Lecture notes
Business - Marketing
- Module
- Business and Computing
- Institution
- Brooklands College
Lecture notes of 34 pages for the course Business and Computing at Brooklands College (notes on business)
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Principles of MarketingLesson 1 – Introduction to Marketing
Other Marketing Definitions
It is worth thinking about definitions given based on needs and wants. This means
considering understanding of the terms used within the definition. These include process,
need, want, exchange.
You probably noticed the CIM definition of marketing during your earlier research.
What other definitions of marketing have you found?
How does the CIM definition differ from other definitions of marketing?
Marketing as a Process
Think of an example of a marketing activity from a business you know well. The process of
marketing may include individual functions as simple as sending an email. It is an activity
which leads to delivery of an action.
Needs
Kotler et al (2019) explain a need is a state of felt deprivation. These needs are
generic: everyone needs food to survive and people in most cultures wear clothing, often
for warmth and protection. The concept of need is more complex than just considering
physical needs. Maslow classified needs into social, physical and psychological.
Maslow's Hierarchy of Needs
This is a concept and a model. When you read about a concept it is good practice to
question what evidence exists to support the proposed model rather than to take it at face
value. The concept illustrates that needs motivate behaviours that link through to
purchasing of products (Boddy, 2011). Boddy (2011, 259) however indicate that needs are
not always clearly defined because individual needs are complex and often influenced by a
range of factors including personality.
Company Orientations
Organisations vary in terms of the extent to which they adopt the marketing philosophy.
Their philosophical approach has developed over time along with the development of
marketing as a discipline.
,Marketing Tasks
Marketing therefore is about developing strategies and plans so that an organisation can
deliver its objectives and maximise profit. Marketing is both strategic and
tactical. Operational tasks include conducting marketing research to gain insights and
understanding. It also includes innovation and building brands which enable profit
maximisation. Brands can be a source of competitive advantage and can deliver value to
customers who are prepared to exchange money for a perceived set of benefits. This
happens in different markets.
The Marketing Environment
The tasks of marketing take place in a complex environment where there has been a digital
revolution. Globalisation has created new business models and methods of trading as a
result of ongoing changes in the external environment.
Click firms such as Amazon for example trade online using their distribution skills as
competitive advantage. Changes in societal forces which demand responses from
companies can be looked at in environmental scanning and analysis by considering the
relevant areas which are categorised according to various acronyms such as PEST, SLEEP and
PESTEL. Amazon's business would be affected by changes in fuel costs which would impact
on delivery charges, changes in the law as to what can be sent e.g. restrictions on lithium
batteries, greater ownership of mobile phones creating the need for a mobile ordering app,
improved Drone technology creating the possibility of delivery of products by drones to
customers. Internally Amazon use robots to order pick rather than staff, the working
conditions are reported challenging. However, recent recruitment strategy of Amazon
seems to suggest that the working environment is much conducive.
It is worth noting that the environment includes both macro factors which are external and
micro factors which are internal.
,Marketing Planning Process
If you remember from your definitions of marketing at the start of the lesson marketing is a
process. The process can mean different things in different situations. Where goods are
exchanged for money in a market this is a process. Activities within marketing such as
planning a marketing campaign are processes and may be managed as projects.
The marketing planning process takes place at different levels in an organisation; a strategic
business unit (SBU), middle and top management. West et al. (2015) detail processes as
including strategies, which are plans and tactics which are schemes for action. Yet schemes
for action are incorporated into plans e.g. marketing and communications plans. However, a
marketing plan is an operational plan which deals with marketing management issues
whereas a strategic marketing plan is at a higher level and deals with strategic marketing
issues.
McDonald and Wilson (2011) detail marketing planning is a systematic way or achieving
marketing objectives. There are both strategic and operational marketing plans and it is
important there is a clear understanding about the differences. A strategic marketing plan is
not about the next year's activities but a plan that covers the period beyond the next fiscal
year which McDonald and Wilson (2011) explain is normally between three and five years.
In comparison a tactical marketing plan is more short term, a few months or a year and
carries a lot of operational detail on who will do what. Firms with an effective strategy
continue to survive; they may also survive with an effective strategy but poor tactics.
Benefits of Marketing Planning:
Marketing planning has been shown to have the following benefits:
The systematic identification of emerging opportunities and threats
Preparedness to meet change
The specification of sustainable competitive advantage
Improved communication among executives
Reduction of conflicts between individuals and departments
The involvement of all levels of management in the planning process
More appropriate allocation of scarce resources
Consistency of approach across the organization
A more market-focused orientation across the organization
McDonald and Wilson (2011, p. 33)
, Marketing plans have a number of sections. West et al., (2015, p. 134) detail them as:
Executive summary
Situational analysis
Marketing objectives
Marketing strategy
Action programmes
Budgeting and financial forecasts
Evaluation and controls
There are different frameworks used for the marketing planning process. However, the
principles do not differ and generally include the following:
Goal
Strategy
Tactics
Implementation
Control
Lesson 2 – Marketing Environment
In this lesson, you will be introduced to the marketing environment and factors likely to
influence an organisation’s marketing strategy. A successful marketing organisation will be
able to understand and anticipate changes and factors likely to affect its environment. These
factors are usually classified as internal forces (also known as micro variables); these are
forces that an organisation may be able to control. External forces (also known as macro
variables) are those forces that they cannot control. The external environment of an
organisation can be analysed by conducting a PESTLE analysis. The acronym PESTLE stands
for Political, Economic Social, Technological, Legal and Environment, and they can influence
an organisation’s strategic direction and performance. For example, a change in attitude to
dieting may lead to an increase in the number of people joining fitness clubs and high
demand for organic food. Also, changes in population can influence demand and supply for
specific products. As the population changes and become more diverse, marketing
organisations may increase their product range in order to appeal to a wider target
audience. Most of the food retailers in the UK have increased their product range to reflect
the diverse culture and needs of their customers.
As you engage in the lesson, you will develop your knowledge and understanding of the
business marketing environment and the impact of these external forces. You will be able to
apply the concepts and theories in a specific business context by conducting an
environmental analysis. The lesson will further provide an opportunity to explore how
cultural factors are likely to influence consumer taste, behaviour and buying patterns. The
topic is covered in detail in chapter 3 of your core text (Kotler et al 2019).
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