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the Role of Marketing
Chapter Goals you will understand …
 Marketing & how it relates to other business functions
 Marketing of goods vs. marketing of services
 Market orientation v. product orientation
 Commercial marketing, social marketing, social media
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marketing
Elements that characterize a market
Market share; Market leadership
Marketing objectives profit v. non-profits
How marketing strategies evolve
How innovation, ethics & culture influence marketing
practices and strategies
Definitions
 Essential to the success of any business.
 Quotes – page 247
 Kotler (1994) “Marketing is meeting the needs of your
customer at a profit”
 Getting the right product to the right customers at the
right price at the right time
Marketing impacts . . .
 All marketing decisions are affected by other business
functions:
 Finance and marketing – marketing costs $$
 HR – good marketing can increase demand; may result
in extra staff needed
 Operations – production & marketing work together
Marketing goods v. services
Goods
Services
Are tangible
Are intangible
Can be returned
Can’t be returned – e.g. a bad haircut
Can be stored and consumed later
Cannot be stored; need to be consumed
immediately
There is ownership of product
No ownership of product
Easier to compare because of similar
nature of products
More difficult to compare because of
different experiences
• When selling goods, businesses focus on specific features.
• When marketing a service, focus on customer service
Marketing Mix
for Goods
 Product
 Price
 Place
 Promotion
 3 additional aspects discussed later
 People; Processes; Physical Evidence
Product- v. Market-Oriented
 Product-oriented
 Inward-looking; focus on making the product 1st, then
trying to sell
 Product-led; assumes supply creates its own demand.
Produce innovative products; tempt customers to buy
 Market-oriented approach
 Outward-looking – carrying out market research 1st;
making products that can sell
 Market-led; focused on establishing consumer demand
to supply products to meet consumer needs & wants
Product v. Market Oriented
 Product-oriented approach
 Microsoft, Ferrari, Dyson, Apple
 Market-oriented approach
 Ford, Sony, Samsung, Nokia
 Look at benefits and limitations, page 250
Commercial Marketing
 Creating, developing and exchanging goods or services
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that customers need and want
Market research conducted to establish consumer
demand, and businesses supply what is demanded.
Commercial marketing is value-free and doesn’t
involve moral judgments
Strategies used are tailored to product being sold
Strategies include traditional or online focus
Also, mass marketing or targeted marketing
Social Marketing
 “Use of commercial marketing concepts & tools ..
designed to influence individuals’ behavior to improve
their well-being and that of society”
 Wide concept involving many stakeholders
 Focus on society’s long-term interests and welfare.
 Examples – public health campaigns
 Anti-smoking, drug & alcohol dangers; healthy eating
Social Media Marketing
 A marketing approach that uses social networking
sites to market products
 Benefits:
 Enables a firm to get direct feedback from customers
 Low-cost way to reach a large target audience
 Can enhance a firm’s brand
 Most businesses use it as a supplement to other
marketing methods and not as a replacement
Characteristics of the Market
 Market – an arrangement where buyers & sellers
exchange goods & services – Measurements:
 Market Size
 By volume
 By value
 Market Growth
 Percent change in the market size over a period of time
 Market Share
 Percent of one firm’s share of total market sales
 Market Leader – has many benefits
Marketing in Non-Profits
 Different from marketing in a profit organization
 NPOs engage in marketing more for social marketing
reasons
 Increasingly, NPOs are using more complex marketing
strategies to achieve their aims
 Use marketing to inform and influence behavior change
 Major drawback of most NPOs – limited financing
Marketing Strategies
 Evolve as a response to changes in customer
preferences
 Marketing strategies must adapt to remain relevant
Innovation, Ethics, Cultural
Differences
 Specific companies highlighted
 Innovation
 Apple; Nokia
 Ethics
 Exxon, BP
 Cultural Differences
 Rolls Royce, Aston martin, McDonalds, KFC