportunities • researching and selecting target markets • designing marketing strategies • planning market programs • implementation and organising strategies • controlling the market

9. Elements of a marketing plan • A brief overview of the proposed marketing plan • (overall strategy, major activities and expected results). • The situation analysis • Market analysis • External influences (economic, government, technological) • Internal influences (quality & quantity of bs resources) • The product analysis • Product lifecycle (establishment, growth, maturity, post-maturity) • Competitor analysis • SWOT Analysis • Establishing market objectives • S – Specific (stated as clearly and precisely as possible) • M – Measurable (sales to increase by 5%) • A – Achievable (with the resources and capabilities of the bs) • R – Realistic (in terms of time frame) • T – Timed (within 12 months)

10. Identifying the target market • Selecting target markets • Target market strategies (mass market, niche market) • Developing marketing strategies (the 4 P’s) • Product (colour, features, reputation, brand name) • Price (price strategy, discount, credit terms, conditions) • Promotion (media advertising, shop displays) • Place (channels used for distribution) • Implementing, Monitoring and Controlling • Developing a financial forecast – research • Comparing actual and planned results • Revising the marketing strategy

11. market research process • determining information needs, data collection (primary and secondary), data analysis and interpretation • Primary – data specifically gathered first hand eg: surveys • Secondary – data gathered previously eg: ABS

12. customer and buyer behaviour • types of customers – • people, households, firms, educational institutions, governments, clubs and societies, religious organisations

13. the buying process – buyers and users • Buyers – have formal authority to select the supplier and arrange terms of purchase • Users – members who will use the product / service but not buy it.

14. Factors influencing customer choice – • Psychological – perception, motives, attitudes, personality Socio cultural – family & roles, peer groups, culture • Economic – boom, contraction, recession, expansion • Government – economic policies to influence economic activity

15. developing marketing strategies • market segmentation and product/service differentiation • A bs segments its markets so it can direct its marketing strategies to specific groups of customers rather than the total market.

16. Product and service • Position – the development of a product image • Branding – a name or symbol that identifies a specific product • Packaging – the development of a container and the graphic design for a product

17. Price including pricing methods – • cost – bs determines total cost of production and then adds an amount for profit • market – bs’s set prices according to supply & demand • competition based – bs’s choose a price based on competition

18. Pricing strategies – • Skimming – highest price possible • Penetration – lowest price • Loss leaders – large bs sells below cost to attract many customers • Price points – key prices for selected product lines eg: $29.95

19. Price and quality interaction – Helps determine the image customers have of products or brands Infrequently purchased items eg: houses, cars display a stronger price-quality relationship.

20. Promotion – personal selling (sales reps to make sales), advertising (paid, non-personal message through mass medium), below-the-line promotions (the bs does not use an advertising agency eg: exhibitions, demonstrations), public relations (those activities aimed at creating and maintaining favourable relations).

21. Opinion leaders – a person who influences others eg: swimmers, actors, musicians Word of mouth – people influence others through conversation (trusted more)

22. Place/distribution • - Distribution channels & reasons for intermediaries – the routes taken to get the product from the factory to the customer eg: wholesaler, agent or retailer.

23. Channel choice : • Intensive –bs wishes to saturate the market eg: convenience goods, shop at local outlets • Selective – customer prepared to seek out retailer for a certain brand eg: electrical, furniture • Exclusive – one retail outlet for large geographic area

24. Physical distribution issues: • Transport – intricate network to deliver vast amount of products • Warehousing – set of activities in receiving, storing and dispatching goods • Inventory – system that maintains quantities of stock.

25. Environmental effects on distribution – • Technology (telemarketing, Internet marketing) • Local government (land zoning, new development applications, fire regulations, parking regulations, health regulations, bs signs)

26. Ethical and legal aspects – • Environmentally responsible products • Creation of needs • Impacts of retail developments • Sugging – selling under the guise of research

27. Role of consumer laws in dealing with: • Deceptive and misleading advertising • Price discrimination • Implied conditions • Warranties • Resale price maintenance