RPIS:

Roles

Syllabus: Role of marketing

• strategic role of marketing goods and services
• Interdependence with other key business functions
• production, selling, marketing approaches
• types of markets – resource, industrial, intermediate, consumer, mass, niche

The strategic role of marketing is to maximise sales for an organisation through developing a group of strategies that design, plan, price, promote and distribute the company’s goods or services in an attempt to obtain or maintain a sustainable competitive advantage over their competitors.

Essentially: Who designs the products and plans the promotion strategy.

Changes in the role of marketing

Types of Markets (RIICMN)

A market is a group of individuals, organisations or both that:

• need or want a product (goods or service)
• have the money (purchasing power) to purchase the product
• are willing to spend their money to obtain the product
• are socially and legally authorised to purchase the product

There are 6 types of markets:

• R - resource The market of a primary product or natural resource (e.g wool, iron, clay)
• I - industrial The market for sale of input goods to other firms (e.g Sale of microchips to Sony)
• I - intermediate The sale of finished goods to firms for a sale to a customer (e.g Sony selling speakers to JB Hi-Fi)
• C - consumer The sale of goods for consumption by customer (e.g JB Hi-Fi sells speaker to customer)
• M - mass Sale of broad, standard products to a mass market segmentation (e.g woolies selling toilet paper)
• N - niche Sale to a small market segment (e.g Songbird candles)

Processes

Syllabus: marketing process

• situational analysis – SWOT, product life cycle
• market research
• establishing market objectives
• identifying target markets
• developing marketing strategies
• implementation, monitoring and controlling – developing a financial forecast; comparing actual and planned results, revising the marketing strategy

Marketing Processes - SMEIDI

• Situational analysis
  • SWOT
  • product life cycle - The cycle through which revenue for a product moves, moving from rapid growth in an introduction phase then to a post maturity phase.
• Market research - gathering and interpreting info about a market, a product or service to be offered in the market or about past, present or potential customers for a product.
  • Primary research (newly created for the purpose) eg Surveys, Product tests, Focus groups
  • Secondary research (already existing for other persons) eg ABS data, existing sales reports
  • Can be sourced internally or externally.
• Establishing market objectives - set overall objective in relation to sales, market share, product range and geographic scope.
• Identifying target markets - Using a number of attributes (geographic, demographic, psychographic and behavioural) to identify who are the specific customers that will purchase the goods or services in order to achieve the market objectives.
  • Primary Target Market - the segment of a market which a business believes will provide the best chance to sell
  • Secondary Target Market - an additional market which the business is going to target. This will provide a more difficult market to sell to, and may be targeting a smaller overall volume of sales
• Developing marketing strategies - Develop the plan for the 7Ps of marketing in order to achieve the market objectives by selling the goods or services to those in the identified target market: Product, Price, promotion, Place (4Ps), People, Processes, Physical Evidence
• Implementation, monitoring and controlling – developing a financial forecast; comparing actual and planned results, revising the marketing strategy

Influences

Syllabus: influences on marketing

• factors influencing customer choice – psychological, sociocultural, economic, government
• consumer laws
  • deceptive and misleading advertising
  • price discrimination
  • implied conditions
  • warranties
• ethical – truth, accuracy and good taste in advertising, products that may damage health, engaging in fair competition, sugging

Influences on Marketing - FEC

F - Factors influencing customer choice - PEGS

• Psychological (internal) - Personal individual factors within the person including perception, motives, attitudes and experiences.
• Economic (external) - Influence of current state of the economy including GDP growth rate, wage increases, interest rates and exchange rates.
• Government (external) - Influence of government actions in relation to taxes, subsidies and public service advertising.
• Sociocultural (external) - Influence as a result of social groupings or interests including socio economic status, culture and subculture, gender and peer groups.

E - Ethical - TAPES

• Truth in advertising - unethical and prohibited by the Australian Consumer Law
• Accuracy and good taste in advertising - unethical and self regulated by industry with a range of Codes overseen by Ad Standards
• Products that may damage health - may be unethical, may be legally regulated including prohibitions (tobacco) or self regulated (alcohol, junk food to children)
• Engaging in fair competition - unethical to be unfair, and prohibited by competition law
• Sugging - selling under the guise of market research is unethical, but not illegal

C - Consumer Laws - WIPD

• Warranties
• Implied conditions
• Price discrimination
• Deceptive and misleading advertising

Strategies

Syllabus: