Summary MNM1503 Notes

MNM1503 NOTES CHAPTER 1 INTRODUCTION TO MARKETING OVERVIEW OF MARKETING When one talks about promotion, many people assume that it is all about advertising. However, marketing includes market research, targeting, sales promotion, personal selling, social media and broadcast, customer relationship management, public relations, publicity, sponsorship, networking and direct marketing. Marketing has to match the right message to the right person. Thus, marketing is used by organisations to create value. Companies have to ensure that there is alignment between the company’s offering and the value for which the consumers pay a price. In other words, the company must give the consumer value for money. This is where the concept of exchange comes in – the consumers need a product or service with good value, and must be willing to spend money in exchange for receiving the desired product/service. It is crucial that to understand that marketing is one of the main functions of a business, and companies need the marketing function to ensure that the products and/or services produced reach the end-consumer. Marketing comprises four key elements: price, promotion, place and product. Marketing attracts consumers, designs desirable experiences for consumers, creates an offering aimed at satisfying the needs and wants of consumers, ensures that the products produced by the company reach consumers, assists companies in selling their products and maximising their profitability, and so on. “Marketing is a process where an organisation, in its drive to meet its organisational goals, focusses on meeting customers’ needs and wants, by means of offering the right product, at the right price, at the right place, and by using the right marketing communication channels and which, in this process, strives to establish relationships with customers and to develop and grow these relationships with relevant stakeholders in an ever-changing environment”. • Advertising. In an organisation, advertising involves designing written, verbal or digital messages to reach the target market. The aim of advertising is to arouse consumer interest through the selected medium and stimulate the target market to purchase the products and services of the company. The advertising department is responsible for branding; radio and television, written media, word of mouth and internet advertisements; and all other advertisements desired by the organisation. • Market research. This refers to an ongoing investigation into the needs/wants of targeted prospective and current consumers. The role of market research is to enable the organisation to investigate changing consumer demands and inform the organisation accordingly in order to produce product or render services that are relevant to the consumer. This department also informs the organisation about the fierce and changing competition in the market. • Product management. After the market research has been conducted, this department ensures that the right product is produced to suit consumer needs. It is the responsibility of every business to ensure that the right product of the right value, quality and standard is produced in an attempt to satisfy the needs/wants of consumers. Packaging also plays a role, as some companies use packaging as a source of branding. • Promotions. Although some companies combine promotions and advertising, large companies prefer them as separate departments. The promotions department deals with marketing the “end-product”, which has already gone through the production process, to consumers. Promotion te