Marketing

Table of Contents

1. Topic pack - Marketing - introduction
2. 4.1 The role of marketing - notes
   1. The role of marketing
   2. Market size and market share
   3. Market growth
   4. Market share
   5. Definition and nature of marketing
   6. Marketing - Sliced bread and other delights
   7. The marketing process
   8. Marketing and its relationship with other business activities.
   9. Market and Product Orientation
   10. Key elements - market orientation
   11. Market or product orientation?
   12. Additional marketing orientations
   13. Social marketing
   14. Asset-led marketing
   15. Marketing - exercise
   16. Marketing goods and services
   17. Effect on the marketing process
   18. Marketing in non-profit organisations
   19. Marketing in non-profit organisations - case study
   20. Marketing in non-profit organisations - exercises
   21. The marketing plan
3. 4.1 The role of marketing - questions
4. 4.2 Marketing Planning - notes
5. 4.2 Marketing planning - questions
6. 4.3 Product introduction - notes
7. 4.3 Product - questions
8. 4.3 Product - simulations and activities
9. 4.4 Price - notes
10. 4.4 Price - questions
11. 4.4 Price - simulations and activities
12. 4.4 Promotion - notes
13. 4.5 Promotion - questions
14. 4.6 Place (distribution) - notes
15. 4.7 International marketing - notes
16. 4.7 International marketing - questions
17. 4.8 E-commerce - notes
18. 4.8 E-commerce - questions
19. Printable version

Definition and nature of marketing

It's often the case that business and management students enjoy marketing more than any other topic on the syllabus. This is understandable as the subject is lively and easily related to real life - after all we are all consumers. We remember advertising campaigns that have made us laugh or think about buying product and services that have given us immense satisfaction or huge frustration and disappointment. Marketing is a significant part of daily life. However, like most things it's somewhat more complicated than just putting a certain supermodel inside a car and letting the sales take off! Indeed, marketing answers in examinations are often superficial, unstructured and lacking in academic rigour. In other words: beware the curse of the 'easy marketing question'

Before we define and explore the concept of marketing in detail, write down your ideas about what companies are trying to achieve through their marketing and then follow the Marketing link to see if you have got similar ideas to us.

There are many definitions of marketing. The better definitions are focused upon customer orientation and satisfaction of customer needs.

There are 4 main elements to this widely used definition that need examining, as these address individual specialism of the marketing function:

• A management process: Marketing has to be planned and represents a key element of part of the firm's strategy. It just doesn't happen!
• Identifying customer requirements: 'Gut feeling' and 'instinct' may have some role in business, but what firms believe customers want may not match the reality, especially in fast changing markets. Indeed, market places are like battlefields littered with casualties of war. The mortality rate of new products is particularly high and the majority of most popular brands are ones that have been in existence for many years. A successful business must understand its customers' needs, wants, habits and attitudes and it achieves this through thorough market research and careful analysis of data.
• Anticipating customer requirements: Being 'first to market' with a product or service offers significant advantages, as it allow the firm to develop customer and brand loyalty. Sony, for instance, dominated the portable music player market for many years after it introduced its Walkman in 1979.
• Satisfy customer needs: Goods and services must satisfy customers' needs and wants and be perceived as good value for money. A satisfied customer often results in repeat purchasing behaviour and good word-of-mouth promotion.
• Making a profit: This definition appears to apply only to commercial businesses if the word profit is taken literally meaning sales revenue exceeds total cost. However, the concept could be applied to non-profit organisations if they make a surplus which can be used to provide a service or if desired results are achieved. For example, if a local government was able to increase recycling and so save costs and improve the environment, this could be perceived as a 'profitable' outcome.

Marketing is a key management discipline that enables the producers of goods and services to interpret customer wants, needs and desires and then match, or exceed them, in delivery to their target consumers. It is therefore an ongoing process that places the consumer at the centre of all activities and affects every aspect of a business. The philosophy of marketing needs to be owned by everyone from within the organization, not just placed within the marketing department. Every employee markets a firm in some way from the CEO to the receptionist. Indeed the marketing of the business extends outside of the workplace - a negative or positive statement about the firm made in a restaurant, shop or bar, may be picked up by others and passed on. Word-of-mouth is a very powerful promotional tool!

Another useful definition of marketing is:

This definition has less of a focus on profit making organisations and places greater emphasis on the exchange process. It recognises the social element of the marketing process.