4.1 Role of Marketing.pptx
-
Upload
nathanhettige -
Category
Documents
-
view
221 -
download
0
Transcript of 4.1 Role of Marketing.pptx
-
8/18/2019 4.1 Role of Marketing.pptx
1/28
opic 4.1 Role of Marketing
Marketing and Advertising are Not the Same Thing
-
8/18/2019 4.1 Role of Marketing.pptx
2/28
opic 4.1 Role of Marketing
Learning Obectives
!OL 1 Attit"des # $erceptions
In this topic we will examine the role, definition and nature of marketing.
Topics incl"de%
• Marketing and its relationship with other business functions – AO1• he differences between marketing of goods and marketing of ser!ices – AO"• Market orientation !ersus product orientation – AO"• he difference between commercial marketing and social marketing – AO"• #haracteristics of the market in which an organisation operates – AO1
• #alculate Market share – AO$• he importance of market share and market leadership – AO%• he marketing ob&ecti!es of for'profit organisations and non'profit organisations –
AO%• (ow marketing strategies e!ol!e as a response to changes in customer preferences –
AO%
• (ow inno!ation, ethical considerations and cultural differences ma) influencemarketing practices and strategies in an organisation – AO%
-
8/18/2019 4.1 Role of Marketing.pptx
3/28
opic 4.1 Role of Marketing
Role of Marketing
!OL & !eclarative 'no(ledge
)t is tempting to belie!e we know all about marketing as we are surrounded b) it
e!er) da). *o(ever , firms are more scientific in their approach than we might alwa)s
assume and the ps+cholog+ of marketing has been de!eloped and tested o!erman) )ears.
There is considerable debate o!er the extent to which we, as consumers, can be
manip"lated, but there is little doubt that marketing is highl+ infl"ential in the
wa) we beha!e and that it impacts on o"r p"rchasing behavio"r and
intentions.
Marketing can be !iewed as both a f"nctional aspect of an organisation and a
b"siness philosoph+. he marketing philosoph+ or concept is an approach that
stresses the achie!ement of b"siness goals thro"gh c"stomer satisfaction.
he complex range of acti!ities that define marketing are applicable to all firms,
large or small, new or established and e!en applies to non,profit making
-
8/18/2019 4.1 Role of Marketing.pptx
4/28
opic 4.1 Role of Marketing
-hat is Marketing
!OL & !eclarative 'no(ledge
Marketing is the process of identif)ing a target market, defining what that target
market needs and*or (ants and organising the firm to meet those needs andwants.
!OL /.4 )nd"ctive Reasoning
Marketing is the process of researching into identif+ing cons"mers needs
and emplo)ing appropriate price0 prod"ct0 place and promotion strategies in
order to satisf) these needs profitabl) Stimpson0 &22&3.
Marketing is the process of learning abo"t +o"r c"stomers and
competitors, so that )ou can pro!ide the right prod"cts at the right price in the
right place, promoted in the right (a+ to achie!e )our business ob&ecti!es
Marco"se et al0 &22/3.
-
8/18/2019 4.1 Role of Marketing.pptx
5/28
opic 4.1 Role of Marketing
-hat is Marketing
!OL /.4 )nd"ctive Reasoning
Marketing is not a function it is the (hole b"siness seen from the c"stomers
point of !iew $eter !r"cker3.
Marketing is a management process in!ol!ed in identif)ing, anticipating and
satisf+ing cons"mer re+uirements profitabl) *all05ones0 and Raffo0 &22/3
So (hat is the common elements in all these vie(s on marketing
-
8/18/2019 4.1 Role of Marketing.pptx
6/28
opic 4.1 Role of Marketing
Marketing # Other 6"nctional 7entres
!OL 4.8 S+stems Anal+sis
!isc"ss the relationship between the marketing department and the other
f"nctional departments in an organisation.
Marketing
*"manReso"rces
OperationsManagement
6inance
Finance is for budgetingand funding forpromotion. Humanresources are are neededto account for stangneeds. Operations is for
-
8/18/2019 4.1 Role of Marketing.pptx
7/28
opic 4.1 Role of Marketing
7"stomer 6oc"sed Organisation
!OL & !eclarative 'no(ledge
o )s fo"nded on the belief that profit can best be achie!ed b) identif)ing, anticipatingand satisf)ing customer needs and wants.
o A compan+ which adopted this concept and philosoph) places the customer at the
centre of all business decisions.
o 7"stomers need to permeate all le!els and functions in the organisation. .
o 7o,ordinate and integrate all marketing acti!ities that might affect the customer.
-
8/18/2019 4.1 Role of Marketing.pptx
8/28
opic 4.1 Role of Marketing
The Market
!OL & !eclarative 'no(ledge
A market is a place or process which allows b"+ers and sellers to meet and
e9change goods0 services and information.
Markets exist to facilitate trade between collections of people who share a want or
need and are motivated to enter into vol"ntar+ e9change processes to satisf)that want or need.
Markets can be local0 national or international, but the marketing concepts
co!ering all marketplaces are relati!el) similar. 7"stomers for a firm can be private
individ"als0 other b"sinesses or governments.
Markets that cater for private individ"als are referred to as cons"mer
markets, while those ser!ing organisations are ind"strial or commercial
markets. )t is important to recognise that trade between businesses, commonl)
referred to as :&: business to business- is much larger in val"e than sales topri!ate indi!iduals.
-
8/18/2019 4.1 Role of Marketing.pptx
9/28
opic 4.1 Role of Marketing
The Market
!OL /.1 7omparing 'no(ledge
A b"siness is interested in three elements of the market%
!efine each of these three terms in the graphic organiser
-
8/18/2019 4.1 Role of Marketing.pptx
10/28
opic 4.1 Role of Marketing
Market Si;e
!OL & !eclarative 'no(ledge
O"tline the three main (a+s market si;e can be determined
7"stomer :ase :arriers to
-
8/18/2019 4.1 Role of Marketing.pptx
11/28
opic 4.1 Role of Marketing
Market =ro(th
-
8/18/2019 4.1 Role of Marketing.pptx
12/28
opic 4.1 Role of Marketing
Market =ro(th
!OL & Ac>"ire # )ntegrate
Topic 1.8$
-
8/18/2019 4.1 Role of Marketing.pptx
13/28
opic 4.1 Role of Marketing
Market Share
-
8/18/2019 4.1 Role of Marketing.pptx
14/28
opic 4.1 Role of Marketing
Market Share
!OL & !eclarative 'no(ledge
Market concentration measures the degree of competition within a market b)
calc"lating the market share of the largest firms in a market. The s"m of these market shares
is known as the concentration ratio.
7alc"late the market share of each A"stralian bank gro"ps3 and the
concentration ratio of the :ig 6o"r.
Loans and Advances to *o"sehold on :ooks of )ndivid"al A"stralian :anks A? Million3:anks otal Market Share
@
-estpac :anking 7orporation &10B4C
7ommon(ealth :ank of A"stralia &880D81
National A"stralia :ank Limited 1B/0B28
A"stralia and Ne( Eealand :anking =ro"p Ltd 1B20C&
Total Other !omestic :anks 1&&08C
-
8/18/2019 4.1 Role of Marketing.pptx
15/28
opic 4.1 Role of Marketing
$rod"ct vers"s Market Orientation
!OL /.1 7omparing 'no(ledge
-
8/18/2019 4.1 Role of Marketing.pptx
16/28
opic 4.1 Role of Marketing
$rod"ct vers"s Market Orientation
!OL /.D Anal+sing $erspectives
!isting"ish bet(een prod"ct orientation and market orientation
!isc"ss advantages and disadvantages of each
$rod"ct Orientation Market Orientation
-
8/18/2019 4.1 Role of Marketing.pptx
17/28
opic 4.1 Role of Marketing
Social Marketing
http%FF(((.+o"t"be.comF(atchvGH&1eH)EBIohttp%FF(((.+o"t"be.comF(atchvG"EcDDJ'&7(I
-
8/18/2019 4.1 Role of Marketing.pptx
18/28
opic 4.1 Role of Marketing
Social Marketing ): Learner $rofile 7aring # $rincipled
!OL & !eclarative 'no(ledge
Social Marketing seeks to influence social behavio"rs not to benefit the
marketer, but to benefit the target a"dience and the general societ). It uses
mainstream marketing methods to achie!e the benefits of social change.
Social Marketing or the societal orientation was born as a discipline in the 1/0s,
when $hilip 'otler and =erald Ealtman realised that the same marketingprinciples that were being used to sell products to consumers could be used to sell2
ideas, attitudes and beha!iours. )t gre( o"t of an increasing concern about
Kcons"merism where firms pander to the needs of the consumer howe!er, wasteful
and undesirable the conse+uences. The maor impet"s to social marketing was
increasing environmental a(areness.
Social Marketing differs from other areas of marketing onl) with respect to the
ob&ecti!es of the marketer and his or her organisation. )t has naturall) been adopted b)
the non,profit sector , such as 34Os, health trusts and training and education
-
8/18/2019 4.1 Role of Marketing.pptx
19/28
opic 4.1 Role of Marketing
Social Marketing ): Learner $rofile 7aring # $rincipled
!OL & !eclarative 'no(ledge
The role of research here is to disco!erthe consumers6 perceptions of theproblem and the product through marketresearch, and to determine how importantthe) feel it is to take action against the
problem.
The social marketing 7product7 is notnecessaril) a ph)sical offering. Acontin""m of products exists, rangingfrom tangible0 ph)sical products e.g.
condoms-, to services e.g. medicalscreening-, practices e.g. health) eating-to more intangible ideas such as organdonation, rec)cling and en!ironmental
protection.
-
8/18/2019 4.1 Role of Marketing.pptx
20/28
opic 4.1 Role of Marketing
Social Marketing
!OL 4.& $roblem Solving
*ealth promotion campaigns in thelate 1/8s began appl)ing social
marketing in practice. Notable earl)de!elopments took place in A"stralia.hese included the 9ictoria #ancer
#ouncil de!eloping its anti'tobaccocampaign I"it 1/88-, andS"nSmart 1/88-, its campaignagainst skin cancer which had the
slogan Slip Slop Slap
-
8/18/2019 4.1 Role of Marketing.pptx
21/28
opic 4.1 Role of Marketing
Social Marketing
!OL & !eclarative 'no(ledge
$ricing decisions are more problematic for thesocial marketer. )f the price or costs of actionoutweigh the benefits for an indi!idual, the
percei!ed !alue of the offering will be low and it
will be unlikel) to be adopted. *o(ever , if thebenefits are percei!ed as greater than their costs,
chances of trial and adoption of the product is
much greater.
$lace is also an important element of the marketing mi9 for social marketing.he issue is deciding how to ensure accessibilit) of the offering while maintaining
the >"alit+ of the ser!ice deli!er). :) determining the acti!ities and habits of thetarget a"dience, as well as their experience and satisfaction with the existingdeli!er) s)stem, researchers can pinpoint the most ideal means of distrib"tion forthe offering. 7harities are aware that the 6gi!ing6 process must be made relati!el)simple. !onations can be made online, with credit card or b) bank transfer or madethrough direct debit arrangements. Apart from ha!ing their own websites, 34Os
ha!e a presence on social networking sites such as 6acebook and T(itter .
-
8/18/2019 4.1 Role of Marketing.pptx
22/28
opic 4.1 Role of Marketing
Asset,led Marketing
!OL & !eclarative 'no(ledge
Asset,Led Marketing a business strateg) based on the core strengths core
competencies3 of the firm. :"sinesses that adopt this approach use their core
assets, such as brand name, to de!elop and launch new products.
Asset,led marketing uses elements of both a market orientated and prod"ct
orientated approach to business. Asset,led marketing focuses the business;marketing strateg) on the business; main assets and uses these strengths to as a ke)element of their marketing strateg).
:"siness
-
8/18/2019 4.1 Role of Marketing.pptx
23/28
opic 4.1 Role of Marketing
Asset,led Marketing
!OL & !eclarative 'no(ledge
)ncreasingl+ firms are market orientated i.e. the) start with the customer and
work backwards. The+ deliver what the customer wants and not &ust what the) canproduce.
*o(ever , there has been a change in focus in recent )ears. 6irms are now adopting
an asset,led orientation. he) disco!er customer needs and wants, but onl)
produce those products or ser!ices matching the firm;s strengths and experiences. $"t
bl"ntl+ the business in!ests time and mone) into what it knows it can produce and
produce well. This ens"res that the business concentrates on its core
competence rather than being drawn into markets where it lacks the necessar) skills
and experience. O"tline the advantages of asset,led marketing
-
8/18/2019 4.1 Role of Marketing.pptx
24/28
opic 4.1 Role of Marketing
Marketing of =oods # Services
The marketing mi9 are theingredients put together to make a
successful product in terms of both
sales and profits. he ingredients in
a marketing mix will !ar) from
product to product, &ust like different
food recipes re+uire different+uantities and t)pes of ingredient.
*o(ever , the marketing mix wasde!eloped essentiall) for
manufactured products, not for
ser!ices, and some !ital ingredientsor elements are missing from the mix
for a ser!ice, especiall) in the not,for,profit sector . In recent )earsthe $?s; ha!e been extended to
include elements more suited to the
features of a ser!ice. hese include@
-
8/18/2019 4.1 Role of Marketing.pptx
25/28
opic 4.1 Role of Marketing
Marketing of =oods # Services
!OL /.1 7omparing
!efine and e9plain these additional $s in the marketing mi9 for ser!ices
-
8/18/2019 4.1 Role of Marketing.pptx
26/28
opic 4.1 Role of Marketing
Marketing in Non,$rofit Organisations
!OL & !eclarative 'no(ledge
The not,for,profit sector in man) de!eloped countries is significant and large
n"mbers are emplo+ed b) organisations such as N=Os non'go!ernmentalorganisations*charities-, go!ernment departments and religious organisations.
At one time marketing b) non,profit organisations was +uite amateurish.7harities often used !oluntar) labour or emplo)ed those with little business
knowledge. *o(ever , there has been a revol"tion in the last decade as
re+uests for donations for 6good causes6 ha!e become e!er more competitive.
As a conse>"ence, marketing experts ha!e been emplo)ed within large 34Os andthe ser!ices of external marketing consultants hired. Man+ charitable organisations
ha!e looked for additional (a+s of raising income. hese ma) include the
provision of services more commonl) seen in the profit sector . 7harities ma)
run retail outlets, or sell newspapers to raise funds. *ere the normal marketing
approaches associated with selling products appl).
-
8/18/2019 4.1 Role of Marketing.pptx
27/28
opic 4.1 Role of Marketing
Marketing in Non,$rofit Organisations
!OL /.D Anal+sing $erspectives
The difference between profit and non,profit organisations comes down to
ob&ecti!es and terminolog). The creation of an appropriate image is important for
an) organisation, and so promotion needs to be effecti!e. 6irms in the private
sector ma) ha!e the ob&ecti!e to ma9imise re!enues and profits. 7harities ma)
ha!e the ob&ecti!e of maximising fund raising for their client groups. $rofit or s"rpl"sma), in realit), be !er) similar. he more charitable organisations sell, the more the) canfund their pro&ects.
!isting"ish bet(een social marketing strategies and marketing,led strategies
-
8/18/2019 4.1 Role of Marketing.pptx
28/28
opic 4.1 Role of Marketing
Marketing in Non,$rofit Organisations
!OL & !eclarative 'no(ledge
!efine and e9plain the follo(ing terms
7atchphrases slogan3%
!e,marketing%
$"blic Relations%