4.1 marketing presentation

8/8/2019 4.1 Marketing Presentation

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4.1 The Role of Marketing

Shivani ButalaJini Huh

Jane Kang

Lauren Tatsumi

Period 0

Group 1



Introduction

Marketing- Exists to address the needs and

wants of society ± Needs are essential necessities that are needed

to survive

± Wants are things that are desired but not

necessary All about convincing customers to buy

products of a business



Objectives of Marketing

Make sure correct products are supplied to

satisfy the wants and needs of customers Set the right price so customers can afford to

buy a product and not buy from a rivalbusiness

Distribute products to a place that is easy for customers to purchase them

Effective and adequate promotion



The Market

Market

± A place or process where customers andsuppliers trade

Where and when do markets exist?

± Where there is a demand for a product and there

is a willingness to supply these products ± Example: Cell phone market



Market continued

Consumer markets vs. Industrial markets

± Consumer markets Cater to private individuals (general public)

± Industrial markets

Cater to organizations (businesses and government)



Market continued

Businesses are interested in 3 main

elements of the market in which they operate ± Market Size

± Market Growth

± Market Share



Market Size

Markets differ in size

Can be measured several ways ± Customer Base

± Barriers to entry

± Location



Customer Base

Total potential amount of customers

Also measured in terms of the value, not justthe quantity, of what is purchased

± Ex. Ipod/MP3 market larger than loose leaf paper

market



Barriers to entry

Determine the number of suppliers in the

market The higher the barriers to entry the more

power in the hands of the established

businesses in the market

± Ex. Car manufacturing vs. Photography business



Location

Some markets focus on certain areas or

regions Others are global



Market Growth

The increase in the size of a market over

time, usually per year Can be measured by an increase in the

value or volume of sales

± Ex. Android market (smart phones)



Market Share

An organization¶s share of the total sales of

all products in a specific market Formula:

± Market share= Sales Revenue X 100

Total sales revenue in market



Benefits of High Market Share

Positive relationship between market share

and profits Market leaders

Economies of scale

Better pricing power

Less threatened by rival firms



Reasons not to increase market

share

Overall profits may decline if it is gained by

increasing promotional expenditures or bydecreasing prices.

A price war may ensue if competitors attempt

to regain their share by lowering prices.



Market Concentration

Extent or degree to which a relatively small

number of firms account for a relatively largepercentage of the market

± Oligopolists- Businesses that dominate a certain

market

Examples:



Definition of Marketing

A management process where it requires

people to take responsibility for decisionmaking

Anticipation or predicting what customers

may want in the future



Marketing + Other functional areas

Marketing is used alongside other functional

areas ± Operations Management

Use sales forecasts to prepare production schedules

Help research, develop, and launch products

- Finance Help set appropriate budgets for the marketing

department

- Human Resource Management

Marketing data can help the HR department to identify

and meet staffing requirements



What is Product Orientated Marketing?

is a marketing approach adopted by

businesses that are inward looking. these inward looking businesses focus on

selling products that they can make, rather

than making products that they can sell.

focuses on what the business itself thinks its

customers want, instead of identifying and

meeting the needs and wants of its

customers.



Say¶s law

³supply creates its own demand.´

creative and innovative products arelaunched onto the market and customers will

be tempted to buy these.

usual result is that these products are hit-

and-miss.



Advantages

The main advantage is that quality can be

assured. ± The belief is that customers are willing to pay a

higher price for exclusivity and luxury products.

The firm has more control over its activities.



Disadvantages

Product-orientated firms assume they know what

customers want.- Customers do not simply want an improved version of an

existing product.

The needs of the market are ignored, such

as changes in fashion and tastes, so the high

failure rate of businesses suggests that this

strategy is highly risky.



What is Market Orientated Marketing?

a.k.a. consumer orientation

Is a marketing approach adopted by businesses thatare outward looking.

these outward looking businesses focus on making

products that they can sell, rather than selling

products that they can make.

focuses on identifying and meeting the needs and

wants of its customers, instead of what the business

itself thinks its customers want.

Most of today¶s markets are market orientated.



Advantages

Flexibility ± firms can quickly adapt to

changes in the market as they will haveaccess to relevant data and information.

Less risk ± firms can be more confident that

their products will sell and be successful

since their products are deliberately cateredto meet the wants/needs of consumers.



Disadvantages

The main disadvantage is market research

tends to be very expensive. There is no guarantee that this approach will

lead to success.



Factors influencing type of orientation

Market ± Producers of highly technical productstend to start off as product-orientatedbusinesses. In mass consumer markets, a moremarket-orientated approach tends to beadopted.

Organizational culture ± Businesses that believe

µthe customer is always right¶ are more likely tobe market orientated.

Nature of barriers to entry ± Firms without muchcompetition tend to be less customer-focused;such firms hold monopoly power .



Goods

Def- a tangible product that can be

purchased

Marketing mix for goods consists of:

Price

Product Promotion

Place



Services

def-an intangible product such as a bus ride,

a visit to the cinema, or a haircut Involves no purchase of a physical good

are heterogeneous so the quality is varied

Are meant for customers to fulfill their wants

or needs

Non-refundable



Marketing of Service

7 P¶s of marketing mix

( price, pr oduct, pr omoti on, and pl ace )

Along with«

People Processes

Physical environment



People

Effectiveness of people delivering a service

depends on:- appearance and body language

- aptitudes and attitudes

- feedback

- efficiency



Processes

Process in the marketing services include:

- payment methods- waiting time

- customer services

- after-sales care



Physical Evidence (physical environment)

Def: the tangible aspects of a service

Example: a clean lobby with a nice décor at a 5-star hotel

What makes customers feel happy with the overall service

Challenges facing managers in delivering quality customer services:

- correcting mistakes

- measuring productivity- people management



Physical evidence (cont.)

Correcting mistakes: can be easy to correct mistakes in

manufacturing a physical good, but it can be difficult to correct

any mistake in a service. A mistake in a service can create apoor image for the company.

Measuring productivity: it can be difficult to reward the staff that

is more productive.

People management: Managing people in professions that offer

services can be labor intensive and difficult; it requires effectiveleadership on the part of the manager.



Non-Profit Organizations

Definition of Non-profit organizations: establishments

that are run in a professional and business-like

manner but without profit being the major objective.

Ex: charities, religious organizations, and government

departments



Marketing in Non-Profit Organizations

Tends to be more informative

Not as persuasive as profit-seeking organizations

Main aim is for the public to take action, not to make a profit

Strategies:

- social marketing

- catchphrases (slogans)- de-marketing

- public relations

- internet technologies

- distribution channels



Social marketing ± try to make the public take action by, for

instance, donating money to the cause. Catchphrases (slogans) ± used to promote their causes.

De-marketing ± the use of marketing to reduce the demand for socially undesirable products, such as tobacco; also used to informor persuade citizens to act in a particular way or to change their behavior.

Public relations ± inform people of the cause by holding fundraisingevents or using celebrities to endorse their cause.

Internet technologies ± firms that use the internet can promote their cause in a cost-effective way

Distribution channels ± focus on promoting the image of the

organization, for its long-term survival.



Marketing Plan

A document outlining a firm¶s marketing

objectives and the marketing strategies to beused in order to achieve these objectives



MarketingA

udit

Marketing plan usually preceded by

marketing audit It is a review of the current position of a firm¶s

marketing mix, in terms of strengths,weaknesses, opportunities, and threats(SWOT analysis)

May address issues (intensity of competitionin the market, effectiveness of the firm¶smarketing)



In a Marketing Plan

SM ART marketing objectives

Identify target markets through methods of market research

Strengths and weaknesses of competitors

Outline of marketing mix

Details of the marketing budget

Outline of likely problems



(cont.)

PEST analysis

SWOT analysis



Advantages of Market Planning

Improves chances of success

Functional areas of a business will haveclearer idea of firm¶s objectives and

constraints



Disadvantages of Market Planning

Small firms do not have time, resources, or

expertise Large firms also need to devote resources

Can become outdated quickly or instill

inflexibility in the organization



Overview

Marketing is about understanding the

markets in which a business operates inorder to develop strategies to influence

the action of others

Marketing allows businesses to be forward

looking Businesses approach marketing in different

ways



Businesses often fail due to lack of proper

planning ± They may not have considered the extent of

competition in the marketplace or changes in

market conditions

Market planning gives a sense of direction tothe business

4.1 marketing presentation

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