chapter 1 marketing dynamics

learning objectives_1 Define what marketing is Trace the development of marketing as a way of doing business and consider the ways in which marketing is changing 1-2 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

learning objectives_2 Appreciate the importance and contribution of marketing as both a business function and an interface between the organisation and its customers Understand the scope of tasks undertaken in marketing, and the range of different organisational situations in which marketing is applied 1-3 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Marketing Defined Marketing is the management process responsible for identifying, anticipating, and satisfying customer requirements profitably 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 1-4 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Shared Points Marketing is a management process Marketing is about giving customers what they want Marketing identifies and anticipates customer requirements Marketing fulfills customer requirements profitably 1-5 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

eg Napolina 1-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Other Aspects Exchange of ideas, goods, and services Pricing, promotion, and distribution of ideas, goods, and services Relationship marketing 1-7 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Figure 1.1 Exchange Transactions 1-8 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Wider Definition of Marketing Marketing is to establish, maintain, and enhance relationships with customers and other partners, at a profit, so that the parties involved are met. This is achieved by mutual exchange and fulfillment of promises. (Grönroos, 1997) 1-9 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Marketing History and Business Orientations Production Product Selling Marketing Ethical and Sustainable Marketing 1-10 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

eg Tetra Pak suffered from a production orientation 1-11 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Figure 1.2 Marketing approaches FUNCTION Primarily sales and promotional support Sales supporters A guiding philosophy for the whole organisation Confined to what the marketing department does Unsures Departmental marketers Marketing philosophers Identifying and meeting customer needs 1-12 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Success Factors Interfunctional orientation Competitor orientation Customer orientation 1-13 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Sustainable Marketing Defined Sustainable marketing is the establishment, maintenance, and enhancement of customer relationships so that the objectives of the parties involved are met without compromising the ability of future generations to achieve their own objectives. 1-14 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Figure 1.3 The Organisation’s Environment Suppliers Our organisation Competition Intermediaries Customers The Marketing Environment 1-15 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

The Internal Organisation Finance R & D, Engineering Purchasing Organisation Production 1-16 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Figure 1.4 Marketing as an Interface 1-17 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Marketing Management Responsibilities Identifying customer needs Satisfying customer needs Strategic vision 1-18 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

The Marketing Mix: Product and Promotion Development Management Features/benefits Branding Packaging After-sales service Promotion Communication mix Advertising Sales promotion Sales Public relations Direct marketing 1-19 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

The Marketing Mix: Price and Place Costs Profitability Value for money Competitiveness Incentives Place Access to market Channel structure Channel management Retailer image Logistics 1-20 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Additional Ps People Processes Physical evidence 1-21 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Marketing Scope Consumer goods Non-profit Industrial goods marketing Service goods Small business marketing International marketing 1-22 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Key Terms_1 _____ are goods that are sold to organisations for: (a) incorporation into producing other products; or (b) supporting the production of other products directly or indirectly; or (c) resale. B2B goods The nature and quality of the social and economic interaction between two parties is referred to as the _____. Buyer-seller relationship 1-23 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Key Terms_2 When a firm has a clear advantage over the competition in terms of one or more elements of the marketing mix that is valued by potential customers, it has a _____. Competitive edge _____ are goods that are sold to individuals for their own or their families' use. Consumer goods 1-24 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Key Terms_3 What term describes the need for organisations to consider the good of the wider communities, within which they exist in terms of the impact of their way of conducting business and the activities they undertake? Corporate social responsibility Another term for competitive edge is _____. Differential advantage 1-25 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Key Terms_4 The _____ is the interaction between buyer and seller in which each party gives the other something of value. Exchange process What does the acronym, fmcg, stand for? Fast moving consumer goods 1-26 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Key Terms_5 In services markets, the encounter and interaction between the service provider and the customer is referred to as _____. Interactive marketing What application of marketing is concerned with developing and managing trade across international boundaries? International marketing 1-27 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Key Terms_6 The term _____ refers to use of the internet to communicate with the marketplace, promote, sell and/or distribute products. Internet marketing _____ is creating and holding customers by producing goods or services that are needed, communicating the product benefits, ensuring products are accessible and available at a price that customers are prepared to pay. Marketing 1-28 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Key Terms_7 The _____ refers to a philosophy of business. Marketing concept Organisation’s make decisions in the context of an external world, called the _____. Marketing environment 1-29 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Key Terms_8 The combination of the 4Ps that creates an offering to potential customers is called the _____. Marketing mix A _____ is an approach to business that centres its activities on satisfying the needs and wants of its customers. Marketing orientation 1-30 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Key Terms_9 When marketing activities are undertaken by organisations which do not have profit generation as a prime corporate objective, they are called _____. Non-profit marketing What approach to business centres its activities on the assumption that customers simply want the best possible quality for their money? Product orientation 1-31 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Key Terms_10 What approach to business centres its activities on producing goods more efficiently and cost effectively? Production orientation _____ puts particular emphasis on building a longer-term, more intimate bond between an organisation and its individual customers. Relationship marketing 1-32 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Key Terms_11 What approach to business centres its activities on selling whatever it can produce? Sales orientation The treatment of relationships so that the objectives are met without compromising the ability of future generations to achieve their own objectives is called _____. Sustainable marketing 1-33 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

Key Terms_12 What are the 4 Ps? Product, place, price, and promotion What are the additional 3 Ps reflected in the 7Ps? People, processes, and physical evidence 1-34 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006