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Marketing Fundamentals
Understand the focus of marketing and explain the marketing
process.
l
The essence of marketing is to focus on consumer needs and to generate revenue,
profits, or support for an organization.
l The marketing process follows three main steps: (1) identifying consumer needs,
(2) managing the marketing mix to meet consumer needs, and (3) realizing revenues or profits.
l Marketers are responsible for bringing profits and revenues into the company.
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Describe the evolution of different business philosophies and
understand how marketing has evolved.
l
The evolution of marketing has progressed from a production orientation
stage, to a sales orientation stage, to a marketing orientation stage, and finally
to a relationship marketing stage.
l Important areas of the relationship marketing stage are customer relationship
management (CRM) and corporate social responsibility (CSR).
Figure 1-2
customer value The unique combination of benefits received by targeted buyers
that includes quality, price, convenience, on-time delivery, and both before-sale
and after-sale service
The evolution of business philosophies
exchange The trade of things of value between buyers and sellers so that each
benefits
corporate social responsibility (CSR) When organizations voluntarily consider
the well-being of society by taking responsibility for how their businesses impact
consumers, customers, suppliers, employees, shareholders, communities, the
environment, and society in general
customer relationship management (CRM) The overall process of building and
maintaining profitable customer relationships by delivering superior customer
value and satisfaction
marketing concept The idea that an organization should strive to satisfy the
needs of consumers while also trying to achieve organizational goals
marketing orientation Focusing organizational efforts to collect and use information about customers’ needs to create customer value
production orientation Focusing organizational efforts on the manufacture of goods
relationship marketing When organizations create long-term links with customers,
employees, suppliers, and other partners to increase loyalty and customer retention
sales orientation Focusing organizational efforts on selling as many products as
possible
societal marketing concept Focusing on the consumer and the well-being of society
marketing The process of planning goods, services, or ideas to meet consumer
needs and organizational objectives. It includes the conception of these products
and the pricing, promotion, and distribution programs designed to make a profit
marketing process The process of (1) identifying consumer needs, (2) managing the marketing mix to meet these needs, and (3) realizing profits
target market The specific group of existing and potential consumers to which a
marketer targets its marketing efforts
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l
Define and analyze the marketing mix.
The marketing mix, also known as the 4 Ps, consists of product, price, place, and
promotion.
Product refers to all the attributes that make up a good, a service, or an idea.
Product elements include areas such as product design, product features, colour,
packaging, warrantee, and service levels.
Price refers to the retail-shelf price and sale price of a product.
Place refers to the distribution channels and retailers required to sell the product.
Promotion refers to the communication tools needed to communicate to consumers, such as advertising, sales promotion, public relations, direct marketing, and
personal selling.
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l
l
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Figure 1–1
The marketing process
1
Identify consumer needs
2
Manage the
marketing mix to meet
consumer needs
3
Realize profits for a
company (or objectives for non-profit
organizations)
Production orientation
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good A product you can touch and own
idea A concept that typically looks for your support
market Potential consumers with both the willingness and ability to buy
service A good that is intangible, that you cannot touch
1960s
Marketing orientation
1990s
Relationship
marketing orientation
Discuss the latest marketing approaches.
New and evolving marketing practices have surfaced in the areas of digital
marketing, partnership marketing, experiential marketing, and metrics.
experiential marketing Creating opportunities for consumers to directly interact
with brands
metrics Measures and monitors business performance through the collection
and usage of data used to evaluate marketing programs
partnership marketing The creation of formal associations between brands
that will result in incremental business for both brands that could not have been
achieved separately
social media A form of online media that allows members to create their own
network of friends and contacts to share comments, videos, and images as a
form of self-expression
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l
Differentiate between goods, services, and ideas.
Sales orientation
l
A logical process that focuses on consumer needs
3
1930s
Summarize what careers exist in marketing.
The starting point to a career in marketing is to get an education and, while studying, to create a network of business professionals to contact upon graduation.