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Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Marketing Principles
Chapter 1
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
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 customer needs
and wants.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-1
Definition
 A marketing organisation’s entire system of
business activities must be customer
oriented.
 Customer needs and wants must be
recognised and satisfied.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-2
Definition
 Marketing is a system for guiding and
running a business.
 Marketing is results oriented.
 To be successful, marketing must maximise
profits.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-3
Nature and scope
of marketing
Includes:
 Physical goods—cars, clothes,
machines, books.
 Services—banks, theatres,
education.
 Ideas—pollution reduction, road
safety.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-4
Nature and scope of
marketing (cont.)
 People—Kylie Minogue, Michael Jordan
(people are a marketable
product or brand).
 Places—Daintree, a new business estate.
 Experiences—bungie jumping,
meditation.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-5
The stages in the
evolution of marketing
Production
orientation
Sales
orientation
Marketing
orientation
Social
marketing
orientation
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-6
The evolution of
marketing
The production-orientation stage
 Typical thinking of the late 1800s
• Executives in production and
engineering shaped its planning: the
function of the sales department was
simply to sell the company’s output.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-7
The sales-orientation
stage
 Typical thinking of the 1930s–60s
(post-depression Australia)
 The firm’s emphasis was on selling
its output.
 This was the age of ‘hard sell’.
 Supply usually exceeded demand.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-8
The marketing-orientation
stage
 Typical thinking of the mid–1950s
 Marketing influences all short-term
and long-range company planning.
 The firm’s goals become customer
orientation and profitable sales
volume.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-9
The marketing-orientation
stage (cont.)
 Focus is on marketing rather than
selling…encompasses inventory control,
warehousing, product planning and
implementation of the marketing
concept.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-10
The marketing concept
 Typical thinking of the late 1970s
 The marketing concept emphasises
customer orientation and the
coordination of marketing activities.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-11
The marketing concept
(cont.)
 Planning and operations should
be customer-oriented, focusing
on satisfying customers needs
and wants.
 All the marketing mix activities in
a firm should be coordinated and
consistent.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-12
The marketing concept
(cont.)
 Customer-oriented, coordinated marketing
activities are seen as the means to
achieving the organisation’s performance
objectives.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-13
The Marketing Concept
(cont.)
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-14
The societal marketing
concept
 Typical thinking in 1990
 Marketer must act in a socially
responsible manner.
 External environment’s
influence on firm’s marketing
program.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-15
The societal marketing
concept (cont.)
 Realisation comes that there are finite
limits to our natural resources.
 Increasing emphasis on the management
of human resources.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-16
Relationship marketing
 An attempt to build personal, long-term
bonds with customers.
 Relationship marketing has expanded to
include all the groups with which an
organisation interacts: suppliers,
employees, unions, government and
even competitors.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-17
Marketing vs. Selling
 Selling
 A company makes a product and then
uses various selling methods to
persuade customers to buy it.
 Marketing
 Company finds out what the customer
wants and develops a product to
satisfy those wants while yielding a
profit.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-18
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-19
The planning sequence
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-20
The marketing mix
 The four key main elements of
marketing are referred to as the
‘Marketing Mix’.
 These elements are: Product, Price,
Promotion and Place (Distribution).
 These elements, also know as variables,
are controllable by marketers and are
the key to attracting a specific target
market.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-21
The Marketing mix (cont.)
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
1-22