Business Assessment Notes: HSC Topic 3 - Marketing
Nature and role of markets or marketing:
Role of marketing in firm or society:
Firm: creates sales, brand image. A market allows you to create awareness of your product and increase market share.
Society: Marketing creates jobs, products, services and tax to Government.
Types of Markets:
1.Resource market: factors of production - Land, labour, capital, enterprise.
2.Industrial market: manufacturing market. Organisations that buy the component parts to use in the production of another product.
3.Intermediate market: re-sellers/agents, wholesalers or retailers. They buy goods for purpose of reselling or renting out
4.Consumer market: final user of the product/service.
5.Mass market - large, broad markets. Eg: water, electricity.
6. Niche market: Small, very specific market. Eg: Mercedes rolls Royce.
The marketing concept:
The aim of marketing today is to have return customers and repeat purchases.
"ÃÂ±Build long-term relationships with customers to encourage loyalty
*Marketing in 1900-1930's was product based.
Focus was improving quality of product and reducing costs. Eg: Henry ford model T (one colour for everyone).
*Marketing then moved to selling orientation from 1930s to 1960s. increase in competition and an emphasis on making a sale. Salesmen paid a commission and heavy advertising and promotion.
*Today customer needs are considered and heavy emphasis on research. Safety, quality and environment are considered.
Marketing Planning Process:
Often Ricky Tries Sitting On the Street Eating
Organisation Research Target Market Situational Analysis Objectives Strategies Evaluate
"ÃÂ±Name of bus.
"ÃÂ±Prime function*Basic introduction of bus.
"ÃÂ±Into market and environment
oEconomic state (boom, recession...)
oGovernment - Monetary, regulations, grants...
oSociety: Demographics - Age Gender Nationality Education
oTechnological - Point of sale (POS) payments, CAM, CAD, Internet
oCompetition - State...