MNM2606 SUMMARY 2021

MNM2606 Essentials of Marketing Study Unit 1 (Pages 1 to 12 and 14 to 19) 1.1 Introduction - Marketing is a fundamental part of our daily lives - We are bombarded by adverts, sales calls, email pitches etc. - Half of every rand we spend pays for marketing costs - Role that marketing plays strongly influenced by its philosophy and orientation. - *Production-orientated organisation doesn’t place emphasis on desires and needs of marketplace but focuses on organisation’s internal capabilities. Focuses on providing new products focusing on innovation, design and quality. - *Sales-orientated organisation believes that high sales volumes produce high profit and that individuals will buy more products if forceful sales techniques are used. - *A marketing orientated organisation places core focus on satisfying organisational objectives whilst also satisfying customer needs and wants. - *Societal market-orientated philosophy is one whereby the organisation goes beyond pure marketing orientation to include consumers’ wellbeing and long-term best interests. - Note: Companies with relative monopolies tend to apply production oriented thinking while markets that are over-supplied (second-hand car markets) tend to be more sales oriented. - Core aim of marketing is satisfying consumer wants and needs and to achieve this, a marketer needs to have an understanding of the target market. - The process to understand the market is the marketing process and comprises:  an understanding of the organisation’s mission and the role that marketing plays in fulfilling it  Setting marketing objectives  Scanning the environment  Developing and implementing a marketing strategy by selecting a target market strategy  Developing and implementing a marketing mix  Implementing the strategy  Designing performance measures  Evaluating marketing efforts and making changes if needed - To create a mutually satisfying exchange between customer and organisation marketer will need to ensure that the marketing mix: product/service, pricing, promotion, place(distribution), people, processes and physical evidence. 1.2 What is Marketing - Marketing begins a long time before products are on the shelf as customer needs must be analysed so that the organisation can design and produce goods and services that meet buyer expectations and customer preferences (ensuring that relationships are created with customers and suppliers. - Essentially marketing can be seen to be made up of two parts:  It is an attitude, philosophy or management orientation that permeates every aspect of the business aiming to retain and grow current customers through delivery satisfaction and attracting new customers promising better value of products and services.  It is a strategic process (combination of actions and processes) used to deliver this philosophy. - Narrow context marketing is building profitable and valuable exchange relationships with customers. - NB that one must first understand that there are various gaps between the production of a product and the consumption of the product and marketers must assist in closing these gaps. **Marketing Process can be summarised as follows: - Organisation identifies a target market and gets to know wants and needs of this market - Organisation develops a marketing programme (consists of 4Ps) addressing needs - Organisation strives to develop a long-term relationship with target market resulting in return business and referrals - Organisation makes a profit from long-term relationships 1.2.1 Gaps between production and consumption ** Place where product is produced is not necessarily the place at which it is consumed, this results in gaps in the marketing process. Gap theory shows that there are various gaps between producer and consumer and they can only be filled by marketing activities. Nieuwenhuizen says the following types of gaps can be distinguished