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The central idea behind marketing is that a firm (or other entity)will create something (e.g., a product or service) of value to one or more customers who, in turn, are willing to pay enough (or contribute other forms of value) to make the venture wor...
Marketing defined: activities that facilitate and expedite
satisfying marketing consists of individual and
organizational activities that facilitate and exchange Exchange The provision or transfer of goods, services,
relationships in expediting satisfying exchange and ideas in return for something of value.
relationships in a dynamic environment through a
dynamic environment, the creation, distribution,
promotion and pricing of goods, services and ideas. Marketing facilitates satisfying exchange relationships
Marketing mix The tactical ‘toolkit’ of the marketing For an exchange to take place, four conditions must
program; product, place/ distribution, promotion, price, exist.
and people variables that an organization can control in
order to appeal to the target market and facilitate
1. Two or more individuals, groups, or
satisfying exchange. marketing mix of product, people,
organizations must participate.
service, pricing, promotion, and distribution channel.
2. Each party must possess something of value that the
Marketers should understand their markets – customers,
other party desires (for example, cash for a product or a
competitors, market trends – as well as their own
donation for a charitable cause).
capabilities and performance before developing
marketing programs. a marketing strategy must be 3. Each party must be willing to give up its ‘something of
determined that reflects the analyses before the value’ to receive the ‘something of value’ held by the
marketing programs that will be used to activate the other party. The objective of a marketing exchange is to
recommended strategy are specified. The Analysis first, receive something that is desired more than that which
then Strategy decisions with, finally, the formulation of is given up to get it – that is, a reward in excess of costs.
marketing Programmes: the ASP of the marketing
process. 4. The parties to the exchange must be able to
communicate with each other to make their ‘something
the basic priorities of marketing: of value’ available.
●● satisfying customers figure 1.1 illustrates the process of exchange. The arrows
indicate that the parties communicate and that each has
●● identifying/maximizing marketing opportunities
something of value available to exchange. note, though,
●● targeting the ‘right’ customers that an exchange will not necessarily take place just
because these four conditions exist.
●● facilitating exchange relationships
●● attracting and retaining rewarding customers
●● staying ahead in dynamic environments
●● endeavoring to beat and pre-empt competitors
, The marketing concept and its
evolution
According to the marketing concept, an organization
should try to provide products that satisfy customers’
needs through a coordinated set of activities that also
allows the organization to achieve its goals.
Marketing concept The philosophy that an organization
should try to provide products that satisfy customers’
Customer satisfaction A state that results when an needs through a coordinated set of activities that also
exchange meets the needs and expectations of the allows the organization to achieve its goals.
buyer.
The evolution of the marketing concept
Production era The period of mass production following
The marketing process industrialization.
This analytical process of marketing analyses, strategy
formulation, and the creation or modification of Sales era The period from the mid-1920s to the early
marketing programs is necessary for existing activities 1950s when competitive forces and the desire for high
and target markets. This marketing process is also sales volume led a company to emphasize selling and the
required when an organization contemplates entering salesperson in its business strategy.
new markets, launching new or replacement products, Marketing era The period in which product and
modifying the brand strategy, changing customer service aggressive selling were no longer seen to suffice if
practices, rethinking advertising and promotional plans, customers either did not desire a product or preferred a
altering pricing or evaluating distribution policies, rival brand, and in which customer needs were identified
developing digital marketing, and managing multiple and satisfied.
channels. Unexpected sales patterns also require such a
process of understanding, thinking, and action. This is Relationship marketing era In which the focus is not
the marketing process: the analysis of market only on expediting the single transaction but on
conditions, the creation of an appropriate marketing developing ongoing relationships with customers to
strategy, and the development of marketing programs maintain a lifetime share of wallet.
designed to execute the agreed strategy, as depicted in Digital marketing The use of the web, computers, and
figure 1.2. smartphones, as well as radio, TV and any other forms of
digital media, to attract, engage and build relationships
with customers and other target audiences; the use of
technology-led channels of communication and selling to
manage customer interaction and provide a customer
experience in a digitally -connected environment.
Consumer-to-consumer (C2C) communication
Consumer-to-consumer (C2C) communication is now
routine, enabled by the digital era and social media in
particular. Consumers readily and rapidly share views,
experiences, and information with each other. Positive
or negative customer experience is tweeted instantly,
blogged, or shared on Facebook with potentially very
many fellow consumers.
Social marketing Social marketing uses tools and
techniques from commercial marketing to make
interventions which encourage positive behavioral
changes, such as quitting smoking, reducing alcohol
consumption, minimizing anti-social behaviors or
, reducing carbon footprint, to enhance the health and based. The priority for marketing was to identify
well-being of individuals, society and the planet customer needs, determine priority target markets, and
achieve sales through marketing programs. The focus
Critical marketing Critical marketing involves challenging
was on the individual transaction or exchange. It should
orthodox views that are central to the core principles of
be recognized that long-term success and market share
the discipline. Sometimes this involves promoting radical
gains depend on such transactions, but also on
philosophies and theories in relation to the
maintaining a customer’s loyalty and on repeatedly
understanding of economies, society, markets and
gaining sales from existing customers. This requires
consumers, which may have implications for the practice
ongoing, committed, reassuring, and tailored
of marketing. Critical marketing is connected with the
relationship-building marketing programs. relationship
growing area of critical management.
marketing refers to ‘long-term, mutually beneficial
arrangements in which both the buyer and seller focus
on value enhancement through the creation of more
The production era during the second half of the satisfying exchanges’.9 relationship marketing
nineteenth century, the Industrial Revolution was in full continually deepens the buyer’s trust in the company
swing in Europe and the United States. Electricity, and, as the customer’s confidence grows, this, in turn,
railways, the division of labor, the assembly line and increases the company’s understanding of the
mass production made it possible to manufacture customer’s needs. Successful marketers respond to
products more efficiently. With new technology and new customers’ needs and strive to increase value to buyers
ways of using labor, products poured into the over time.
marketplace, where consumer demand for
manufactured goods was strong. This production The digital era has had a significant impact on how
orientation continued into the early part of the last businesses interact with their customers, presenting
century, encouraged by the scientific management marketers with a whole raft of new opportunities,
movement that championed rigidly structured jobs and techniques, and challenges. digital media, the surge in
pays based on output. internet usage and the uptake of personal mobile
communications and information provision, have
The sales era In the 1920s, the strong consumer demand fostered changing consumer behaviors, greater
for products subsided. Companies realized that consumer-to-consumer influence on brands and
products, which by this time could be made quite purchasing decisions, and business-to-business
efficiently, would have to be ‘sold’ to consumers. from interaction.
the mid-1920s to the early 1950s, companies viewed
sales as the major means of increasing profits. as a The growth of consumer-to-consumer (C2C)
result, this period came to have a sales orientation. communications in the digital era
Business people believed that the most important
This has significant consequences for brands and
marketing activities were personal selling and
marketers, for consumers and for society in general.
advertising.
Previously, brand managers largely controlled what
The marketing era By the early 1950s, some business information was available to consumers and business
people began to recognize that efficient production and customers. These customers based their decisions about
extensive promotion of products did not guarantee that brands and products on the marketing and sales
customers would buy them. Companies found that they information communicated to them by brand managers.
first had to determine what customers wanted and then Today, consumer-to-consumer (C2C) communication is
produce it, rather than simply making products first and routine, enabled by the digital era generally and social
then trying to change customers’ needs to correspond to media in particular.
what was being produced. as organizations realized the
Social marketing’s adoption of marketing’s toolkit in
importance of knowing customers’ needs, companies
non-commercial settings
entered into the marketing era – the era of customer
orientation. Social marketing: uses tools and techniques from
commercial marketing to encourage positive behavioral
The relationship marketing era By the 1990s, many
changes, such as quitting smoking, reducing alcohol
organizations had grasped the basics of the marketing
consumption, minimizing anti-social behaviors, or
concept and had created marketing functions. However,
reducing the carbon footprint. The health and well-being
their view of marketing was often largely transaction-
of individuals, society and the planet are at the core of
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