Palmer: Introduction to Marketing

WHAT IS MARKETING?

Chapter 1

SESSION OVERVIEW
This session will: Provide a definition of marketing Develop an appreciation of the importance of marketing to private and public sector organisations Introduce core marketing concepts

MARKETING DEFINED
"The management process which identifies, anticipates and supplies customer requirements efficiently and profitably" - Chartered Institute of Marketing Focus is on customers. Profits result from meeting customers needs effectively and efficiently

COMPONENTS OF MARKETING ORIENTATION

Narver and Slater noted 3 components:
customer orientation competitor orientation inter-functional co-ordination

MARKETING AS A FUNDAMENTAL BUSINESS PHILOSOPHY

Distinguish between:
Marketing as a philosophy (e.g. a company- wide culture of putting the customer first) Marketing as a set of techniques (e.g. advertising, market research)

Techniques are likely to fail if the philosophy is not fully adopted

FOUNDATIONS FOR SUCCESS IN BUSINESS

Marketing has not always been the dominant business framework Marketing became important when excess supply chases limited demand

HOW DO YOU SUCCEED IN THE MARKETS FOR THESE PRODUCTS?

Fast Moving Consumer Goods (FMCGs) are a challenge for marketers Why should a customer buy your product and not the competitors?

STREET MARKETS V MULTINATIONAL CORPORATION

Different scale, and more complex issues But many similar issues faced by both No customers, no business!

NOT FOR PROFIT MARKETING

Its not just commercial companies that use marketing Increasing use of marketing by not-for-profit organisations, e.g. charities, government agencies Rising expectations of users of these organisations Often, their environment is becoming more competitive

KEY MARKETING CONCEPTS

Customers Needs Value Exchange Markets

VALUE IS CRUCIAL
Value can be complex Must understand buyers definition of value Fashion for pre-worn look of new jeans: should these have higher or lower value?

THE MARKETING MIX

A classification of decisions made by marketers
Product Price Place Promotion People Processes Physical evidence

THE MARKETING MANAGEMENT PROCESS

MARKETING IN RELATION TO OTHER CORPORATE FUNCTIONS

Viewed as a philosophy, everybody in an organisation should be a part-time marketer Marketing is so basic that it cannot be considered to be a separate function. It is the whole business seen from the point of view of its final result, that is, from the customer's point of view". - Peter Drucker

MARKETING AND SOCIAL RESPONSIBILITY

Growing emphasis on firms being good citizens Rising expectations of organisations social responsibilities Social responsibility usually driven by strategy rather than philanthropy

MARKETING AS SCIENCE AND ART

Positivist view:
objectivity, measurability, scientific process

Post-positivist view:
marketing is unlike the natural sciences - true meaning of phenomena is best discovered through more qualitative approaches

Marketers should combine both approaches

MARKETING AS AN ACADEMIC DISCIPLINE

Marketing as a subject of study is relatively new Has drawn heavily on:
Economics Psychology Sociology

Increasingly developing and contributing its own body of knowledge

WHAT MAKES A GOOD MARKETER?

Are marketers born or bred? Some key skills:
Ability to listen and analyse Critical thinking Creativity