Ch01 165d3

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

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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

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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

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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.

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata

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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

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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

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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 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

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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

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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, encoming 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

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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

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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

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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 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

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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

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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

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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

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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

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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

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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

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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. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata

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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

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