Unit 4: Marketing Principles
The Concepts and Process of Marketing
Section Number| Contents| Page Number|
1.0| Marketing definitions| 3|
2.0| The Orientation of Marketing| 4|
3.0| 3.1 The Main Characteristics of Marketing3.2 Benefits and Costs| 56| 4.0| The Marketing Concept| 6|
5.0| 5.1 Macro Environment5.2 Micro Environment5.3 SWOT Analysis| 9,10,11| 6.0| 6.1 Self Evaluation6.3 Time Schedule| 12,13|
7.0| Reference List| 14|
8.0| Bibliography and Webiology| 14|
9.0| AppendicesAppendix One: Macro EnvironmentAppendix One: SWOT analysis of a local martial business| 15,16| Content Page
As there is no agreed definition existing for marketing, one needs to look around at the existing data available in libraries and online or turn to other sources to look for the most appropriate definition. Or a new definition could be created if there isn’t a suitable one. “Marketing is a business activity in which the organization, in order to satisfy the demands of the market, determines the desired products and/or services, familiarizes them with consumers, establishes prices, organizes the sales and influences customers.” (Liu G 2011) The above definition is explaining the core intention of marketing. “Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development.” (Kotler P, et al 2009)1 The above definition points out the importance to determine the right products and/or services to introduce to the market.
“Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders”(AMA, 2011)7 The above definition emphasizes the relationship between the organization and its consumers which will impact the profit and by this the relationship between the company and its stakeholders. Their liaison will affect the relationship between the organization and its customers. They are all dependent on each other for business to succeed. “Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably”.8 This definition emphasises the role of marketing in how to satisfy the consumers whilst still making a profit. Comparing the above definition from Kotler, of the American Marketing Association and of the Chartered Institute of Marketing, it can be suggested that they all are in agreement, that one of the main aims of marketing is to provide the right products and/or services to the right customers or audience. All of the examples above show that although they have a unified approach of how to market products, they have a slightly different perception of what ‘marketing’ is. How to actually put this into action is where they differ. The starting point and the outcome is the same, it is how to actually bring it into effect. The Orientation of Marketing
The marketing developed in three main phases and each of these stages features a different mind set. 1900-1930s Production Era
The era is characterized by the market demand has exceeded supply. In order to meet increasing demand, companies increased production, this was their primary concern. The consumers prime concern was the price, ‘the cheaper, the better’ approach. The general attitude towards marketing was that the good product will sell itself. It was the main approach of this era in Western Europe and in the USA up until about the 1930s-40s. When the Eastern European market opened up in the 1980s the demand for products had a sharp increase. To satisfy this demand businesses had to put all their effort into production. The organizations...