The 4 key Business Functions An in depth look!

Whether it’s BIG Business or Small Business…..

Marketing Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives Source: American Marketing Association More simply………. Marketing is a total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers.

Marketing At the heart…the most fundamental question all businesses should ask is “What do customers want to buy – now and in the future? – this is the essence of marketing Finding out what the customers want then attempting to satisfy their needs Successful marketing involves bringing the buyer and seller together and making a sale.

Marketing and Small Business Some small businesses dislike marketing and turn away customers others assume their product will sell automatically. They place ads in local newspapers, display the name on cars and even advertise on a regional radio or TV station. However this in only ONE part of marketing. Small business often view marketing and marketing campaigns as something only BIG businesses do.

Role of Marketing It is a way of thinking. Everything should be directed at putting the customer at the centre of its thinking. As competition intensifies….businesses need to view their business in terms of the needs and wants of their customers

A customer oriented business is the following……

Leads to the marketing concept The marketing concept is a philosophy All sections of the business are involved in satisfying a customer’s needs and wants while achieving the business’s goals.

Who is the customer? Businesses cannot afford to market their products to ALL consumers or ALL businesses in Australia. Also, few businesses would want to do this because it is a very rare product that is suitable to all consumers. COKE is an example. It now offers a range of carbonated soft drinks based on its original cola - Coke Zero, Diet Coke, as well as non Cola drinks - Pump water, Powerade, and Fruitbox juice drinks. Businesses MUST select specific target markets Start here 01/06/12

There are 3 approaches in identifying the target market

Provide a definition and an example for each (see text pgs 220-223) Mass Market Market Segmentation Niche Market

The marketing plan and strategy The marketing plan should outline the marketing goals (the what) of the business A business needs to develop marketing strategies (the how) to achieve the goals Marketing strategies are actions undertaken to achieve the business’s marketing goals

The marketing mix – 4 P’s To develop a marketing strategy you need to examine the elements of the marketing mix The marketing mix refers to the combination of the 4P’s - product, price, promotion and place (distribution) Businesses can achieve the marketing goals of the business through the marketing mix

The 4 Ps’ of the marketing mix The business has control over these elements and uses them to reach its target market

Activity: Business As Usual Idea Using your original business idea e.g Rivas Sandwiches: Define your target market. Refer pg. 219-222 to define WHO is your target market. Write 1-2 sentences describing WHO they are e.g White Collar workers aged 18-39 years seeking a healthy yet affordable lunch package. This is known as the demographic Then provide some insight into them such as a bit about their attitude and/or beliefs toward YOUR product or category. This is their psychographic profile. Lastly, provide an image of your target market (use:google images or getty images) This helps illustrates/defines what they look like.

Activity: What is your Marketing Mix? What is your product or service? Provide 3 features What is your pricing strategy and why? How do you distribute your product or service? How would you best reach your target market?

Activity: Choosing the Promotional Mix As a small business (Business As Usual idea), now that you have defined your TARGET MARKET, choose a promotional medium that would reach them. That is, how do you best reach your target market? Where would your product or service be highly noticed, how could you increase awareness of your product or service? Promotional medium could be – outdoor advertising (bus shelter) , magazine ad, radio announcement, letterbox flyer etc Prepare a ONE PAGE promotional piece of advertising for your business. Include – what is your product and price (if required). Try to promote the features and benefits that you have to offer (vs. your competition), keeping your target market in mind Be creative, colourful, and include images (eg. “food sells food”). STAND OUT. Upload this to your teacher on Edmodo by end of lesson

Operations

Finance

Operations