24108 Marketing Foundations Notes

Topics: Marketing, Product management, Brand Pages: 18 (3992 words) Published: May 23, 2015
24108 Marketing Foundations

1. Introduction to Marketing and the Marketing Environment
What is marketing?
“The activity, set of institutions, and processes for creating, communicating, delivering and exchanging offers that have value for customers, clients, partners and society at large” Marketers need to learn what customers, clients, partners and society want Marketers use information, develop new ideas and offer something unique/special Ongoing process

Why study marketing?
Market orientation firms have better performance
Better profits, sales volume, market share, return on investment Marketing drives economic growth/stimulates consumer demand
Every employee is a stakeholder in the success of their organisation

The Marketing Evolution
Changed from:
Trade
Production orientation
Sales orientation (e.g. black vs. blue)
Market orientation (i.e. what colour do you want, and matching the product) Societal market orientation (e.g. to stop consumerism)
Used by small and large, those selling goods and services, private, public, profit and non-for-profit

Marketing Exchange
Mutually beneficial transfer of offerings of value between buyer and seller Two or more parties, each with something of value
All must benefit
Exchange must meet expectations of both parties

What is value?
“A customers overall assessment of the utility of an offering based on perception of what is received and given” Refers to the ‘total offering’

What is the market?
Group of customers with heterogeneous (different) needs and wants (e.g. geographic, demographic, product markets) Customers
Consumers
Clients (customers of non-for-profit)
Partners (all who are involved in activities of exchange process) Society

Stakeholders
Individuals, organisations and groups with a rightful interest in the activities of a business Owners
Employees
Customers (and clients)
Partners
Government

Ethics and Corporate Social Responsibility
Ethics are a set of moral principles that guide attitudes/behaviour Law and regulatory bodies govern the conduct of individuals/organisations Corporate social responsibility are businesses with the obligation to act in the interests of the societies that sustain them Trade Practices Act, ACCC

The Marketing Mix
Set of variables a marketer can exercise control over in creating an offering for exchange 4P’s: Product, Price, Promotion, Place
Services Marketing Mix: People, Process, Physical Evidence

The Marketing Mix: Product
Product: good/service/idea offered to the market for exchange Demand: want the customer has the ability to satisfy
Brand: collection of symbols creating a differentiated image Good: physical offering capable of being delivered
Service: intangible offering that does not involve ownership

The Marketing Mix: Price
Price: amount of money a business demands in exchange for its offering Willingness to pay: prepared to give in return for what they get Must consider:
Production, communication and distribution costs
Required profitability
Partners’ requirements
Competitors prices

The Marketing Mix: Place
Distribution: making the offering available to the customer at the right time/place Logistics: concerned with supply/transport
Supply chain: parties involved in providing all raw materials/services to get a product into the market

The Marketing Mix: Promotion
Promotion: activities that make potential customers/partners/society aware of and attracted to the businesses offering Examples:
Advertising
Loyalty scheme
Sales promotion
Product trials
Product may be already established, modified, new, or a form of information/education

The Marketing Environment
All of the internal and external forces that affect a marketer’s ability to create, communicate, deliver and exchange offerings of value Environmental analysis is breaking the marketing environment into smaller parts to gain a better understanding

Internal
“The parts of the...
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