Business Studies in Action: HSC Course 3rd edition

Chapter summaries
Topic 3: Marketing
Chapter 9 Nature and role of markets and marketing

Marketing is a total system of interacting activities designed to plan, price,

promote and distribute products to present and potential customers.

Role of marketing:
-

Find out what customers want and then attempt to satisfy their needs.

Bring together the buyer and seller.

Generate revenue for the business.

A market is a group of individual, organisations or both that:

-

need or want a product

have the money to purchase the product

are willing to spend their money to obtain the product

are socially and legally authorised to purchase the product.

Marketing plans and strategies vary depending on the intended market.

Type of market
Resource

Agricultural firms

Customers

Industrial
Intermediate
Consumer
Mass
Niche

Secondary and tertiary firms

Wholesalers and retailers
Individuals and households
Vast number of individuals
Small target market

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Changes in marketing over time:

1. Production approach - Taking orders and delivering goods.
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1820s to 1920s

Emphasis on producing goods

Demand for goods is greater than supply.

2. Sales approach - Advertising and personal selling.

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1920s to 1960s

Emphasis on selling goods

Demand is weaker.

3. Marketing approach Aimed at satisfying customers needs.

1960s to present

Emphasis on identifying customer needs through market research

Establishing and maintaining customer relationships

Development of the marketing concept.

The marketing concept is a business philosophy that sates that all section of the
business are involved in satisfying a customers needs and wants while achieving
the businesss goals. It is based on four principles:

customer-oriented

supported by integrated marketing strategies

aimed at satisfying customers

integrated into the business plan so as to achieve the businesss goals.

Marketing concept accomplished through:

-

Customer orientation: marketing decisions and practices are based on

customers needs

Relationship marketing: long-term relationships with individual

customers to create customer loyalty.

Business Studies in Action: HSC Course 3rd ed. Chapman, Norris, Devenish and Merritt. Chapter summary Page 2

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Marketing planning process is the process of developing and implementing

marketing strategies to achieve marketing strategies, and consists of five steps:
1. Performing situational analysis
2. Establishing market objectives
3. Identifying target markets
4. Developing marketing strategies
5. Implementing, monitoring and controlling the marketing plan.

Marketing plans must evolve and adapt to new circumstances.

Business Studies in Action: HSC Course 3rd ed. Chapman, Norris, Devenish and Merritt. Chapter summary Page 3

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