MARKETING1. REVIEW: NATURE and ROLE of MARKETS & MARKETING

2. REVIEW: TYPES OF MARKETS

3. ELEMENTS OF A MARKETING PLAN

Email: missgrogan1@gmail.comWikispace: 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 living

Employment

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

SELLING

ORIENTATION

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 PROCESS

1. 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 MARKETS

OBJECTIVE TWO: EXPAND THE PRODUCT RANGE OBJECTIVE THREE: INCREASE MARKET SHARE

Tuesday 10, 2009

Wedding 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 & Controlling

Sales Analysis

Market Share Analysis

Marketing Profitability

Analysis

Financial Forecast Actual & planned results Revising the marketing Strategy

MARKETING1. REVIEW: NATURE & ROLE OF MARKETS

& MARKTING2. REVIEW: ELEMENTS OF A MARKETING

PLAN

3. MARKET RESEARCH PROCESS