Philosophy And Orientation Flashcards
What is marketing
“The management process responsible for identifying, anticipating, and satisfying customer requirements profitably”
(Chartered institute of marketing, 2001”
Key concepts of marketing
It is a management process
It is about giving customers what they want
It identifies and anticipates customer requirements
It fulfils customer requirements profitably
It offers and exchanges ideas, good and services
Needs wants and demands
Need- state of felt deprivation( physical, social, individual)
Want- needs shaped by culture and personality
Demand- wants that are backed by buying power
The market offering products and services and experiences
Companies address needs by establishing a “value proposition”
- a set of benefits that they promise to consumers to satisfy their needs
Product- tangible
Service - intangible
Experience
Value and satisfaction
Value- Difference between benefits from owning and using a product/service and the cost of obtaining and using it
Satisfaction- Difference between a product or service perceived performance and the buyers expectations and
Exchange, transactions and relationships
Exchange- the act of obtaining a desired object from someone by offering something in return
At least two parties participate, they offer something in value to the other, each party can accept or reject, parties must be able to communicate and deliver
A transaction is trade between two parties
Relationships- Creating, maintaining and enhancing relationships with all stakeholders
Marketing management philosophies
1) production orientation
- Driven by manufacturing and factory processes
- Consumers favour products that are available and affordable
- increase production and reduce cost
- achieve scale economy
- make profit through volume sales
Marketing management philosophies
2) product orientation
- Driven by engineering process, production, and operational processes
- consumers favour products of highest quality, performance and innovative features
- Marketing myopia
Marketing management philosophies 3
Sales orientation
Driven by aggressive salesmanship and novel promotional methods
Products are sold and not bought
So companies need aggressive selling and promotion efforts
Marketing management philosophies - 4
Marketing orientation
Determine needs and wants of target markets
Coordinate all marketing activities affecting customers
Invest in brands and branding
Make profit by building long term relationship with customers by offering value and satisfaction
Marketing management philosophies 5
Emerging orientations and philosophies
Societal and ethical marketing orientation:
Responsive to the wellbeing needs of consumers, society, and the environment
Cost cutting: the dominance of accounting and the increasing focus on costs, the bottom line, and shareholder profits- also leads to shrinking product sizes, cheaper ingredients, poorer choice, poorer service etc
Data driven: the availability of consumer generated data provides marketers with a great degree and depth of consumers insights
Components of the Marketing mix (4 Ps)
Product - new product development, product management, product features, benefits, branding, packaging, after sales service
Price - costs, profitability, value for money l, competitiveness, incentives
Place- access to target market, channel structures and management, retail network, logistics
Promotion - promotional mix, advertising, sales, public relations, direct marketing
Marketing mix for products
Product- features, packaging, branding, customisation, delivery, after sales service
Price- costs, profit, competitiveness in the market
Place- distribution channel, location, assortment
Promotion- advertising, sales promotions, direct marketing
Marketing mix for services
Physical evidence- Intangibility in service, ambience, image, brand
People- quality of interaction between customer and employee, relationships, service provision
Process- Heterogeneity in service delivery, control and process becomes important , standardisation of services
Evolving with the times
The world wars greatly influenced - technologies developed through increased government R&D
Post war lifestyle standards rose
Rising demand for products and services
Lead to branding
