hello everybody, doti chee my name is doti chee, i am from singapore and i am the head of teaching...

1. Marketing Orientation1. Marketing Orientation~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

1.1 History of markets and marketing

- Read course book page 4 - 5

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1.2 Marketing defined

There are many definitions of marketing. Here we will consider four that provide insight into how marketing is used in practice.

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MarketingIdentifying

AnticipatingSupplying

Customer needs

Mutually beneficial exchange

Firm’s objectives



Definition 1

Marketing is the management of

exchange relationships

o all relationships between the organization and the outside world, especially when they relate to customers, need to be managed

o organization will be judged by customers, suppliers, competitors and others according to their personal experience

o e.g. manner of telephone operator or tone of a receptionist’s voice – contacts are vital in creating a positive image for the organization with customers and the public

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Definition 2

Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably

o definition is that of the Chartered Institute of MarketingChartered Institute of Marketingo emphasizes the wide scope of marketing, ranging from initial identification

of customer needs by means of research, right through to eventual profitable satisfaction of those needs

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Definition 3

Marketing is concerned with meeting business objectives by providing customer satisfactions

o stresses the importance of the customer and more particularly, customer satisfaction

o when people buy products or services they do not simply want the products, they also want the benefits from using the products or services

o products and services help to solve a customer's problems. It is the solution to these problems that customers are buying

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Definition 4

Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals

o definition provided by American Marketing AssociationAmerican Marketing Associationo expands on the previous one and considers what is involved in marketing

to satisfy both the customer and the company

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1. 1.

1.3 Marketing 1.3 Marketing Cocnept ConceptCocnept Concept

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1.3 The Marketing Concept - Consumer wantso Based on what consumer wantso Would people mind paying extra?o How to satisfy the consumer while still making a profit?

o or

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1.4 Customer Orientation- Customer satisfactiono ‘without customers, you don’t have a business’o satisfying customers’ needs at a profit should be the central drive of any

company

- Sales orientationo focuses on the needs of the sellero Preoccupied with seller’s need to convert his product into cash

The marketing concept marketing concept suggests that companies should focus their operations on their customers’ needs rather than be driven solely by the organization’s technical competence to produce a particular range of products or services or by a belief in the sales force

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1. Marketing Orientation~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

1.5 Implications for businesses

When a company understands consumers, it can design products to appeal to them

Therefore, a company needs to:o an understanding of the market, based on research and not on

unsupported hunches (guesses)

o a spirit of innovation: the company must be willing to change as customers’ requirements change

o skilled direction and administration of its marketing activities

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1.6 The history of production and marketing orientations

Definition:

Production orientation Production orientation describes a company which makes what it thinks the customer it thinks the customer will buywill buy. It may make good products but will not take the trouble to find out whether there is a market for them.

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Organizations realized that in the face of strong competition they had to get closer

to their markets and to their customers.

A market orientated organization A market orientated organization will have:

a commitment to meeting the needs of customers more successfully than the competition

a structure and process of operation which are designed to achieve this aimo all activities must be coordinated around the needs of the customer when

making decisions about what to produce and subsequently, how and where the product or service is to be made available.

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1. Marketing Orientation~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Marketing concept has three elements:

Customer orientation

Coordination of market led activities

Profit orientation

1.7 The different orientations in modern practice - Production orientated companieso believe that consumers will buy products that are widely available and cheap

o managers concentrate on achieving high production efficiency and wide distribution

- Sales orientated companieso make products which are not carefully tailored to consumers’ needs, but will then use

aggressive advertising and selling methods

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- Market orientated companieso only commit itself to meeting the needs of the customero will set up right structures and processeso Establish customer service departments, often in highly competitive and

low profit margin businesses such as retailing

Advantages of Marketing Orientated Companies:o Product tailored to the needs of the customero Research and development enables the market-led company to

keep ahead of the competitiono Opportunities arise out of a continuous research thrusto Knowing your customer enables you to communicate more efficiently, with

cost effective marketing communications

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Advantages of Marketing Orientated Companies: (cont’d….)o Produce what you can sell rather than sell what you produceo Leads to long-term relationships with high customer satisfaction

Disadvantages of Marketing Orientated Companies: o Extensive market research needed into customer needs/wantso Expensive and time consuming – time delay for product to marketo “Me-too” products that can undercut because there are no costs of

research and developmento Irrational consumer behavior – no amount of research will alter the fickle

nature of the average customero Dynamic nature of market place – today’s products become tomorrow’s

throwawayso Too narrow a focus

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Advantages of Sales Orientated Companies:

o Product manufactured relatively inexpensively with minimum time delay to market

o Flexibility within production capabilities which ensures swift response to supply demand imbalance

o Suits small and medium sized business units that are not particularly well financed – minimizes cash flow problems

Disadvantages of Sales Orientated Companies:

o Sell what you produce as opposed to produce what will sell – no product innovation

o Needs extensive sales promotion effort to sell product

o No opportunity for long-term profitable growth – concentration on short-term transactional approach

o Little emphasis on customer satisfaction means limited loyalty and word of mouth marketing

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1.8 Marketing and the business system1.8 Marketing and the business system

- Distribution systemo system for getting goods to customerso involves lorries, wholesalers and retailers and

mail ordero also includes warehouses and the system for

agreeing to supply customers

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Features of distribution system:

It may be long or short o e.g. of short chain is an airline buying a new aircraft from manufacturero e.g. of long chain is pocket calculators made in the Far East and sold to

Britain, involving the maker, an export agent, a shipping company, a wholesaler and retailers

It may be owned by the producer (branches)o owned by producers - e.g. manufacturer of plywood with its own furniture

shopso owned by independent - e.g. book wholesalers and bookshops which are

not owned by publishers

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Features of distribution system:

Final customerso the customers at the end of the systemo they may also be producer of other goods e.g. customers of the car

headlamp bulbs are mostly car manufacturers)

- Information systemo gets information from customers perhaps by conducting interviews or

questionnaire o sends information to customers by advertising, catalogues and other forms

of publicity. The main goal is to get across the special features of a The main goal is to get across the special features of a product, which make it a better buy than its rivalsproduct, which make it a better buy than its rivals – this message is called the product’s unique selling propositionunique selling proposition, or USP.

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The flow of influence

Pest factorso Political and legal factors e.g. consumer boycotts of countries with

oppressive regimes (government) and laws on employment, advertising, product safety and the granting of credit to customers

o Economic influences such as income levels, employment levels, the rate of inflation and the rate of economic growth

o Social influences such as fashion and peer group pressure

o Technological influences such as the growth of computer-aided manufacturing and the availability of CD-ROM to consumers

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2. Marketing Issues2. Marketing Issues~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

2.1 Differentiation and product positioning2.1 Differentiation and product positioning Definition

Product differentiation Product differentiation occurs when specific products or brands each have a specific combination of costs and benefits which a particular set of potential customers seek. This allows the product to be positioned in the market for specific customers

o In marketing, product differentiation (also known simply as “differentiation is the

process of distinguishing the differences of a product or offering from others, to make it

more attractive to a particular target market. This involves differentiating it from

competitors products as well as one's own product offerings.

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2.2 Contact and distribution2.2 Contact and distribution Definitions

Contact Contact is ensuring that the customers know about a product or service.

DistributionDistribution is ensuring that products or services are made accessible and available to consumers or buyers.

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2.3 Needs and profit2.3 Needs and profit Definitions

Marketing is concerned with the matching of an Marketing is concerned with the matching of an organization’s capabilities with consumers’ wantsorganization’s capabilities with consumers’ wants

Marketing is the process of determining consumer Marketing is the process of determining consumer demand for a product, motivating its sale and demand for a product, motivating its sale and distributing it into ultimate consumption at a profit.distributing it into ultimate consumption at a profit.

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hello everybody, doti chee my name is doti chee, i am from singapore and i am the head of teaching...

Documents

marketing orientation

marketing defineddefinition

marketing definedthere

definitions of marketing

marketing concept consumer

cashthe marketing concept

marketing cocnept concept

american marketing association