The nature and role of markets and marketing.
- marketing is the process of planning and executing the conception pricing, promotion and distribution of ideas, goods and services to create exchanges that saisfy individual(present and potential customers) and organisational objectives.
The role of marketing in the firm and society-70% of all new products fail within the first year of being launched.
- for a business to achiee its main objective of maximising sales or profit, it must develop and implement an effective marketing plan.
- businesses today put a strong emphasis on customer-oriented marketing. The business needs to see itself as a customer-satisfying process rather than a productional process-to achieve a goal of profit the market plan should be the focus of all short term planning for three reasons:1.the marketing plan oulines the strategies to be used to bring the buyer and seler together. The business needs to be able to:Where the market isWho will buy the productWhy they will buy the productHow often the will buy the product2. the core of marketing is satisfying the existing customer wants, leading to repeat sales.
3. marketing is the revenue generating activity of any business. Nothing is achieved until a sale is made.
Types of marketsResource market consists of those individuals or groups that are engaged in all forms of primary production, including mining, agricultural, forestry and fishing.
Industrial market- includes the industries and businesses that purchase products to use in the production of other products or in their daily operations. Eg sony buys plastics and metal to produce electronic equipment.
Intermediate market (or resellers) - consists of wholesalers and retailers who purchase a finished product and resell them to make a profit. Eg. Subway is a retailer that buys goods to make into sandwiches and salads for sale to consumers.
Consumer markets consist of individuals that is, members of a household who plan to use or consume the products they are buying. Including things like clothing, food, entertainment, appliances, music, cars etc. Marketing managers look closely at the behaviour of consumers so they can better understand what motivates an individual to purchase a particular product. they also try to influence consumer buying behaviour by developing a mix of marketing strategies.
Mass market the seller mass produces, mass distributes and mass promotes one product to all buyers. Eg. Model T-ford. Industrial era. he or she can have it in any colour as long as it was black.
Niche market is created when the market is finely divided into smaller markets consisting of buyers who have specific needs or lifestyles.
Production, selling and market orientation (approaches to marketing)Production approach 1820s to 1910sBurst of industrial growth saw demand for products exceed the production capabilities of many businesses. Marketing consisted of taking orders and delivering the products. Business was...