Download Year 12 Business Studies

Year 12 Business Studies
MARKETING REVIEW
Role of marketing
 What is marketing?
 Marketing is the process of developing a product and
implementing a series of strategies aimed at correctly
promoting, pricing and distributing the product to a core
group of customers.
 How would you describe the strategic role of
marketing?

Refers to the long term role that the key business function of
marketing has within a business.
Role of marketing
 The strategic role of marketing involves five key
areas. What are they?
1.
2.
3.
4.
5.
Choice – businesses differentiate themselves from their
competitors through price, product, quality and service.
Standard of Living – businesses develop and market products
that improve and enhance standards of living.
Employment – businesses must employ labour
Brand Awareness – how aware are customers of the brand?
Market share – businesses seek more customers than their
competitors.
Role of marketing
 What are the four key business functions?
1.
Marketing
2.
Operations
3.
Human Resource Management
4.
Finance
 Each of these functions works closely with the other
to achieve business goals.
Role of marketing
 What are the three core approaches to marketing?
1.
2.
3.
Production approach – consumers base their decisions to buy on
the quality of the product
Selling approach – promotion of benefits to target market
Marketing approach – all actions in the business should be aimed
at satisfying the needs of the customer
What are the four markets in the marketing process?

1.
2.
3.
4.
Resource markets
Industrial markets
Intermediate markets
Consumer markets (mass markets, market segments, niche
markets)
Influences on marketing
 What are the four key factors influencing consumer
choice?




Psychological – personal characteristics of individuals
Sociocultural – where the person lives and their religious
beliefs
Economic – income and ability to access credit
Government – use of policies
 Businesses are expected to engage in fair and honest
behaviour and prohibited from engaging in deceptive
or misleading conduct.
 Role of the ACCC to regulate business behaviour.
Marketing process
 What are the elements of a marketing plan?


Executive summary – brief description of current issues facing the
business and an overview of main goals
Situational analysis – product life cycle and SWOT
 Market research allows businesses to gather information
relevant to its needs, ensuring they make informed
decisions.


Primary data – collected for a specific purpose
Secondary data – information that already exists somewhere
 Market objectives need to be SMART (specific,
measurable, achievable, realistic and have a time frame)
Marketing process
 What are the general market objectives?



Increase market share
Expand into new markets
Develop its product range
 Marketing strategy is the process of developing a product
that meets consumer needs and implementing
promotional, pricing and distribution strategies.
 What are the four key elements of the marketing mix?
1.
2.
3.
4.
Product
Price
Promotion
Place
Marketing strategies
 How can businesses segment the market?




Geographic segmentation- different geographic locations
Demographic segmentation – age, gender, income, education
Psychographic segmentation – lifestyle, personality, values
Behavioural segmentation – user loyalty and product benefits
 The four P’s




Product – g/s a business is selling
Pricing – penetration pricing, market skimming, prestige
Promotion – advertising, DM, PR, campaigns (the nuts and bolts)
Place – the place of distribution
 7P’s include people, processes and physical evidence
Marketing Strategies
 Can you think of some examples of the following?
 Global branding – adopting a universal slogan and logo
 Product differentiation – modification of a product to suit a
market
 Competitive positioning – how a business can differentiate
itself from its competitors
Any Questions?