What is Marketing? Discuss… MARKETING IS… TOPIC: Topic 4: Marketing LESSON TITLE: What is Marketing? LEARNING INTENTION: To understand what marketing is? COMPETENCY FOCUS: Creativity: learners will develop skills in creativity and design by firstly looking at how promotion is used in business to help them to reach their goals and secondly, to design their own promotional campaign responding to a creative brief from the client. Reasoning: Learners will develop skills in reasoning as after providing advantages and disadvantages for the use of the promotional mix, you will be required to make a reasoned judgment. [IB Learner Profile Development: Thinker] Success Criteria By the end of the lesson, I can… 1) To define the term ‘Marketing’ 2) To distinguish between market and product orientation, using examples 3) To assess how important marketing practices are in creating a successful business. SMSC: You will assess the organisational culture of businesses in terms of fundamental structure, purpose and strategy development. CRITICAL THINKING KEY: Knowledge Application Analysis Evaluation Different types of market Consumer markets: markets for goods and services bought by the final user. This is B2C (Business 2 Customer) selling. Industrial markets: markets for good/services bought by businesses to be used in the production process of other products. This is B2B (Business 2 Business) selling. Different types of market Niche Market= A business aims its products to a small group of people (more targeted) i.e. Stannah Stairlifts Mass Market = A business offers the same products to everyone and promotes them in the same way i.e. Walkers Crisps Different types of market Market Orientated Business = Responds to the wants and needs of customers. It is led by what the market wants i.e. Sony, BMW. An outward-looking approach. Product Orientated Business = A business that focuses on the product itself and the production process (how it is made), it doesn’t worry whether the customers actually want it. An inward-looking approach. A definition of ‘Marketing’ Provide examples of each type of market. MARKET Consumer Market Industrial Market Niche Market Mass Market Market-orientated Business Product-orientated Business EXAMPLES Different Types of Marketing (HL) Asset-led Marketing- A third approach between market and product orientated marketing - An approach that bases strategy on the firm’s existing strengths and assets instead of purely on what the customer wants - For example, BMW does not enter in to the commercial-vehicle or motor-caravan markets but it does use its brand strength to market 4x4 vehicles. Different Types of Marketing (HL) Social (societal) Marketing- An approach that considers the demands of the consumers and also the effects on all members of the general public - For example, The Body Shop supports non-animal testing WHAT ARE THE IMPLICATIONS OF IMPLEMENTING THE SOCIAL MARKETING CONCEPT FOR BUSINESSES? TASK 1 You are to play the role of the Marketing Director. You have to explain the importance of marketing and their job role to the new Managing Director who is looking to get rid of the marketing function of the business. Prepare a presentation for your new Managing Director. TASK 2 Bajaj In India, the market leader in motorbike manufacturing is Bajaj, with a 34 % market share. There are many market segments for motorbikes. For some target markets, price is the most important factor. Other target markets are willing to pay more for extra features, such as better styling*. Bajaj is market orientated and offers 12 different models to satisfy the needs of various consumer profiles. Bajaj has an extensive distribution network even in remote areas. Twice a year, Bajaj carries out primary market research through surveys, focus groups and interviews with their customers about the quality, reliability and safety of the Bajaj motorbikes. This is particularly important in remote areas where there are few garages to either service or repair them. In the last 10 years the company has also gained a significant share of other markets, including the Philippines, Colombia and Tajikistan. This was done through strategic alliances. One of the company’s long-term objectives is this continued expansion in international markets. For its international markets as in India, Bajaj is determined to make sure that each model of motorbike satisfies local needs and preferences. One proposal is to use franchising to enter international markets. * styling: the various features of style or design that consumers may prefer [Source: "GLOBALITY: Competing with Everyone from Everywhere for Everything", Boston Consulting Group. Reproduced with permission.] TASK 2 1. Outline briefly the difference between market orientation and product orientation. [2 marks] 2. Define the term market share (line 155). [2 marks] 3. Describe two differences between the marketing of goods and the marketing of services (lines 65–66). [4 marks] TASK 3 Plan the following essay question: Analyse the influence of marketing orientation on the success or failure of firms. [12marks] Self-reflection Self-reflection/assessment Complete assignment front sheet.