Topic One: Marketing
1. Nature & Role of Markets and Marketing Through marketing, a business is able to develop a product and the strategies that will encourage consumers to buy it. Marketing is based on two questions: ● What do customers want to buy now and in the future? ● What will make people buy one brand over another? a) The role of marketing in the firm and in society The role of marketing is to increase market share and therefore increase revenue and profit. Therefore, a business must focus on more than just selling a product. It must connect with its target market, to know and understand what its needs and wants are. Marketing involves bringing the customer and business together to bring about a sale. Three roles of marketing: ● to offer choice ● to increase the standard of living ● to provide employment Marketing offers choice by gathering information, promoting and advertising. Marketing increases the standard of living through increased competition which encourages better quality of products. Employment can be provided through the research and promotion stages. The main emphasis of marketing today is the customer-oriented approach. This means the business wants to satisfy customer needs rather than merely producing products. To achieve the financial goals and make a profit, a business needs to increase sales. A marketing plan helps in achieving business goals. b) Types of marketing A market is a group of individuals, organisations or both with who: ● need or want a product ● have the money to purchase a product ● are willing to spend their money to obtain the product ● are socially and legally authorised to purchase the product The production and sale of goods and services is not limited to consumers. Business buy goods from suppliers, and some businesses sell only to other businesses. There is a diverse range of markets based on certain characteristics. Types of markets: Industrial organisations that purchase products to use in the...