HSC BUSINESS
Topic two: MARKETING
General course overview :
- What do customers want to buy now and in the future
- involves a wide range of activities, directed at a wide range of goods, services and ideas
- stresses the importance of satisfying changes, is not limited to the activities of businesses
- multifaceted and doesn't just involved selling or advertising
role of marketing
● strategic role of marketing goods and services
The main role of marketing is to maximise profit and it is considered a revenue centre, because it
generates sales.
PROFIT MAXIMISATION (occurs when there is a max difference between the total revenue coming
into the business and total costs being paid out)
Profit maximisation through the revenue of marketing
Whole point is to increase sales through marketing mix
Operation - decrease expenses
Marketing - increase profit
Marketing is a revenue centre, thus its strategic role is to achieve profit maximisation, which it does
through the marketing mix.
role of marketing
● interdependence with other key business functions
They achieve this through the marketing concept, which puts the customers at the centre of the
process
Also known as relationship marketing - continual
Relationship with the consumer past the point of sale
(best business that implements this is Apple)
Eg. warranty, genius bar), cars - car service
So the people have a connection and affiliation with the brand through their identity, lifestyle and
service
Thus, all key functions are centred around marketing - as this function researches the needs of the
consumer
, Businesses must integrate their marketing plans with all key functions
- Whilst operations decreases expenses, marketing increases profit
- Marketing costs money, finance must be available
- Marketing manager needs other managers who can successfully carry out operations and HR
➢ Operations/marketing → marketing determines the products/services to be produced
Marketing increases sale, whilst operations decreases cost - decides what will actually be
product
Therefore together they increase product
➢ Without finance, you can't do the research
Although marketing generates income - it is very expensive
➢ Marketing determines the products and services that will be produced through market
research
Research is a vital aspect of marketing
role of marketing
● production, selling, marketing approaches
1. Production approach - 1820s to 1920s
Business focus on the production of goods and services
Marketing wasn't a priority “if we make it, they will buy it” - no consumer choice
Production design was based more on the demands of mass production technoes than customer
needs
No variation
Eg. Ford was the only car manufacturer
2. Selling approach 1920s to 1960s
Add in extra layer of advertising
Emphasised selling due to increased competition
Era of door to door sales
Tupperware parties
Persuading customers to buy specific brands
Sale reps would sometimes use high pressure tactics
3. Marketing approach (stage 1) 1960s to 1980s
Find out what the customers want through market research and then satisfy their needs
‘Discretionary income’ - allowed for spending past necessities
Development of four principles:
- Customer orientated
- Aimed at satisfying customers
- Integrated into the business plan so as to achieve the business’ goals
- Aimed to develop long-term relationships with customers
Topic two: MARKETING
General course overview :
- What do customers want to buy now and in the future
- involves a wide range of activities, directed at a wide range of goods, services and ideas
- stresses the importance of satisfying changes, is not limited to the activities of businesses
- multifaceted and doesn't just involved selling or advertising
role of marketing
● strategic role of marketing goods and services
The main role of marketing is to maximise profit and it is considered a revenue centre, because it
generates sales.
PROFIT MAXIMISATION (occurs when there is a max difference between the total revenue coming
into the business and total costs being paid out)
Profit maximisation through the revenue of marketing
Whole point is to increase sales through marketing mix
Operation - decrease expenses
Marketing - increase profit
Marketing is a revenue centre, thus its strategic role is to achieve profit maximisation, which it does
through the marketing mix.
role of marketing
● interdependence with other key business functions
They achieve this through the marketing concept, which puts the customers at the centre of the
process
Also known as relationship marketing - continual
Relationship with the consumer past the point of sale
(best business that implements this is Apple)
Eg. warranty, genius bar), cars - car service
So the people have a connection and affiliation with the brand through their identity, lifestyle and
service
Thus, all key functions are centred around marketing - as this function researches the needs of the
consumer
, Businesses must integrate their marketing plans with all key functions
- Whilst operations decreases expenses, marketing increases profit
- Marketing costs money, finance must be available
- Marketing manager needs other managers who can successfully carry out operations and HR
➢ Operations/marketing → marketing determines the products/services to be produced
Marketing increases sale, whilst operations decreases cost - decides what will actually be
product
Therefore together they increase product
➢ Without finance, you can't do the research
Although marketing generates income - it is very expensive
➢ Marketing determines the products and services that will be produced through market
research
Research is a vital aspect of marketing
role of marketing
● production, selling, marketing approaches
1. Production approach - 1820s to 1920s
Business focus on the production of goods and services
Marketing wasn't a priority “if we make it, they will buy it” - no consumer choice
Production design was based more on the demands of mass production technoes than customer
needs
No variation
Eg. Ford was the only car manufacturer
2. Selling approach 1920s to 1960s
Add in extra layer of advertising
Emphasised selling due to increased competition
Era of door to door sales
Tupperware parties
Persuading customers to buy specific brands
Sale reps would sometimes use high pressure tactics
3. Marketing approach (stage 1) 1960s to 1980s
Find out what the customers want through market research and then satisfy their needs
‘Discretionary income’ - allowed for spending past necessities
Development of four principles:
- Customer orientated
- Aimed at satisfying customers
- Integrated into the business plan so as to achieve the business’ goals
- Aimed to develop long-term relationships with customers
