4.1 The Role of Marketing
Transcript 4.1 The Role of Marketing
4.1 The Role of Marketing
What is Marketing?
The management task that links the
business to the customer by
identifying and meeting the needs
of customers profitably.
Get the right product at the right
price to the right place at the
Marketing Management Functions
What is Market Size?
Total level of sales of all producers
within a market.
Can be measured by volume of sales
Can be measured by value of sales
(total revenue generated)
What is Market Growth?
The percentage change in the total size of
a market (in volume-units or valuerevenue) over a period of time.
Growing markets may have many competitors
so profits may not be as high as expected.
The pace of growth
may depend upon external factors
may be affected by technology innovations
may be slow because of a saturated market
What is Market Share?
The percentage of sales in the total
market sold by one business.
Market share% =
firm’s sales for time period
total market sales for time period
Brand Leader is the company with the
highest market share.
Benefits of being Brand Leaders
Sales are higher then competitors
Retailers want to stock your product
Discounts are less likely to be given
Brand leaders can take of advantage of
marketing opportunities as the “leader”
Name brand leaders:
Computers? Cell phones? Soda?
Shoes? Fast Food? Potato Chips?
Sports Clothing? Cars?
Different strategies are used for
Consumer markets: markets for goods
and services bought by the final user of
Industrial markets: markets
for goods and services bought by
businesses to be used in the
production process of other
Marketing to Business
Will promote at industrial
exhibitions, trade shows, direct
Meet the needs of each customer by
Promote product as cost-saving or
Technical promotions and literature
targeted to a knowledgeable buyer
Marketing to Consumers
Marketing goods is different than
Services are consumed immediately; off-peak
times need to be dealt with
Service quality must be right the first time as it
cannot be done over
More difficult to compare services between
companies, so promotion must be detailed and
People (staff) must be trained well in providing
An outward-looking approach basing product
decisions on consumer demand, as established
by market research.
An inward-looking approach that focuses on
making products that can be made or have
been made for a long time – and then trying to
Requires market research to
determine what customer want to
New products less likely to fail
Product life span is likely to be longer
Continuing feedback from consumers
to keep product fresh
Businesses invent products they
believe will be useful and
consumers will want.
Pharmaceutical and electronics
Produce high-quality goods that
consumers will value
Safety equipment or gourmet foods
A detailed report on an
organization’s marketing strategy
SMART objectives (increase sales by 10% next quarter)
Strategic plans (steps needed to achieve objectives)
Specific marketing actions
(which markets, by when, which methods of promotion)
(how will the costs of the strategy be paid)