MARKETING FUNDAMENTALS
Marketing Planning & The Broader Environment
Key Concepts
- Definition of marketing
- Difference between needs, wants and demands
- Marketing management philosophies
- Role of marketing planning
- Marketing environment
- Marketing in international markets
Definition of Marketing
“A social and managerial process whereby individuals and groups obtain what they need
and want through creating and exchanging products and value with others.”
Source: Kotler,P & Armstrong,G (2001) Principles of Marketing 9th ed, Prentice Hall, p6
“Marketing is the management process which identifies, anticipates and supplies customer
requirements efficiently and profitably.”
Chartered Institute of Marketing
“Marketing is the process of planning and executing the conception, pricing,
promotion and distribution of ideas, goods and services to create, exchange and satisfy
individual and organisational objectives.”
American Marketing Association,1985
Source: Brassington,F.& Pettit,S.(2000) Principles of Marketing 2nd ed, UK:FT/Prentice Hall
“Marketing is a pervasive societal activity that goes considerably beyond the selling of
toothpaste, soap and steel. Political contests remind us that candidates are marketed as
well soap; student recruitment in colleges reminds us that higher education is marketed;
and fundraising reminds us that “causes” are marketed…[Yet no] attempt is made to
examine whether the principles of “good” marketing in traditional product areas are
transferable to the marketing of services, persons and ideas.”
Source: Andreasen,A.R. & Belk,R.W. (1980) Predictors of Attendance at the Performing Arts Journal of Consumer Research Sept,
pp.112-120
Core Marketing Concepts
Needs, wants and
demands
Markets
Exchange, transaction
and relationships
Products and
services
Value, satisfaction
and quality
Source: Kotler,P & Armstrong,G (2000) Principles of Marketing 9th ed, USA:Prentice Hall
Need, Want, Demand
•
Need
=
A state of felt deprivation
•
Want
=
The form taken by a human need as shaped by culture and individual
personality
•
Demands = Human wants that are backed by buying power
Values
“All customers have values made up of attitudes and beliefs that affect their perceptions
and buying behaviour. Beliefs can also be thought of as knowledge, opinion or faith
depending whether they can be verified by personal experience or research.”
Source: Bickerton,P, Bickerton,M & Pardesi,U (2000) Cybermarketing 2nd ed, Butterworth Heinemann, p7
Supply & Demand
Supply: The amount of a product producers are willing to provide at a particular price.
Demand: The amount of a product customers are willing to purchase at a particular price.
Source: Keegan,W.J., Moriarty,S.E. & Duncan,T.R. (1995) Marketing 2nd ed, Prentice Hall, p11
Product
“Anything that can be offered to a market for attention, acquisition, use, or consumption
that might satisfy a want or need. It includes physical objects, services, persons, places,
organisations and ideas.”
Source: Kotler,P & Armstrong,G (2001) Principles of Marketing 9th ed, Prentice Hall, p7
Definition of Service
“Time and expertise provided or activities performed in the customer’s behalf by an
individual or firm.”
Source: Keegan,W.J., Moriarty,S.E. & Duncan,T.R. (1995) Marketing 2nd ed, Prentice Hall, p10
E.g. of Goods/Services Spectrum
PURCHASE
A
CAR
GOODS
TELEVISION
RENTAL
FAST
FOOD
OUTLET
GOURMET
RESTAU –
RANT
HAIRCUT
LEGAL
ADVICE
SERVICES
Definition of Profit
“The return that a company receives on a transaction after costs have been subtracted.”
Source: Keegan,W.J., Moriarty,S.E. & Duncan,T.R. (1995) Marketing 2nd ed, Prentice Hall, p10
Definition of Publics
“Publics are any organisations or individuals that have actual or potential influence on the
marketing organisation…(these can) include government departments, competitors,
outside pressure groups, employees, the local community and so forth.”
Source: Blythe,J (2001) Essentials of Marketing 2nd ed, Prentice Hall, p9
Definition of Markets
“Markets are all the actual and potential buyers of the firm’s products.”
Source: Blythe,J (2001) Essentials of Marketing 2nd ed, Prentice Hall, p9
Marketing Management Philosophies
There are 5 alternative concepts under which organisations conduct their marketing
activities:
1. Production
2. Product
3. Selling
4. Marketing
5. Societal Marketing
Source: Kotler,P. & Armstrong,G.(2001) Principles of Marketing 9th ed,USA:Prentice Hall
Marketing’s Role in Strategic Planning
Marketing plays a key role in an organisation’s strategic planning process:
1.
Provides a guiding philosophy – the marketing concept – that suggests that
organisation strategy should resolve around serving the needs of important
consumer groups.
2.
Marketing provides inputs to strategic planners by helping to identify attractive
market opportunities and by assessing the firm’s potential to take advantage of
them.
3.
Within business units, marketing designs strategies for reaching the unit’s
objectives. Once the objectives are set, marketing’s task is to carry them out
profitably.
Source: Kotler,P. & Armstrong,G.(2001) Principles of Marketing 9th ed,USA:Prentice Hall