WEEK 1 – SEMESTER 1 MARKETING MANAGEMENT
WHAT IS MARKETING? THE MARKETING ENVIRONMENT (CHAPTER 1)
Learning objectives
To define marketing To discuss the elements of the ‘marketing
To describe the marketing concept mix’
To understand the importance of customer To differentiate aspects of the marketing
value and satisfaction environment
What is marketing?
“Marketing is the management process responsible for identifying, anticipating and satisfying
customer requirements profitably” – The Charted Institute of Marketing
A production orientation: A business is defined by what it produces, it improves supply side efficiency
issues and profit a result of being good at production
- Based on assumptions of: Demand exceeding supply, little or no competition in or between
markets, and sales techniques, if needed, were for the masses
A marketing orientation: Goes from “what product can we make?” to “what product does the
consumer want us to make?”
- The purpose of the company is to satisfy the customer’s needs and wants
Customer value: A marketing orientated company seeks to create customer value that is superior to
the competition to attract and retain customers (Customer Perceived Value = benefits – sacrifices)
- We need to charge higher than we create
Marketing Mix
Product: Product lifecycles will shorten, and the number of variants expected within and across
product families will rise significantly. There will be an expectation for products/services to be both
‘connected’ and ‘smart’ as a result of technology convergence. Customisation at scale will become the
norm. New products will succeed or fail, quickly
Price: Pricing will become dynamic with cost, inventory and sales data coalescing in real time. This will
mobilise larger numbers of buyers allowing the economically and socially disadvantaged to access
products previously unaffordable in the days of fixed or segmented prices. “Pay what you think it’s
worth” programmes will become more widespread
Place: The switch from retail ‘collection’ to online ‘delivery’ models will increase environmental
damage through vehicle pollution and packaging waste. Analytics, enhanced apps, local delivery hubs
and aerial drones will be the kay to efficient distribution
Promotion: Message, creative content and channel effectiveness will largely remain a mystery to
advertisers and influencers. The big challenge here is that of consumers’ attitudes to their personal
privacy. Sophisticated biometric tracking and behavioural data collection, interpretation and actioning
techniques exist, but so does the ethical frameworks and consumer suspicion of financial/political
exploitation. Regulation of the worst excesses of personal data exploitation will arrive. On the whole
consumers and states will loosen their resistance so that their needs can be more effectively and
more efficiently through technology. Cyber-crime will be a major industry
People: The ‘always on’ nature of the internet which allows massive amounts of data to be accessed
through multiple channels will change how we interact with work, leisure and each other. The mental
health implications of the internet, and the behaviours it empowers, will drive regulation.
Employment rights and taxation regulations will need to adapt to how people work in the growing
‘gig’ economy. Work pressures and opportunities will rise. It is the ability of workers to identify and
adapt that will ensure survival and success
WHAT IS MARKETING? THE MARKETING ENVIRONMENT (CHAPTER 1)
Learning objectives
To define marketing To discuss the elements of the ‘marketing
To describe the marketing concept mix’
To understand the importance of customer To differentiate aspects of the marketing
value and satisfaction environment
What is marketing?
“Marketing is the management process responsible for identifying, anticipating and satisfying
customer requirements profitably” – The Charted Institute of Marketing
A production orientation: A business is defined by what it produces, it improves supply side efficiency
issues and profit a result of being good at production
- Based on assumptions of: Demand exceeding supply, little or no competition in or between
markets, and sales techniques, if needed, were for the masses
A marketing orientation: Goes from “what product can we make?” to “what product does the
consumer want us to make?”
- The purpose of the company is to satisfy the customer’s needs and wants
Customer value: A marketing orientated company seeks to create customer value that is superior to
the competition to attract and retain customers (Customer Perceived Value = benefits – sacrifices)
- We need to charge higher than we create
Marketing Mix
Product: Product lifecycles will shorten, and the number of variants expected within and across
product families will rise significantly. There will be an expectation for products/services to be both
‘connected’ and ‘smart’ as a result of technology convergence. Customisation at scale will become the
norm. New products will succeed or fail, quickly
Price: Pricing will become dynamic with cost, inventory and sales data coalescing in real time. This will
mobilise larger numbers of buyers allowing the economically and socially disadvantaged to access
products previously unaffordable in the days of fixed or segmented prices. “Pay what you think it’s
worth” programmes will become more widespread
Place: The switch from retail ‘collection’ to online ‘delivery’ models will increase environmental
damage through vehicle pollution and packaging waste. Analytics, enhanced apps, local delivery hubs
and aerial drones will be the kay to efficient distribution
Promotion: Message, creative content and channel effectiveness will largely remain a mystery to
advertisers and influencers. The big challenge here is that of consumers’ attitudes to their personal
privacy. Sophisticated biometric tracking and behavioural data collection, interpretation and actioning
techniques exist, but so does the ethical frameworks and consumer suspicion of financial/political
exploitation. Regulation of the worst excesses of personal data exploitation will arrive. On the whole
consumers and states will loosen their resistance so that their needs can be more effectively and
more efficiently through technology. Cyber-crime will be a major industry
People: The ‘always on’ nature of the internet which allows massive amounts of data to be accessed
through multiple channels will change how we interact with work, leisure and each other. The mental
health implications of the internet, and the behaviours it empowers, will drive regulation.
Employment rights and taxation regulations will need to adapt to how people work in the growing
‘gig’ economy. Work pressures and opportunities will rise. It is the ability of workers to identify and
adapt that will ensure survival and success
