Module 3 - Marketing - Khairul Syahir

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BUSINESS & MANAGEMENT (STANDARD LEVEL) Module 3: Marketing Content retrieved from Wikirevise (http://wiki.khairul-syahir.com/ib/) on 27/10/08 3.1 The role of marketing Definition of marketing ã Marketing is an organizational function and a set of process for creating, communicating, and delivering value to customers as to build strong customer relationships in ways that benefit the organization and stakeholders. ã satisfying needs and wants through an exchange process: ã A simple model of the
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  1   BUSINESS & MANAGEMENT (STANDARD LEVEL)Module 3: Marketing Content retrieved from Wikirevise ( http://wiki.khairul-syahir.com/ib/     ) on 27/10/08  3.1 The role of marketingDefinition of marketing ã   Marketing is an organizational function and a set of process for  creating  , communicating  , and delivering   value to customers as to build strong customer relationships in ways that benefit the organization andstakeholders. ã   satisfying needs and wants through an exchange process: ã   A simple model of the marketing process: Sample marketing process   ã   Its relationship with other business: o   It is important to realize that marketing cannot be carried out in isolation from the rest of the business.For example:1.   The marketing section of a business needs to work closely with operations, research anddevelopment, finance and human resources to check their plans are possible.2.   Operations will need to use sales forecasts produced by the marketing department to plantheir production schedules.3.   Sales forecasts will also be an important part of the budgets produced by the financedepartment, as well as the deployment of labour for the human resources department.4.   A research and development department will need to work very closely with the marketingdepartment to understand the needs of the customers and to test outputs of the R&D section.  2   Marketing objectives 1.   Goals or targets that must be achieved by the marketing department in order to attain the overall corporateobjectives2.   Marketing objectives are the aims set out for the organization’s marketing programme3.   Marketing objectives are about products, sales and marketing only. The role of marketing objectives 1.   To enable a business to control its marketing plan2.   To provide a common goal3.   To provide an agreed consistent focus or a function of an organization Marketing objectives and strategy 1.   Objectives provide the starting point for marketing strategy and plans2.   Strategy concerns methods devise to fulfill the objectives3.   The success of the strategy should be evaluated in terms of the extent to which objectives are achievedObjectives can be set at two levels:1.   Corporate level  These are objectives that concern the business or organization as a whole.Examples of corporate objectives might include: o   We aim for a return on investment of at least 15% o   We aim to achieve an operating profit of over £10 million on sales of at least £100 million o   We aim to increase earnings per share by at least 10% every year for the foreseeable future2.   Functional level  e.g. specific objectives for marketing activities.Examples of functional marketing objectives might include: o   We aim to build customer database of at least 250,000 households within the next 12 months o   We aim to achieve a market share of 10% o   We aim to achieve 75% customer awareness of our brand in our target marketsBoth corporate and functional objectives need to conform to the commonly used SMART criteria. The SMART  criteria (an important concept which you should try to remember and apply in exams) are summarised below: ã   Specific - the objective should state exactly what is to be achieved. ã   Measurable - an objective should be capable of measurement – so that it is possible to determine whether (or how far) it has been achieved ã   Achievable - the objective should be realistic given the circumstances in which it is set and the resourcesavailable to the business. ã   Relevant/Realistic - objectives should be relevant to the people responsible for achieving them ã   Time Bound - objectives should be set with a time-frame in mind. These deadlines also need to be realistic. Marketing of products The distinction between marketing goods and services1.   Intangibility :The intangibility of services to be touched, seen, tasted, heard or felt in the same manner that goods can besensed2.   Inseparability :The inability of the production and consumption of a service to be separated. Consumers must be presentduring the production.3.   Heterogeneity :The variability of the inputs and outputs of services, which cause services to tend to be less standardized anduniform than goods.4.   Perishability :The inability of services to be stored, warehoused, or inventoried as compared to goods.  3   Marketing in non-profit organizationsWhat is nonprofit organization marketing?  Nonprofit organization marketing is the effort by nonprofit organizations to bring about mutually satisfying exchangeswith target markets. Although these organizations vary substantially in size and purpose and operate in differentenvironments, most perform the following marketing activities: ã   Identify the customers they wish to serve or attract ã   Develop, manage and eliminate programs and services ã   Decide on prices to charge ã   Schedule events or programs and determine where they will be held or where services will be offered ã   Communicate their availability through brochures, signs, public service announcements or advertisements Ethics of marketingMarketing’s impact on individual consumers 1.   High prices: o   high cost of distribution o   high advertising and promotion costs o   excessive markups2.   Deceptive practices3.   High-pressure selling4.   Shoddy, harmful and unsafe products Marketing’s impact on society as a whole 1.   Creates a very materialistic society2.   Too few social goods3.   Cultural pollution4.   Too much political power  Marketing’s impact on other businesses 1.   Acquisition of competitors2.   Marketing practices that can create barriers to entry3.   Unfair competitive marketing practices DataData Interpretation 1.   Median  The median is the middle value in a set of values. Half of the data in the set fall above this value and half fall below, so the median estimates the 50% quantile.2.   Mode  The mode is the most-frequently occurring value in a set of values.3.   Mean  The expected value of a random variable Data Presentation 1.   Whenever you must present numerous figures or describe a technical process or procedure, graphic aids canhelp communicate this information to your audience more quickly. The two graphic aids most used are tablesand graphs.2.   Data can be presented in tabular or graphic form. The tabular form (tables) consists of the numerical presentation of data.Example: Store Number of persons who entered the store Percentage of total (%)West 4,731 25 North 4,821 26 East 3,514 19 South 3,534 19 Central 2,210 11  4   Total 18,810 100 Weekly traffic count by store location  1.   Once your data is in hand (in tabular form), you must select the best graphic format to present your data.2.   Pie, bar and line charts are format used most frequently in business communication because they providedirect visual representation of complex data. Pie Chart 1.   It is one of the simplest and most effective ways to dramatize proportional relationship.2.   It is a circle divided into sections such that the size of each section corresponds to a portion of the totalExample: Bar Chart 1.   It depicts magnitudes of the data by length of various bars that have been laid out with reference to ahorizontal or vertical scaleExample:
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