ACCA - F1 Accountant in Business: Study Text by BPP Publishing

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The last word is profitably. After all, customers would be absolutely delighted if you were to satisfy all their needs for exotic holidays, caviar, champagne, private jets and so forth, for nothing. The marketing orientation is a way of doing business that seeks to provide satisfaction of customer wants at a profit. Key term The marketing mix is the set of controllable variables and their levels that an organisation uses to influence the target market. These variables are product, price, place and promotion and are known as the 4Ps.

Exam focus point The relationship between marketing and the overall strategic plan is specified in the Study Guide. The marketing function has been highlighted by the examiner as one of particular importance for organisational success, so it is vital that you take this topic area seriously. 3 Marketing orientation Different organisations have different orientations towards the customer. Orientation Description Production orientation 'Customers will buy whatever we produce – our job is to make as many as we can'.

Payables. Many companies delay paying suppliers as long as possible. In effect they are using suppliers as a sort of credit finance. Payments to suppliers are an outflow of funds. However, in the long term it may be more important to establish reliable commercial relationships with them than squeeze every pound out of them in the short term. Large companies are now required to disclose their policies on paying suppliers in their annual financial statements. Inventory. Inventory levels are a focus of some of the production systems discussed earlier.

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