Topic 4 Marketing - The role of marketing

Learning objectives

Recognise the difference between market orientation and product orientation

Understand the distinction between consumer goods and service markets and industrial markets

Analyse the marketing of non-profit making organisations

HL – Analyse asset led marketing and social marketing

• http://www.huhmagazine.co.uk/5532/video-a-short-film-about-overconsumption

Marketing consumer goods and services

• Tangible goods are marketed in different ways to intangible consumer services

• Why?

Marketing approachesMarket orientation and product orientation

• The move towards market orientation (market led) is becoming common

• But, product orientation is still there– Technology becoming available and passing this

onto consumers– Product orientation is based on producing high

quality goodsMarket Orientation

Outward looking approach basing product decisions on

consumer demand, as established by market research

Product OrientationInward looking approach that focuses

on making products that can be made – or have been made for a long

time – and trying to sell them

Evaluation of these two approaches

• Trying to cater to all consumers needs and wants and ever changing trends is reliant on resources available

• Investing into R&D to create a product may prove better – Dyson vacuums

Asset – Led Marketing

• Approach to marketing based on a firms strengths and assets instead of purely on what the customer wants

• Uses market research too but focuses more on its own strengths (competencies)

• E.G Levis only produces clothes

HL

Social Marketing

• Considers not only the demands of consumers but also the effects on all members of the public involved in some way when the firms meet these demands

• Includes stakeholders• Social marketing implications

– Attempts to balance three concerns: company profits, consumer wants, society’s interests

– May be a difference between short term consumer wants (low prices) and long term consumer welfare

– Businesses should still aim to identify consumer needs and wants but in a way that enhances consumer welfare

– Gives a competitive advantage and consumers usually prefer socially responsible companies

HL

Social marketing poses a question

Is the central purpose of marketing a management tool to help maximise profits

or should it be a means of satisfying consumer needs profitably, but with minimum damage and cost to society?

I´m having a TOK moment

DEBATE

Marketing in non-profit making organisations

• Important to maintain high ethical standards• Constant feedback on the success of charity

campaigns• Free publicity, fund raising etc.

Marketing Plans

• Detailed report on an organisation’s marketing strategy

• Key components include:• SMART marketing objectives• Strategic plans• Specific marketing actions• Marketing budget

Marketing plans

Benefits• Plans provide focus• Marketing strategies linked

to SMART objectives will increase likelihood of success

• Budget should be adequate

Limitations• Plans are not revised to

meet changing internal \ external changes

• Constant reviewing