CHP 1

MARKETING
An
Introduction
The New Economy
 Customer Empowerment-Customization
 Greater variety
 Knowledge/ Information era
 Smoother communication channels
 Increased competition-Globalization,
Deregulation, Privatization
 Industry Convergence
 Retail Transformation
 Disintermediation
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 1-2
Organizations- New Capabilities
 Powerful new information & sales
channel
 Marketing research
 Intranet
 Two way communication
 Advertising
 Internet
 Improve logistics and operations
Nature and scope of
marketing
 Includes:
– Physical goods—cars, clothes, machines,
books
– Services—banks, theatres, education
– Ideas—pollution reduction, road safety
– People—Amitabh Bachchan, Sachin
Tendulkar
– (people are a marketable product or brand)
– Places—Amby Valley, a new housing estate
– Experiences—bungie jumping, deep sea
diving
The broad dimensions of
marketing
 Marketing encompasses:
– Business-to-Business
– Business to Consumer
– Not-for-profit organisations looking for
donations…they are marketing social
causes and ideas they want you to support
– Global Marketing
What is Marketing?
 Marketing can be described as all activities

designed to generate and facilitate any
exchange intended to satisfy human needs or
wants.
(adaptation Rix, Stanton, )
 Marketing is a total system of business

activities designed to plan, price, promote, and
distribute want-satisfying products to target
markets to achieve organisational objectives.
(Etzel, Walker, Stanton)
Defining Marketing
 Marketing is a societal process by
which individuals and groups
obtain what they need and want
through creating, offering, and
freely exchanging products and
services of value with others. -
Philip Kotler
MARKETING MANAGEMENT
DEFINED
 Marketing Management is the art and

science of choosing target markets,
keeping and growing customers,
through creating, delivering, and
communicating superior customer
value.
Simple Marketing System
Communication
Goods/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)
Information
©2000 Prentice Hall
Structure of Flows
Resources Resources
Money Resource Money
markets
Services,
money Taxes,
goods
Services, Taxes
money
Manufacturer Government Consumer
markets markets markets
Taxes,
goods Services
Services, Taxes,
money goods
Money Money
Intermediary
Goods, services markets
© 2001 McGraw-Hill Australia PPT slides Goods,
t/a Rix, Marketing: A Practical Approach services
4th ed 1-10
Core Concepts of Marketing
Target Markets & Segmentation
Needs, Wants, and Demands
Product or Offering
Value and Satisfaction
Exchange and Transactions
Relationships and Networks
Marketing Channels
Supply Chain
Competition
Marketing Environment
Needs & Wants
 Defining a need—A need is a state of felt
deprivation (Kotler)
– We need the basic things to survive or to feel
safe and interact in society (Social)
– We may need clothes to keep warm—choice of
product is no longer classified as a need
(Physical)
– We need shelter for warmth and security—the
type of shelter is a choice (Physical)
– We may need an education or a quality pen to
write with—consider a Parker vs Mont Blanc
again choice of quality and level of knowledge
(Individual)
Needs &Wants
 Defining a want—A want is the form taken by
human needs, when they are shaped by culture
& individual personality (Kotler)
– We want a choice of products and services
according to our taste, preference or social
standing
– We want clothes made of silk or spun-wool
– We want a home in the elite part of town
with a large garage
– We want the best pen affordable to promote
status (usually shaped by culture and
individual personalities)
The concept of exchange
 Definition—The voluntary act of offering

a person something of value in order to
acquire (involving a transaction)
something of value in return
 A transaction can only occur if a market
exists
 A market exists where a buyer and a
seller transact
The concept of exchange
 Four conditions must exist for an exchange to
be able to occur:
– Two or more people or organisation must be
involved;
– The parties must be involved voluntarily;
– Each party must have something of value to
exchange, and the parties must believe they
will each benefit from the exchange; and
– The parties must be able to communicate
with each other.
Creation of utilities
 Utilities may be defined as the

attributes in an item that makes it
capable of satisfying human wants.
– Through combination of marketing

activities a product is given utility, or
increased ‘value’.
Types of utilities
 Form
– Physical change that makes a product
more valuable…eg timber made into
furniture
 Place
– Product made more accessible to
customers…furniture made in a factory is
transported to a store convenient to
customers.
Types of utilities
 Time
– Product available to customers when they
want it…eg store open on Sunday for
convenience
 Possession
– Ownership of the product transferred to
customers…purchase is made possible to
customers
 Image
– Products has more value because of its
brand or reputation…brand and quality
choice by customer
MARKETING TASKS
DEMAND STATES

 Negative Demand
 No Demand
 Latent Demand
 Declining Demand
 Irregular Demand
 Full Demand
 Overfull Demand
 Unwholesome Demand
RADICAL MARKETING
 CEO- Marketing Head
 Small & Flat Marketing Deptt.
 Face to Face
 Cautious Market Research
 Passionate missionaries
 Love & respect your Customers
 Community of Customers
 Rethink Marketing Mix
 Celebrate Common Sense
 Be true to the Brand
The stages in the evolution of
marketing
Social
Production Sales
orientation
Marketing responsibility
orientation orientation and human
orientation
Company Orientations
Towards the Marketplace
Consumers prefer products that are
Production Concept widely available and inexpensive
Consumers favor products that

Product Concept offer the most quality, performance,
or innovative features
Consumers will buy products only if

Selling Concept the company aggressively
promotes/sells these products
Focuses on needs/ wants of target

Marketing Concept markets & delivering value
better than competitors
The evolution of marketing
The production-orientation stage
 Typical thinking of the late 1800s
– Executives in production and engineering

shaped its planning: the function of the
sales department was simply to sell the
company’s output.
The sales-orientation stage
 Typical thinking of the 1930s–1960s
(post-depression Australia)
– The firm’s emphasis was on selling its
output.
– This was the age of ‘hard sell’.
– Supply usually exceeded demand.
The marketing-orientation
stage
 Typical thinking of the mid 1950s
– Marketing influences all short-term and long-
range company planning.
– The firm’s goals become customer orientation
and profitable sales volume.
– Focus is on marketing rather than
selling…encompasses inventory control,
warehousing, product planning and
implementation of the marketing concept.
The marketing concept
 Typical thinking of the late 1970s
– The marketing concept emphasises customer

orientation and the co-ordination of marketing
activities.
The marketing concept
 Planning and operations should be customer-

oriented, focus on satisfying customers needs
and wants.
 All the marketing mix activities in a firm
should be co-ordinated and consistent.
 Customer-oriented, co-ordinated marketing
activities are seen as the means to achieving
the organisation’s performance objectives.
The societal marketing
concept
 Typical thinking in 1990
– Marketer must act in a socially responsible
manner.
– External environments influence on firm’s
marketing program.
– Realisation comes that there are finite limits to
our natural resources.
– Increasing emphasis on the management of
human resources.
Relationship Marketing
– An attempt to build personal, long-

term bonds with customers.
– Relationship marketing has expanded
to include all groups an organisation
interact with: suppliers, employees,
unions, government, and even
competitors.
(Etzel, Walker, Stanton, Marketing 11e)
Marketing vs. Selling
 Selling
– A company makes a product and then uses
various selling methods to persuade
customers to buy it.
 Marketing
– Company finds out what the customer
wants and develops a product to satisfy
those wants while yielding a profit.
The Holistic Marketing Concept
Relationship Marketing
Integrated Social
Marketing Responsibility
Marketing
Internal Marketing
The Four Ps
The Four Ps
The Four Cs
Marketing Convenience
Mix
Place
Product
Customer Communication
Solution
Customer Price Promotion
Cost
The marketing mix
 The four key main elements of marketing

are referred to as the “Marketing Mix’.
 These elements are: Product, Price,
Promotion and Place (Distribution).
 These elements, also know as variables,
are controllable by marketers and are the
key to attracting a specific target market.
Marketing mix
Marketing Management
The Planning Sequence
Customer Delivered Value
Starting
point Focus Means Ends
Existing Selling and Profits through

Factory products promotion sales volume
(a) The selling concept
Customer Integrated Profits through

Market needs marketing customer
satisfaction
(b) The marketing concept

Traditional Organization Chart
Top
Management
Middle Management
Front-line people
Customers
Customer-Oriented
Organization Chart
Customers
Front-line people
Middle management
Top
Management
Evolving Views of Marketing’s
Role
Finance
Production
Production Finance
Human
resources
Marketing Human
resources Marketing
a. Marketing as an b. Marketing as a more

equal function
© 2001 McGraw-Hill important
Australia PPT slides t/a Rix, Marketing: A Practical Approachfunction
4th ed 1-40
Role
Production
Customer
Marketing
c. Marketing as the d. The customer as

the controlling factor
major function
Role
Production
Marketing
Customer
e. The customer as the controlling

function and marketing as the
integrative
© 2001 McGraw-Hill Australia function
PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 1-42

CHP 1

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

CHP 1

Uploaded by

Copyright:

Available Formats

MARKETING

 Marketing can be described as all activities

 Marketing is a total system of business

 Marketing Management is the art and

 Definition—The voluntary act of offering

 Utilities may be defined as the

– Through combination of marketing

Consumers favor products that

Consumers will buy products only if

Focuses on needs/ wants of target

 Typical thinking of the late 1800s

– Executives in production and engineering

– The marketing concept emphasises customer

 Planning and operations should be customer-

– An attempt to build personal, long-

(Etzel, Walker, Stanton, Marketing 11e)

 The four key main elements of marketing

Existing Selling and Profits through

(a) The selling concept

Customer Integrated Profits through

(b) The marketing concept

a. Marketing as an b. Marketing as a more

c. Marketing as the d. The customer as

e. The customer as the controlling

You might also like