Embark on a journey through the intricacies of marketing strategy with this comprehensive summary of "The Marketing Function." These notes meticulously outline the core components of effective marketing, from product policy to distribution strategies, providing invaluable insights into crafting suc...
• Product policy: the first component of the marketing mix. It explains how a business is
going to develop a new product design and package
• Distribution: how the business gets its product to its customers
• Marketing communication: involves how the product or service is communicated to
the target market
• Technology for marketing: has changed the way businesses convey their messages to
potential customers. Internet advertising and social media advertising increased the
ability to promote products nationally and internationally at relatively low costs
• Foreign marketing: imports and exports have increased recently which increased the
scope of potential buyers for businesses to include international buyers. Businesses
must put in place processes and systems to align with international regulations to
market their products to foreign buyers.
• Brand name: a name given by a producer to a product.
• Pricing policy: refers to how a business sets the prices of its products based on cost,
demand, and competition.
• Costs: an amount that must be paid or spent to buy or obtain something.
• Mark-up: the amount added to the cost price of goods to cover overheads and profit.
• Substitutes: a person or an object acting in place of another.
• Websites: a set of related web pages located under a single domain name.
• Profit margin: the portion of the selling price that is not allocated to input
costs/overheads and contributes to the gross profit margin of the business.
• Penetration: the selling of a company’s products in a particular market or area.
• Bait: sales tactic that lures customers in with specific claims about quality or low
prices.
• Skimming: a firm charges the highest initial price that customers will pay and then
lowers it over time.
• Monopolistic: in monopolistic competition, a firm takes the prices charged by its rivals.
• Oligopoly: a state of limited competition in which a market is shared by a small
number of producers or sellers.
• Monopoly: a market structure characterised by a single seller, selling a unique product
in the market.
Marketing
meaning
, ↳ refers to activities a company does to promote buying and selling of its products or
services
Marketing = ad's, selling + delivering g) s to consumer
Role of Marketing function
① ID needs of consumers + determine value they place on getting those needs satisfied
② share info gathered by customers with production function to ensure that the gIs
offered meet the customers expectations
③ promote gls to potential customers
④ provide feedback from customers about B's gls and ID areas of improvement
⑤ shape the customer's expierence when gls are delivered
Marketing Activities
• financing
• standardisation and grading
• risk bearing
• storage
• buying and selling
• transport
Standardisation and Grading
• refers to process of ensuring goods are produced to same standards in terms of
size/weight/colour
• no differentiation in terms of g Is
• quality is measured against predetermined standards
• products that can't be manufactured according to pre-determined standards = graded
according to quality
↳ products from nature (veg, fruit, corn)
Storage
• large scale production needs storage space
• storage = act of keeping products at facility for safekeeping/preservation after
manufacturing
• storage ensures that sufficient goods are available to meet demand
• storage preserves for future demand
• bridges gap between production and consumption
• storage facility → influenced by type of g/s stored
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