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Key learning goals: This topic will mainly discuss the definition of marketing, the importance of marketing and the difference between product and customer orientation. State the definition of marketing State the important features of marketing Explain what factors have made marketing so important in todays business environment. Explain the difference between market orientation and product orientation Explain the main advantages of market orientation for a business?
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Marketing (1)
What is meant by the term marketing?
- Definition of marketing
Marketing is the management of process involved in identifying, anticipating and satisfying consumer requirements profitably. Marketing is the process by which companies create customer interest in products or services. It generates the strategy that underlies sales techniques, business communication, and business development. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. Differences between marketing and selling or advertising Marketing is not the same as selling. Selling is only one of many marketing functions, or is just one part of the marketing process. Marketing and advertising are not the same thing, either. Advertising is just one of a number of tactics used by marketing departments in a business. Other methods include promotions, such as free gifts or competition activities.
Copyright 2002 by Harcourt, Inc. All rights reserved.
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Marketing has at least the following characteristics: Marketing is aimed at finding out consumer needs and meeting these needs. Marketing must consider profit as its main objective. Marketing is ongoing all the time. The marketing process has no start or end (see next slide). Businesses must be prepared to respond to the consumer reactions and changes all the time.
2. fashion
3. technology
4. competition
focus of attention on the production process and the product itself. More emphasis on technology and quality, but less focus on meeting consumer needs in the market. Many businesses in the past were product orientated when there were quite few competitors and when they produced the unique products in the world, such as the radios when just invented. However, today there are still some businesses which are product orientated. For example, the Concorde airplane company (high technology, but expensive so not many customers taking their planes).
What is market orientation? Market orientation or consumer orientation means that the
business places the needs or requirements of consumers at the center of the decision-making process. Market orientation is perhaps the most common orientation used in contemporary marketing. It involves a firm essentially basing its marketing plans around the marketing concept, and thus supplying products to suit new consumer tastes. The implication is that businesses should try best to meet the need of customers in marketing management. A market orientation may have some advantages over product orientation. These advantages are seen in the following table:
Copyright 2002 by Harcourt, Inc. All rights reserved.
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Some advantages of a market-orientated business over a product-orientated business: More able to anticipate market changes Respond quickly to market changes More capable of meeting the challenges of new competition More successful in new product development Able to produce to produce and sell the right product at the right time and the right place
Copyright 2002 by Harcourt, Inc. All rights reserved.
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Marketing (1) -Product orientation and market orientation Theories What might a market-orientated business do in its marketing management? Do market research continuously. Design the product according to the consumers needs and wants. Produce the product in the quantities that consumers want to buy. Set the price of the product which can be acceptable by most consumers. Respond to consumer changes quickly
Copyright 2002 by Harcourt, Inc. All rights reserved.
Marketing (1) -Product orientation and market orientation Theories Questions for your critical thinking: