Introduction to Marketing Revision Notes

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Chapter 1: Marketing Principles and Society
Chartered Institute of Marketing (CIM): The management process of anticipating, identifying and satisfying customer requirements profitably (CIM, 2001) The American Marketing Association: The activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (AMA, 2007) These definitions stress the importance of considering the customer requirements and to delivering value. The difference between a customer and a consumer, is that the customer physically buys the product, and the consumer actually uses (or eats) it. The Marketing Process

Marketing comprises 4 phases of activity, which is a component in the process of creating value for the customer: 1. The design phase. Companies identify customer and consumer needs, and design the product offering around their needs to create value for the customer. 2. The development phase. Companies develop products, services, and ideas, which meet those needs and deliver the intended value. 3. The delivery phase. Companies distribute those products, services and ideas to their customers and consumers and customers receive the product offering and the value created 4. The determination phase. Companies determine whether or not what customers receive really fits their needs or not and it not, redesign the product until it does fit their needs, and provide the customer with real value (or the organisation goes out of business). This process is cyclical, because products usually begin with the determination phase. There is a feedback loop to determine whether this product suits customers’ needs. These processes are influenced and dependent upon society and are regulated by government. Marketing: Ancient or Brand New?

Marketing as a coherent approach to business has been around since the early 1920s. 1. Production period, 1890s-1920s: focus on physical production and supply, where demand exceeded supply, there was little competition, and the range of products was limited. This phase took place after the industrial revolution. 2. Sales Period, 1920s-1950s: focus on personal selling supported by market research and advertising. This phase took place after WW1. 3. Marketing Period, 1950s-1980s: more advanced focus on customer needs. This phase took place after WW2. 4. Societal Marketing Period, 1980s-present: stronger focus on social and ethical concerns in marketing. Marketing as a discipline has developed through the influence of practitioners, and through developments in the areas of industrial economics, psychology, sociology, and anthropology, (see page 9 for theorists): * Industrial Economics Influences – our knowledge of matching supply with demand comes from the development of microeconomics. * Psychological Influences – our knowledge of consumer behaviour comes principally from psychology, particularly motivational research in relation to consumer attitudes, perceptions, motivations, and information processing. * Sociological Influences – our knowledge of how groups of people behave comes mainly from sociology, with insights into areas, such as how people from similar gender and age groups behave. * Anthropological Influences – our debt to social anthropology increases more as we use qualitative market research approaches such as observation to research consumer behaviour. Differences between Sales and Marketing

Selling: Product push
Marketing: Product pull
* Tends towards long term satisfaction of customer needs * Tends to greater input into customer design of offering (co-creation) * Tends to high focus on stimulation of demand
* Tends towards short-term satisfaction of customer needs. * Tends to lesser input into customer design of offering (co-creation) * Tends to low focus on stimulation of demand, more focused on...
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