Marketing
What is marketing
The history of marketing
Philosophy or a technique
What marketing is not
 Marketing is not just about selling
 “Selling focuses on the needs of the seller, marketing on
the needs of the buyer” (Theodore Levitt, 1960)
 Marketing is not just about advertising
 Marketing is not just about market research
Back to basics
 Origins of Marketing
 It is not a new thing
 In days of yore
 Industrial revolution
 Mass production
 Transport
 Off the peg
Marketing philosophy and a set of
(Palmer, 2012)
techniques
Philosophy
 Business philosophy, marketing
puts the customer at the centre
of the organisation’s
considerations
 Reflected in basic values
throughout the organisation
 Attitudes, beliefs
or
Techniques
 A set of techniques for doing
marketing within the
organisation
 Market research
 Design of distribution channel
 Method of doing things
You need both philosophy
and technique
Marketing Defined
 “the management process for identifying,
anticipating and satisfying customer requirements
profitably” (Chartered Institute of Marketing)
 “A social and managerial process by which individuals
and groups obtain what they need and want through
creating and exchanging products and value with
others.” (Kotler, Armstrong, Saunders & Wong, 2001)
Marketing defined
 Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering,
and exchanging offerings that have value for
customers, clients, partners, and society at large
(American Marketing Association, 2008)
 The strategic business function that creates value by
stimulating, facilitating and fulfilling customers
demand – it does this by building brands, nurturing
innovation, developing relationships, creating good
customer and communicating benefits
Strategic decisions are concerned with:




The long term direction of the organisation
Achieving some advantage
Scope of an organisation’s activities
Matching the activities of the organisation to the
environment in which it operates
(Johnson & Scholes,2005)
A Simple Model of the
Marketing Process
Capture value
from customers
in return
Create value for customers and
build customer relationships
Understand the
marketplace
and customer
needs and
wants
Design a
customerdriven
marketing
strategy
(Armstrong & Kotler, 2011)
Construct an
integrated
marketing
program that
delivers
superior value
Build profitable
relationships
and create
customer
delight
Capture value
from customers
to create profits
and customer
equity
& marketing……
 Integrated across the organisation to achieve this…
Marketing management orientations
(Masterson et al, 2017)
Business Orientation
 Production orientation: Consumers want products that are available
and highly affordable
 Product orientation: Consumers want products that offer the most
quality, performance and features
 Sales orientation: Consumers will not buy enough products so the
business must engage in large scale selling and promotion
 Marketing orientation: Business success depends on knowing the
needs and wants of the customer better than competitors
 Societal orientation: Business should consider consumer demands,
company requirements and consumers’ and society's’ long term interests
Business Orientations
Product orientation
How R&D designed it
Table 1.1
Business Orientations
Production orientation
How production built it
Table 1.1
Business Orientations
Sales orientation
How sales presented it
Table 1.1 cont.
Business Orientations
Marketing orientation
How customers wanted it
Table 1.1 cont.
The marketing concept
 The marketing concept embodies the philosophy of
marketing
 It explains what marketing does
 And explains the function of marketing
“The marketing concept a philosophy that holds that
achieving organisational goals depends on knowing the
needs and wants of target markets and delivering the
desired satisfaction better than competitors do”
(Kotler et al, 2013, p10)
The marketing concept
 Three elements:
 Customer Focus




Customer need
Features & benefits
Satisfied
Exchange
 Integrated effort
 Profits
 But does this still stand today
Marketing management orientations
(Kotler et al, 2013)
Business Orientation
 Production orientation: Consumers want products that are available
and highly affordable
 Product orientation: Consumers want products that offer the most
quality, performance and features
 Sales orientation: Consumers will not buy enough products so the
business must engage in large scale selling and promotion
 Marketing orientation: Business success depends on knowing the
needs and wants of the customer better than competitors
 Societal orientation: Business should consider consumer
demands, company requirements and consumers’ and
society's’ long term interests
Societal Marketing Concept
 “The idea that a company’s marketing decisions
should consider consumers’ wants, the company’s
requirements, consumers’ long term interests, and
society’s long term interests” (Kotler et al, 2013, p11)
 Task: In groups answer the question
 What can marketers do to be more socially
responsible? (2/3 minutes)
What is a Market?





Market
Market-time
Marketplace
Marketing
Market segment
 All begins with “M”
Different types of markets
Market
Typical purchase descriptions
Business to
Consumer (B2C)
Personal purchases
Industrial markets
Things that will be used to make other things
Business to
Business (B2B)
Things that businesses use in their business
Not-for-profit
market
Purchases/Marketing activities by charities,
government, clubs, associations etc.
Government
market
Purchases made by central government, health
services, education, police, armed forces
Reseller markets
Good to be sold on by retailers, distributors etc.
Overseas markets
All of the above but in countries outside of businesses
home nation
Ultimately it is about……
Supply and Demand
 Law of Supply
 The quantity of product
that suppliers/sellers are
willing to and able to
produce and send to
market at a certain price
 Low cost
 High Cost
(Masterson & Pickton, 2014)
 Law of Demand
 The quantity of products
consumers are willing to
buy at a certain price i.e.
sales
 Low cost
 High cost
What Makes a Market?
£ PRICE
per UNIT
SUPPLY
DEMAND
UNITS
Price Elasticity
Inelastic P% > D%
Price insensitive
Elastic P%<D%
Price sensitive
Price Elasticity
So…marketing
effort is put
into making
your brand
INELASTIC
REALITY IS
A COMPLEX
CURVE
Coffee
(Dailymail, 2018)
Coffee beans dropped 67%, yet prices still rise…………………….
“Marketing is so basic that it cannot
be considered a separate
function….It is the whole business
seen from the point of its final
result, that is, from the customer’s
point of view” (Drucker, 1973)