session 1 - the nature of marketing

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162MKT 

Introduction toMarketing

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Lecture Objectives

• The Marketing Concept• Different business orientations that firms

adopt• How to create customer satisfaction andvalue

• How an effective marketing mix is designed

• The relationship between adopting amarketing philosophy and businessperformance

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Essential Reading

• Author - Jobber, D and Fahy, J

• Edition - 2009 3rd edition

• Title - Foundations of Marketing

• Publisher - McGraw-Hill

• Library - 658.8

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“Marketing is simply sales 

with a college education.” 

JOHN FREUND

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Marketing Definitions

“Because the purpose of business is to create and keep customers, it only has two central functions – marketing and innovation. The basic function of marketing is to attract and retain customers at a profit.” 

  Peter Drucker

“The objective of marketing is to establish, develop 

and commercialize long-term customer relationships so that the objectives of the parties involved are met.” 

Gronroos

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Marketing Orientation 

Integratedcustomer

focus

Long run profitsthrough customer

satisfaction

Sales Orientation 

Push! Push!Sell! Sell!by promotion

Short termgains in profitvia sales increases

Evolution of theMarketing Concept

Production Orientation Production &

assembly linerefinement

Profits throughproduction controls

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Marketing Concept

The achievement of corporategoals through meeting andexceeding customer needs

better than the competition

Customer orientationCorporate activities

are focused uponproviding customer

satisfaction

Integrated effortAll staff accept theresponsibility forcreating customer

satisfaction

Goal AchievementThe belief that

corporate goals canbe achieved through

customer satisfaction

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Marketing Orientated

Businesses

INSERTTABLE 1.1

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Marketing Orientated

Businesses

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Creating Customer Value

Product benefits

Service benefitsRelational benefits

Image benefits

Monetary costs

Time costsEnergy costs

Psychological costs

Customer value

Perceived

benefits

Perceived

sacrifice

Positive Negative

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Creating Customer SatisfactionDelight

Neutral

DissatisfactionAbsent Fulfilled

Presence of the characteristic

Customersatisfa

ction

‘Delighters’

‘More is better ’

‘Must be’

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Expedia.co.uk

CustomerValue

10

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Efficiency and

Effectiveness

Inefficient

Efficient

Goes out ofbusiness quickly

Dies slowly

Survives

Does wellThrives

Ineffective Effective

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Marketing and Other BusinessFunctions

R & D

Finance HRM

Production

Marketing

Our Organisation

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The Marketing Mix

c

Product Price

Promotion Place

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An Effective Marketing Mix

Effective marketing

mix

Matches

customer needs

Creates acompetitiveadvantage

Wellbalanced

Matchescorporateresources

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Market-driven Management

Sharedvalues and

beliefs

Customer 

focus

Market-led

strategy

Structure

and

systems

Implementation

Market

intelligence

Shared valuesand beliefs

customer first

Market

intelligenceSkills in

understanding andresponding to

customers

Structure and

systems structure based on

strategy

team work

Market-ledstrategy

Linking distinctive

competencies tomarket opportunities

Competitive advantage

the driving force

Implementation

people incentives

communications

persuasion

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Lucozade Sport Hydro Active

This advert for Lucozade’sHydro Active brandcommunicates the productbenefits for peopleengaged in physicalexercise.

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Limitations of the Marketing

ConceptThe marketing concept as an ideology.

Marketing and society.

Marketing as a constraint on innovation.

Marketing as a source of dullness.

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Conclusion

• Always looking for a

Competitive Edge 

• Or a Differential 

Advantage 

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Exercise for the Weekend

Visit the following websites:

www.amazon.com

www.yahoo.com

www.ebay.co.uk

www.tesco.com

Describe how these companies are creatingvalue for their customers and post yourobservations on one of them onto the Module

Discussion Forum

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Allocated Seminars

Advertising & Business PLUSMarketing

Advertising & Business PLUS Marketing

Mon 10-11am WM105 Sophie

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Allocated Seminars

Advertising & Marketing

• Mon 12-1pm WM105 Maggie

• Tues 9-10am WM233 Maggie

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Allocated seminars

Business & Marketing

• Thursday 9-10am WM105 Sophie

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Allocated Seminars - SAM

• Mon 11-12pm WM105 Maggie

• Mon 4-5pm WM 304 Maggie

• Mon 4-5pm WM330 Emma

• Tues 10-11am WM304 Emma

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Allocated Seminars – Not

MKT or SAM• Tues 11-12pm WM304 Sophie

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To do this week!

• Buy Jobber & Fahy

• Read Chapter 1 & 2• Sign up for seminars

• Look at websites