CHAPTER 1
Introducing Marketing
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•Important role marketing can play
in the success of an organization.
•Organizations with successful
marketing strategies share
common characteristics.
•Different kinds of marketing.
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•Strategic workings of marketing
components.
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• It’s a way of thinking about business, rather than
a bundle of techniques.
• Creates a consistent competitive advantage in
order to “identify, satisfy and retain customers.”
• Helps create a relationship between people and
products, customers and companies
• Monitors and makes necessary adjustments as
the relationship changes.
1• Contributes
to the growth of the firm.
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• Planning and executing the
conception
• Pricing
• Promotion
• Distribution of ideas, goods, services
• To create exchanges that satisfy
customer and organizational
objectives
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Marketing is a functional area
within an organization that
deals with exchanges that
take place in markets outside
the organization.
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Philosophy –
This has necessitated –
“Customer
• High standard of
Satisfaction”
production
Reflected in • High quality
• Efficient billing system
products
• Extensive, responsible
• Fair pricing
communication
• Convenience
networks
• 100% satisfaction
• Computerization, etc.
policy
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Marketing is most successful when the
philosophy, tasks and manner of
implementing available technology are
coordinated and complementary with
other functional areas within the
organization.
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•Important to assess
marketing’s role in the firm
•Provides career
opportunities
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•Helps create more
effective consumers and
citizens
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Consumer content
Attention to customers
Company Capabilities
Communication
Competition
Cross-functional contact
Community Contact
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The organization
provides
product,
services or
ideas to
consumers that
will satisfy their
needs e.g., 3M
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• Monitor changing
characteristics,
values, interests and
behaviors of
customers
• Co-ordinate new
products or increasing
sales with needs of
consumers
• Provide consumers
with more value than
1competitors
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• Well coordinated
functional areas
• Basic tools e.g.,
requisite plant
capacity, technical
know-how, capital,
good management
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• Cues shape
consumer attitudes
and beliefs
• Cues come from
organization,
competitors, media
like newspapers,
T.V., Internet etc.
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Communication
with
employees,
particularly in
service
industries
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Long-run and
positive
communication
between company
and customer
groups e.g., British
Airways
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A company
misidentifies its
competition e.g.
by assuming that
their only
competition is
like-titled
organization
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• Companies employ
whatever means
necessary, short of
breaking law, to
gather intelligence
about competitors
• Internet acts as a
key source of
1information
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• Marketers need
holistic vision, crossfunctional
competency
• Cultivate knowledge
about aspects of
business that
currently or potentially
affect marketing’s
success
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• Maintain contact with
the environment
within which the
organization operate.
• Engage in prosocietal activities and
conduct business in
an ethical,
responsible manner
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• Companies must
play the
marketing game
• Understand their
competitor’s
strengths and
weaknesses
• SWOT analysis
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• Micro-marketing: success
of the individual firm e.g.,
Wal-Mart’s pricing strategy
• Macro-marketing:
economic welfare of every
person and institution
operating within the
society e.g., Yen
devaluation
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• Service products:
intangible; consumed as
produced; difficult to
standardize; may require
customer input e.g., US
Bank
• Goods product: opposite
in these criteria e.g.,
1Nabisco International
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• For-profit measure
success in terms of
profitability, ability to
pay dividends, or pay
back loans
• Nonprofit
organizations exist to
primarily benefit
society; special laws
guide them e.g.,
Denver Art Museum
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• Mass: wide
•
separation, indirect
communication
between
manufacturer and
ultimate user e.g.,
Sony
• Direct: establishes
more personal
connection e.g.,
Time magazine
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Internet – involves
a completely
different process
for evaluation,
decision-making,
purchase and
delivery of goods
e.g., Trip.com
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• Local – close proximity, faster
adjustments
• Regional – larger geographic
area, more plants, distribution
networks, more adjustments
• National – country-wide
distribution, different versions of
the marketing ‘mix’ and strategy
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• International – Concern
for legal, cultural issues;
product, sales people still
from home country, profits
repatriated e.g., Ford
• Global – more
commitment, direct
investment in host
country e.g., Qwest
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Industrial: other
Consumer
businesses or
Goods :
institutions
that
individuals
consume the
consume
product as part of
finished
the business; in
product e.g., assembly of final
Kraft
product e.g., IBM
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Customer-centered
orientation must be
extended to other
interacting function
and institution- e.g.,
human resources,
regulatory
institutions
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• Monitors and reacts
to changes in
corporate plan
• Basic components –
mission
situation analysis
objectives
marketing
mix/strategies
implementation
budgeting
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evaluation
“Plans are nothing, planning is
everything”
-Dwight D. Eisenhower
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• Satisfy the customer
• Establish a clear
company image
• Make marketing central
to the organization
• Be proactive
• Develop a strategy
consistent with the
situation
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