The Marketing Function

Term 3 Grade 11

Business Studies
 4 Ps of
Marketing
 Marketing

All the activities required to get the product from

producer to consumer
Market research
Financing
Insurance- risk bearing
Transport
Storage and saving (physical and electronic)
Collection and Distribution
Standardisation and Grading
Buying and Selling
 Market
Research
The purpose of market research is to
examine the market associated with a
particular good or service to determine
how the audience will receive it. This
can include information gathering for
the purpose of market segmentation
and product differentiation, which can
be used to tailor advertising efforts or
determine which features are seen as
a priority to the consumer.

http://www.investopedia.com/terms/m/market-
research.asp
Marketing Aspects

Marketing plan
Target Market
Standardisation and grading
Physical and electronic storage
Transport
Financing
Risk Bearing
Buying and Selling
Market Research Methods

Surveys
Social Media
Telephonic
Questionnaires
Focus Groups
Observation
Field Trials
Interviews
 Marketing Manager Role

Managing all marketing for the company and

activities within the marketing department
Developing the marketing strategy for the
company in line with company objectives
Co-ordinating marketing campaigns with
sales activities
Performs the function of championing
customer relationship management in the
organisation
Analyse market trends with an aim of
identifying unexploited or new markets for the
organisation's products and services
Advertising
Overview
 Product Policy

Aspects of product
policy:
Product Design
Product Development
Product Lifecycle
Product Packaging
Trademarks
 Pricing Policy
Pricing Policy definition: The policy by which a company
determines the wholesale and retail prices for its products or
services.

Read the article Shared by Shivam N

• http://www.economicsdiscussion.net/price/pricing‐policy‐meaning‐objectives‐and‐factors/21757
 Production
Costs

Competitor Nature of
Prices Product

Economic
Conditions

Pricing Supply and

Technique Demand

Customer
Income
Levels

Factors Influencing Pricing

Pricing
Methods
 All direct and indirect costs should be
taken into account when determining
the total cost.
Direct costs = the price attached to the
production of goods or services e.g.
packaging.
Indirect costs = costs that originate from
Price overheads e.g. wages.
Determination Calculating break even:
Adding all direct and indirect costs
involved in making the product and
dividing the total number by the number
of products produced.
The Profit Margin is the amount the
company makes after the costs have
been deducted.
Distribution Policy
How a business
moves its goods and
services from the
production area to the
consumer via
intermediaries
Agents
Distributors
Wholesalers
Retailers
Dealers
Brokers
 Direct and Indirect
Distribution
Direct Distribution:
When a producer sells a product
directly to a consumer without the
help of intermediaries.

Indirect Distribution:
A product passes through
intermediaries as it moves from the
manufacturing business via
distributors to wholesalers and
then retail stores.
 Advertising
Sales Promotions
Publicity
Personal Selling

Communication Policy
 Radio
 Television
 Social Media
 Newspaper
 Magazines
 Internet
 Websites
 Email
 Billboards
 Mobile
 Affiliate
 Flyers
 Word of mouth

Advertising
Mediums
 Marketing Informal Sector
https://sajems.org/index.php/sajems/articl
e/view/189/61

 Basic goods and services

 Goods in small quantities
 Goods may be pirated
 Low cost
 Cash system
 Basic packaging or none at
all
 Simple distribution’
 Little Promotion
 Buy direct from wholesalers
or producers
 Marketing Formal
Sector
 Goods are mass produced and not
pirated
 Large investments in products and
design
 Higher costs of goods
 Offer varied payment methods
 Goods are packaged
 Goods are distributed using
intermediaries
 Professional advertising of goods
•
 Use of Technology for
Marketing
Helps companies gain competitive advantage:
If a company learns how to embrace new technology, it will
deliver its service and products to its clients very first which
will make the consumer happy and gain more trust in that
company.
 Internet
 Social Media
 QR Codes
 Email
 Websites
 Search Engines
 Mobile phones
Foreign Marketing Advantages

 Goods that cannot be produced locally are imported

 Standard of living is improved
 Ensures balanced utilisation of resources
 Rapid industrial growth
 Benefits of comparative cost
 Facilitates cultural exchange
 Better utilisation of surplus production
 International trade increases competition
 Foreign Marketing
Disadvantages
 Different cultures
 Competition from other world producers
 Government rules
 Marketing Mix
 Payment complications

There are many advantages and disadvantages of

entering foreign markets but it is beneficial for any
company to try and expand their business. It also
results in good relations with foreign countries and it
is also good for the home country as it increases
profits, foreign exchange, employment etc.
Imports and Exports
(International Trade)
International trade is the exchange of capital,
goods, and services
across international borders which, in most
countries, such trade represents a significant
share of gross domestic product (GDP).
Countries trade with each other when, on their
own, they do not have the resources or
capacity to satisfy their own needs and wants.

South Africa’s exports include corn, diamonds,

fruits, gold, metals, minerals, sugar and wool.
Machinery and transportation equipment make
up more than one-third of the value of the
country's imports. Other imports include
chemicals, manufactured goods
and petroleum.

http://www.investopedia.com/articles/03/11250
3.asp
Interesting Read