- Marketing is a total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers.
Role of marketing:
- Find out what customers want and then attempt to satisfy their needs.
- Bring together the buyer and seller.
- Generate revenue for the business.
- A market is a group of individual, organisations or both that:
- need or want a product
- have the money to purchase the product
- are willing to spend their money to obtain the product
- are socially and legally authorised to purchase the product.
- Marketing plans and strategies vary depending on the intended market.
|Type of market||Customers|
|Industrial||Secondary and tertiary firms|
|Intermediate||Wholesalers and retailers|
|Consumer||Individuals and households|
|Mass||Vast number of individuals|
|Niche||Small target market|
Changes in marketing over time:
- Production approach – Taking orders and delivering goods.
- 1820s to 1920s
- Emphasis on producing goods
- Demand for goods is greater than supply.
- Sales approach – Advertising and personal selling.
- 1920s to 1960s
- Emphasis on selling goods
- Demand is weaker.
- Marketing approach – Aimed at satisfying customers’ needs.
- 1960s to present
- Emphasis on identifying customer needs through market research
- Establishing and maintaining customer relationships
- Development of the marketing concept.
The marketing concept is a business philosophy that states that all sections of the business are involved in satisfying a customer’s needs and wants while achieving the business’s goals. It is based on four principles:
- supported by integrated marketing strategies
- aimed at satisfying customers
- integrated into the business plan so as to achieve the business’s goals.
Marketing concept accomplished through:
- Customer orientation: marketing decisions and practices are based on customers’ needs
- Relationship marketing: long-term relationships with individual customers to create customer loyalty.
- Marketing planning process is the process of developing and implementing marketing strategies to achieve marketing strategies, and consists of five steps:
- Performing situational analysis
- Establishing market objectives
- Identifying target markets
- Developing marketing strategies
- Implementing, monitoring and controlling the marketing plan.
- Marketing plans must evolve and adapt to new circumstances.
From Chapter Summary, Marketing, HSC Course, JacOnline