Basic principles of marketing

June 1, 2007 0 comments

the relevance of marketing to a variety of industries and types of organizations, including small and medium-sized enterprises (SMEs)

The Scope and Concept of Marketing

The nature of marketing and the contemporary marketing concept. The origins and development of the marketing concept. The concept of the marketing mix. The relationship of marketing to other functional areas of the business. Societal marketing and consumerism. The nature of social marketing. The application of marketing to non-profit organizations.

Introduction to the Marketing Mix

Product definitions, levels and dimensions

Price role and importance

Promotion nature and role of the promotional mix

Place concept of the distribution channel, alternative channel structures

Inter-relationships between elements of the marketing mix.

Market Segmentation

Concept and rationale. Bases for segmentation in consumer and organisational markets. Criteria for viable segments. Selecting target markets and positioning products. Alternative market coverage strategies.

Buying-Behaviour Analysis

Characteristics of the consumer market. Nature of the consumer buying decision. Psychological and sociological influences on consumer buying behaviour. Models of consumer buying behaviour. Types and characteristics of organisational markets. The organisational buying decision process. Nature and role of the buying centre. Influences on organisational buying behaviour. Comparisons between consumer and organisational buying behavior.

What is marketing?

How are needs satisfied?

What are the functions of marketing?

Who carries out these marketing functions?

 

What is marketing?

Marketing is providing the goods and services when and where they are required to satisfy customer needs or wants (Wisner 1996, p.3).

Core Concepts

Needs – A human need is a state of felt deprivation of some basic satisfaction

Wants – Desires for satisfaction of a particular something

Demands – Wants for specific products that are backed up by an ability to pay

Products – Anything offered to someone to satisfy a need or want

Exchange/Transaction – The act of obtaining a desired product from someone by offering something in return

Consumer sovereignty – in market economies the consumer is ‘king’ by choosing the products that will be made

 

How are needs satisfied?

Utility is the ability of a product to satisfy a need/want

Form utility – physical characteristics of a product that provide satisfaction

Time utility – ability of a good to be available when needed

Place utility – ability of a good to be available when needed

Possession utility – ability of a good to be owned or acquired

Quality and variety – ability of a good to meet human need

 

How has marketing evolved?

Production age – period of heavy demand yet short supply

Selling age – period of over production and excess inventories

Marketing age – period of increased competition and selective demand

 

How does marketing affect our lives?

Effects everyone, marketing is everywhere – billboards, t.v., radio, trucks and magazines are a few examples.

 

What is the marketing concept?

Directing business efforts towards total customer satisfaction

Product quality and customer services

Team effort

 

What are the functions of marketing?

Buying and Selling – primary tasks of marketers

Transportation and Storage – have product available when needed

Standardisation and Grading – standardise products and test quality

Credit – set sensible prices and establish terms of sale

Communication – diffuse ideas to customers and team members

Market Research – learn from research to gauge effectiveness of advertising

 

Who carries out these marketing functions?

Internal

Marketing departments

External (because firms may lack resources or expertise)

Advertising firm – plan and create promotional activities

Public Relations firm – concerned with image of the firm

Market Research firm – conduct surveys to test effectiveness of promotions

Marketing Intermediaries – assure delivery of the product between customer and producer

Posted by Lisa
Categories: Business Entrepreneurship Marketing