TOPIC 2

Marketing

Introduction
The focus of this topic is the main elements involved in the development and implementation of
successful marketing strategies.

Outcomes

The student:
H1 critically analyses the role of business in Australia and globally
H2 evaluates management strategies in response to changes in internal and external influences
H3 discusses the social and ethical responsibilities of management
H4 analyses business functions and processes in large and global businesses
H5 explains management strategies and their impact on businesses
H6 evaluates the effectiveness of management in the performance of businesses
H7 plans and conducts investigations into contemporary business issues
H8 organises and evaluates information for actual and hypothetical business situations
H9 communicates business information, issues and concepts in appropriate formats
Students learn to:
examine contemporary business issues
investigate aspects of business using hypothetical situations and actual business
case studies

Students learn about:

role of marketing
influences on marketing
marketing process
marketing strategies

Marketing is the most recognised of all business operations. It is through the process of
marketing that a business is able to develop a product and then implement a series of
promotional and pricing strategies aimed at encouraging a particular group of customers to buy
the product. These activities must be implemented within a legal framework seeking to protect
the interests of stakeholders within the marketing process.
Marketing allows a business to communicate with its customer base. This process involves
determining the features of a product, the types of promotional strategies to use and where
customers will be able to purchase the product.
A successful business is often one that is able to develop a long-term and valued
relationship with its customers. Businesses recognise that not all customers are the same.
People seek different products and services at different prices. It is important, then, that a
business understands who its customers are. It should examine why particular groups buy
the companys products and whether its marketing strategies are effective in developing
customer awareness and sales. It is through the process of marketing that all such activities
are achieved.

At the end of this topic you should be able to:

Explain why goods and/or services are central to both marketing and operations
Examine why ethical behaviour and government regulation are important in marketing
Assess why a mix of promotional strategies is important in the marketing of goods and services.
CHAPTER

6
Role of marketing
Marketing is the process of developing
a product and implementing a series of
strategies aimed at correctly promoting,
pricing and distributing the product to
a core group of customers. More than
any other business function, it is the role
of marketing to develop and implement
strategies that generate revenue and
sales for the business. While other
functions may make the product, it is
the responsibility of marketing to sell
it. Marketing involves researching the
changing nature of consumers tastes and
preferences: what they like and what they
dont. The purpose of this is to determine
what the business should be producing.
It also involves the development of
products to provide consumers with an
improved standard of living and greater
choice within the marketplace. Marketing
is also concerned with determining a
price that is consistent with consumers
expectations and reflects the desired
image of the product or business.
Marketing should consider the impact that
price will have on the perceived quality
of the product and the ability of that
price to sustain market share against its
competitors.
The strategic role of
marketing goods and
services
Marketing is used primarily by a business as
a method of enhancing its revenue streams
and increasing the markets awareness of its
products. The strategic role of marketing
also extends beyond the business itself, and
its influence is shown clearly through its
impact on society.
Marketing
Strategic role The process of
of marketing developing a product and
implementing a series
of strategies aimed at
Choice
correctly promoting,
pricing and distributing
the product to a core
group of customers.
Standard of living
Standard of living
An individuals quality of
life. It is partly based on
Employment what goods and services
the individual can afford
to buy.
Brand awareness Strategic role of
marketing
Refers to the long-
term role that the key
business function of
Market share marketing has within a
business.
Figure 6.1 The strategic role of marketing.
Choice
An important feature of any business
environment is competition. Businesses
compete to attract customers to purchase
their products. To do this they must
differentiate their products from similar
products in the marketplace, otherwise
consumers would perceive the products
to be the same. In doing this, the business
must consider how to make its product
or service different. This could relate
to product features, pricing strategies
or promotional activities. This concept
is known as a competitive advantage.
Competitive advantage refers to those
features of a product or business that
provide it with an advantage over its
competitors. It could include price,
product quality and reputation or
CHAPTER 6: ROLE OF MARKETING 107

consumer loyalty. It is what enables
a business to attract consumers to the
business or its products in preference
to a competitor. Marketing provides
consumers with choice. What may act as
a competitive advantage for one business
and its customers may be different for
another. For example, Samsung televisions
are highly regarded within the home
entertainment marketplace due to their
leading 3D viewing technologies. The
reputation of these products is outstanding
and, as a result, those customers who
place emphasis on innovative consumer
technologies when deciding what to
purchase will consider the Samsung
range of products. Other businesses gain
a competitive advantage in the area of
price. Brands such as AWA and Sanyo are
priced at the lower end of the market and
would have greater appeal to more price-
conscious customers.
Figure 6.2 Marketing provides consumers with goods that improve our
standard of living. This is reflected by the wide selection of breads available
to cater to a diverse range of health interests.
108 CAMBRIDGE HSC BUSINESS STUDIES SECOND EDITION TOPIC 2: MARKETING
BUSINESS
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BUSINESS
In 2010 Samsung released the 3D
television to the Australian market. Its
release was to coincide with the first 3D
telecast of a sporting event on Australian
television using 3D technologies. The 3D
viewing glasses cost approximately $200
each and can only be used on the Samsung
3D television. Consumers now have the
choice of standard televisions or being
able to watch various specific programs on
a 3D television, providing the viewer with
a more entertaining and visual experience.
Standard of living
To ensure that businesses are providing
consumers with goods that appeal to
the want element of human behaviour,
organisations will develop and market
products that are aimed at enhancing our
lifestyles. To provide consumers with better
products and, more importantly, allow
businesses to develop their income streams,
businesses are constantly improving the
features of their products. In the early 1980s
consumers would not have imagined that
telephones would be pocket-sized, mobile
and have communication access, computers
would be hand-held and people would
talk to one another using a computer rather
than a fixed-line telephone.
Through the variety of products and
services provided by business, the quality
of life for all Australians has improved.
Research and development have also played
an important role in improving quality of
life. Businesses spend millions of dollars
each year developing products that will help
consumers to adopt and maintain a healthy
lifestyle. Bakeries have now developed
 BUSINESS

BITE Brand awareness

a range of bread types catering to the
diverse dietary and nutritional requirements
Ethical Issue Refers to the extent to
of a varied and changing society. Basic which consumers are
If businesses are attempting to improve the
necessities such as milk and bread are now aware of the existence
BUSINESS standard of living of communities, why are of a particular product,
available to cater for the broad range of consumers forced to pay high prices for its features, price and
health concerns that consumers may have. goods that are often considered to be needs? possible places of
purchase.

The federal and state governments have
sought assistance from investors to develop
products that will improve consumers
quality of life. Many of the express
motorways in New South Wales are privately
owned; some hospitals are owned and
operated by private companies. While there
are generally higher fees attached to such
services, they have significantly improved the
quality of life of consumers. Examples of such
services include the Mater Private Hospital,
Crows Nest and Sydneys Cross City Tunnel.
Brand awareness
A fundamental goal of any marketing
campaign is to increase a brands visibility
within the commercial environment. Strong
brand awareness allows a product to
remain in the mind of consumers. This, in
turn, is likely to influence the consumers
purchasing decision. Successful businesses
are often those who have high brand
awareness from consumers.
Brand awareness is often achieved
through strong and effective marketing
campaigns. Businesses make use of electronic
and print media to publicise their products.

Employment
Often when the term marketing is
discussed, people associate it with publicity,
pricing and advertising gimmicks. It is
important to remember that marketing
would not exist without a product or service
to sell. To provide a product to consumers,
a business must employ labour to assist
in the transformation process of changing
input resources into finished goods. It must
use the skills of this labour to research
innovative methods of improving and
enhancing the product. Some people are
required to sell the product. Marketing,
therefore, provides a source of income and
employment for millions of Australians each Figure 6.3 Australias two leading department
year. It is with this income that they are stores have sought to increase the awareness of
able to purchase the goods and services that their brands through the use of well-known and
satisfy their needs and wants. highly-publicised models.

CHAPTER 6: ROLE OF MARKETING 109

Market share
The percentage of
Increasing market share Interdependence
total sales a business
Market share refers to the percentage of
total sales a business has compared with
with other key
has compared with its
competitors within a its competitors in a particular market. The business functions
particular market. purpose of attempting to increase the
A successful business incorporates many
market share of a business is to increase
Operations function features. This would include strong
the businesss sales and profitability.
The physical production profitability, good brand awareness and
Achieving this objective allows the
of a good or the provision high employee satisfaction. Given this, a
of a service, such as a business to become stronger and more
successful business is also one where the
dental visit. consumer aware in the marketplace. In
internal components of the organisation
2009, Coles Supermarkets signed as one
work together to achieve the goals of
of the major sponsors of the Network
the business. Each key business function
Ten program, MasterChef Australia, with
must work effectively with other functions
the slogan: If you want to cook like a
to ensure the goals of the business are
masterchef cooks, then shop where a
achieved. The business becomes a team
masterchef shops. The objective of this
where the four key players must work
promotion would have been for Coles
together to win the game. Each function
Supermarkets to attract more customers
works independently and with the other to
in the grocery market. Coles association
ensure the success of the business.
with MasterChef has since proved to be
The operations function refers to
most successful, limiting the ability of
the physical production of a good or
competitor Woolworths to capitalise on
the provision of a service. In the case of
the extraordinary success of the television
manufacturing, inputs are combined to
program.
process or transform them into a finished
Activity 6.1 Comprehension product. These inputs may be raw materials
or partly processed products. For example,
1 Marketing provides consumers with a caf will require bread, an assortment
choice. Identify two methods used by of meats and vegetables and beverages to
business to do this. present to the customer a finished product.
2 Describe the importance of market
share to a business operating in a highly Human
Operations
competitive environment. resources

The key
business
functions

Accounting
Marketing
and finance

Figure 6.4 The key business functions.

110 CAMBRIDGE HSC BUSINESS STUDIES SECOND EDITION TOPIC 2: MARKETING

How is the operations
function related to
marketing?
The operations function is concerned
with the process of manufacturing a
particular good. They work closely with
the marketing department to incorporate
product features that consumers will
respond positively to. It is the responsibility
of the marketing function to develop
strategies that would sell the product.
The human resource function deals
with the relationship between the owners
of a business and the people who work
for the business. It is a support function
that aims to find, attract, develop and
motivate the people who can provide the
services that the business requires. These
human resources should have skills and
abilities that are specific to the nature of
their job. The business tries to acquire the
right person for each job and to keep them
on board, as well as improve the quality
of their skills. Therefore, this business
function involves acquiring, developing
and maintaining staff and, if necessary,
separating them from the business.
How is the human resource
management function
related to marketing?
The employment relations function is
focused on the role of employees within an
organisation. Staff must be motivated and
skilled to develop products within the
business that cater to the needs and wants
of potential customers. It is through the
marketing process that a business is able to
determine the skills required for employees
to produce the desired product. The
features of the product would come
through market research. In many Human resource
instances, staff are the public face of the function
business. Their actions towards consumers Deals with the
relationship between the
will influence the decision of a consumer to
owners of a business and
purchase a product, return to the business
the people who work for
and recommend it to others. the business.
The marketing function involves
Employment relations
finding out what consumers need and want,
function
and linking these research findings to the
Deals with the
business product. This research may result
relationship between the
in changes to the features of a product or
owners of a business and
the development of a new promotional the people who work for
campaign. The financial resources that are the business.
available to a business influence its ability
Marketing function
to grow and develop.
The accounting and finance
Involves finding out what
consumers want and
function is responsible for providing the
need and attempting
financial information needed for sound to link the results of
and viable decision making. A business this research to the
must determine the total cost of producing businesss product.
a product in order to set an appropriate
Accounting and
price or to assess the businesss ability finance function
to acquire additional finance when and Responsible for providing
if it is needed. All these functions are the financial information
interdependent. There is heavy reliance needed for sound and
on the functions working together as a viable decision making.
team, resulting in the business as a whole
operating efficiently and profitably.
How is the accounting and
finance function related to
marketing?
One of the key goals of marketing is to
sell the goods and services that a business
produces. This in turn benefits the
profitability of the business. The organisation
must also consider whether the needs
of its potential customers are financially
viable for the business to pursue. Budgets
and forecasts must also be established for
promotional campaigns and sales.
CHAPTER 6: ROLE OF MARKETING 111
Marketing mix
Activity 6.2 Diagram
The process of
developing a product
1 Create a diagram that outlines the role
that meets the needs
of consumers and of each key business function
implementing a series of 2 In each section, identify how the key
promotional, pricing and business function is interdependent
distribution strategies with marketing.
that will encourage
consumers to purchase
the product.
Selling approach Production, selling,
Involves a business
placing emphasis on
marketing approaches
strategies aimed at Businesses will often use a combination
convincing consumers of strategies, all aimed at increasing
of the need to buy a
product awareness and generating sales
product.
of their products to satisfy the needs of
consumers. Marketing has not always been
carried out in this way. Over the years,
businesses have focused their efforts on
single elements of the marketing mix,
rather than a combination of strategies.
This section will examine these different
approaches to marketing.
Production approach
During the 1920s30s, many businesses
assumed that the high quality of a
product would ensure its success within
the marketplace. There was a view that
consumers would seek goods based
on the level of quality. The high price
was merely a representation of the high
quality. As a result, businesses placed
considerable emphasis on ensuring
production methods were consistent with
the high standards of quality expected.
The business would focus on how the
good was produced, as it believed that
customers would be drawn to the quality
of the product.
112 CAMBRIDGE HSC BUSINESS STUDIES SECOND EDITION TOPIC 2: MARKETING
Selling approach
While product quality was seen as an
important feature of the marketing process,
businesses began to believe that some
consumers needed to be convinced of the
need to buy a particular product. This saw
the development of the selling approach,
which involves a business placing
emphasis on strategies aimed at convincing
consumers of the need to buy a product.
A good cannot be sold based solely on
its quality. People need to believe that
the good will be of benefit to them.
While promotion played some role here,
the aim was to take the product and its
benefits to the consumer through the all-
important salesperson. These people were
hired to communicate the virtues of their
employers products. Promotion assisted
businesses in differentiating themselves
from their competitors.
Ethical Issue
Examine the extent of honesty in the
selling orientation. Should the desire to
achieve sales override the need for the
business to be honest with its customers?
Marketing approach
Businesses have now recognised the
importance of developing an integrated
approach to selling. A product that is
marketed successfully must incorporate
a strategy to make the consumer desire
the product and think it is catered to
their needs. It should be promoted
appropriately and priced strategically to
ensure consumers are willing to buy the
good without concerns about its quality.
It makes little sense for a business to
spend thousands of dollars researching
and developing a product without
providing avenues for the product to
be appropriately promoted to increase
its awareness among a core group of
customers. The pricing strategy used by
the business must be able to generate
a return on the funds invested by the
owners of the business to develop the
product. It must also be competitive and
affordable for those to whom the product
is targeted.
Activity 6.3 Comprehension
1 Explain why businesses may benefit
from using the production approach.
2 Outline the importance of promotion
to the selling approach.
Types of markets
The production and sale of goods and
services is not restricted or targeted solely
to consumers. Businesses purchase their
supplies from other businesses to produce
goods and services that are then sold to
consumers. These goods and services
are known as inputs. Some organisations
simply buy a finished good from a
manufacturer to sell to consumers. Certain
businesses will choose to concentrate on
one section of the market, meaning they
specialise their products to a select group
of consumers. As can be seen, there is
a diverse range of markets that demand
goods and services.
Resource markets
Resource markets are those markets
where the production and sale of raw
materials occurs. Some businesses require
materials (such as gold, aluminium, sugar, Resource markets
wheat) to produce the goods and services Where the production
that they then sell to other businesses. and sale of raw materials
These raw materials are traded in the occurs.
resource market. Examples of businesses Industrial markets
that operate in the resource market are Where goods that are
BHP Billiton and Rio Tinto. Given that used as supplies in the
labour is a key factor of production, it production process are
can be argued that labour is traded in traded.
the resource market. While much of
the Australian labour force is regulated
through government legislation and
tribunals, some employees are able to
negotiate higher wages based on their
ability, skill and reputation.
Industrial markets
Industrial markets are where goods that
are used as supplies in the production
process are traded. It is unusual for a
business to develop all the resources it
requires to produce finished goods. Toyota
Australia each year spends hundreds of
millions of dollars for Australian companies
to supply Australian-made components for
Toyota vehicles manufactured in Australia:
Toyota Australias investment in
local suppliers forms an integral
component as part of the supplier
development overall strategy. This
initiative saw Toyota specialists
coordinate with selected suppliers to
assess their processes and facilitate
improvement activities. The
consequent enhancements to supplier
function allowed Toyota Australia
to continue their local partnerships
without the need to source from the
overseas market.
Source: Toyota Motor Corporation Australia
website.
CHAPTER 6: ROLE OF MARKETING 113
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Intermediate markets
Where retail businesses
purchase products that
have been produced by Futuris Automotive supplies seats and
other organisations. Also
interior trims to Holden and Ford cars
known as wholesalers.
produced in Australia. Based in Adelaide,
South Australia, the business is responsible
for the manufacturing of seats and interior
features used in Holden and Ford motor
vehicles.The company employs a large
number of employees, which contributes
greatly to the South Australian economy.
Intermediate markets
Intermediate markets are commonly
referred to as wholesalers. They sell
products to retail businesses that have
been produced by other organisations.
Wholesalers generally do not sell products
to consumers. Armstrong Electrical
Wholesalers is a Perth-based business that
supplies mining, industrial, and oil and
gas equipment to businesses around the
world. While this wholesaler does not
Mass market
Figure 6.5 Types of consumer markets.
114 CAMBRIDGE HSC BUSINESS STUDIES SECOND EDITION TOPIC 2: MARKETING
manufacture the goods itself, it supplies
its customers with finished goods, such as
Pirelli cables, Clipsal switches and Siemens
communications systems.
Consumer markets
Consumer markets are the most recognised
market in the business environment. They
are where businesses sell their products
directly to consumers. Often the business
would have purchased the products from
other businesses that produce the item
rather than deal directly with consumers.
For example, Panasonic manufactures
many consumer electrical goods
(including digital cameras, televisions,
video cameras and DVD recorders) but
does not sell its products directly to
consumers. Instead, the products are sold
to stores such as Harvey Norman, Myer
and David Jones and these stores act as
the market where consumers can access
Panasonic branded products.
Consumer markets can be broken down
into three categories.
Consumer
markets
Market segment Niche market

Mass market
The mass market is the market where
the products are aimed at all consumers
irrespective of their age, gender, residential
location or income. The business does not
target its products to a particular buyer
group. Products sold in the mass market
have appeal to all consumers. Petrol,
electricity, water and postal services are
examples.
Market segments
A market segment is one area of a
particular market. Businesses may choose
to focus on a single market segment.
Radio stations often target one market
segment of the overall radio-listening
market. The owners and management
team of radio station Mix 106.5FM, for
example, have decided to aim their
product at women aged 2050 year.
To appeal to this market segment, they
play a broad selection of female-friendly
music, place an emphasis on comedy and
encourage their listeners to call in and
share with the audiences aspects of the
life experiences.
Niche markets
A niche market is a smaller section of a
larger market segment. While a business
targeting a niche market would still focus
on a select group of customers, a niche
market differs from a market segment in
that its customer base is narrower. Owing
to the small client base, sales are not as
frequent, although the goods sold in this
type of market are usually higher-priced
than those in broader markets.
BUSINESS
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BUSINESS
Mass market
The market where the
products are aimed at all
consumers.
Honeymoon Boutique is a travel
agent located in Sydneys inner west.
It specialises in providing honeymoon
packages for new married couples.
The increasing cultural diversity
of Australias population has been
accompanied by the growth of speciality
food stores that cater to these groups.
These businesses specialise in only one
small sector of the market. If you were
to travel to the main shopping centre of
Campsie, a suburb located in Sydneys
south-west, you would find many speciality
food stores catering to the needs of the
dominant Asian and Indian cultures within
that region.
Activity 6.4 Classification
Identify the types of markets in which the
following business transactions occur:
a A mining company has discovered iron
ore deposits in Queensland.
b A motor vehicle production company
uses tyres produced by Kuma Runer
Automotive.
c A bread manufacturer has released a
type of bread that appeals to a variety
of consumers.
d An electronic store sells a range of
television brands, including Panasonic,
Samsung and LG.
e A jeweller specialising in bridal jewellery.
f A TV station believes its niche market
to be males aged 40 years and over
interested in sport.
CHAPTER 6: ROLE OF MARKETING 115
 Chapter summary
s Marketing is the process of developing a product and implementing a series of strategies aimed at
correctly promoting, pricing and distributing the product to a core group of customers.
s The strategic role of marketing refers to the long-term role that the key business function of
marketing has within a business.
s The strategic role of marketing involves five key areas:
Choice: businesses differentiate themselves from their competitors through price, product
quality and features and service. All these provide consumers with greater choice when
purchasing a product.
Standard of living: businesses will often develop and market products that improve and
enhance standard of living.
Employment: to provide a product to consumers, businesses must employ labour to assist in
transforming input resources into finished products. Labour is also required to sell these goods
and services.
Brand awareness: brand awareness refers to the extent that customers are aware of a product/
brand and its features.
Market share: businesses will attempt to develop, promote and price products to a standard
that will give the organisation more customers than its competitors.
s Marketing is one of four key business functions. The other business functions are operations,
human resource management and finance. Each of these functions works closely with the other to
achieve the goals of the business.
s There are three core approaches to marketing:
Production approach: relies on the view that consumers base their purchasing decisions on the
quality of the product.
Selling approach: based on the belief that a business will be successful in selling a product if it
is able to promote the benefits of the product to its target market.
Marketing approach: the basis of which is that the customer is at the core of all business
activities. It involves adopting a customer orientation with the belief that all actions in the
business should be aimed at satisfying the needs of the customer.
s The four markets in the marketing process are resource markets, industrial markets, intermediate
markets and consumer markets.
s Consumer markets consist of the following markets:
Mass markets: apply to goods and services that appeal to all types of consumers.
Market segments: where a business chooses to focus on only one area of particular market.
Niche markets: a smaller section of a market segment.

116 CAMBRIDGE HSC BUSINESS STUDIES SECOND EDITION TOPIC 2: MARKETING

Chapter revision task
Rewrite the following passage, using the words listed in the box below to fill in the blanks.

employment percentage product living

finished aware income differentiate
community improving competitors convenient
consumers competitors increase input
health price mind particular
marketing labour research

There are five key strategic roles of in the firm and society:
1 Choice: Marketing provides with choice. Businesses will often attempt to
themselves from their . They can do this through quality,
, service, packaging and loyalty programs.
2 Standard of living: Many of the products that businesses develop and market are aimed at
our quality of life and standard of . They do this by providing
goods that improve our and wellbeing, developing goods and services aimed at
making our lifestyles more and working with governments to distribute essential
services.
3 Employment: To provide consumers with a product to sell, a business must employ
to assist in transforming resources into a product. It also uses the
skills of this labour to and develop methods of improving this product. In this way,
marketing provides a valuable source of and to millions of Australians.
4 Market share refers to the of total sales a business has compared with its
in a particular market. The purpose of attempting to the market share
of a business is to increase the businesss sales and profitability.
5 Brand awareness refers to the extent to which consumers are of the existence of a
product, its features, price and possible stores of purchase. Strong brand awareness
allows a product to remain in the of consumers.

CHAPTER 6: ROLE OF MARKETING 117

 Multiple-choice questions
1 How may marketing best be defined?
(A) The process of developing promotional and pricing strategies to sell a product
(B) The process by which a business attempts to raise awareness of the goods and/or services
it sells in the marketplace
(C) All forms of promotion, such as advertising, publicity and public relations
(D) The process of developing a product and implementing a series of strategies aimed at
promoting, pricing and distributing the product to a core group of customers
2 Mobile Buzz has developed a new marketing plan that seeks to attract the interest of young adult
mobile phone users. Which strategic role of marketing is this concerned?
(A) Choice
(B) Market share
(C) Standard of living
(D) Brand awareness
3 Which of the following strategies could a business use to increase its market share?
(A) Market research
(B) Discount pricing
(C) Product testing
(D) Quality control procedures
4 Which of the following is a product that is sold in the mass market?
(A) A product that has appeal to a limited number of individuals
(B) A product that is characterised by a high price and low sales
(C) A product that has appeal to a number of different groups
(D) A product with features and attributes that are very similar to those of competitors products
5 Rheanna and Hayley have developed a new range of female swimwear aimed at women aged
between 1835. What is this new products market commonly referred to as?
(A) Resource market
(B) Mass market
(C) Market segment
(D) Select market
6 With information obtained from market research, Therese hopes to establish a product that is
more suited to consumers needs, using relevant pricing and promotional strategies. Which form
of approach would Therese be using?
(A) Production
(B) Selling
(C) Marketing
(D) Societal
7 Turn on tomorrow and im lovin it are the slogans that Samsung and McDonalds use to
promote the quality of their products. Which form of orientation do these slogans emphasise?
(A) Selling
(B) Marketing
(C) Societal
(D) Production

118 CAMBRIDGE HSC BUSINESS STUDIES SECOND EDITION TOPIC 2: MARKETING

8 Which of the following statements best describes the relationship between the marketing and
operations functions of a business?
(A) The operations department work closely with the marketing department to incorporate
product features that consumers will respond positively to
(B) The operations department produces goods and services within a budget developed by the
marketing department
(C) The operations department is responsible for the recruitment of staff, who then produce
goods and services favourable to the needs and wants of consumers
(D) The operations department develops goods and services from which the marketing function
becomes responsible for promoting
9 Hilltop Mining are one of Australias largest iron ore exporters. Which type of market does this
business operate within?
(A) Resource
(B) Industrial
(C) Intermediate
(D) Consumer
10 Quicksmart Supermarkets have developed a marketing strategy that incorporates an emphasis on
production quality, discount pricing and a wide distribution of its stores. Which of the following
approaches is the business using?
(A) Production
(B) Selling
(C) Marketing
(D) Relationship

Short-answer questions
1 (a) Explain how a consumer market differs from the other types of markets in the business
environment.
(b) Describe and give examples of the three types of consumer markets.
2 Andreanna has decided to establish a homeware store. She believes that the quality of her
products, for which she has been recognised, will ensure the success of the business. Vanessa
is also opening a similar store but has conducted market research to develop a more thorough
understanding of her local area and their needs. Outline how the approach that Andreanna is
using differs from that used by Vanessa.

Extended-response question
Marketing is essentially aimed at selling the goods and/or services of a business. Describe what
is meant by the term marketing and explain, with reference to the different types of markets the
different types approaches to marketing businesses may use to market their products.

CHAPTER 6: ROLE OF MARKETING 119