Business Revison Notes 3AS.1

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Business Revision Notes: 3AS.1
Marketing
Marketing the management task that links the business to the customer by identifying and
meeting the needs of customer profitably ­ it does this by getting the right product at the right price
to the right place at the right time.
"Advertising and selling of products is only a limited view of marketing ­ marketing embraces much more than
just telling people about a product and selling it to them"
If business wants to survive, they must satisfy customer wants
Human Needs basic requirement that individual wishes to satisfy
Physical Needs food, drinks, clothing and shelter
Individual Needs : it includes desires for knowledge, recognition, affection, self-esteem and
self-expression (e.g. luxury goods/ services such as Bentley, brandy clothes)
Wants thing we do not need for our survival as biological creatures
Many marketing managers aim to convert human needs into wants by persuasive product imagery through
advertising.
Marketing Management Functions :
Market research
Product design
Pricing
Advertising
Distribution
Customer service
Packaging

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Role of marketing and its relationship with other business activities
The link between marketing objectives and corporate objectives
Long-term corporate objectives have a significant impact on both marketing objectives and
marketing strategy. A business with intended objectives on maximizing short-term profit targets on
maximizing sales at its highest price. In contrast, a business with long-term objectives may adopt a `societal
marketing' approach.
Marketing objectives the goals set for the marketing department to help the business achieve its overall
objectives [e.g.…read more

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To be effective, Marketing Objectives should:
Fit in with overall aims and mission of the business ­ the marketing objectives should
reflect the aims of the whole organization and they should attempt to aid the achievement
by these
Be determined by senior management ­ the key marketing objectives will determine the
markets and products a business trades in for years to come and these issues must be dealt
with by managers at a senior level in the company.…read more

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Coordinating is vital
Supply and Demand
Factors influencing the supply and demand for the products/ services of a
business
Demand the quantity of a product that consumers are willing and able to buy at the given price in a
time period
Supply the quantity of a product that firms are prepared to supply at a given price in a time period
Meetings consumer wants profitably- the central aim of marketing- the marketing managers need to
know how free markets work to determine prices.…read more

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A normal relationship between price and demand for a product
A rise in price leads to a decrease in the quantity demanded
A fall in price leads to an increase in the quantity demanded
Supply
Apart from changes in price, the level of supply of a product can vary due to a change in any
these determinants of supply
Costs of product, e.g.…read more

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Features of markets; location, size, share, competitors, growth
Market is places or mechanism where buyers and sellers meet to engage in exchange. A market
does not have to be a physical place; a market occurs as long as buyers and sellers are in
communication.…read more

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Problems associated with measuring market share and market growth
The pace of growth will depend on several factors, such as:
General economic growth , changes in consumer incomes
development of new markets and products
changes in consumer tastes
technological changes
Saturation [if the market is saturated, it is simply overabundance.…read more

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Difference between product and customer orientation
This is an important distinction. Most business today describe themselves as being `market
orientated' or `market led'
Market orientation an outward-looking approach basing product decisions on consumer demand,
as established by market research
This approach requires market research and market analysis to indicate present and future consumer
demand. The consumer is put first. The business will attempt to produce what consumers want rather
than try to sell them a product they may not really want to buy.…read more

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Industrial and consumer markets
Classification of products
Consumer markets: markets for goods and services bought by the final user of them
Industrial Markets: markets for goods and services bought by businesses to be used in the
production process of other product
The importance of this distinction lies in the different marketing strategies that a firm will use
between these two markets.…read more

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Product differentiation and USP (Unique Selling Point )
Product differentiation making a product distinctive so that it stands out from competitor
products in consumers `perception
USP ­ unique selling point (or proposition) the special feature of a product that
differentiates it from competitors' product.
Product differentiation not only separate good product from a bad one, it could encourage
consumers to pay a price that far exceeds the cost of basic materials needed to produce the
good/services.…read more

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