What is Marketing?

What is Marketing?

1. DEFINITION: "The management process of anticipating, identifying & satisfying customer requirements profitably." [CIM, 2001]

2. PROFIT

   • Financial
   • Gain in society
   • Non-profit

3. PRODUCT BASED BUSINESS: Businesses that produce products are always aiming to offer solutions to customers' "problems".

4. CUSTOMERS & CONSUMERS

   • A customer BUYS a product/service
   • A consumer USES a product/service

5. THE MARKETING MIX, [McCarthy, 1990]

   • Product
   • Place (distribution)
   • Price
   • Promotion
   • Physical Evidence
   • Process
   • People

6. MARKETING IN CONTEXT

   • THE SERVICE PERSPECTIVE: Marketing organised around idea markets increasingly characterised not by physical goods but by intangible services
     • Intangible, performance-dependent, nature of services affects the way they should be marketed
   • BUSINESS TO BUSINESS PERSPECTIVE: Marketing is different from consumer marketing because customer is a business rather than an individual household/chief shopper

7. SIMPLE MARKETING EXCHANGE PROCESSES

   • RETAILER: Goods & customer service to CUSTOMER
     • CUSTOMER: Payment at retail price for goods to RETAILER
   • MANUFACTURER: Goods, credit facilities, return facilities, distribution arrangements, other services to RETAILER
     • RETAILER: Payment at whatever price for goods to MANUFACTURER

8. MARKET ORIENTATION:

   • CUSTOMER ORIENTATION: Needs of customer
   • COMPETITOR ORIENTATION: Understand competitors
   • LONG TERM PROFIT: All functions work together to achieve above
   • THREE COMPONENTS OF MARKET ORIENTATION
     • • LONG TERM PROFIT FOCUS
       • INTERFUNCTIONAL COORDINATION
       • COMPETITOR ORIENTATION
       • CUSTOMER ORIENTATION