MARKETING1. REVIEW: NATURE and ROLE of MARKETS & MARKETING
2. REVIEW: TYPES OF MARKETS
3. ELEMENTS OF A MARKETING PLAN
Email: [email protected]: www.chsbusinessstudies.wikispaces.com
REVIEW NATURE and ROLE of MARKETS &
MARKETING› Role of marketing in the firm and society
The role of marketing
ChoiceStandard of livingEmploym
ent
1. Marketing can enhance business’s revenue and market awareness of products… how does marketing serve the interests of society, provide AT LEAST ONE SPECIFIC example of how marketing improves choice and improves standard of living (1-2 Paragraphs)
YOUR TASK
(5 mins)
TYPES OF MARKETS
REVIEW cont…RESOURCE•Production of raw materials•Sales of raw materials•e.g. BHP Billiton, Rio Tinto
INDUSTRIAL
•Where goods used as supplies in the production process are traded•e.g. Car production (Toyota)
INTERMEDIATE
•Wholesalers•Retail businesses purchase products made/produced by other organisations
CONSUMER
•Sales direct from business to consumer of product
RESOURCE
•Production of raw materials•Sales of raw materials•e.g. BHP Billiton, Rio Tinto
INDUSTRIAL
•Where goods used as supplies in the production process are traded•e.g. Car production (Toyota)
INTERMEDIATE
•Wholesalers•Retail businesses purchase products made/produced by other organisations
CONSUMER
•Sales direct from business to consumer of product
TYPES OF MARKETS
Types of Consumer Markets
Niche Marke
t
Mass Marke
t
Market Segme
nt
YOUR TASK 2MINS
Match the type of consumer market with its explanation
Explanations:1. Business choose to focus on
only one area of a particular market
2. A smaller section of a market segment; consumer base is more narrowONSUMER BASE MORE NARROW
3. Apply to Goods and services that appeal to all types of consumers
CLASS TASK 5 MINS4. Identify the products we
have in class with its likely consumermarket/s. Note these examples in your notes.
DIFFERENT APPROACHES TO MARKETING
MARKETING
ORIENTATION
SELLINGORIENTATION
PRODUCTION
ORIENTATION
WITH YOUR HANDOUT…
Highlight or underline the key information/ and note:1.Benefits of using
each approach to marketing
2.Identify the important characteristics of each orientation (e.g. promotion to selling)
THE MARKETING CONCEPT Discuss;
“THE CUSTOMER IS AT THE CORE OF ALL BUSINESS ACTIVITES”
To what extent is this true? Where do you sit on the Human Continuum?
The Marketing concept reflects the idea that a business’ ability to achieve its goals will depend on its ability to;
• Determine needs/wants of customers, and • Deliver a product effectively, efficiently & to the highest standards of
customer satisfaction
Read & summarise: TEXTBOOK PP 151- 152
THE MARKETING CONCEPT cont….
Relationship Marketing
Customer Orientation
MARKETING PLANNING PROCESS1. Executive
Summary
2. Situational Analysis
3. Establishing Market Objectives
The framework used to allow businesses to examine its current position
Provides description of current issues and intention of the report (its purpose)
Looks at what the business seeks to change, achieve and in which direction it should head.
MARKETING PLANNING PROCESS cont…4. Identifying the target
market
5. Developing the marketing strategies
6. Implementation, Monitoring and Controlling
At this stage ‘how the four P’s’ (the marketing mix) will work together. To achieve the business’ identified objectives.
Consider:•Financials, HR needed to fund and the marketing plan.•impact of strategy on sales, market share and brand awareness•How the plan will be implemented, controlled and monitored.
Identifying who in the community would be best to market product to; - which type of customer, -why will they buy the product, -to whom will its benefits appeal
PRODUCT LIFE CYCLE› The establishment stage of the product life
cycle is when the new product is first launched.› If a new product can begin to attract a core
group of customers who display their loyalty to and satisfaction with the product by making repeated purchases then the business will enter the growth stage of the product life cycle.
› Period of time when sales begin to slow and level out. A business must develop new ways to ensure continued success.
Students responses…
SITUATIONAL ANALYSIS There are four components of a
situational analysis
Market Analysis
Product Analysis
(life cycle)
Competitor Analysis
Swot Analysis
MARKETING1. REVIEW: NATURE and ROLE of MARKETS & MARKETING
2. REVIEW: TYPES OF MARKETS
3. ELEMENTS OF A MARKETING PLAN
4. ELEMENTS OF A MARETING PLAN
Situational Analysis Market Analysis Product analysis (PRODUCT LIFE
CYCLE) Competitor Analysis SWOT
Establishing MARKET OBJECTIVES
http://www.youtube.com/watch?v=Can7K7BD0CQ http://www.youtube.com/watch?v=J61dCTWzgCk
AN EFFECTIVE BUSINESS will develop goals that relate to thespecific needs of its organisation.. .But there are three general objectives that every business
that most businesses may adopt….OBJECTIVE ONE: EXPAND INTO NEW GEOGRAPHICAL
MARKETSOBJECTIVE TWO: EXPAND THE PRODUCT RANGE
OBJECTIVE THREE: INCREASE MARKET SHARE
Tuesday 10, 2009Wedding Clip:
http://www.youtube.com/watch?v=4-94JhLEiN0
Useful Link:
http://www.hsc.csu.edu.au/business_studies/marketing/marketing/marketing.html
WE DEFINED ONE MARKETING OBJECTIVE
2B…. EXPAND THE
PRODUCT RANGE WE CAN DO THIS IN ONE OF TWO WAYS….
DEPTH OR WIDTH
Product Depth: the number of similar products in a specific product line (sub products or variety), e.g. e.g. bonds........1. hipster knickers 2. boy-leg knickers etc.
Product width : different products or product lines. E.g. Pacific brands has various ‘clothing products’: Bonds, Berlie etc.
DIVERSIFYING THE PRODUCT MIX
OBJECTIVE ONE: EXPAND
INTO NEW GEOGRAPHICAL MARKETS
OBJECTIVE TWO:
EXPAND THE PRODUCT RANGE
OBJECTIVE THREE:
INCREASE MARKET SHARE
You are to… identify an appropriate objective and note reason for applying this objective
1. Objective:2. Rational for objective:
J
Identifying Target MarketRESOURCE
•Production of raw materials•Sales of raw materials•e.g. BHP Billiton, Rio Tinto
INDUSTRIAL
•Where goods used as supplies in the production process are traded•e.g. Car production (Toyota)
INTERMEDIATE
•Wholesalers•Retail businesses purchase products made/produced by other organisations
CONSUMER
•Sales direct from business to consumer of product
Types of Consumer Markets
Niche Marke
t
Mass Marke
t
Segment
Market
NOTE THE THREE DIFFERENT TYPES OF CONSUMER MARKETS AND PROVIDE TWO EXAMPLES OF BUSINESSES OR PRODUCTS THAT OPERATE WITHIN THESE MARKETS…For example:Niche Market: Fernwood Gym or Club Pink (womans’ only gym)
MARKET SEGMENTATION Marketing segmentation is:
› The process of breaking down a total market into small markets based on the similar characteristics of a customer group, or more specifically
› the process of identifying niche markets within mass markets
Marketing resources can
then be focused on the
particular section of the
market
When the target market
is identified, marketing
resources can then be
focused on the
particular section of the
marketNeeds of the
target market is more easily identified
The preferred features of a
product can be more easily identified
More appropriate pricing and
promotional, strategies can be
identified
Best distribution channels can be
identified
A general awareness of how to best gain and sustain interest in the product is achieved
In what way can we
divide the market…Methods of
market segmentation
GEOGRAPHIC SEGMENTATION
Geographical factors are about knowing where customers make purchase decisions and dividing the market accordingly.
Examples of geographic features are:› Metropolitan› Suburban› Regional› Climate› Topography
DEMOGRAPHIC SEGMENTATION
Demographic factors are about knowing the customer. The most common forms of demographic market segmentation are based on characteristics such as....
Household size Race/Religion Income Occupation Family structure Age Sex
PSYCHOGRAPHIC SEGMENTATION
These are about understanding why a consumer buys different products and services. They are concerned with LIFESTYLE characteristics, including personality types of consumers and their perceived social class.
Examples:• Culture of community/society * Interests• Beliefs * Aspirations• Lifestyle
BEHAVIOURIAL SEGMENTATION
These describe the purchase situation and purchase characteristics of the market segment. It analyses factors such as consumer loyalty, the rate at which consumers use a given product (frequent users vs. less frequent users)and the purchase occasion.
http://www.youtube.com/watch?v=9kGAcmC9FEU
http://www.youtube.com/watch?v=S382RoO6s8A
Developing Marketing Strategies
Developing marketing strategies is the process of developing a ?????? that
meets the needs of ??????? and then implementing a series of
PROMOTOINAL, PRICING AND DISTRIBUTIONS strategies to
encourage ????????? to purchase the product.
Your Task: In teams of 3,
select a product and
identify or design a set of
meaningful differences
to distinguish that
product from its
competitors products
(refer to example provided)
Developing Marketing strategies: MARKETING MIX
What attracts people into clothes shops like Dotti, Sportsgirl and Cotton On?
Is the price? Is it the place?
Is it the product? Is it the promotion?
Perhaps it is a combination of all four.
Product Differentiation is the act of designing a set of meaningful differences to distinguish a product from that of its competitors
The marketing mixBlend of the mix depends upon: Marketing objectives Type of product Target market Market structure Competitors behaviour Global issues – economic
environment/culture, etc. Marketing position Product portfolio
› Product lifecycle
Implementation, Monitoring & Controlling
YOUR TASK:What is….What is the purpose…
Implementation:
Monitoring & Controlling:
Monitoring & ControllingSales
AnalysisMarket Share
AnalysisMarketing
Profitability Analysis
Financial Forecast Actual & planned results Revising the marketing Strategy
MARKETING1. REVIEW: NATURE & ROLE OF MARKETS
& MARKTING2. REVIEW: ELEMENTS OF A MARKETING
PLAN3. MARKET RESEARCH
PROCESS
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