ppt_ch01.ppt

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix

Slides prepared by: Joe Rosagrata

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Chapter 1

The Field of Marketing



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Nature and scope of marketing

• Marketers:– Centre on attempts to understand

consumers.– Seize an advantage over competitors.– Gain a foothold in a market.– Satisfy consumers.



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Who and what is involved in marketing?

• Include:– Physical goods—clothes, machines, tractors.– Services—banks, theatres, health insurance.– Ideas—Clean Up Australia, road safety.– People—Cathy Freeman, Barry Humphries

(people are a marketable product or brand).– Places—Daintree, a new business estate.– Experiences—travel, yoga.



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What is marketing?

• Marketing can be described as any exchange activity intended to satisfy human needs or wants.

• Marketing is a system of business activities aimed at achieving organisational goals by developing, pricing, distributing and promoting products, services and ideas that will satisfy customers’ wants.



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Needs, wants & exchange

• Defining a need—basic feeling of deprivation.

• Defining a want—the particular forms a need might take.

• Defining exchange—offering something of value in return for something else of value.



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Production orientation

Salesorientation

Marketingorientation

Societal marketing orientation

The stages in the evolution of marketing



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The evolution of marketing

• Typical thinking of the 1930s.• Focus on increasing production.• Production and engineering staff have control of

the organisation; there is a sales department but its function was simply to sell the company’s output at a price set by the production and financial managers.

The production-orientation stage



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The sales-orientation stage

• Typical thinking from the 1930s–1960s (post-depression Australia)

– The firm’s emphasis was on selling its output.– This was the age of ‘hard sell’.– Supply usually exceeded demand.



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The marketing-orientation stage

• The firm’s goals become customer orientation and profitable sales volume.

• Marketing influences all short-term and long-range company planning.

• Focus is on marketing rather than selling, encompassing inventory control, warehousing, product planning and implementation of the marketing concept.



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The societal marketing concept

• Marketer must act in a socially responsible manner.

• External environment’s influence on firm’s marketing program.

• Entails the realisation that our natural resources are finite.

• Increasing emphasis on the management of human resources.



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Marketing vs. Selling

• Marketing– Company finds out what the customer wants and

develops a product to satisfy those wants while yielding a profit.

• Selling– A company makes a product and then uses various

selling methods to persuade customers to buy it.



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The marketing concept

• Marketing concept

• All company planning and operations should be customer-oriented, focussing on satisfying customers’ needs and wants.

• All the marketing activities in a firm should be coordinated and consistent.

• Customer-oriented, coordinated marketing activities are seen as the means of achieving the firm’s own objectives.



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Three requirements for implementing the marketing concept

Marketing concept

Customer orientation

Organisation’s performance objectives

Coordinated marketing activities

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+Customer satisfaction

Organisational success



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Relationship marketing

Relationship marketing focuses on building and maintaining business relationships with customers rather than focussing on each sale.



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Relationship marketing

• Loyalty marketing schemes—customer rewarded for continuing to buy from the organisation.

• Value adding—increasing customer satisfaction by providing extra goods and services over and above the basic product being offered.

• Mass customisation—increasing practice of developing many variations in a firm’s offerings.



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Quality and marketing

• Reducing product quality variability.

• Increasing responsiveness to changing customer needs.

• Reducing costs through less wastage or reworking.



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Marketing management



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The planning sequence



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The marketing mix

• The four key elements of marketing are referred to as the ‘marketing mix’.

• These elements are: Product, Price, Promotion and Place (Distribution).

• These elements, also known as variables, are controllable by marketers and are the key to attracting a specific target market.



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The marketing mix

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