The Marketing Function

• Marketing: activities a company undertakes to promote buying or selling of a product or service
• Product Policy: the first component of the marketing mix. It explains how a business is going to develop a new product design and package
• Distribution: how the business gets its products to its customers
• Marketing communication: Involves how the product or service is communicated to the target
• Technology for marketing: has changed the way businesses convey their messages to potential customers. Internet advertising and social media advertising increased the ability to promote products nationally and internationally at relatively low costs
• Foreign Marketing: imports and exports have increased recently which increased the scope of potential buyers for businesses to include international buyers. Businesses must put in place processes and systems to align with international regulations to market their product to foreign buyers.
• Brand name: a name given by a producer to a product
• Target Market: a particular group of consumers at which a product or service is aimed at
• Pricing Policy: refers to how a business sets the prices of its products based on cost, demand and competition
• Costs: an amount that must be paid or spent to buy or obtain something
• Mark-up: the amount added to the cost price of goods to cover overheads and profit
• Substitutes: a person or an object acting in place of another
• Websites: a set of related web pages located under a single domain name
• Profit margin: the portion of the selling price that is not allocated to input costs/overheads and contributes to the gross profit margin of the business
• Penetration: the selling of a company's products in a particular market or area
• Bait: sales tactic that lures customers in with specific claims about quality or low prices
• Skimming: a firm charges the highest initial price that customers will pay and then lowers it over time
• Monopolistic: in monopolistic competition, a firm takes the prices charged by its rivals
• Oligopoly: a state of limited competition in which a market is shared by a small number of producers or sellers.
• Monopoly: a market structure characterised by a single seller, selling a unique product in the market.