MKTG1000 Chapter Notes - Chapter 1: Marketing, Job Performance, Relationship Marketing
MKTG10 Principles of Marketing
Chapter 1
What is Marketing?
• Marketing has two facets
1. It is a philosophy, an attitude, a perspective, or a management orientation that stresses customer
satisfaction
2. Marketing is an organisation function and a set of processes used to implement this philosophy
• 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
• Marketing entails processes that focus on delivering value and benefits to customers, not just selling
goods, services, and/or ideas
• It uses communication, distribution, and pricing strategies to provide customers and other
stakeholders with the goods, services, ideas, values, and benefits they desire when and where they
want them
• Marketing also entails an understanding that organisations have many connected stakeholder
pates iludig;
- Employees
- Suppliers
- Stockholders
- Distributors
• One desired outcome of marketing is an exchange → people giving up something in order to receive
something else they would rather have
• An exchange can take place only if the following five conditions exist
1. There must be at least two parties
2. Each party has something that might be of value to the other party
3. Each party is capable of communication and delivery
4. Each party is free to accept or reject the exchange offer
5. Each party believes it is appropriate or desirable to deal with the other party
• Marketing can occur even if an exchange does not occur
Marketing Management Philosophies
• Fou opetig philosophies stogl ifluee a ogaisatios aketig poesses
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1. What a e ake o do est? epesets the production marketing management philosophy
2. Ho a e sell oe aggessiel? epesets the sales marketing management philosophy
3. What do ustoes at ad eed? epesets the market marketing management philosophy
4. What do ustoes at ad eed, ad ho a e eefit soiet? epesets the societal
marketing management philosophy
• Production Orientation
- A philosophy that focuses on the internal capabilities of the firm rather than on the desires and
needs of the market place
- What a e do est?
- What a ou egiees desig?
- What is easy to podue, gie ou euipet?
- What seies ae ost oeiet fo the fi to offe?
- Whee do ou talets lie?
- A production orientation falls short because it does not consider whether the goods and services
that the firm produces most efficiently also meet the needs of the market place
▪ Sometimes it is best a firm produces exactly what the market wants
- Firms that succeed in competitive markets have a clear understanding that they must first
determine what customers want and then produce it, rather than focus on what company
management things should be produced and hope that the product is something customers want.
• Sales Orientation
- The belief that people will buy more goods and services if aggressive sales techniques are used
and that high sales result in high profits
- To sales-oriented firms, marketing means selling things and collecting money
- Fundamental problem – is a lack of understanding of the needs and wants of the marketplace
- Sales-oriented companies cannot convince people to buy goods or services that are neither
wanted nor needed
• Market Orientation
- A philosophy that assumes that a sale does not depend on an aggressive sales force but rather on
a ustoes deisio to puhase a podut
- Marketing concept → The idea that the soial ad eooi justifiatio fo a ogaisatios
existence is the satisfaction of customer wants and needs while meeting organisational objectives
- What customers think they are buying – the perceived value – defines a business
- The marketing concept includes the following:
▪ Focusing on customer wants and needs so that the organisation can distinguish its
poduts fo opetitos offeigs
▪ Itegatig all the ogaisatios atiities, iludig podutio, to satisf ustoe
wants
▪ Achieving long-term goals for the organisation by satisfying customer wants and needs
legally and responsibly
- Firms that adopt and implement the marketing concept are said to be market oriented, meaning
they assume that a sale does not depend on an aggressie sales foe ut athe o a ustoes
decision to purchase a product
- Achieving a market orientation involves obtaining information about customers, competitors and
markets; examining the information from a total business perspective; determining how to deliver
superior customer value; and implementing actions to provide value to customers
- Rankings and word of mouth from satisfied customers, drive additional sales
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Document Summary
What is marketing: marketing has two facets. A production orientation falls short because it does not consider whether the goods and services that the firm produces most efficiently also meet the needs of the market place. Sometimes it is best a firm produces exactly what the market wants. The belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits. To sales-oriented firms, marketing means selling things and collecting money. Fundamental problem is a lack of understanding of the needs and wants of the marketplace. Sales-oriented companies cannot convince people to buy goods or services that are neither wanted nor needed: market orientation. A philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a (cid:272)usto(cid:373)e(cid:396)(cid:859)s de(cid:272)isio(cid:374) to pu(cid:396)(cid:272)hase a p(cid:396)odu(cid:272)t.
