Topic 4Marketing

The role of marketing

Learning objectives

• Understand what marketing is and the role of marketing• Asses the main features of markets, such as size, growth

and share• 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

What is a market?

• Market – any place or process that brings together buyers and sellers with a view to agreeing a price

Defining a market

A market is anywhere where

buyers and

sellers come together to

transact with each other

A market is anywhere where

buyers and

sellers come together to

transact with each other

Localmarkets

Nationalmarkets

Physicalmarkets

Electronicmarkets

Local Markets• Where customers are a

short distance from suppliers

• Common for the sale of fresh and locally-sourced products and the delivery of locally-supplied services

National Markets

• The same product or service is offered to customers who are spread around the country

• A business may have several (or many) locations in the country in order to reach those customers

• A start-up or small business can be focused on a national market, although it is likely that it will have a very small share of the market

Physical markets• A physical market brings buyers

and sellers together in the same location

• Prices are often negotiated by customers

• Examples:– Farmers market– Car boot sale– High street retail– Auction houses

Electronic markets

• Transactions are completed electronically with the delivery method depending on the nature of the product sold

• Examples:– E-commerce– Online auctions

An Invisible Market?

Markets can exist:• over telephone lines• online• in emails

As long as what happens involves buyers and sellers in a business transaction

Marketing involves

• Market research• Product design• Pricing• Advertising• Distribution• Customer service• Packaging

Analysing the market

• Market size (volume and value measures)

• Market growth (percentage growth)

• Market share (percentage of the market owned by each competitor)

There are three key calculations you need to be able to complete in order to analyse market data.

Market size

• Market size measures the sales by all companies within the market place

• It can be measured in 2 ways:»By volume (quantity sold E.G. units)»By sales (value of sales E.G. price x

quantity sold - revenue)