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Summary marketing fundamentals
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Summary Marketing fundamentalsThe Meaning of marketing
1.1.1 Differences between selling and marketing
The difference between marketing and selling is the difference between a society in which
consumers can choose from products and services designed to meet their specific needs and
wants, and a society in which people have very little if any choice. The main purpose of
marketing-oriented companies is to anticipate and satisfy the needs and wants of the
customer. Rather than focusing first and foremost on the product, managers of these
companies constantly seek to identify with their customers. In short, selling is ‘trying to get
rid of what you have on the shelves’, while marketing is ‘making sure that what you have on
the shelves is what the customer wants’. The purpose of marketing is to get to know and
understand the customer so well that the product is precisely what the customer wants.
Then the product will sell itself.
1.1.2 A definition of marketing:
Think of Heineken for example, which markets not only lager, but also bock beer, white beer,
low-calorie and other types of beer – with brand names such as Murphy’s, Wieckse Witte
and Amstel Light, so consumers can always drink their favourite beer at home and in bars.
The brewery conducts marketing research to find out which outlets sell its products and
what kinds of beer different groups of consumers prefer. As a marketing-oriented company
Heineken also makes sure that its many products are sold in the right stores, that the prices
are neither too high nor too low and that potential buyers know what kinds of specialty
beers are available at different times of the year
Marketing is the process of developing, pricing, promoting and distributing products,
services or ideas that are tailored to the market. marketers also decide which products are
developed, for whom the products are intended and how they are introduced.
1.1.3 The marketing mix
The marketing mix variables are closely related to one another. If we change one of them,
this may have consequences for the other three; essentially it creates an entirely new mix.
Product: goods, services or ideas that meet the wants and needs of the customer.
Price: the amount of money exchanged for a product or service.
Place (‘Distribution’): how the company gets its product into the buyers’ hands. Distribution
strategy is concerned with decisions about which distribution channels and intermediaries
Promotion: the supplier’s activities to communicate with the market and to promote sales
,1.1.4 Target market selection and the process of the process of exchange
This group of consumers is known as the target market, the part of the market that an
organisation concentrates on and wants to turn into customers. Customers, after all, are
loyal consumers who will make repeat purchases. Exchange transactions are items of worth.
Often, they are products that are exchanged for money, but they can also be something less
tangible, such as a service, an idea, labour or even status.
,1.2 Levels of marking systems
Micromarketing: individual firm
Marketing management is the analysis, planning, implementation and constant
evaluation of all activities designed to ensure that the products and services produced and
provided by an organisation are tailored to meet the needs and wants of potential
customers as effectively as possible. A marketing manager always tries to see his company
from the viewpoint of his customers.
Macromarketing: society
As a process that must function effectively for a society as a whole to realise its economic
objectives, we are talking about macromarketing. Improved communication systems,
transaction possibilities through the Internet and methods of distribution simplify the
marketing process at a macro level.
Mesomarketing: collaborating organisartions in the supply chain
This form of marketing is best analysed within the framework of the supply chain. We can
depict this system by referring to the supply chain: the series of persons and organisations –
from the original manufacturer to the consumer – involved in the production, distribution
and consumption of products and services. If these individuals and organisations in the
supply chain organise marketing activities, they do so at the level of mesomarketing. One
such link, which is made up of companies that perform the same function in the production
or trade of a certain product, is known as a sector. Within such a sector, a group of
organisations that is similar in its production techniques and end products is known as a
branch of industry.
Marketing activities – designed to meet a certain need – that parties in the supply chain
carry out jointly fall within the domain of mesomarketing. mesomarketing is generally
confined to a certain sector of society.
In Figure 1.3 we can see two different flows. The product moves from the manufacturer – via
intermediaries who distribute the product – to the consumer (with the aid of advertising and
other promotional activities). The money flows in the other direction together with an
information flow that moves from the buyer to the manufacturer. Because retailers and
, wholesalers are in proximity to the consumer, they are able to give the producer an accurate
insight into the needs and wants of the market and the reactions of the customers.
1.3.1 Production- and product-oriented companies
By concentrating on mechanising and increasing production, entrepreneurs were able to
greatly reduce the cost of their products. They reasoned that if a product was inexpensive
and widely available, it was bound to sell.
1.3.2 Selling-oriented companies
Greater prosperity gave rise to a buyers’ market, in which the buyers were in a stronger
position than the suppliers because supply exceeded demand. Even with the shift to the
selling concept, the company itself was still seen as the point of departure. Its technical
knowledge and experience determined what was produced, while the sales staff tried to
stimulate sales simply by making a huge sales effort.
1.3.3 Marketing-oriented companies
Market-oriented companies consider not only customers, but also intermediaries and
competitors, in making business decisions at all levels of the organisation. This is the crucial
distinction between a market-oriented and a product-or selling-oriented market approach.
consists of three stages: setting up the financing and organisation, making the product, and
selling the product.
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