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Presentation prepared by Robin Roberts, Griffith University and
Mike Spark, Swinburne University
Technology
Copyright Johnof
Wiley
& Sons 2007
Chapter 1
Marketing’s role in business
and society
Marketing starts and ends
with the consumer Copyright John Wiley & Sons 2007
Chapter Objectives
1. Define marketing
2. Understand several important marketing
terms, including:
Target market
Marketing mix
Marketing exchange
Marketing environment
3. Be aware of the marketing concept and
market orientation
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Chapter Objectives
4. Understand the importance of building
customer relationships
5. Explain the major marketing functions
that are part of the marketing
management process
6. Understand the role of marketing in our
society
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Marketing defined
Marketing is the process of creating,
distributing, promoting and pricing
goods, services and ideas to facilitate
satisfying exchange relationships with
customers in a dynamic environment
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Marketing defined (cont'd)
The marketing process starts with the
customer.
There are many different types of customers:
– Individual consumers
– Households or families
– Businesses
– Governments
– Other organisations
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Compare and contrast the responses
on the following media slides
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What are the major responsibilities of your
role as Director of Marketing?
Dial-Up
Broadband
Jason Haynes, Director of Marketing, Quiksilver Australasia
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What are the major responsibilities of your
role as Director of Sales and Marketing?
Dial-Up
Broadband
Neil Paterson, Director of Sales and Marketing,
Sofitel Hotel, Gold Coast
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What are the major responsibilities of your
role as Director of Sales and Marketing?
Dial-Up
Broadband
Bruce White, Director of Sales and Marketing,
Story Bridge Adventure Climb
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The Strategic Marketing Process
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Marketing basics
Any organisation has to define its
‘product’ not as what it produces, but
what they do to satisfy existing and
potential customers’ needs and wants
The essence of marketing is to develop
satisfying exchanges from which both
customers and marketers benefit
(i.e. a ‘win-win’ situation)
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Marketing and the 4 variables
Marketing focuses on
• developing and managing a product that
will satisfy customer needs
• making the right product available in the
right place
• at a price that is acceptable to buyers
This requires communicating information
(promotion) that helps customers
determine whether the product will satisfy
their needs
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Marketing and the 4 variables
The primary goal of a marketer is to
develop and maintain the right mix of
these marketing elements in order to
satisfy customer needs for a general
product type
They must collect up-to-date, in-depth
data about customer needs to develop a
marketing mix that satisfies a specific
target market
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The Product variable
This results from researching the
changing buyer demands and needs, and
designing a ‘product’ that satisfies them
A ‘product’ in marketing terms is anything
offered to a market:
• ‘a bundle of attributes that exists for
the purpose of exchange to satisfy
both customer and organisational
objectives’
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The Product variable (cont’d)
• A product can be:
•
•
•
•
a good or service
an idea
event or activity
person or happening
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The Product variable (cont’d)
The product variable also involves:
• creating or modifying brand names
• packaging
• warranty and repair services
• brand
• image, style and quality features
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The Price variable
This refers to the decisions and actions
associated with:
• establishing pricing objectives
• setting policies
• determining product prices
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The Distribution (Place) variable
To satisfy the target customers,
products must be available in:
• convenient locations
• at the right time
• in adequate quantities
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The Promotion variable
Activities used to inform individuals or
groups about the organisation and its
products
Can also:
• educate customers about product
features
• urge people to take a stance on a
political or social issue (persuade)
• remind purchasers that the product is
still available
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The Marketing Exchange Process
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Marketing Environment
•
•
•
•
•
•
Competitive
Economic
Political
Legal and regulatory
Technological
Socio-cultural
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Understanding the
Marketing Concept
An organisation should try to provide
products that satisfy customers’ needs
through a coordinated set of activities that
also allows the organisation to achieve its
goals
• Major focal points
• Customer satisfaction
• Customer loyalty
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The evolution of
the Marketing Concept
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Implementing the Marketing Concept
• Establish an information system, to
• Determine what buyers want, and
• Use that information to
• Develop need-satisfying products
• Continuously alter, adapt and develop
products to keep pace with changing
desires and preferences
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Managing customer relationships
They are the lifeblood of all businesses!
• Organisational achievement comes from:
– Acquiring new customers, or
– Enhancing profitable dealings with
existing customers, or
– Extending the duration of customer
relationships
• The aim is to optimise the exchange
relationship
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Relationship Marketing
‘Long-term, mutually beneficial
arrangements in which both the buyer
and seller focus on value enhancement
through the creation of more satisfying
exchanges’
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Customer Relationship Management
(CRM)
Uses information about customers to
create marketing strategies that develop
and sustain desirable customer
relationships
By increasing perceived customer value
over time, organisations try to retain their
customer base, and increase long-term
profitability through enhanced customer
loyalty
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How does CRM work?
• By identifying patterns of buyer
behaviour
• Focusing efforts on satisfying the needs
of the most promising and profitable
customers
• Reducing administrative costs
• Making the promotional efforts more
cost-effective
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Value-driven Marketing
Value is a customer’s subjective view or
assessment of the benefits they receive
relative to the costs they incur
• Customer benefits include anything a buyer
receives in an exchange
• Customer costs include anything a buyer
must give up to obtain the benefits the
product provides
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Marketing Management
The process of planning, organising,
implementing and controlling marketing
activities to facilitate exchanges
efficiently and effectively
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The importance of marketing
in our global economy
• Marketing costs consume a sizeable
portion of buyers’ dollars
• Marketing is used in Not-for-profit
organisations
• Marketing is important for business
• Marketing fuels our global economy
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