Essentials of Marketing

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					Essentials of
Marketing
MNM202Y
Learning outcomes
 Explain what marketing is
 Explain the concept of exchange
 Explain the marketing activities
 Discuss the orientation towards marketing
 Define marketing
 Explain the marketing process
 Discuss the marketing function in the
  business
Introduction
   Marketing nb in life
   Participate as consumers of products and
    services
   Understanding marketing – better consumer
   Marketing facilitates multiple satisfying
    exchanges between parties.
   Role of marketing and characteristics of
    marketing influenced by philosophy and
    orientation of business
Marketing process includes:
   Understanding the business’s mission and the role
    marketing plays in fulfilling that mission
   Setting marketing objectives
   Scanning the environment
   Developing a marketing strategy by selecting a target
    market strategy
   Developing and implementing a marketing mix (product,
    distribution, marketing communication and pricing)
   Implementing the marketing strategy
   Designing performance measures
   Evaluating marketing efforts and making changes
Introduction
   Nature of marketing
      What is marketing
      The concept of exchange
      Gaps between production and consumption
      Needs, wants and demands
      Intermediaries
   Marketing activities
   Orientation towards markets
        Product orientation
        Sales orientation
        Marketing orientation: the marketing concept
   Relationship marketing
        Broader view of the market
        Expansion of the market offering
        A bigger market
   Defining marketing
   The marketing process
   The marketing function in the business
        The place of the marketing function
        The management task in marketing
The nature of marketing
Marketing:
 Different meanings
 Personal selling = advertising?
 Two facets to marketing:
       Management orientation- focus on customer
       Activities – customers needs but also a profit
   AMA Def: “Marketing is the process of planning and
    executing the conception, pricing, marketing
    communication and distribution of ideas, products and
    services to create exchange that satisfy individual and
    organisational goals”
   Activities listed = specific decision –making areas of
    management
The nature of marketing
The concept of exchange:
 Exchange = key term in marketing
 Why?
 Give up something to receive something
 Money usually associated with exchange
 Five conditions for exchange:
       @ least 2 parties
       Each party must have something of value
       Each party must be able to communicate with other party and
        deliver goods or services sought by the other party
       Each party must be free to accept or reject the other’s offer
       Each party must want to deal with the other party
   Conditions prevail in market
The nature of marketing
Gaps between production & consumption:
 Place of production ≠ place of consumption
 Explained by Fig 1: p5.
 5 Gaps according to McInnis:
   Space gap
   Time gap
   Information gap
   Ownership gap
   Value gap
The nature of marketing
Needs, wants and demands:
 Difference between needs, wants
 Needs = basic physical needs
 Wants = form taken by human needs as they are shaped
  by culture and an individual’s personality = objects that
  will satisfy the needs
 Demands = wants backed by buying power
 Products = use to satisfy needs and wants (tangible or
  intangible)
 Value = difference between the value the customer gains
  from owning and using a products and the cost incurred
  to obtain the product
 Satisfaction = products performance in delivering value
  relative to expectation
 Customer satisfaction = linked to quality, quality linked to
  performance and therefore on satisfaction
The nature of marketing
Intermediaries
 Distance between production and consumption
 Travelling hawkers
 Three types of intermediaries:
   Middlemen   (take possession of products)
   Sales intermediaries (don’t take possession, facilitate
    only)
   Auxiliary enterprises (not involved in title transfer but
    offer support services- eg ABSA bank )
Introduction
   Nature of marketing
        What is marketing
        The concept of exchange
        Gaps between production and consumption
        Needs, wants and demands
        Intermediaries
   Marketing activities
   Orientation towards markets
        Product orientation
        Sales orientation
        Marketing orientation: the marketing concept
   Relationship marketing
        Broader view of the market
        Expansion of the market offering
        A bigger market
   Defining marketing
   The marketing process
   The marketing function in the business
        The place of the marketing function
        The management task in marketing
Marketing activities
May be subdivided into:
 Primary
 Auxiliary
 Exchange
Marketing activities
Primary activities:
Transport
Marketing activities
Auxiliary activities:
 Obtaining and supplying information
 Standardisation and grading
 Storage
 Financing
 Risk-taking
Marketing activities
Exchange activities:
 Buying and selling
 i.e. transfer of ownership
 Buying = responsibility of purchasing
  department
 Selling = responsibility of marketing
  department
Introduction
   Nature of marketing
        What is marketing
        The concept of exchange
        Gaps between production and consumption
        Needs, wants and demands
        Intermediaries
   Marketing activities
   Orientation towards markets
      Product orientation
      Sales orientation
      Marketing orientation: the marketing concept
   Relationship marketing
        Broader view of the market
        Expansion of the market offering
        A bigger market
   Defining marketing
   The marketing process
   The marketing function in the business
        The place of the marketing function
        The management task in marketing
Orientation towards markets
Three orientations towards markets:
 Production orientation
 Sales orientation
 Marketing orientation
Orientation towards markets
Production orientation :
 Focuses on internal capabilities of the
  business rather then needs of marketplace
 Questions such as “what is easy to
  produce”
 Shortfall?
 Can survive in short term
Orientation towards markets
Sales orientation:
 Based on premises that people will buy
  more if aggressive sales techniques are
  used and that high sales= high profits
 Shortfall?
Orientation towards markets
Marketing orientation:
 Emphasis not only on the sales message, price,
  but also on quality, packaging, distribution,
  information
 MO = based on understanding that sale
  depends on customers decision to purchase, i.e.
  the perceived value
 Thus building long-term relationship with
  customer = pure marketing concept
 Pure marketing concept, per def.: an ethical
  code or philosophy to which the marketing task
  is performed
Orientation towards markets
Marketing orientation: The three principles:
 Long term maximisation of profitability
 Consumer orientation
 Integration of all business activities
Orientation towards markets
Organisational integration:
 Sum of the parts is greater than the whole
 AKA organisational integration
 Hand-in-hand with synergy and TQM
Introduction
   Nature of marketing
        What is marketing
        The concept of exchange
        Gaps between production and consumption
        Needs, wants and demands
        Intermediaries
   Marketing activities
   Orientation towards markets
        Product orientation
        Sales orientation
        Marketing orientation: the marketing concept
   Relationship marketing
      Broader view of the market
      Expansion of the market offering
      A bigger market
   Defining marketing
   The marketing process
   The marketing function in the business
        The place of the marketing function
        The management task in marketing
Relationship marketing
A broader view of the market:
 Maintenance of long-term relationship
 Marketing offering must be expanded to
  differentiate from competitors
 Relationship marketing represents a
  broader view of the market and the
  marketing task
Relationship marketing
Expansion of the market offering:
Different marketing strategies must be used for
consumer acquisition and retention
4 marketing instruments alone inadequate to
ensure full customer satisfaction
 According to Christopher, Payne and Ballantyne,
relationship marketing means that the 4 marketing
    instruments needs to expanded to include:
             PEOPLE & PROCESSES
Relationship marketing
Expansion of the market offering:
People = employees that needs to be well
trained
Processes = integral parts of the
production, administration and marketing
functions
Relationship marketing
A bigger market:
Relationship marketing necessitates a
wider view of market
Total market subdivided into smaller
groups
Relationship marketing
A bigger market: the following groups can be
identified:
Current customers
Potential customers
Suppliers
Potential employees
Reference groups
Influencers = government
Current employees
Introduction
   Nature of marketing
        What is marketing
        The concept of exchange
        Gaps between production and consumption
        Needs, wants and demands
        Intermediaries
   Marketing activities
   Orientation towards markets
        Product orientation
        Sales orientation
        Marketing orientation: the marketing concept
   Relationship marketing
        Broader view of the market
        Expansion of the market offering
        A bigger market
   Defining marketing
   The marketing process
   The marketing function in the business
        The place of the marketing function
        The management task in marketing
Defining marketing
“Marketing is the process of planning and executing the
 conception, pricing, promotion and distribution of ideas,
    goods and services to create exchange that satisfy
           individual and organisational goals”
                         Thus:
      Anticipating and satisfying consumer needs
  By means of mutually beneficial exchange process
Doing so profitably and more effectively than competitors
       by means of efficient managerial processes
Introduction
   Nature of marketing
        What is marketing
        The concept of exchange
        Gaps between production and consumption
        Needs, wants and demands
        Intermediaries
   Marketing activities
   Orientation towards markets
        Product orientation
        Sales orientation
        Marketing orientation: the marketing concept
   Relationship marketing
        Broader view of the market
        Expansion of the market offering
        A bigger market
   Defining marketing
   The marketing process
   The marketing function in the business
        The place of the marketing function
        The management task in marketing
The marketing process
   Complex task
   Large business = marketing department = marketing manager
   4 variables that marketing department need to make decisions on:
     Product
     Place
     Marketing communication         Marketing
     Price
                                      instruments =
                                      marketing mix         IMS
                                      consisting out
                                      of the 4p’s
   Marketing strategy directed at group = market segment
Introduction
   Nature of marketing
        What is marketing
        The concept of exchange
        Gaps between production and consumption
        Needs, wants and demands
        Intermediaries
   Marketing activities
   Orientation towards markets
        Product orientation
        Sales orientation
        Marketing orientation: the marketing concept
   Relationship marketing
        Broader view of the market
        Expansion of the market offering
        A bigger market
   Defining marketing
   The marketing process
   The marketing function in the business
      The place of the marketing function
      The management task in marketing
The marketing function in the
business
The place of the marketing function:
 Key function in any business
 7 functional areas in a business may be identified:
      Operations function
      Human resource function
      Financial function
      Purchasing function
      Public relations function
      Information function
      Marketing function
      General management function
The marketing function in the
business
The management tasks in marketing:
 4 fundamental management tasks
Marketing manager responsible for:
 Identifying opportunities & threats in marketing environment
 Identifying those opportunities which can be utilised in terms of internal
   strengths and weaknesses
 Compiling marketing data
 Selecting a specific target market
 Deciding on the selling price of the product in order to attain the objective of
   profitability
 Deciding on specific distribution channels
 Deciding on marketing communication methods
 Deciding on selection, training, remuneration and motivation of marketing
   department
 Organising and leading the activities of the marketing department
 Controlling the marketing process

				
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posted:5/7/2012
language:English
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