Module Guide
WELCOME TO
Introduction to
MARKETING
BBH1022
Department of Marketing Management
Faculty of Business and Economic Sciences
Course Coordinator
Lecturers
Copyright reserved 2022
: Mr A Marriott
: Dr A Jonas, Mr C Swiegelaar
Chapter 1: An overview of marketing
Chapter outline
• What is marketing?
• Customer satisfaction
• The concept of exchange
• Marketing management philosophies
• A word of caution
• Implementing the marketing concept in existing firms
• The marketing process
• The position and role of marketing in the firm
Chapter outline (continued)
• Why are there critics of marketing?
• Why study marketing?
A definition of marketing?
Marketing in the 21st Century
Ethical?
What is marketing?
Marketing has two facets:
Philosophy/attitude/perspective and management orientation
that stresses customer satisfaction
Set of activities used to implement philosophy
MARKETING defined:
The activity, set of institutions, and processes for creating,
communicating, delivering and exchanging offers that have
value for customers, clients, partners and society at large
MARKETING
Definition
• The process by which firms CREATE VALUE for customers and,
• build strong CUSTOMER RELATIONSHIPS,
• in order to capture VALUE from customers in return.
CUSTOMER SATISFACTION
• This is the feeling that a product has met or exceeded the
customer’s expectations.
• Can be explained by the Disconfirmation paradigm (Figure
1.1).
Disconfirmation paradigm
Measuring customer satisfaction
• Should be a permanent, ongoing process
• Formal research surveys
• Analysis of customer complaint data or interviewing staff
• Collect information about customers needs from and
intermediaries – retailers, sales agents and wholesalers.
Herzberg’s two-factor model of
customer service (CS)
Hygiene factors
Satisfiers


“Pre-requisites”
Contributes to dissatisfaction
WOW!!!
Contributes to satisfaction
Benefits of CS
• Lower acquisition cost
• Base profit
• Revenue growth
• Cost savings
• Referrals
• Price premium.
The concept of exchange
Seller
Buyer
Five conditions of exchange
1.
2.
3.
4.
5.
At least two parties (buyer and seller)
Have something of value
Be able to communicate and deliver
Free to accept or reject
Want to deal with other party.
Marketing management philosophies
Production orientation
Product orientation
Sales orientation
Consumer orientation
Societal marketing orientation
Relationship marketing orientation
Marketing management philosophies
Production concept
Product concept
The idea that consumers The idea that consumers
will favour products that
will favour products that
are available or highly
offer the most quality,
affordable and that the performance and features
firm should therefore
for which the firm should
focus on improving
therefore devote its
production and
energy to making
distribution efficiency
continuous improvements
2) Designing a customer-driven
marketing strategy
Marketing management orientations
Selling concept
Marketing concept
The idea that consumers
The philosophy that
will not buy enough of the achieving a firm’s goals
firm’s products unless it depends on knowing the
undertakes a large-scale needs and wants of the
selling and promotion
target markets and
effort
delivering the desired
satisfactions better than
competitors do
2) Designing a customer-driven
marketing strategy
Marketing management orientations
Societal marketing concept
A principle that holds that a firm should
make good marketing decisions by
considering consumers’ wants, the firm’s
requirements, consumers’ long-term
interests and society’s long-run interests
Differences between sales and
consumer orientations
Sales orientation
Marketing orientation
Firm’s focus
Inward
Outward
What business are
you in?
Selling goods and services
Satisfying consumer wants
and needs
Primary goal?
Maximum sales volume
Customer satisfaction
Which tools?
Intensive advertising and
promotion
Co-ordinated marketing
activities
Direct product at
whom?
Everybody
Specific groups
The firm’s business
Defining the business involves four questions:
1.
2.
3.
4.
What?
(product type)
To meet what? (customer need)
For whom?
(customer type)
Where?
(geographical area)
Marketing Myopia
Apple
What is this firm’s business?
Answering this question in terms of the benefits customers
seek instead of goods and services has three important
advantages:
1. It ensures that the firm keeps focusing on customers’ needs
2. It encourages innovation and creativity
3. It stimulates an awareness of changes in customer needs, wants
and preferences
The importance of a competitive advantage
(Or Unique Selling Proposition)
• Service quality
• Customer value
• Customer satisfaction
• Customer-oriented personnel
• Well-trained employees
• Employee empowerment
• Teamwork
Strategies to establish and maintain a
competitive advantage
•
•
•
•
•
•
•
•
•
Cost – Shoprite Checkers
Quality – Woolworths
Flexibility – Taxis
Location – Spaza shops
Safety – Mercedes Benz
Image – Ray Ban
Product – Doom
Design – Schick
Distribution – Pick n Pay
The marketing process
1. Understand firm’s business and mission; the role of
marketing
2. Set marketing objectives
3. Collect, analyse and interpret information (SWOT analysis)
4. Develop marketing strategy
5. Implement marketing strategy
6. Design performance measures
7. Evaluate marketing efforts
Important marketing concepts
Marketing programme
Marketing plan
Marketing strategy
The position and role of marketing in the firm
• Planning
o Identify opportunities
o Set marketing objectives
o Use marketing instruments
• Organising
• Leading
• Control
Why are there critics of marketing?
• Discrepancy of quantity
• Discrepancy of assortment
• Spatial separation
• Separation in time
• Separation of information
• Separation in ownership
• Separation in value
Why study marketing?
•
•
•
•
Plays an important role in society
Important to business firms
Career opportunities
Influences your life every day
Product
Price
Promotion
Place
The 4 P’s of the Marketing Mix
What is the
marketing mix?