Chapter One The field of marketing

What is marketing? n Societal definition: Any exchange activity intended to satisfy human wants. n Business definition: A system of business action aimed at achieving organisational goals by developing, pricing, distributing and promoting products and ideas that will satisfy customers’ wants. OHT 1

Stages of marketing management n Production-orientation stage ‘Build a better mousetrap.’ n Sales-orientation stage ‘Sell, sell, sell.’ n Marketing-orientation stage ‘Profitable satisfying of customers’ wants.’ n Societal-orientation stage ‘Satisfying the needs of the consumer and the broader community.’ OHT 2

Marketing vs selling n Selling emphasis is on the product n Marketing emphasis is on customers’ wants ‘Marketers love their customers before their products.’ ‘Marketing is making what you can sell, rather than selling what you make.’ OHT 3

The marketing concept n Satisfying customers’ wants is the economic and social justification of the organisation’s existence. n The marketing concept is practiced by: – being customer-oriented in all decisions and activities – striving to maximise profitable sales volume – systematically coordinating all marketing activities OHT 4

An example of relationship marketing Pic P14

An example of not-for-profit marketing Pic P19

The marketing process n Conduct situation analysis. n Determine marketing objectives. n Segment total market and select target markets. n develop marketing mix (4 Ps): – product – price – distribution (place) – promotion OHT 5

The 4 elements of the marketing mix Pic P27