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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 strategic business function that creates
value by stimulating, facilitating and fulfilling
customer demand - it does this by building
brands, nurturing innovation, developing
relationships, creating good customer service
and communicating benefits.’"
- 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
HOW MARKETING ORIENTATED
IS AN ORGANISATION?
Think about your university or
a local service business
• Do the opening hours suit
staff rather than customers?
• Who has the best car
parking space?
• Many more tell-tale signs
about whether it is really
marketing orientated!
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!
MARKETING CANNOT STAND STILL
• “Smartphones” may
have been a recent
hot new product
• But what will
tomorrow’s “hot
products” be?
• Innovation and
understanding of
consumers’ needs are
crucial
KEY MARKETING CONCEPTS
Customers
Needs
Value
Exchange
Markets
UNDERSTANDING VALUE IS
CRUCIAL
• Value can be complex
• Must understand
buyers’ definition of
value
• Fashion for “pre-worn”
look of new jeans –
does deliberately
ripping them result in
higher or lower value?
Source: © Photodisc
THE MARKETING MIX
A classification of
decisions made by
marketers
–
–
–
–
–
–
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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
NOT FOR PROFIT MARKETING
• It’s 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
MARKETING AND SOCIAL
RESPONSIBILITY
• Growing emphasis on firms being “good
citizens”
• Rising expectations of organisations
ecological 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
SUMMARY OF KEY POINTS
• Marketing is about organizations meeting
customers’ needs as a means of achieving their
own objectives.
• Marketing is both a philosophy and a set of
techniques.
• The principles of marketing are not new, but a
continually changing marketing environment
demands new ways of applying basic principles.
• Marketing can be adopted by both profit-seeking
and not-for-profit organizations.
• Marketers are increasingly expected to act
responsibly.