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Chapter 1
The Field of Marketing
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
1–1
Nature and scope of marketing
• Marketers:
– Centre on attempts to understand
consumers.
– Seize an advantage over competitors.
– Gain a foothold in a market.
– Satisfy consumers.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
1–2
Who and what is involved in
marketing?
• Include:
– Physical goods—clothes, machines, tractors.
– Services—banks, theatres, health insurance.
– Ideas—Clean Up Australia, road safety.
– People—Cathy Freeman, Barry Humphries
(people are a marketable product or brand).
– Places—Daintree, a new business estate.
– Experiences—travel, yoga.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
1–3
What is marketing?
• Marketing can be described as any exchange
activity intended to satisfy human needs or
wants.
• Marketing is a system of business activities
aimed at achieving organisational goals by
developing, pricing, distributing and promoting
products, services and ideas that will satisfy
customers’ wants.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
1–4
Needs, wants & exchange
• Defining a need—basic feeling of
deprivation.
• Defining a want—the particular
forms a need might take.
• Defining exchange—offering
something of value in return for
something else of value.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
1–5
The stages in the evolution of marketing
Production
orientation
Sales
Marketing
orientation orientation
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
Societal
marketing
orientation
1–6
The evolution of marketing
The production-orientation stage
• Typical thinking of the 1930s.
• Focus on increasing production.
• Production and engineering staff have control of
the organisation; there is a sales department but its
function was simply to sell the company’s output at
a price set by the production and financial
managers.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
1–7
The sales-orientation stage
• Typical thinking from the 1930s–1960s
(post-depression Australia)
–
–
–
The firm’s emphasis was on selling its output.
This was the age of ‘hard sell’.
Supply usually exceeded demand.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
1–8
The marketing-orientation stage
• The firm’s goals become customer orientation
and profitable sales volume.
• Marketing influences all short-term and longrange company planning.
• Focus is on marketing rather than selling,
encompassing inventory control, warehousing,
product planning and implementation of the
marketing concept.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
1–9
The societal marketing concept
•
•
•
•
Marketer must act in a socially responsible
manner.
External environment’s influence on firm’s
marketing program.
Entails the realisation that our natural resources
are finite.
Increasing emphasis on the management of
human resources.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
1–10
Marketing vs. Selling
• Marketing
–
Company finds out what the customer wants and
develops a product to satisfy those wants while yielding a
profit.
• Selling
–
A company makes a product and then uses various
selling methods to persuade customers to buy it.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
1–11
The marketing concept
• Marketing concept
• All company planning and operations should be
customer-oriented, focussing on satisfying
customers’ needs and wants.
• All the marketing activities in a firm should be
coordinated and consistent.
• Customer-oriented, coordinated marketing
activities are seen as the means of achieving the
firm’s own objectives.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
1–12
Three requirements for
implementing the marketing
concept
Marketing concept
Customer
orientation + Coordinated
marketing
+
Organisation’s
performance
objectives
Customer
satisfaction
activities
Organisational
success
+
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
1–13
Relationship marketing
Relationship marketing focuses on
building and maintaining business
relationships with customers rather
than focussing on each sale.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
1–14
Relationship marketing
• Loyalty marketing schemes—customer rewarded
for continuing to buy from the organisation.
• Value adding—increasing customer satisfaction by
providing extra goods and services over and above
the basic product being offered.
• Mass customisation—increasing practice of
developing many variations in a firm’s offerings.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
1–15
Quality and marketing
• Reducing product quality variability.
• Increasing responsiveness to changing
customer needs.
• Reducing costs through less wastage or
reworking.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
1–16
Marketing management
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
1–17
The planning sequence
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
1–18
The marketing mix
• The four key elements of marketing are referred
to as the ‘marketing mix’.
• These elements are: Product, Price, Promotion
and Place (Distribution).
• These elements, also known as variables, are
controllable by marketers and are the key to
attracting a specific target market.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
1–19
The marketing mix
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
1–20