Marketing Communication
STUDY UNIT 1
THE MARKETING CONTEXT (Chapter 5 of the prescribed book)
Du Plessis, C. 2013. The marketing context, in Integrated organisational communication, edited by G Angelopulo & R
Barker. Lansdowne: Juta: 147-182.
IN TEXT: (Du Plessis, 2013:xxx) OR Du Plessis (2013:xx) states….
Introduction
Marketing is central to promoting an organisation's products or services. Marketing is a planned and deliberate
effort of organisations to convince their target audience that their products or services are better compared to those
of their competitors. However, it is important to realise that as a marketing manager, you have to devise strategies
to advertise your company's products or services.
1.2 Definitions and history
Various definitions of marketing exist. Over the years these have expanded from a narrow viewpoint that focuses
only on the needs of the organisation to a much broader perspective that also accommodates the needs and wants
of its customers. Marketing is currently also acknowledged as an educational process that includes non-marketers
and which can play an important role in society.
One of the earliest definitions of marketing that acknowledges the point of view of the customer is that of Drucker,
which reads as follows:
Actually marketing is so basic that it is not just enough to have a strong sales department and to entrust marketing
to it. Marketing is not only much broader than selling; it is not a specialised activity at all. It encompasses the entire
business. It is the whole business seen from the point of view of the final result – that is, from the customer’s point of
view. Concern and responsibility for marketing must therefore permeate all areas of the enterprise
Boone and Kurtz’s definition of marketing expands on the emphasis on the customer by also including relationships:
Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas,
goods, services, organisations, and events to create and maintain relationships that will satisfy individual and
organisational objectives.
The working definition of marketing for this book:
“Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large”
Key elements of the 2008 definition of marketing by the American Marketing Association
Activity, processes Marketing is no longer a function – it is also an educational process
Set of institutions Marketing is a science, an educational process and a philosophy, and not just a
management system
Creating Through creative messages, marketing management must endeavour to change
unfavourable conditions in the market place into opportunities
Communicating Marketing communication must include messages and media about the product or
service which, nowadays, must include new media and social media platforms
Delivering Marketing must ensure that promises that have been made to the customer are kept
Exchanging Marketing must persuade customers to buy; in other words, to engage in transactions
Offerings Marketing must facilitate product, price, distribution and marketing communication,
as well as efficient service from people and processes
Value for customers, It is possible to market a product to ‘do good’. Customers, clients, partners and
clients, partners, and society can obtain satisfaction from the resources and abilities of the organisation
society at large. Marketing can promote the well-being of society in the longer term.
,
,The eight stages through which the marketing discipline has evolved:
First Stage Selling (ancient times) (18th and early 19th centuries)
Second Stage Selling, advertising (late 19th century)
Third Stage Selling, advertising, marketing research (20th century)
Fourth Stage Marketing department develops a balanced marketing programme which co-ordinates all the
marketing mix instruments (20th century)
Fifth Stage Market-oriented companies (20th century)
Sixth Stage Cause-related, social and relationship marketing (20th and 21st centuries)
Seventh Stage Online marketing (21st century)
Eighth Stage Social media marketing (21st century)
1.3 Marketing perspectives
The organisation’s mission and vision determine whether it is predominantly sales or market orientated. For
instance, a marketing-orientated organisation may be highly active in sales but be driven by the principles of the
marketing concept as the motivating force behind these sales activities.
There are seven main marketing perspectives.
1.3.1 The production-oriented perspective
Prevalent from the time of the Industrial Revolution until the 1920s
Purported that customers favoured products that were available and that products sold themselves.
Management focused on the production of a few specific products which were mass produced by machines
in factories, and on improving production efficiency.
The major focus was on production, not marketing, and the needs of consumers were seldom taken into
account.
The underlying assumption at this time was that consumers would buy products that were produced at low
cost and in great volumes. However, consumers were relatively poor and unsophisticated, and bought new
products only when they could afford them. Consequently stocks began piling up,
This made management realise the importance of stimulating demand to increase sales. This change in management
thinking led to the sales-orientation era of marketing
1.3.2 The sales-oriented perspective
Prevelant from the early 1930s and into the 1960s
Sales-orientated organisations believed that consumers would buy enough of the organisation’s products
only if a special promotion and selling effort were made.
It was believed that maximising sales volumes was the key to profitability.
It had become more difficult to ascertain the requirements of the market, and organisations began to pay
more attention to their competitors and what they offered.
Advertisements were placed to inform consumers of the availability of products while sales representatives
promoted products through direct personal contact.
The most important characteristics of the sales-orientated perspective include concepts such as sales
volumes, short-term profitability, selling skills, sales promotion, sales techniques and sales tricks.
Organisations were more transaction rather than relationship orientated.
, 1.3.3 The marketing-oriented perspective
Originating in the early 1950s
The marketing-orientated perspective stage is considered to be the foundation of contemporary marketing
philosophy.
It is based on the understanding that the organisation must research the needs of its customers and respond
to them accordingly.
Understanding and addressing these needs was now an activity that was done throughout the organisation
and not only by the marketing department.
Attention was focused more on marketing than selling; the top executive responsible for this activity was
called a marketing manager or a director of marketing.
The marketing era emphasises the sales message; the price; product quality; packaging; methods of
distribution; and which ways were most effective for communicating messages to the target audience
through marketing communication.
It was further characterised by the adoption of the marketing concept as a management philosophy.
1.3.4 The marketing concept
The marketing concept plays a dominant role in business and dates as far back as 1952.
The marketing concept is a direct result of the market-orientation stage.
It is a straightforward and logical idea, which puts the customer at the focal point of overall organisational
activities.
Its emphasis is on consumer orientation, which is a management philosophy that incorporates the marketing
concept into the organisation. The organisation commits to proper planning so as to transform the consumer
orientation philosophy into specific actions.
Strydom (1999: 13) defines the marketing concept as one that ‘holds that achieving organisational goals depends on
determining the needs and wants of the target market and delivering the desired products or services more
effectively and efficiently than competitors’.
In the 1960s the marketing concept was ‘proclaimed’ as the saviour of organisations. As a result it received a great
deal of attention from the academia. It was maintained that if organisations were to adhere to the principles of this
management philosophy, they should strive to satisfy the needs of consumers through a co-ordinated set of
activities that would also allow the organisation to achieve its objectives. The marketing concept therefore requires
an awareness of the wants and needs of the consumer but not at the expense of the goals of the organisation. All
members of the organisation must accept and adhere to the marketing concept in order for it to be successfully
implemented.
The essence of the pure marketing concept is expressed in three core principles, which include a profit orientation, a
consumer orientation and the integration of all organisational activities directed at profitability. These core
principles gave rise to the societal marketing concept – or the social responsibility of marketers – because they were
considered inadequate for addressing consumer needs in the long term.
The various principles of the marketing concept
Marketing concept principle Explanation
Profit orientation Maximisation of profitability is the primary objective of any profit-
seeking organisation but this can only be achieved if consumer needs are
met.
Customer orientation All marketing activities of the organisation should take into account
consumer needs, demands and preferences.
Integration of organisational activities All departments in the organisation must work together to accomplish
marketing objectives. This is best achieved within an IMC approach.
Societal marketing When marketing policies are set, marketers also need to consider
organisational profits, consumer needs and the interests of society.
***This marketing concept is further developed in the following perspectives: cause-related marketing (CRM), social
marketing and relationship marketing.***