1. WHAT IS MARKETING?
Marketing is everyone’s business. Every person working for an
organisation should understand the importance of marketing.
“ Marketing is the management process responsible for identifying,
anticipating and satisfying consumer requirements profitably”
“Marketing is the process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods and services
to create exchange and satisfy individual and organisational needs.”
7. MARKETING IS AN ORGANISATIONAL
The diagram below shows the many functions that can be carried out in organisations
which, dependant on the organisation, can be classified as operational functions
functions of marketing
CRM Sales Promotion
8. MARKETING AS A MANAGEMENT
Here the role of marketing is ensuring that the operational activities of the
organisation (not just marketing) are clearly directed towards the principal
objective of meeting the needs of the customers effectively. It involves
analysing customers and anticipating their needs, planning, resource
allocations, control and investment in terms of money, appropriate skilled
people and physical resources to ensure both customer and organisational
needs are met to each’s satisfaction.
Marketing as a Business Concept – in this regard marketing is the study
of exchange processes especially those associated with the provision of
goods and services. It takes its lead from the social sciences in that, the
basic tenant of society is that we all need each other. The idea here is, if I’ve
got something you want and you’ve got something I want, then we do a deal
(which is the exchange process)
9. MARKETING AS A BUSINESS CONCEPT
Something of value
Goods, services, benefits
Something of value
Money, exchange of goods
The Exchange Process
11. EXCHANGE TRANSACTIONS
Consumers Costs & Benefits Organisations
service Non-profit youth group
Sense of economic/social
employment etc Politic Party
Public Library, Benefit agency
12. MARKETING AS A BUSINESS
Simply a way (i.e. orientation) towards how the business will
As a philosophy it recognises the importance of the customer
and that all business exists to serve customers rather than
To quote Adam Smith C A in his famous text ‘ The wealth of
“Consumption is the sole purpose of production and the interests
of the product ought to be attended o only so far as it may be
necessary for promoting those of the customer”
13. CORE CONCEPTS OF MARKETING
14. EVOLUTION OF MARKETING CONCEPT AND
Self-sufficiency – No exchange process
Simple – Start of exchange process
Local markets – Economic specialisations
Money economy – Medium of exchange
Industrial revolution – Rapid growth in world population leading to increased demand.
Problem – How to supply?
Production orientation – More efficient production eventually led to oversupply. Problem
changed to – How to dispose?
Soles orientation – Economic theory states: when supply exceeds demand, reduce
price and use other techniques to stimulate demand.
Product orientation – Demand. Problem – how to keep customers? Companies sought
to keep customers by increasing emphasis on product design,
Problem – competition quickly copied and the design didn’t suit
everyone. Too many products than they demand for them.
Marketing orientation – Production based on customer needs and wants. Specific
markets identified and matched their requirements to the
capabilities of the company to ensure both parties needs were
15. BUSINESS ORIENTATION
Orientation Profit Driver Approximate
Production Production Methods Up to 1940’s Improvement of production and in order
to achieve a reduction of costs and
Product Quality of Product Until 1960’s The quality of the product is paramount.
Focus on product not customer needs.
Selling Selling Methods 1950-1970’s Effective selling and promotion are the
new drivers to success.
Marketing Needs and wants of
1970 to date Focus on providing the goods and
services that satisfy the needs and wants
Further approaches to marketing
Building and keeping
1990’s to date Emphasis placed on keeping as well as
winning customer strategies.
Benefit the society 1990’s to date Similar to marking orientation but also
concerned with the long term impact of
organisational activities on the
17. Importance of 4Ps by Industry –
examples of promotions
Consumer Goods Industrial Goods
18. Push versus Pull
Push Strategy Manufacturer Intermediary End User
e.g Lever Brothers
Pull Strategy Manufacturer Intermediary End User
e.g. P & G