24108 Lecture Notes - Lecture 1: History Of Marketing, Natural Environment, Consumer Protection
Definition of Marketing:
“…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” (AMA)
The Marketing Evolution:
Marketing has evolved through stages:
• Trade
• Production orientation
• Sales orientation
• Market orientation
• Societal market orientation
Marketing – a science and an art:
• Marketers need to learn what customers, clients, partners and
society want
• Changing tastes
• Use information to maintain understanding
• Creative to develop new ideas
• Offer something that is unique or special customers
Marketing Exchange:
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Exchange: the mutually beneficial transfer of offerings of value between
the buyer and seller
Successful exchange:
• All parties have something desired by other parties
• All parties benefit from transaction
• Exchange must meet both parties’ expectations
Value – a perception:
• Customer assesses utility based on perception
• Value = quality/price
• = benefits expected/benefits received
• value = ‘total offering’
• evolves continually
• unique for everyone
• lifetime value of client – firm offering for loyalty?
The Market:
A group of customers with heterogeneous (different) needs/wants
• Geographic
• Product
• Demographic
• Psychographic
Customers purchase for own/others’ use
• Consumers use good/service
• Clients are ‘customers’ of NFP organisations
• Partners are all organisations/individuals involved with activities
of the exchange process
• Society is a body of individuals living as members of a
community
Stakeholders:
Individuals, organisations and other groups that have a rightful interest in
the activities of a business:
• Owners
• Employees
• Customers (clients)
• Partners
• Government
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The Marketing Mix:
Set of variables that a markets can exercise control over in creating an
offering for exchange (4 P’s)
• Product
• Price
• Place (distribution)
• Promotion
(also people, processes and physical evidence later)
How marketing improves business performance:
• Better profits, sales volumes, market share and ROI
• Every employee is a stakeholder to success
• Drives economic growth
• Stimulates consumer demand
• Develop social change programs to influence voluntary behaviour
of target audiences to improve welfare of society
The Marketing Environment:
• Internal and external forces that affect a marketer’s ability to
create/communicate/deliver/exchange offerings of value
• Environment analysis
o Break marketing environment into smaller parts to gain a
better understanding
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