Topic 4

1. Topic 4 Marketing - The role of marketing

2. Learning objectives • Recognise the difference between market orientation and product orientation • Understand the distinction between consumer goods and service markets and industrial markets • Analyse the marketing of non-profit making organisations • HL – Analyse asset led marketing and social marketing

3. http://www.huhmagazine.co.uk/5532/video-a-short-film-about-overconsumptionhttp://www.huhmagazine.co.uk/5532/video-a-short-film-about-overconsumption

4. Marketing consumer goods and services • Tangible goods are marketed in different ways to intangible consumer services • Why?

5. Marketing approachesMarket orientation and product orientation • The move towards market orientation (market led) is becoming common • But, product orientation is still there • Technology becoming available and passing this onto consumers • Product orientation is based on producing high quality goods Market Orientation Outward looking approach basing product decisions on consumer demand, as established by market research Product Orientation Inward looking approach that focuses on making products that can be made – or have been made for a long time – and trying to sell them

6. Evaluation of these two approaches • Trying to cater to all consumers needs and wants and ever changing trends is reliant on resources available • Investing into R&D to create a product may prove better – Dyson vacuums

7. HL Asset – Led Marketing • Approach to marketing based on a firms strengths and assets instead of purely on what the customer wants • Uses market research too but focuses more on its own strengths (competencies) • E.G Levis only produces clothes

8. HL Social Marketing • Considers not only the demands of consumers but also the effects on all members of the public involved in some way when the firms meet these demands • Includes stakeholders • Social marketing implications • Attempts to balance three concerns: company profits, consumer wants, society’s interests • May be a difference between short term consumer wants (low prices) and long term consumer welfare • Businesses should still aim to identify consumer needs and wants but in a way that enhances consumer welfare • Gives a competitive advantage and consumers usually prefer socially responsible companies

9. I´m having a TOK moment Social marketing poses a question Is the central purpose of marketing a management tool to help maximise profits or should it be a means of satisfying consumer needs profitably, but with minimum damage and cost to society? DEBATE

10. Marketing in non-profit making organisations • Important to maintain high ethical standards • Constant feedback on the success of charity campaigns • Free publicity, fund raising etc.

11. Marketing Plans • Detailed report on an organisation’s marketing strategy • Key components include: • SMART marketing objectives • Strategic plans • Specific marketing actions • Marketing budget

12. Marketing plans Benefits Limitations Plans are not revised to meet changing internal \ external changes Constant reviewing • Plans provide focus • Marketing strategies linked to SMART objectives will increase likelihood of success • Budget should be adequate