Foundations in Marketing
AN OVERVIEW OF MARKETING
Marketing is the process for creating, communicating, delivering, and exchanging offerings that
have value for customers, clients, partners, and society at large.
- It focuses on delivering value and benefits to customers using communication,
distribution, and pricing strategies to provide customers with the goods and services they
want.
- It involves building long-term, mutually rewarding relationships. It entails an
understanding that organizations have many connected stakeholder partners, including
employees, suppliers, stockholders, distributors, and others.
The Minimum Conditions for an exchange
- At least two parties must be involved
- Something of value must be present
- Parties are capable of communication and delivery
- Desire to deal with the other party
- Each party is free to accept or reject the offer - otherwise it’s coercion
The 7Ps of Marketing Mix
Place - Retail
- Wholesale
- mail order
- Internet
- direct sales
- peer to peer
- multi-channel
Price Strategies
- Skimming
- Penetration
- Psychological
- Cost-plus
- loss leader, etc.
Promotion - special offers
- Advertising
- Endorsements
- user trials
- direct mailing
- leaflets/posters
- free gifts
- Competitions
- joint ventures
,People - Employees
- Managemen
- Culture
- customer service
Process - especially relevant to service industries
- How are services consumed?
Physical Environment - SMART
- Run-down
- Interface
- Comfort
- facilities
Product - Design
- Technologies
- Usefulness
- Convenience
- Value
- quality
- Packaging
- Branding
- Accessories
- warranties
Marketing Management philosophies
Orientation Focus Questions to help determine
Production Internal capabilities of the firm What can we make or do best?
Sales Aggressive sales techniques and the How can we sell more aggressively?
belief that high sales result in high Or How can we increase sales?
profits
Market Satisfying customer wants and needs What do customers want and need?
while meeting organizational
objectives
Societal Satisfying customer wants and needs What do customers want/need, and
while enchanting individual and how can we benefit society?
societal well-being
Sales and Marketing Orientation
Orientation Description
, Sales - Inward looking
- Focuses on the firm makes
Market - Outward-looking
- Focuses on what the market wants
The Organization's Focus
Customer Value
the relationship between the benefits and the sacrifice necessary to obtain those benefits.
- It's not just high quality and high price
- Price plays a role, but price does not equal value
- The customer’s perception of value is the product/service quality they expect and a price
they are willing to pay
- It is not limited to a specific income group or product category
Customer Satisfaction
Customers’ evaluation of a good or service in terms of whether that good or service has
met their needs and expectations
Building Relationships
- It is a strategy focused on keeping and improving relationships with existing customers
(customer retention)
- Loyalty cards, deals for you, etc.
- Successful relationship marketing strategies depend upon:
- Customer-oriented personnel
- Effective training programs
- Employees with the authority to make decisions and solve problems
(empowerment)
- Teamwork
The firm’s business
Sales Oriented Market Oriented
Main Focus Product and services they The benefits for the customer
offer
Customer Aim “The average consumer” A demographic
AN OVERVIEW OF MARKETING
Marketing is the process for creating, communicating, delivering, and exchanging offerings that
have value for customers, clients, partners, and society at large.
- It focuses on delivering value and benefits to customers using communication,
distribution, and pricing strategies to provide customers with the goods and services they
want.
- It involves building long-term, mutually rewarding relationships. It entails an
understanding that organizations have many connected stakeholder partners, including
employees, suppliers, stockholders, distributors, and others.
The Minimum Conditions for an exchange
- At least two parties must be involved
- Something of value must be present
- Parties are capable of communication and delivery
- Desire to deal with the other party
- Each party is free to accept or reject the offer - otherwise it’s coercion
The 7Ps of Marketing Mix
Place - Retail
- Wholesale
- mail order
- Internet
- direct sales
- peer to peer
- multi-channel
Price Strategies
- Skimming
- Penetration
- Psychological
- Cost-plus
- loss leader, etc.
Promotion - special offers
- Advertising
- Endorsements
- user trials
- direct mailing
- leaflets/posters
- free gifts
- Competitions
- joint ventures
,People - Employees
- Managemen
- Culture
- customer service
Process - especially relevant to service industries
- How are services consumed?
Physical Environment - SMART
- Run-down
- Interface
- Comfort
- facilities
Product - Design
- Technologies
- Usefulness
- Convenience
- Value
- quality
- Packaging
- Branding
- Accessories
- warranties
Marketing Management philosophies
Orientation Focus Questions to help determine
Production Internal capabilities of the firm What can we make or do best?
Sales Aggressive sales techniques and the How can we sell more aggressively?
belief that high sales result in high Or How can we increase sales?
profits
Market Satisfying customer wants and needs What do customers want and need?
while meeting organizational
objectives
Societal Satisfying customer wants and needs What do customers want/need, and
while enchanting individual and how can we benefit society?
societal well-being
Sales and Marketing Orientation
Orientation Description
, Sales - Inward looking
- Focuses on the firm makes
Market - Outward-looking
- Focuses on what the market wants
The Organization's Focus
Customer Value
the relationship between the benefits and the sacrifice necessary to obtain those benefits.
- It's not just high quality and high price
- Price plays a role, but price does not equal value
- The customer’s perception of value is the product/service quality they expect and a price
they are willing to pay
- It is not limited to a specific income group or product category
Customer Satisfaction
Customers’ evaluation of a good or service in terms of whether that good or service has
met their needs and expectations
Building Relationships
- It is a strategy focused on keeping and improving relationships with existing customers
(customer retention)
- Loyalty cards, deals for you, etc.
- Successful relationship marketing strategies depend upon:
- Customer-oriented personnel
- Effective training programs
- Employees with the authority to make decisions and solve problems
(empowerment)
- Teamwork
The firm’s business
Sales Oriented Market Oriented
Main Focus Product and services they The benefits for the customer
offer
Customer Aim “The average consumer” A demographic
