Business Studies in Action: HSC Course 3rd edition
Chapter summaries
Topic 3: Marketing
Chapter 9 Nature and role of markets and marketing
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Marketing is a total system of interacting activities designed to plan, price,
promote and distribute products to present and potential customers.
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Role of marketing:
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Find out what customers want and then attempt to satisfy their needs.
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Bring together the buyer and seller.
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Generate revenue for the business.
A market is a group of individual, organisations or both that:
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need or want a product
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have the money to purchase the product
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are willing to spend their money to obtain the product
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are socially and legally authorised to purchase the product.
Marketing plans and strategies vary depending on the intended market.
Type of market
Customers
Resource
Agricultural firms
Industrial
Secondary and tertiary firms
Intermediate
Wholesalers and retailers
Consumer
Individuals and households
Mass
Vast number of individuals
Niche
Small target market
Business Studies in Action: HSC Course 3rd ed. Chapman, Norris, Devenish and Merritt. Chapter summary Page 1
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Changes in marketing over time:
1. Production approach - Taking orders and delivering goods.
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1820s to 1920s
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Emphasis on producing goods
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Demand for goods is greater than supply.
2. Sales approach - Advertising and personal selling.
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1920s to 1960s
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Emphasis on selling goods
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Demand is weaker.
3. Marketing approach – Aimed at satisfying customers’ needs.
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1960s to present
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Emphasis on identifying customer needs through market research
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Establishing and maintaining customer relationships
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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 customer’s needs and wants while achieving
the business’s goals. It is based on four principles:
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customer-oriented
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supported by integrated marketing strategies
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aimed at satisfying customers
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integrated into the business plan so as to achieve the business’s goals.
Marketing concept accomplished through:
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Customer orientation: marketing decisions and practices are based on
customers’ needs
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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.
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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