Transcript The 4 key Business Functions

The 4 key Business
Functions
An in depth look!
Whether it’s BIG Business or Small Business…..
Marketing
Marketing is the process of planning and executing
the conception, pricing, promotion and distribution
of ideas, goods and services to create exchanges
that satisfy individual and organisational objectives
Source: American Marketing Association
More simply……….
Marketing is a total system of interacting activities
designed to plan, price, promote and distribute products
to present and potential customers.
Marketing
• At the heart…the most fundamental question
all businesses should ask is
• “What do customers want to buy – now and in
the future? – this is the essence of marketing
• Finding out what the customers want then
attempting to satisfy their needs
• Successful marketing involves bringing the
buyer and seller together and making a sale.
Marketing and Small Business
• Some small businesses dislike marketing and turn
away customers others assume their product will
sell automatically.
• They place ads in local newspapers, display the
name on cars and even advertise on a regional
radio or TV station. However this in only ONE part
of marketing.
• Small business often view marketing and
marketing campaigns as something only BIG
businesses do.
Role of Marketing
• It is a way of thinking.
• Everything should be directed at putting the
customer at the centre of its thinking.
• As competition intensifies….businesses need
to view their business in terms of the needs
and wants of their customers
A customer oriented business is
the following……
Leads to the marketing concept
• The marketing concept is a philosophy
• All sections of the business are involved in
satisfying a customer’s needs and wants while
achieving the business’s goals.
Who is the customer?
• Businesses cannot afford to market their products
to ALL consumers or ALL businesses in Australia.
• Also, few businesses would want to do this
because it is a very rare product that is suitable to
all consumers.
• COKE is an example. It now offers a range of
carbonated soft drinks based on its original cola Coke Zero, Diet Coke, as well as non Cola drinks Pump water, Powerade, and Fruitbox juice drinks.
• Businesses MUST select specific target markets
There are 3 approaches in identifying
the target market
Provide a definition and an example for each
(see text pgs 220-223)
• Mass Market
• Market Segmentation
• Niche Market
The marketing plan and strategy
• The marketing plan should outline the
marketing goals (the what) of the business
• A business needs to develop marketing
strategies (the how) to achieve the goals
• Marketing strategies are actions undertaken
to achieve the business’s marketing goals
The marketing mix – 4
P’s
• To develop a marketing strategy you need to
examine the elements of the marketing mix
• The marketing mix refers to the combination of
the 4P’s - product, price, promotion and place
(distribution)
• Businesses can achieve the marketing goals of
the business through the marketing mix
The 4 Ps’ of the marketing mix
The business has control over these elements and uses them to reach its target market
Activity: Business As Usual Idea
• Using your original business idea e.g Rivas Sandwiches:
Define your target market. Refer pg. 219-222 to define WHO is
your target market.
• Write 1-2 sentences describing WHO they are e.g White Collar
workers aged 18-39 years seeking a healthy yet affordable
lunch package. This is known as the demographic
• Then provide some insight into them such as a bit about their
attitude and/or beliefs toward YOUR product or category. This
is their psychographic profile.
• Lastly, provide an image of your target market (use:google
images or getty images) This helps illustrates/defines what
they look like.
Activity: What is your Marketing Mix?
What is your product or
service? Provide 3
features
How would you best reach
your target market?
What is your pricing strategy
and why?
How do you distribute your
product or service?
Activity: Choosing the Promotional
Mix
• As a small business (Business As Usual idea), now that you have defined your
TARGET MARKET, choose a promotional medium that would reach them.
•That is, how do you best reach your target market? Where would your product or
service be highly noticed, how could you increase awareness of your product or
service?
•Promotional medium could be – outdoor advertising (bus shelter) , magazine ad,
radio announcement, letterbox flyer etc
• Prepare a ONE PAGE promotional piece of advertising for your business.
• Include – what is your product and price (if required). Try to promote the features
and benefits that you have to offer (vs. your competition), keeping your target
market in mind
• Be creative, colourful, and include images (eg. “food sells food”). STAND OUT.
• Upload this to your teacher on Edmodo by end of lesson
Operations
Finance
Operations