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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
11
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.
12
Who and what is involved in marketing?

Include: Physical goodsclothes, machines, tractors. Servicesbanks, theatres, health insurance. IdeasClean Up Australia, road safety. PeopleCathy Freeman, Barry Humphries (people are a marketable product or brand). PlacesDaintree, a new business estate. Experiencestravel, yoga.
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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.
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Needs, wants & exchange

Defining a needbasic feeling of
deprivation. Defining a wantthe particular

forms a need might take.
Defining exchangeoffering
something of value in return for something else of value.

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The stages in the evolution of marketing
Production orientation
Sales Marketing orientation orientation
Societal marketing orientation
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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 companys output at a price set by the production and financial managers.
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The sales-orientation stage

Typical thinking from the 1930s1960s
(post-depression Australia)

The firms emphasis was on selling its output. This was the age of hard sell. Supply usually exceeded demand.
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The marketing-orientation stage

The firms 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.
19
The societal marketing concept

Marketer must act in a socially responsible manner. External environments influence on firms marketing program. Entails the realisation that our natural resources are finite. Increasing emphasis on the management of human resources.
110
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.
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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 firms own objectives.
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Three requirements for implementing the marketing concept

Marketing concept Customer orientation + Coordinated marketing +
Organisations performance objectives activities
Customer satisfaction
Organisational success
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Relationship marketing
Relationship marketing focuses on building and maintaining business relationships with customers rather than focussing on each sale.
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Relationship marketing
Loyalty marketing schemescustomer rewarded
for continuing to buy from the organisation.

Value addingincreasing customer satisfaction by
providing extra goods and services over and above the basic product being offered.
Mass customisationincreasing practice of
developing many variations in a firms offerings.
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Quality and marketing

Reducing product quality variability. Increasing responsiveness to changing
customer needs.
Reducing costs through less wastage or
reworking.
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Marketing management
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The planning sequence
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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.
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The marketing mix
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Chapter 1

The Field of Marketing

Nature and scope of marketing

Who and what is involved in marketing?

activity intended to satisfy human needs or wants.

Needs, wants & exchange

deprivation. Defining a wantthe particular

something of value in return for something else of value.

The stages in the evolution of marketing

Sales Marketing orientation orientation

Societal marketing orientation

The evolution of marketing

The sales-orientation stage

The marketing-orientation stage

The societal marketing concept

Marketing vs. Selling

The marketing concept

All company planning and operations should be

Three requirements for implementing the marketing concept

for continuing to buy from the organisation.

developing many variations in a firms offerings.

Quality and marketing

The planning sequence

The marketing mix

to as the marketing mix.

and Place (Distribution).

The marketing mix

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