Marketing in Business

• Marketing


  One of the eight business functions, involves market research to find out what consumers want, responsible for determining the price of the product and marketing the final product to the consumers
• Basic marketing activities


  • Locating the consumer, Transport, Storage, Grading, Standardisation, Finance, Risk taking, Buying and selling
• Steps involved in developing a product

  Design and development of product ideas, Selecting and sifting of product ideas, Design and testing of the product concept, Business analysis, Consumer responses must be tested
• Importance of product design

  • Product design needs to be designed to suit the needs of the customers, Businesses need to develop new products in order to replace older products in stage 4 when the sale declines, Businesses are able to remain competitive because they are always on a lookout for ways to improve their products, Products become different from those of the competitors
• Product life cycle


  Developments stage, Introduction stage, Growth stage, Maturity stage, Decline stage
• Types of products


  • Industrial goods, Consumer goods (Convenience goods, Shopping goods, Speciality goods), Services (Personal services, Commercial services)
• Requirements for good packaging

  • Must be attractive, Must suit the product, Suitably designed for the target market, Must be different from its competitors, Must promote the image of the enterprise, Suitable for display purpose, Must be environmentally friendly, Must protect the contents, Should be easy to distribute/handle/transport and use, Protect and promote the product, Link the product to its promotion strategy, Draw the attention of consumers, Inform customers on how to use the product, Prevent spoiling or damage, Reduce storing costs by minimising breakage, Easy to handle and display on the shelves in the store, Indicate the correct mass or volume of the contents of the product, Indicate the ingredients of the product, if applicable, Indicate the name and contact details of the manufacturer
• Different forms of packaging

  • Speciality packaging, Re-usable packaging, Kaleidoscopic packaging, Multiple packaging, Packaging for immediate use
• Trademark


  Specifically registered and protected by law, which means that this name cannot be used by any other business or person
• Importance of trademarks to consumers

  • Establishes an identity or reputation for a particular company or product range, Protects businesses against competitors who sell similar products, Creates a sense of security and consistency for customers, Promotes loyalty and creates consistency for customers, Consumers are more likely to accept new products that are marketed under a well-known brand/trademark, Helps to make a brand instantly recognisable, Offers a degree of protection because branded products can be traced back to the manufacturer, Represents a certain standard of quality and price to the consumer
• Direct distribution


  Involves the producer and the consumer, The wholesaler and the retailer are cut from the process, Better end user price as no intermediary costs, Carry all the risks
• Indirect distribution


  There are middlemen between the producer and the consumer, The wholesalers and retailers act as negotiators between the producer and consumer, Products may be expensive as costs are intermediary costs are added, Risks are shifted to intermediaries during the distribution of the product to end user
• Different types of distribution channels

  • Producer → consumer, Producer→ retailer→ consumer, Producer→ wholesaler→ retailer→ consumer, Producer→ agent→ wholesaler→ retailer→ consumer
• Importance of intermediaries in the distribution process

  • Intermediaries are specialists in selling, so the producer may be able to reach a wider audience, They can achieve greater sales by using intermediaries, The producer may not have the expertise or resources necessary to sell directly to the public, The intermediary may be able to provide more efficient distribution logistics, Overall distribution costs may be lower using an intermediary than if the business undertook distribution itself
• Communication policy


  Involves how the product/service is communicated to the target market, Can be done through sales promotions, advertising, publicity and personal selling
• Sales promotion


  • Customer loyalty cards, Free gifts, Point of sale, Special offers, Discounts
• Advertising


  • The most popular method for businesses to get their message to their target market and consumers, Different advertising media available: Printed media, Web-based media, Broadcast media, Direct mail
• Publicity


  Information about a business published by an independent third party such as a newspapers or television station, Ensures that the public know about the business, its social programmes, community involvement and fair labour practices, Can be positive or negative as it is not paid for by the business
• Role of public relations in publicity

  • Aims to present a favourable image of the business and its products or service, Many businesses outsource the PR function to an outside agency, Builds good relationships with representatives of the media and press, Keeps the media informed of news about product launches and opening of new factories or shops for the attention of the public, Supports marketing efforts to establish and build a brand identity
• Personal selling


  Can be made telephonically but are usually face to face and offer the most flexible means of delivering a promotional message, Done by experienced sales people who develop charisma and become skilled in persuading customers
• 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 organizational objectives
• Role of the marketing function

  • Identify customer needs and wants
  • Develop products and services to meet those needs
  • Promote the products and services
  • Distribute the products and services
  • Determine the price of the products and services
  • Provide customer service
• Marketing activities


  1. Ensuring product quality and size

  2. Using cold storage facilities to keep products fresh

  3. Using different airlines to deliver supplies

  4. Delivering a product in return for a fee over a period of time

  5. Continuing daily operations despite challenges

  6. Using online services to sell products
• Types of consumer goods

  • Convenience goods
  • Shopping goods
  • Specialty goods
• Convenience goods


  • Inexpensive, frequently purchased items that require minimal effort to obtain
• Convenience goods


  • Soft drinks, newspapers, snacks
• Shopping goods


  • Products that the consumer compares on the basis of suitability, quality, price, and style before making a purchase
• Shopping goods


  • Clothing, furniture, major appliances
• Specialty goods


  • Products with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchasing effort
• Requirements for good packaging

  • Protection
  • Promotion
  • Information
  • Convenience
• Reusable packaging


  Packaging that can be used multiple times, such as refillable containers
• Multiple packaging


  Packaging that contains more than one unit of a product, such as a multipack of snacks
• Rendani General Dealers wants to attract customers by giving some of their sweets a high class image


  Using prestige packaging
• Rendani General Dealers sells related types of sweets in one box

  Using multiple packaging
• Rendani General Dealers' sweet packages changed to keep up with the 2018 world cup theme


  Using promotional packaging
• Rendani General Dealers wants customers to use the sweets containers to store other home supplies


  Using reusable packaging
• Steps involved in developing a product

  • Idea generation
  • Screening and evaluation
  • Concept development and testing
  • Business analysis
  • Product development
  • Test marketing
  • Commercialization
• Importance of product design

  • Meets customer needs and wants
  • Differentiates the product from competitors
  • Enhances the brand image
  • Improves functionality and usability
  • Reduces production costs
• Trademark


  A distinctive sign, design, or expression which identifies products or services of a particular source and distinguishes them from the products or services of others
• Pricing techniques


  • Cost-plus pricing
  • Penetration pricing
  • Price skimming
  • Competitive pricing
  • Promotional pricing
  • Differential pricing
  • Prestige pricing
  • Odd pricing
  • Discount pricing