Marketing
Hoofdstuk 1
Marketing is the term given to those activities which occur at the interface
between the organisation and its customers
Production orientation:
The prevailing attitude among manufacturers was that getting production right
was all that mattered. With rising affluence people are not prepared to accept
standardised products, and as markets grow manufacturers are able to reap the
benefits of mass production despite providing more specialised products:
therefore the extra cost of having something that fits one’s needs more exactly is
not high enough to make much difference.
Product orientation:
Engineers and designers developed comprehensively equipped products, with
more and ‘better’ features, in an attempt to please everybody. Product
orientation tends to lead to ever more complex products at everincreasing prices;
customers are being asked to pay for features which they may not need, or which
may even be regarded as drawbacks.
Sales orientation:
Relies on the premise that the customer can be fooled, the customer will not
mind being fooled and will let you do it again later, and that if there are problems
with the product these can be glossed over by a fast-talking sales representative.
Sales orientation takes the view that customers will not ordinarily buy enough of
the firm’s products to meet the firm’s needs, and therefore they will need to be
persuaded to buy more. Sales orientation is therefore concerned with the needs
of the seller, not with the needs of the buyer.
Consumer orientation:
Modern marketers take the view that the customers are intelligent enough to
know what they need, can recognise value for money when they see it, and will
not buy again from the firm if they do not get value for money. This is the basis of
the marketing concept. In practice, the marketing concept means finding out the
needs and wants of a particular group of customers, finding out what price they
would be willing to pay, and fitting the organisation’s activities towards meeting
those needs and wants at the right price. At this point, it is useful to draw a
distinction between customers and consumers. Customers are the people who
buy the product; consumers are those who consume it.
Societal marketing:
Societal marketing holds that marketers should take some responsibility for the
needs of society at large, and for the sustainability of their production activities.
This orientation moves the focus away from the immediate exchanges between
an organisation and its customers, and even away from the relationship between
the organisation and its consumers, and towards the long-term effects on society
at large.
Relationship marketing:
Relationship marketing focuses on the ’lifetime’ value of the customer.
Relationship marketing aims to determine who will be (or could be) the most loyal
customer throughout his or her life: marketers are responsible for establishing
and maintaining these relationships.
Marketers deal with the marketing mix, which was described by McCarthy7 as the
four Ps of marketing. These are:
• Product. The product should fit the task the target consumers want it for, it
should work, and it should be what the consumers expected to get.
• Place. The product should be available from wherever the firm’s target group of
customers find it easiest to shop. This may be a high street shop, it may be mail
, order through a catalogue or from a magazine coupon, or it may even be
doorstep delivery.
• Promotion. Advertising, public relations, sales promotion, personal selling and
all the other communications tools should put across the organisation’s message
in a way that fits what the particular group of consumers and customers would
like to hear, whether it be informative or appealing to the emotions.
• Price. The product should always be seen as representing good value for
money. This does not necessarily mean that it should be the cheapest available;
one of the main tenets of the marketing concept is that customers are usually
prepared to pay a little more for something that really works well for them.
The 4-P model has been useful when applied to the manufacture and marketing
of physical products, but with the increase in services provision the model does
not provide a full enough picture. In 1981 Booms and Bitner8 proposed a 7-P
framework to include the following additional factors:
• People. Virtually all services are reliant on people to perform them, very often
dealing directly with the consumer: for example, the demeanour of waiters in
restaurants forms a crucial part of the total experience for the consumers. In a
sense, the waiter is part of the product the consumer is buying.
• Process. Since services are usually carried out with the consumer present, the
process by which the service is delivered is, again, part of what the consumer is
paying for. For example, there is a great deal of difference between a
silverservice meal in an upmarket restaurant, and a hamburger bought from a
fast-food outlet. A consumer seeking a fast process will prefer the fast-food place,
whereas a consumer seeking an evening out might prefer the slower process of
the restaurant.
• Physical evidence. Almost all services contain some physical elements: for
example, a restaurant meal is a physical thing, even if the bulk of the bill goes
towards providing the intangible elements of the service (the decor, the
atmosphere, the waiters, even the dishwashers). Likewise a hairdressing salon
provides a completed hairdo, and even an insurance company provides glossy
documentation for the policies it issues.
Customers are the people or firms who buy products; consumers actually use the
product, or consume it.
A need is a perceived lack of something.
A want, on the other hand, is a specific satisfier for a need.
A wants become demands when the potential customer also has the means to
pay for the product.
A product is a bundle of benefits.
Publics are any organisations or individuals that have actual or potential influence
on the marketing organization.
Markets are all the actual and potential buyers of the firm’s products.
Price is the amount of money a product is sold for. Value is what the product is
worth to the customer or consumer.
Hoofdstuk 12
Relationship marketing looks at the customer as an individual and tries to
establish a relationship. Relationship marketing is concerned with the lifetime
value of the customer. The key to relationship marketing is understanding that
customers are buying a bundle of benefits, some of which include such factors as
product reliability and a pleasant service from the company they are dealing with.
Transaction marketing Relationship
marketing
Focus on single sale Focus on customer retention
Orientation on product Orientation on product
benefits features
Hoofdstuk 1
Marketing is the term given to those activities which occur at the interface
between the organisation and its customers
Production orientation:
The prevailing attitude among manufacturers was that getting production right
was all that mattered. With rising affluence people are not prepared to accept
standardised products, and as markets grow manufacturers are able to reap the
benefits of mass production despite providing more specialised products:
therefore the extra cost of having something that fits one’s needs more exactly is
not high enough to make much difference.
Product orientation:
Engineers and designers developed comprehensively equipped products, with
more and ‘better’ features, in an attempt to please everybody. Product
orientation tends to lead to ever more complex products at everincreasing prices;
customers are being asked to pay for features which they may not need, or which
may even be regarded as drawbacks.
Sales orientation:
Relies on the premise that the customer can be fooled, the customer will not
mind being fooled and will let you do it again later, and that if there are problems
with the product these can be glossed over by a fast-talking sales representative.
Sales orientation takes the view that customers will not ordinarily buy enough of
the firm’s products to meet the firm’s needs, and therefore they will need to be
persuaded to buy more. Sales orientation is therefore concerned with the needs
of the seller, not with the needs of the buyer.
Consumer orientation:
Modern marketers take the view that the customers are intelligent enough to
know what they need, can recognise value for money when they see it, and will
not buy again from the firm if they do not get value for money. This is the basis of
the marketing concept. In practice, the marketing concept means finding out the
needs and wants of a particular group of customers, finding out what price they
would be willing to pay, and fitting the organisation’s activities towards meeting
those needs and wants at the right price. At this point, it is useful to draw a
distinction between customers and consumers. Customers are the people who
buy the product; consumers are those who consume it.
Societal marketing:
Societal marketing holds that marketers should take some responsibility for the
needs of society at large, and for the sustainability of their production activities.
This orientation moves the focus away from the immediate exchanges between
an organisation and its customers, and even away from the relationship between
the organisation and its consumers, and towards the long-term effects on society
at large.
Relationship marketing:
Relationship marketing focuses on the ’lifetime’ value of the customer.
Relationship marketing aims to determine who will be (or could be) the most loyal
customer throughout his or her life: marketers are responsible for establishing
and maintaining these relationships.
Marketers deal with the marketing mix, which was described by McCarthy7 as the
four Ps of marketing. These are:
• Product. The product should fit the task the target consumers want it for, it
should work, and it should be what the consumers expected to get.
• Place. The product should be available from wherever the firm’s target group of
customers find it easiest to shop. This may be a high street shop, it may be mail
, order through a catalogue or from a magazine coupon, or it may even be
doorstep delivery.
• Promotion. Advertising, public relations, sales promotion, personal selling and
all the other communications tools should put across the organisation’s message
in a way that fits what the particular group of consumers and customers would
like to hear, whether it be informative or appealing to the emotions.
• Price. The product should always be seen as representing good value for
money. This does not necessarily mean that it should be the cheapest available;
one of the main tenets of the marketing concept is that customers are usually
prepared to pay a little more for something that really works well for them.
The 4-P model has been useful when applied to the manufacture and marketing
of physical products, but with the increase in services provision the model does
not provide a full enough picture. In 1981 Booms and Bitner8 proposed a 7-P
framework to include the following additional factors:
• People. Virtually all services are reliant on people to perform them, very often
dealing directly with the consumer: for example, the demeanour of waiters in
restaurants forms a crucial part of the total experience for the consumers. In a
sense, the waiter is part of the product the consumer is buying.
• Process. Since services are usually carried out with the consumer present, the
process by which the service is delivered is, again, part of what the consumer is
paying for. For example, there is a great deal of difference between a
silverservice meal in an upmarket restaurant, and a hamburger bought from a
fast-food outlet. A consumer seeking a fast process will prefer the fast-food place,
whereas a consumer seeking an evening out might prefer the slower process of
the restaurant.
• Physical evidence. Almost all services contain some physical elements: for
example, a restaurant meal is a physical thing, even if the bulk of the bill goes
towards providing the intangible elements of the service (the decor, the
atmosphere, the waiters, even the dishwashers). Likewise a hairdressing salon
provides a completed hairdo, and even an insurance company provides glossy
documentation for the policies it issues.
Customers are the people or firms who buy products; consumers actually use the
product, or consume it.
A need is a perceived lack of something.
A want, on the other hand, is a specific satisfier for a need.
A wants become demands when the potential customer also has the means to
pay for the product.
A product is a bundle of benefits.
Publics are any organisations or individuals that have actual or potential influence
on the marketing organization.
Markets are all the actual and potential buyers of the firm’s products.
Price is the amount of money a product is sold for. Value is what the product is
worth to the customer or consumer.
Hoofdstuk 12
Relationship marketing looks at the customer as an individual and tries to
establish a relationship. Relationship marketing is concerned with the lifetime
value of the customer. The key to relationship marketing is understanding that
customers are buying a bundle of benefits, some of which include such factors as
product reliability and a pleasant service from the company they are dealing with.
Transaction marketing Relationship
marketing
Focus on single sale Focus on customer retention
Orientation on product Orientation on product
benefits features
