Topic 4 Marketing 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 Local markets National markets Physical markets Electronic markets

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 s 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)