IEB 133 Week 12 _The introduction to marketing function 2024.pptx

IEB 133 INTRODUCTION TO THE ECONOMY AND BUSINESS Week 12 Topic: Introduction to marketing function Learning outcome  What is marketing function?  The roles of marketing function  Marketing activities  Uncontrollable factors in the marketing environment  Market rese...

IEB 133 INTRODUCTION TO THE ECONOMY AND BUSINESS Week 12 Topic: Introduction to marketing function Learning outcome  What is marketing function?  The roles of marketing function  Marketing activities  Uncontrollable factors in the marketing environment  Market research  Marketing mix  What is marketing function  Is one of the eight business functions  Marketing refers to the process to deliver the value to customers to meet and satisfy their needs  It starts by identifying customers and then plan the production of goods and services based on customers needs.  The main goal of marketing: it helps in making the right product available to the right customers and at the right time and place What is marketing function (continues)  It assist to attain the objectives of the business or an organisation  Marketing make use of market research to find out what customers want and need  Marketing bridges the gap between the firm and customers  Marketing must take notes on what is happening in the market and vary with the preferences of customers  It is accountable for determining the price of the product Roles/functions of marketing  Pricing- setting the right price to the products e.g fat cakes R18  Distributing and transportation- ensures that the products are transported/moved from the warehouse to the customers  Promotion-creating awareness of the product to the customers  Storage- ensuring that products are stored safely in a warehouse until retailers or consumer want and need them  Financing- responsible for raising funds  Researching- collect information about customers needs, buying behaviour and preferences then share with other departments  Standardisation - make sure products are in the same standard in terms of quality, packaging and quantity e.g tins of beans Uncontrollable factors in the marketing environment  Internal factors- are events that takes places within the firm/organization Example: organisational objectives, stakeholders, resources, culture and structure (Value-chain process/ Resource-based view)  Micro factors- factors that are close to the organization and therefore affect the organization Example: suppliers, customers, intermediaries and competitions  Macro factors- broader factors that affect an organisation or the business Example: cultural, economic, natural forces, political, technological and demographic Market strategy  Is the broad plan mainly formulated for achieving the objectives of the firm/business or an organisation  Importance: provides an organisation with the superiority over its competitors Competitive advantage over it’s rivals  Help to setting/fix the right prices for organisation’s goods and services based on the data/information gathered by market research  Marketing assist the firm to increase its sales volume, generate income  Ensures business/firm/organisation's success Marketing SWOT analysis  Weaknesses and threats-negative effect  Strength and opportunities-positive effect  Weaknesses and strength-internal factors> business have control over them  Opportunities and strength- external factors> business does not have the control over Example: James SWOT analysis (catering company) Strength Weakness Opportunities Threats Skilled and Shortage of resources Higher demand for the Competitors knowledgeable staff product Cooperation between Unclear objectives Could partner with Spar Customers behaviour staff changed Friendly employers Low profit New technology Negative press Market research Market research is a process that involves 5 important steps:  Define the problem clearly (e.g.) sales dropped & set specific research objectives (e.g.) why sales dropped  Develop a clear & achievable research plan  Collect the relevant data  Analyse and interpret the data  Report on the findings of the process Marketing research steps Step 1: Define the problem and set research objectives  Problem- e.g. sales have dropped  Objective – e.g. reasons why sales have dropped Step 2: Develop research plan  How to collect required information  How data will be analysed  Time frames and budgets Marketing research steps (continues) Step 3: Data collection Primary data: interviews and observation Interviews- dialogue conversations Observations – watching in different situations Focus Groups – 6-12 people specific and problem related Secondary data: questionnaires and surveys Collected data for other purposes Internal and external sources Marketing research steps (continues) Step 4: Analyse and interpret data 1. Get to know your data 2. Data cleansing 3. Categorize the information Identify  themes or patterns Organise  them into coherent categories 5. Interpretation– bring it all together 6. Looking for possible answers to the research=research findings Marketing research steps (continues) Step 5: Report on the findings  Report findings  Provide recommendations  Tools for management to make informed decision Marketing mix: The 4Ps First P:Product  Without a product/service there is no business  Marketers need to know which products to offer to customers  The next step is to decide on the Product mix & then a. Product line b. Branding c. Packaging  Product mix is the total products a business offers to its customers  These products lines can be e.g Shoprite sells shoes, clothing, food and equipment First P:Product (continues) Branding and packaging distinguish a particular product from others  A brand is a name, term, symbol, design, or combination, e.g Samsung-Nokia, BMW-Mercedes-Benz, Coca-Cola-Twizza, Nivea- Clere, Simba-lays, Puma-Nike  Symbols  Loyalty of customers is the goal of professional marketers First P:Product (continues)  There is an emphasis on the brand and its uniqueness to the customer  Brand name  Styling  Quality  Packaging  Safety  Repairs  Support  Accessories  Servicing or warranty Second P: Price  Price is the exchange value of something that will satisfy a need of a customer  Price is the most flexible of the marketing mix, as  Marketers can change prices as quick as demand moves to be ahead of the competition  Setting the right price either high or low, depending on the customer’s willingness to pay for a product or a service  Depends upon the pricing objectives, demand, costs, and competition Factors that influence the pricing  Quality of product e. g fake vs original  Brand Name e.g white star vs impala  Market Competition: e.g prices of other firms selling the same product  Product Life Cycle: existence  Demand of the product: the higher the demand, the expensive is the product  Types of products: expensive/good-products are priced higher  Overall Business Life Cycle also impacts Third P: Place/location (market, channel and distribution  Market-the place that you promote your product from Where do your customers find information about your firm/organisation e.g where you sell, provide or distribute your product  Chanel-Digital dimension introduced new opportunities & threats e.g. Apps – 24 hour access with remote links to deliveries (takealot)  Distribution channels- are essential for a successful delivery of products to customers e.g direct selling (street vendors) or post offices (couriers) Forth P:Promotion Any form of communication between the business and the consumer to inform, persuade and make them aware of the products and services Purpose of sales promotions a. Inform the customers about goods and services that are available b. Create awareness to customers about the benefits of purchasing the goods and services c. Convince/persuade the customers to buy the products Main promotion tools: a. Advertising- most popular to get customers to know about the product (e.g broadcast media, printed media, direct mail-pamphlets, billboards) b. Sales promotion- free gift, discounts, special offers, point of sales c. Personal selling- Done by an experienced sales person, can be telephonically or face to face (insurance people) d. Publicity-refers to information about the firm/organization being published by an independent third party such as radio and television stations or a newspaper Marketing challenges  Getting Customers  Customer Satisfaction (to satisfy)  Customer Retention (to keep)  Meets customer perceptions & needs  How do customers order?  Satisfying customer expectations  After sales service THE END THANK YOU! 