MARKETING

• Marketing


  A total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers
• Marketing plan


  Sets out a series of actions or strategies that can be used to attain greater sales and achieve strategic goals
• Strategic goal


  To achieve profit maximisation, growth and market share
• Marketing plans outline strategies to bring the buyer and seller together
• Businesses need to identify

  • Where the market is
  • Who will buy the product
  • Why they will buy the product
  • How often they will buy the product
• Core of marketing


  Satisfying existing customer wants to achieve repeat sales
• Marketing


  The revenue-generated activity of any business - nothing is achieved until a sale is made
• Marketing concept


  All sections of the business are involved in satisfying a customer's needs and wants while achieving business goals, putting customers at the centre of the process
• Relationship marketing


  Continual, all policies, plans and operations need to be directed to achieve customer satisfaction
• Businesses must integrate marketing plans with all key functions
• Marketing researches the needs of the consumer

  Operations decrease expenses and marketing increases profit
• Without finance, the business is not able to research even though marketing generates income
• Research is a vital aspect of marketing
• Production approach (1820s - 1920s)


  Business focuses on the production of goods and services, marketing wasn't a priority, "if we make it, they will buy it", no consumer choice, production design based on the demands of mass production than customer needs, no variation
• Selling approach (1920s - 1960s)

  More advertising, emphasised selling due to increased competition, door to door sales, persuading customers to buy specific brands
• Marketing approach stage 1 (1960s - 1980s)

  Find out what the customer wants through market research and then satisfy their needs, discretionary income allowed for spending past necessities, customer orientated, satisfying customers, integrated into business plan to achieve business goals, long term relationships with customers
• Marketing approach stage 2 (1980s - present)


  Changing economic and special conditions, CSR, people burning products that are environmentally and socially costly, customer orientation, relationship marketing, customer satisfaction
• Types of markets


  • Resource
  • Industrial
  • Intermediate
  • Consumer
  • Mass
  • Niche
• Psychological influences on customer choice

  • Perception
  • Motives
  • Attitudes
  • Personality
  • Self image
  • Learning
• Socio-cultural influences


  Forces exerted by other groups that affect customer behaviour
• Booms


  Period of low unemployment and rising incomes, marketers intensify promotional efforts as customers tend to spend more and respond positively to marketing
• Recessions


  Period of high unemployment and decreased incomes, marketers try to stress the value and usefulness of a product to maintain existing market share
• Government influences


  Use economic policies to influence the level of economic activity, can directly or indirectly influence business activity and spending habits, place laws and regulations around marketing practices and products
• Australian Consumer Law


  Ensures all customers have the same rights, and all Australian businesses are subject to the same regulations
• Competition and Consumer Act 2010


  The government wants many businesses to operate in a way that encourages competition whilst giving consumer choice
• Purpose of Australian Consumer Law

  To enhance the welfare of Australians by promoting fair trading and competition, and through the provision of consumer protections
• Purpose of Competition and Consumer Act 2010

  1. To protect consumers against undesirable practices (e.g. misleading advertising)
  2. To regulate trade practices that restrict competition to ensure there are several businesses operating at the same time, in the same market to encourage competition
• Illegal practices under the Competition and Consumer Act

  • Fine print - people can't see it
  • Packaging - you can make it look healthy
  • A special offer - always having a sale
  • Before and after - photoshop
  • Dishonest advertising and bait and switch
• Bait and switch


  When a business uses advertising of a low priced product to lure in customers where they are sold higher price products
• Dishonest advertising


  Ads could include misleading words or claim a product can do something that it can't, creating a false and misleading impression of a product and what it can do, so customers are misled
• Greenwashing


  When a business lies about its environmentally friendly products
• Price discrimination


  Setting different processes for a product in separate markets
• Difference in price is possible because
• Price discrimination is legal if

  There are higher costs involved or they are meeting competitors price
• Price discrimination is illegal if


  It reduces competition or if there is no valid reason
• Implied conditions

  Unspoken and unwritten terms of a contract
• Most important implied term relating to customer purchases

  Refers to the product's acceptable quality
• A product of acceptable quality

  • It is fit for the purpose which it is being sold, acceptable in appearance and finish, free from defects, safe and durable
• Business' promise to fix any defects in their goods or services


  If goods are defective or services are not carried out with due care or skill, business must compensate the customer
• Compensation

  Can be a monetary refund or exchange for a different product