MARKETING

What is Marketing?

• The term marketing has changed and evolved over a period of time, today marketing is based around providing continual benefits to the customer, these benefits will be provided and a transactional exchange will take place.

• The Chartered Institute of Marketing define marketing as ‘The management process responsible for identifying , anticipating and satisfying customer requirements profitability’

• If we look at this definition in more detail Marketing is a management responsibility and should not be solely left to junior members of staff. Marketing requires co-ordination, planning, implementation of campaigns and a competent manager(s) with the appropriate skills to ensure success.

American Marketing Association

• Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.   

• "The absolute fundamental aim is to make money out of satisfying customers." – John Egan

Definition-cont…….• Marketing objectives, goals and targets have to be monitored and

met, competitor strategies analysed, anticipated and exceeded. Through effective use of market and marketing research an organisation should be able to identify the needs and wants of the customer and try to delivers benefits that will enhance or add to the customers lifestyle, while at the same time ensuring that the satisfaction of these needs results in a healthy turnover for the organisation.

• Philip Kotler defines marketing as ‘satisfying needs and wants through an exchange process’

• Within this exchange transaction customers will only exchange what they value (money) if they feel that their needs are being fully satisfied, clearly the greater the benefit provided the higher transactional value an organisation can charge.

MARKETING PROCESS

• UNDERSTAND THE MARKETPLACE AND CUSTOMER NEED AND WANTS

• DESIGN A CUSTOMER-DRIVEN MARKETING STRATEGY

• CONSTRUCT A MARKETING PROGRAM THAT DELIVERS SUPERIOR VALUE

• BUILD PROFITABLE RELATIONSHIPS AND CREATE CUSTOMER DELIGHT

• CAPTURE VALUE FROM CUSTOMERS TO CREATE PROFITS AND CUSTOMER QUALITY

marketing concept and orientation

• It is a fundamental idea of marketing that organizations survive and prosper through meeting the needs and wants of customers. This important perspective is commonly known as the marketing concept.

• The marketing concept is about matching a company's capabilities with customer wants. This matching process takes place in what is called the marketing environment.

• Businesses do not undertake marketing activities alone. They face threats from competitors, and changes in the political, economic, social and technological environment. All these factors have to be taken into account as a business tries to match its capabilities with the needs and wants of its target customers.

• An organization that adopts the marketing concept accepts the needs of potential customers as the basis for its operations. Success is dependent on satisfying customer nee

What are customer needs and wants?

• A need is a basic requirement that an individual wishes to satisfy.

• People have basic needs for food, shelter, affection, esteem and self-development. Many of these needs are created from human biology and the nature of social relationships. Customer needs are, therefore, very broad.

• Whilst customer needs are broad, customer wants are usually quite narrow.

“A want is a desire for a specific product or service to satisfy the underlying need “

Strengths,

• Weaknesses

• Opportunities• Threats

 

SWOT (Strengths, Weaknesses, Opportunities, Threats

SWOT-Contin……• A SWOT analysis helps find the best match between environmental

trends (opportunities and threats) and internal capabilities.• A strength is a resource or capacity the organisation can use

effectively to achieve its objectives. • A weakness is a limitation, fault, or defect in the organisation that

will keep it from achieving its objectives. • An opportunity is any favourable situation in the organisation's

environment. It is usually a trend or change of some kind or an overlooked need that increases demand for a product or service and permits the firm to enhance its position by supplying it.

• A threat is any unfavourable situation in the organisation's environment that is potentially damaging to its strategy. The threat may be a barrier, a constraint, or anything external that might cause problems, damage or injury

SWOT-Contin……

• The first part of any SWOT analysis is to collect a set of key facts about the organisation and its environment. This will include facts about the organisation's markets, competition, financial resources, facilities, employees, inventories, marketing and distribution system, R&D;, management, environmental setting (e.g. Technological, political, social, and economic trends), history and reputation.

• The second part of a SWOT analysis is to evaluate data to determine whether they constitute strengths, weaknesses, opportunities or threats for the organisation. This may be done independently by the individuals in a group, results being compared afterwards. It is important to note that any given fact may give rise to more than one evaluation, and so to ask - " How may this fact be considered as an opportunity as well as a threat?"; "How may this apparent strength turn out to be a weakness?"; "How does this weakness really represent a strength?" The answers to these and similar questions may give managers new insights into choosing appropriate strategies

SWOT-Contin……

The second part of a SWOT analysis is to evaluate data to determine whether they constitute strengths, weaknesses, opportunities or threats for the organisation. This may be done independently by the individuals in a group, results being compared afterwards. It is important to note that any given fact may give rise to more than one evaluation, and so to ask - " How may this fact be considered as an opportunity as well as a threat?"; "How may this apparent strength turn out to be a weakness?"; "How does this weakness really represent a strength?" The answers to these and similar questions may give managers new insights into choosing appropriate strategies