Definitions Of Marketing

Submitted By MatthewLam1
Words: 1296
Pages: 6

What is marketing?
Consists of individual and organisational activities that facilitate and expedite satisfying exchange relationships in dynamic environments through creation, distribution, promotion and pricing of goods, services and ideas (Dibb, et al 2006)
Societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others (Kotler 2003)
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)
Engel’s law: as income increases miscellaneous spend increases

Key Factors

Orientation | Focus | Characteristics and aims | Example | Production (1890s-1920s) | Manufacture | Rapid productionCost reduction and controlProfit through volume and sales | No specialisation, small product range | Sales (1920s-1950s) | Selling supported by market research and advertising | Profit thru’ volumeAggressive sales and promotionQuick turnover of high volume | Personal selling | Marketing (1950s) | Customer needs | Integrated marketingNeeds defined before productionProfit through satisfactionAfter ww2 | Specialise | Societal (1980s onwards)Information revolution | Social and ethical concerns | Consumer powerSocial media, 24hr | FairtradeCarbon footprinted walkers crispM&S plan A | Traditional | Relationship | Customer acquisitionSingle transactionSaleSatisfy company | Customer retentionContinuous relationshipCustomer loyaltySatisfy several stakeholders |

Business Orientation
Production-low development cost
Product- Presentation: push or pull
Selling-communication, persuasion
Market-product based on information, research
Societal- society demands

Influences on marketing

Industrial Economics | Microeconomics-perfect competitionMatching supply and demand (Marketing Mix)Income distribution, scale, monopoly, competition, finance facilities (Bartels 1951) | Psychological | Motivational research-consumer attitudes, perceptions, motivations, information processingUnderstanding persuasion, consumer personality, customer satisfactionPlace self in mindset of customer | Sociological | People group behaviour (demographic)Social positionsMotivationCultureInformed market research | Anthropological | Qualitative approachesEthnology and observation |

Difference between Sales and marketing

Sales-push-distribution incentives-not long term customer benefit stimulate supply-less customer input
Marketing-pull customer demand-stimulate demand-long term satisfaction

Marketing as an exchange
Customer input
Satisfy market needs
Three types exchanges, dyadic
Fire service protects the public; require support for funding
Retailer offers goods and customer service customer pays
Manufacturer supplies retailer who purchases goods through credit
Market orientation
How close should the company be to the customer
Marketing orientation—emphasise importance of marketing dedicated department, member on board
Market orientation focus on customer needs;
Customer orientation-superior value- continuously developing product and service-customer satisfaction very important
Competitor orientation-understand competitor strengths and weaknesses- capabilities and strategies
Inter-functional coordination- all functions cooperate for long term profit
Relationship Marketing
Integration of customer service, quality assurance and marketing (payne 1993)
Increases purchase over time
Easier promotion
Premium price
Develop mutually satisfying relationship
Resources and opportunities to customers-superior to alternatives
High standard of corporate values
Partnerships-avoid taking commercial advantage
Shift to relationship marketing from transaction marketing
The time perspective of marketing differs depending on where on the continuum a firm is. As transaction