Business Studies

Marketing issues & Concept

Mr. Kangami, 2012/13
1

Chapter 7: Marketing issues and

Objective
concepts
OBJECTIVES

After studying this chapter, you will able to

Define marketing
Understand the role and importance of marketing
Explain the importance of market orientation and how
it differs from product orientation
Understand how marketing fits in with the other
activities of the business
Define and discuss the significance of market
segmentation, market growth, market share, niche
market and mass market

What is marketing
Marketing is the process of researching
into and identifying consumer needs and
employing appropriate price, product,
place and promotion strategies in order
to satisfy these needs profitably

Market & product orientation

Benefits of market orientation

The chances of newly developed products failing in the

market are much reduced but not eliminated

If consumer needs are being met with appropriate

products, such as cars or computers, this is a convincing
argument for most businesses to use the market oriented
approach

Constant feedback from consumers- market research

never ends- will allow the product and how it is marketed
to be adapted to changing tastes before it is too late and
before competitors get there first

Marketing objectives
These objectives must:
Fit in with the overall aims and mission of the business
Be determined by senior management
Be realistic, motivating, achievable, measurable and
clearly communicated to all in the organisation-

Important
marketing concepts
The
Employment
Rate
Market segmentation e.g. Computer manufacturers, such as
Compaq produce pc for home & office but also make laptops
for business people who travel, Coca-Cola, Renault
Mass marketing and niche marketing
Market share, market size and market growth
Adding value

Market segmentation

Evaluation of economic system

Type of Economic
system and main
features

Advantages

Disadvantages

Free market system

Private property
Profit motive
Price system

Efficiency
Low price and new
products
Choice
Low tax

Monopolies
No state support for
elderly and
unemployment.
Pollution
Income inequality

Planned System
State
ownership/control of
economic resources
Little private sector
business activities

No duplication &
wasteful competition
Production based on
peoples need not
consumer spending
pattern
Long term planning

No consumer choice
No competition to
improve product
Workers poorly
motivated
Slow and
bureaucratic decision
making

Evaluation of economic system

Type of Economic
system and main
features

Advantages

Disadvantages

Mixed Economy
Private sector
business activities
encouraged
State controls
resources in supply of
certain goods and
services
Taxes used to collect
revenue to pay for
state goods and
services

Provision of public
services
Private sector earn
profits
Competition
allowed
Consumer choice
Inefficient business
behavior controlled

Tax burden
State enterprises less
efficient
Excessive control
and cost

Nature and scope of

international trading links

Free trade and Globalisation

Multi-national businesses
Why become a multi-national?
Potential problems for multi-nationals
Evaluation of the impact on host countries of multi-national
operations

State intervention to assist and

control business activities
Government assistance for businesses

Training programmes
Development area grants
Support for exporters

Government controls over business activities

Arguments against Government intervention