Business develops products based on what it is good at making
Mainly for products that are high tech, high quality, and high differentiation
Market Oriented Marketing
Business develops products based on the market
Geared to mass consumer markets using expensive market research, but is more flexible and less risky
Flexible: Adapts more easily as this approach is sensitive to market trends, such as habits, needs, lifestyle, and taste
Less Risky: More assurance of success since the product meets customer requirements
Social vs. commercial marketing
Social marketing
Seeks to influence behavior to benefit society as a whole by selling a desired behavior, thus satisfying societal needs
Using social marketing (i.e. commercials, etc.) to bring about social change
Celebrity endorser
Media coverage
Giving out cards
Workshops/modules
Movies
Signature campaign – Pledge board
Slogans
Dropboxes
Email/hotline/customer service
Commercial marketing
Seeks to satisfy customers by selling a particular needed product or service, thus satisfying individual needs
Delivering what people already want instead of changing what people want
Market
A place or process which allows suppliers and customers to exchange physical goods, services, information, etc..
Exists to help facilitate trade where there is demand for a particular product, and businesses willing to satisfy such demands
Kinds of Markets
Consumer – General public
Industrial/Commercial – Businesses and governments
Markets size
Can be measured through the number of potential customers, the total volume of sales achieved by the numerous businesses active in the market, or the value of said sales
Helps businesses assess whether a particular market is worth participating in due its number of potential customers and the barriers to entry
Market growth
Rate the size of a market increases/decreases over a period of time
Measured by an increase in the total value or volume of sales in a market
Helps businesses assess whether a particular market is worth entering due to its rate of growth or contraction
Market share
The percentage of all the sales in a particular market that are held by a business, and can be measured by the volume or value of the sales
Importance
Helps measure a firm’s performance and market position against other competitors
Might indicate that a business is a market leader
Can influence its competitors to follow the leader’s model
Can influence the leader to continually enact strategies in order to maintain its position
Can indicate the degree of success or failure of a business’ current strategies
Can lower prices or maintain higher profit margins as compared to competitors due to better economies of scale
Ways to increase market share
Brand promotion
Improved customer service
Copyright and patent filing
Product development
Limitations
May be difficult to identify the most important market share value for products that cross into several markets
Cannot be used as an absolute measure of a firm’s success or performance
Firms can be intentionally lowering their market share as a result of its more stringent client selection
A decline in a firm’s market share can be a result of a new entrant and not necessarily as a result of lowered sales
Should mainly be compared against the most similar and closest of competitors, and not necessarily the market as a whole
Marketing objectives
Common targets that marketing activities will achieve
Market share/leadership
Acquiring a greater/bigger market share and volume by improving sales/revenues (e.g. expansion, globalization, franchising, aggressive advertising, further market penetration, etc.)
Customer service
Providing loyalty programs, after sales services/policies through quality staff training
Brand building
Improving the image of the company through CSR, sponsorships, publicity, packaging, etc.
Growth strategies
Innovation
Launching a totally original or new product into the market (attain the first-mover advantage)
Positioning
Involves expanding or modifying product line/mix to enhance or change image.
Successful marketing objectives are
Aligned with business’ overall main vision-mission-goals (or VMGs)
Appropriate to organization’s size, financial capacity and production efficiency
Mindful of competition, external (PEST) factors and social issues
Ethics of marketing
Ethics are the moral principles that guide business behavior
Ethical marketing issues are increasingly significant in a period of rapid globalization
What may be acceptable marketing practice in one place may not be in another
Is it ethical?
Pricing
Sell a computer printer cheaply and then tie in customers to buy expensive refill cartridges?
Offer low airfares on the internet and then add taxes on after a purchase has been made?
Promotion
Advertise toys on TV to young children who may not be able to distinguish between program and advertising?
Use sexual images to sell products in countries with deeply held religious views?
Place
Sell products that are sexually suggestive or offensive to the culture of the country/place these are sold in?
Product
Buy cheap and potentially dangerous supplies in order to cut prices?
Design clothes for young children that are sexually provocative?
