business marketing

• Role of Marketing


  The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives
• Strategic role of marketing goods and services

  • Long term
  • Goal focused
  • Connected to other key business functions
• Strategic role of marketing

  1. Translating the business's main overarching goal (profit maximisation) into reality

  2. Developing strategies to satisfy the needs and wants of consumers

  3. Increased sales and market share

  4. Achieve its strategic goal of profit maximization
• Marketing


  Interdependent with HR, Operations, Finance
• Production, selling, and marketing approaches

  • Production Approach (1820s-1920s)
  • Selling approach (1920s - 1960s)
  • Marketing approach (1960s- Present)
• Production Approach


  Businesses focused on the production of G&S as a demand was strong and they assumed they would sell whatever they produced
• Selling approach


  Increased spending on advertising to increase demand for their G&S, sales people were hired, but marketing still played a secondary role to production
• Marketing approach


  Commenced after WWII and the focus changed from production to placing the customer at the center of all marketing activities, market research became a focus
• Types of markets


  • Resource
  • Industrial
  • Intermediate
  • Consumer
  • Mass
  • Niche
• Factors influencing customer choice

  • Psychological (perception, motives, attitudes, personality)
  • Sociocultural (family, peer group, social class, culture)
  • Economic (general economic conditions)
  • Government (laws, regulations)
• Consumer laws


  The Australian Consumer law provides consumers with rights to certain remedies from retailers and manufacturers where goods purchased fail to comply with the consumer guarantee provisions
• Under the ACL, products must be of acceptable quality - safe, lasting, no faults, look acceptable, do all the things someone would normally expect them to do, be fit for purpose
• Deceptive and misleading advertising

  Before and after advertisements, Fine print, Special offers, Packaging, Country of origin, Bait and Switch advertising, Dishonest advertising, Tests and survey
• Price discrimination


  Setting of different prices for a product in separate markets because the markets are geographically separated or there is product differentiation
• Implied conditions


  Unspoken and unwritten terms of a contract, the most important being the product's acceptable quality
• Warranties


  A promise by the business to repair or replace faulty products, can be used as a marketing tool
• Ethical marketing practices


  • Truth, accuracy and good taste in advertising
  • Products that may damage health
  • Engaging in fair competition
  • Sugging (selling under the guise of a survey)
• Marketers must be aware of community sensitivities when it comes to ethical marketing practices
• Advertising takes liberties with the 'truth'; they do not perceive advertisements to be believable or honest. An advertised product may not make a consumer more successful, glamorous, sexy, happy, healthy or wealthy. However, the unethical practice of concealed facts — pieces of information purposely omitted from an advertisement — can severely harm the trust customers have in a product or a business.
• Consumer guarantees


  Give people the right to a refund if a product is unsafe. Consumers can seek compensation for damages and loss caused by a safety defect in products.
• Mandatory notification requirements under the ACL

  1. If there is a risk that a product will or may cause injury, it must be recalled

  2. If there is awareness of a death, serious injury or illness associated with a product a business supplies, they must report it within two days, which is known as mandatory reporting.
• Engaging in fair competition

  The Competition and Consumer Act 2010 requires businesses to compete fairly and contains provisions relating to fair competition.
• Examples of anti-competitive conduct that is prohibited

  • Mergers and acquisition
  • Resale price maintenance
  • Exclusive dealing
  • Misuse of marketing power
  • Anti competitive agreements and cartel conduct
• Sugging


  Selling under the guise of a survey, is a sales technique disguised as market research. Although this technique is not illegal, it does raise several ethical issues, including invasion of privacy and deception.
• Sugging also has long-term negative consequences for market research. The cooperation of consumers is becoming more difficult with response rates to surveys and questionnaires steadily declining.
• Marketing process


  • Situational analysis
  • Market research
  • Establishing market objectives
  • Identifying target markets
  • Developing market strategies
  • Implementation, monitoring and controlling – developing a financial forecast; comparing actual and planned results, revising the marketing strategy
• SWOT analysis


  • Strategic planning tool used to develop a clear understanding of the internal and external influences on a business
• Product life cycle


  A model which identifies the different stages that a product moves through from introduction (launch) to decline
• Market segmentation


  The total market is subdivided into groups of people who share one or more characteristics
• Segmentation variables


  • Demographic
  • Geographic
  • Psychographic
  • Behavioral
• Positioning


  The techniques used to create an image or identity of a product/service compared with competing products/services (how a customer perceives a product relative to competitors)
• Total product concept


  Refers to the tangible and intangible benefits (attributes) of a product. (a collection of satisfactions: eg. product, brand name, warranty, after-sales service)
• Branding


  • Brand = name, term, symbol or design which identifies a specific product and distinguishes it from its competitors
  • Brand name = part of the brand that can be spoken
  • Brand symbol/logo = visual representation that identifies a business
  • Trademark: signifies that the brand name or symbol is registered and the business has exclusive right of use
• Branding strategies


  • Manufacturer's brand
  • Private or house brand
  • Generic brands
• Packaging


  • Packaging involves the development of a container and the graphic design for a product
  • Labelling: is the presentation of information on a product or its packaging
  • Packaging serves a number of functions including: preserves the product, protects the product from damage or tampering, attracts consumers' attention, divides the product into convenient units, assists with the display of the product, makes transportation and storage easier
• Food label requirements


  • Name or description of the food
  • Batch number
  • Name and Australian address of the supplier
  • List of ingredients
  • Date mark
  • Nutrition information panel
  • Country of origin
  • Warning and advisory statements
• Pricing methods


  • Cost based
  • Market-based
  • Competition-based
• Cost based pricing


  The cost of a product is calculated, and then a markup (difference between selling price and cost price) is added
• Market-based pricing


  Setting prices according to the forces of supply and demand
• Competition-based pricing


  This Is where the selling price covers costs and is comparable to the competitors' prices (can be set above, below or equal to competitors)