BAFS Study Notes: Role of Marketing

Hello everyone! Welcome to your study notes for the "Role of Marketing". Don't worry, marketing is much more than just the ads you see on YouTube or TV. It's the exciting process of how a business connects with its customers. In this chapter, we'll explore what marketing really is, why it's super important, and how companies manage it to become successful. Let's get started!


1. The Marketing Concept (It's all about YOU, the customer!)

Think about your favourite bubble tea shop. Do they just make one flavour and try to force everyone to buy it? Probably not! They find out what flavours you and your friends like (e.g., Brown Sugar Pearl Milk Tea, fruit teas) and then they make those. That's the marketing concept in action!

The marketing concept is a business philosophy that puts the customer at the centre of everything. Instead of making a product first and then trying to sell it (the old way), modern businesses first try to understand what customers need and want, and then they create products or services to satisfy those needs and wants better than their competitors.

Here’s a simple breakdown:

Old Way (Selling Concept):
1. Factory makes a product.
2. Company uses aggressive selling and advertising to convince people to buy it.
3. The focus is on the company's needs (to sell products).

Modern Way (Marketing Concept):
1. Company does research to find out what customers want.
2. Company creates a product to meet those wants.
3. The focus is on the customers' needs (to solve their problems or make them happy).
4. Goal: Build a long-term relationship with happy, loyal customers.

Real-World Example: Netflix doesn't just guess what shows you want to watch. It analyses massive amounts of data on what you and millions of others watch, pause, and re-watch. It uses this information to recommend shows to you and to create "Netflix Originals" that they are confident people will love. They focus on customer wants first!

Common Mistake to Avoid!

Many students think marketing is just another word for advertising or selling. That's not true! Selling is trying to get someone to buy what you have. Marketing is having what people want to buy. Advertising is just one small part of marketing.

Key Takeaway

The marketing concept is about understanding and satisfying customer needs to achieve business goals. It’s a customer-first approach.


2. Why is Marketing So Important for a Business?

Every business has different departments, like Finance, Human Resources, and Operations. These are called business functions. Marketing is one of the most vital business functions. Why? Because it's the bridge that connects the business to the outside world—especially the customers!

Here are the key reasons why marketing is so important:

1. Generates Revenue:
Think about it – Finance manages money, and HR manages people, but marketing is the function that directly brings money *into* the business by creating sales. Without marketing, people wouldn't know about the product, and the company wouldn't make any money.

2. Builds Brand Awareness and Reputation:
When you see a golden "M", you instantly think of McDonald's. When you see a "swoosh", you think of Nike. This is brand awareness. Good marketing creates a strong, positive image of the company and its products in the minds of consumers.

3. Helps Understand Customers:
Through market research (a key part of marketing), businesses can learn about customer preferences, habits, and satisfaction levels. This information is golden! It helps the business make better decisions about everything, from product design to pricing.

4. Fights off Competition:
In a crowded market like Hong Kong, businesses need to stand out. Effective marketing helps a company differentiate itself from its competitors and gives customers a reason to choose their product over others. For example, two cafes might sell similar coffee, but one might market itself as a quiet study spot, while the other markets itself as a quick grab-and-go option for busy workers.

Did you know?

The red and white Coca-Cola logo is one of the most recognised brand symbols in the world. It's recognised by over 94% of the global population! That shows the incredible power of long-term, consistent marketing.

Key Takeaway

Marketing is crucial because it drives sales, builds the company's brand, provides valuable customer insights, and helps the business succeed against competitors. It's the engine of business growth.


3. How Do Companies Manage Their Marketing? (The POIC Framework)

A successful marketing campaign doesn't just happen by luck. It requires careful management. We can understand this process using the four functions of management that you may have learned about: Planning, Organising, Implementing, and Controlling. A simple way to remember this is the acronym POIC.

Step 1: Planning

This is the thinking and decision-making stage. The marketing team decides what they want to achieve and how they will do it.

What it involves: Setting marketing goals (objectives) and developing a roadmap (strategies) to reach them.
Analogy: It's like planning a holiday. You first decide your destination (e.g., Japan) – that's your goal. Then you decide how you'll get there, where you'll stay, and what you'll do – that's your strategy.
Example: A local fashion brand plans to launch a new summer collection. Their marketing plan is to increase online sales by 30% over the next 3 months by using social media influencers.

Step 2: Organising

This is the preparation stage. The company gathers and arranges all the necessary resources to carry out the plan.

What it involves: Arranging people, money, and time. Who will do what? What is the budget? What is the schedule?
Analogy: You're packing for your holiday. You organise your money, book your flight and hotel, and pack your suitcase.
Example: The fashion brand allocates a budget of $50,000, assigns a social media manager to lead the project, and creates a content schedule for the influencers.

Step 3: Implementing

This is the action stage! It's where the plan is put into motion.

What it involves: Executing the marketing strategies. It's the "doing" part.
Analogy: You're actually on your holiday! You're taking the flight, checking into the hotel, and visiting the attractions. You are implementing your plan.
Example: The influencers post photos with the new summer collection, the social media manager runs the online ads, and the website is updated to feature the new products.

Step 4: Controlling

This is the checking and adjusting stage. The company monitors the results and compares them to the original plan.

What it involves: Measuring performance and taking corrective action if things are not going according to plan.
Analogy: During your holiday, you check your map to make sure you aren't lost. If you took a wrong turn, you control the situation by finding the right way.
Example: After one month, the fashion brand checks its sales figures. If sales are only up by 10% (not the target), they might decide to offer a special discount or work with more influencers to boost performance. This is control.

Quick Review: The POIC of Marketing

Planning: What are our goals and how will we get there?
Organising: What resources (money, people) do we need?
Implementing: Let's do it! Put the plan into action.
Controlling: How are we doing? Let's check and fix any problems.

Key Takeaway

Managing marketing is a continuous cycle of Planning, Organising, Implementing, and Controlling (POIC). This structured process helps businesses use their resources effectively and achieve their goals.


4. The Marketing Process: Objectives, Strategies, and Resources

Let's zoom in on the "Planning" stage. A good marketing plan needs three key ingredients: clear objectives, smart strategies, and the right resources.

Marketing Objectives

An objective is a specific and measurable goal that a company wants to achieve through its marketing activities. It answers the question: "What do we want to accomplish?"

Good objectives are often SMART (Specific, Measurable, Achievable, Relevant, Time-bound).

Examples of Marketing Objectives:
  • To increase market share for our new drink from 0% to 5% within the first year.
  • To attract 20,000 new followers on Instagram in the next six months.
  • To boost sales by 25% during the Christmas holiday period.

Marketing Strategies

A strategy is the company's overall game plan for achieving its objectives. It answers the question: "How will we accomplish it?"

Strategies involve making big decisions, like who the target customers are and how the company will position its product in the market.

Example: To achieve the objective of increasing market share (the "what"), a company's strategy (the "how") might be to target young adults with a lower price, colourful packaging, and a viral marketing campaign on TikTok.

Marketing Resources

Resources are the assets a business needs to implement its strategies and achieve its objectives. They are the "tools" for the job. Resources are always limited, so they must be managed carefully!

The main types of marketing resources include:

1. Financial Resources: This is the marketing budget. It's the money available for advertising, paying staff, conducting research, and holding events.
2. Human Resources: This refers to the people on the marketing team – their skills, experience, and creativity. This includes managers, designers, data analysts, and salespeople.
3. Physical Resources: These are the tangible assets, such as the company's distribution network (vans and warehouses), office space, and computers.
4. Information Resources: This is valuable data, such as market research reports, customer databases, and competitor analysis.

Key Takeaway

The marketing process starts with clear Objectives (what to achieve). Based on these, the company develops Strategies (how to achieve it). Finally, it uses its limited Resources (money, people, data) to put the strategies into action.