Marketing: Role, Scope, and Customer Loyalty, Summaries of Business

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MARKETING

Marketing

• Lesson objectives By the end of the lesson you should be able to;

1. Identify scope of marketing
2. Explain the benefits of maintaining customer loyalty
3. Identify government intervention in markets
4. Identify and explain the factors that influence the changing spending patterns of consumers
5. Explain the benefits of e-commerce to businesses and consumers

- THE SCOPE OF MARKETING

Marketing therefore covers the following:

**- Research

• Product development
• Promotion
• Packaging
• Distribution
• Insurance
• Pricing
• Selling**

• What can be marketed? - Goods. e.g.; cars, TV sets, school bags, iPods - Services eg; the work of airlines, hotels, barbers and beauticians, software programmers - Events e.g.; global sporting events like the FIFA World Cup and the Olympic Games

• Customer loyalty
• This is where a customer continues to buy the product of a particular company even though there are companies producing same or similar product.

- Advantages of maintaining customer loyalty

1. Increase the firm’s sales
2. It is easier to match products to existing customer needs so the firm knows what to stock to reduce wastage
3. It helps the firm to remain competitive

• Types of market 1. Industrial markets

These are markets for products that are used to produce other goods and services. Eg; machinery, equipment

2. Consumer markets

These are markets for goods and services that are bought by the final consumer. Eg, food items, televisions and cell phones

• Factors accounting for changes in consumer spending 1. The price of the product

The higher price of the product in most cases the lower the quantity sold

2. The price of competitors products

If the business and its competitors are providing similar products, consumers are most likely to buy the product that has the lowest price.

Functions of Marketing

• 1. Identifying and satisfying customer needs and wants : -
• Through field research, the firm is able to identify what customers require and develop quality products to meet the needs of customers.
• 2. Predicting future customer requirement : -
• Because customers’ needs keep changing, the marketing department continuously carries out research to able to predict customers’ needs in the future.

• 3. Profit making : -
• By producing goods and services to satisfy the needs of customers, the business is able to sell more goods at a profit.
• 4. Maintaining customer loyalty :-
• since there will be no business without customers, marketing works to create a group of customers that the business can sell its products to. This is known as customer base.

Objectives of marketing

3. To target a new market.
4. To develop new products and improve on the existing ones.
5. To maintain and improve the image of the business by producing quality goods and services

- Government intervention in markets Governments in most part of the world control business activities through the following;

1. Financial support to small medium enterprises (SMEs)
2. Deregulation: this refers to the removal of restrictions in a particular industry. Eg; deregulation of power production in Ghana
3. Legal controls that prevent one firm from dominating the market. Eg; Before 1996, Ghana had only one broadcasting station (GBC)

MARKETING AND MARKET SEGMENTATION

E-commerce

a. Facebook

b. WhatsApp

c. Instagram

d. Twitter

e. Youtube

f. Tiktok

MARKETING AND MARKET SEGMENTATION

**- Benefits of e-commerce

• To the business**

1. Increased market as the business is able to sell goods and services to consumers throughout the world
2. Reduced costs since staffing and other costs of shops are saved
3. The firm is able to provide better information to potential customers about goods and services that are available
4. The business provides 24 hour access