Introduction to Marketing

Dr Al Marshall
School of Business
ACU

Lecture Agenda

Defining Marketing
History
What Can Be Marketed?
Marketing Orientations
Defining Marketing Orientations
The Central Concept
The Focus of Marketing
Defining Marketing Management
Components of the Managerial Marketing Process
The Marketing Mix (The Basis of Strategy)
Need to Understand Environments
Macro and Micro Factors That Marketers Must Account For
Ingredients of Successful Marketing
Key Marketing Terminology

Defining Marketing
In the popular imagination it is often confused with
advertising and/or personal selling (also retailing)
A philosophy, an applied business system or process plus
an academic discipline
The process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods, and
services to create exchanges that satisfy individual and
organisational goals (AMA)
Exchange of items of value is at the heart of marketing
http://www.youtube.com/watch?v=EnbHtOAtqRU

History
Dates from early 20th century as an applied business
system and an academic discipline. Origins in economics.
Argument though that the fundamentals have a much
longer history in business
Origins with agricultural commodities in the American
Midwest, later on consumer goods and services
Business to business, social and non-profit applications
later on
Electronic marketing (principally internet) a large part of
the future wave

What Can Be Marketed?

Goods
Services
Events
Experiences
People
Places
Properties
Organisations
Information
Ideas

Marketing Orientations
Four possible orientations influencing how organisations
regard marketing and their customers
Production orientation
Sales orientation
Marketing orientation
Relationship marketing orientation
Broadly conforms to a time line, though some organisations
still locked in to a production or sales orientation
http://education-portal.com/academy/lesson/marketingproduction-sales-societal-marketing-orientation.html

Defining Marketing Orientations

Production orientation focuses on internal capacities of an
org to develop and produce better and cheaper products
Sales orientation focuses on aggressive sales techniques to
obtain high sales volume and profits
Marketing orientation focuses on satisfying customers
needs and wants and org goals
Relationship marketing orientation focuses on keeping
existing customers and suppliers for repeat exchange
processes
Sales and marketing orientation the most used
A lot claim to practice the relationship orientation!

The Central Concept (1)

The marketing concept central to marketing and
relationship marketing orientations
Premised on idea that an org aims all its efforts in a
coordinated and integrated manner in order to
simultaneously satisfy its customers while achieving its
own organisational objectives
Based partly on idea of identifying and producing what
customers need
Core ingredients include ensuring customer satisfaction,
total company effort/integration,, profit (not just sales) as a
company objective

The Central Concept (2)

Not all organisations embrace the marketing concept (or
find process of adoption easy). Still stuck back with
production or sales orientations
High level of competition in the marketplace one key
reason to adopt, as is the need to build relationships with
customers

http://www.youtube.com/watch?v=4yefGOif2WU

The Focus of Marketing (1)

Can be conceptualised as existing on two levels: micro
(managerial marketing) and macro (macro marketing)
Managerial focuses on activities performed by individual
orgs in relation to serving potential customers in specific
markets
Macro marketing focuses on the contribution of marketing
to the economic welfare of the whole society as part of the
whole production-distribution system

Defining Managerial Marketing

Managerial Marketing is the art and science of choosing
target markets and getting, keeping and growing customers
through creating, delivering and communicating superior
customer service (Kotler & Keller)

The Focus of Marketing (2)

Managerial marketing begins with anticipating potential
customer needs, and considering whether these can be met
by organisational efforts while providing returns
Is used by a whole range of organisations (profit and non
profit)
Macromarketings role in contrast is to match
heterogeneous supply and demand while simultaneously
meeting societys objectives
Focus of most texts is managerial marketing (the position
of the firm looking out into the world)

Components of the Managerial

Marketing Process
Finding out what benefits customers want the organisation
to deliver (market opportunity analysis)
Developing a marketing strategy to satisfy the needs or
wants of customers in the selected target market (market
planning and strategy)
Gathering, analyzing and interpreting information about
the environment (environmental scanning)
Implementing the strategy and monitoring in order to
adjust if necessary as the marketing plan impacts the
marketplace and customers in the marketplace

The Marketing Mix (the Basis of

Strategy)
The mix comprises Product, Price, Place
and Promotion
A couple of dimensions of each:
Product good or services, brands, benefits
Price costs, list price, value, terms
Place distribution, channels, retailers
Promotion - advertising, personal selling

Need to Understand
Environments
Macro Environment
Political, Economic, Social, Technology, Environmental,
Legal (see PESTEL)
Micro Environment
Buyers, Suppliers, Customers, Substitutes, New Entrants
(see Porter)

Macro and Micro Factors

Marketers Must Account For...

Network information technology

Globalisation
Deregulation
Privatisation
Increased competition
Industry convergence
Retail transformation
Disintegration
Consumer power
Consumer participation
Consumer resistance

Ingredients of Successful
Marketing
Offer products that perform well in terms of identified
customer benefits
Use marketing to sustain a real competitive advantage in
the marketplace
Understand and define value from the customers
perspective, and price accordingly
Meet and deliver on customer expectations (try to exceed)
Develop and sustain customer relationships with the brand
and the organisation

Key Marketing Terminology

Exchange
Needs and wants
Customer benefits
Demand and supply
Goods and services
Target markets and positioning
Customer satisfaction
Sellers and buyers
Relationships and brand loyalty
Competition and market share
Value and satisfaction
Planning and strategy

http://www.youtube.com/watch?v=7hbRZ3ZCyI8