Transcript Strategic role of marketing

Topic 2
Marketing
CHAPTER SIX
ROLE OF
MARKETING

http://resources3.news.com.au/images/2011/09/07/1226131/677651-queensland-is-facing-a-milk-shortage.jpg

http://resources0.news.com.au/images/2011/02/10/1226003/990464-milk.jpg
http://www.google.com.au/imgres?q=milk+types&um=1&hl=en&biw=1152&bih=659&tbm=isch&tbnid=0z08tL0g6Si6gM:
&imgrefurl=http://www.dailymail.co.uk/news/article-466094/Tesco-stocks-38-different-varietiesmilk.html&docid=Zbipp4qGCtdNTM&imgurl=http://img.dailymail.co.uk/i/pix/2007/07_01/milkGraphicDM0407_600x612.jp
g&w=600&h=612&ei=YSoWT6SZMMnRmAXJ3-jCQ&zoom=1&iact=hc&vpx=714&vpy=134&dur=4071&hovh=227&hovw=222&tx=83&ty=128&sig=115141124347537837707
&page=1&tbnh=141&tbnw=138&start=0&ndsp=17&ved=1t:429,r:3,s:0
Marketing
A definition:
Involves the process of a business developing a product and
implementing a series of strategies aimed at correctly promoting,
pricing and distributing the product to a core group of customers.
Successful marketing aims to connect the business with the
customer by satisfying a need. I.e. adopting a customer-focused
ethos or orientation, meaning that it is a process where a business
attempts to identify customers’ wants/needs (through market
research) and then it plans, prices, promotes and distributes the best
product or service to the market. Thereby, creating a competitive
advantage.
A business needs to create products that customers want to buy.
Successful marketing activities can lead to not only more choices of
goods and services for consumer, which improve living standards,
but marketing also leads to:
 increased customer awareness of products, market share and
therefore; and
 more sales revenue and profits are earned by the business.
The strategic role of marketing
goods and services
 The strategic role of marketing – refers to
the important role that the marketing
function of a business has in helping a
business to meet its goals/objectives e.g.
goals of increasing brand awareness
amongst target markets, increase market
share, sales and profits.
 The marketing activities of a business also
have a strategic influence on our economy
and society, in that marketing activities
provide consumers with a choice of goods,
create employment opportunities and
improve our standard of living.
Strategic role of marketing (cont.)
 Choice
Marketing provides consumers with a choice of goods or services to select from. For
example think of all of the choices you have when you go shopping for a loaf of
bread or carton of milk. Think about the options you have when buying a carton of
milk (dairy, soy, rice, “lite”, skim, added calcium, iron, organic and then there is
cheap milk at $2 for 2 litres versus more expensive brands). Or, “Would you like
white bread, brown bread, high fibre bread, toast slice, thin slice…!”.
Businesses use marketing:

to differentiate themselves from their competitors and these provide
consumers with greater choice when purchasing a product; and
 also, to establish a competitive advantage from other businesses by offering
customers a choice in relation to the price, product quality and features of
products. E.g. Would you like white bread, brown bread, high fibre bread, toast slice,
thin slice…! Brands: Tip Top, Uncle Toby’s, Helgas & Bergen.
Task: is there such a thing as too much choice? Write down your experience of when
you may have felt this to be true?
Strategic role of marketing (cont.)
 Standard of living
Businesses will often develop and market products that improve our lifestyles and
enhance standards of living. E.g. a prolific number of milk varieties available. Task:
Name other goods or services that improve an individual’s quality of life.
 Employment
Businesses provide an important source of jobs for many Australians. To provide a
product to consumers, businesses must employ labour to assist in transforming input
resources into finished products. Labour is also required to sell these goods and
services. Task: look up an advertisement for a marketing manager www.seek.com.au .
Summarise the features of the job.
 Brand awareness
Brand awareness refers to the extent that customers are aware of a business’s product,
brand name and its features. Task: List all the products you have bought in the last week
by brand name. Why did you choose each product over other competitors’ products?
The “supermarket wars”
February 07, 2012
Strategic role of marketing

(cont.)
Market share
Definition: Market share is the percentage of total sales a business has compared with its
competitors within a particular market.
Businesses will attempt to build their market share by developing, promoting and pricing
products to a standard that will give the business more customers than its competitors, raise
sales and profits and create more brand awareness of amongst customers. E.g. Coles and
Woolworths spend a large sum on advising in the print media and on television to promote the
products sold in their stores and build market share. Task: Who is winning the “supermarket wars”.
Read the article to find the answer: “This time it's personal as Coles and Woolworths fire artillery”
http://www.theaustralian.com.au/media/marketing/this-time-its-personal-as-coles-andwoolworths-fire-artillery/story-fna12mff-1226263164398 From: The Australian February 06, 2012
1.
Note the trends in the amount spent on marketing for both Coles and Woolworths.
2.
List all the marketing strategies from the article.
3.
Who are the winners and losers in this “war”.
Interdependence with other key
functions
1.
Read the attached handout page 101 to 102.
2.
Write a definition of “interdependence with other
key functions”.
3.
Explain TWO ways finance and marketing are
interdependent.
4.
Outline how marketing influences operations.
5.
Describe how marketing decisions can affect
human resource staffing decisions. Use an
example.
6.
Watch one of the latest SuperBowl television
advertisements. http://www.superbowlcommercials.org/14261.html
a) What type of marketing strategy is this? Which ”P”?
b)
Describe the effect the advertisement would have
on the operations and finance functions of the
business.
Approaches to marketing
Over the past 100 years approaches to doing business have
changed from focusing on the product to focusing on the
customer.
The development of marketing can divided as follows:
Production
Orientation
Sales
Orientation
Marketing
Orientation
1820’s – 1920’s
1920’s – 1960’s
1960’s - present
Approaches to marketing
Marketing approaches are the different philosophies or ways of thinking that
businesses may use when marketing their products. There are three core
approaches to marketing:
1. Production approach e.g. Henry Ford
Relies on the view that consumers base their purchasing decisions on the quality
of the product and businesses will therefore focus on providing good quality
products to meet customers high standards. Marketing was to simply take
orders and deliver products.
2.
Selling approach
The selling approach considers the skills of selling to be the most important task
of marketing. An emphasis on selling and advertising. Based on the belief that a
business will be successful in selling a product if it is able to promote the benefits
of the product to its target market. Saw the rise of the salesman and use of
advertising to sell products.
Approaches to marketing
3. Marketing approach
Began with marketing boom after WWII. First time most families had discretionary
income = money available after buying basic necessities.
The basis of which is that the customer is at the core of all business activities. It
involves adopting a customer orientation with the belief that all actions from
product design, pricing, distribution etc should be aimed at satisfying the needs
of the customer.
Consumer markets
Consumer markets consist of the
following markets:
 Mass markets – apply to goods
and services that appeal to all
types of consumers.
 Market segments – where a
business chooses to focus on
only one area of particular
market.
 Niche markets – a smaller
section of a market segment.