1. The Marketing Context
1. Definition of marketing
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’.
(American Marketing Association, 2009)
Key elements of the 2008 definition of marketing by the American Marketing Association (2009):
Activity, processes Marketing is no longer a function – also an educational process
Set of institutions Marketing is a science, and educational process and a philosophy, and not
just a management system
Creating Through creative messages, marketing management must try to change
unfavourable conditions in market place into opportunities
Communicating Marketing communication must include messages and media about
product or service which, must include new media and social media
platforms
Delivering Marketing must ensure that promises that have been made to customer
are kept
Exchanging Marketing must persuade customers to buy; 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, clients, partners and society can obtain satisfaction from
customers, clients, resources and abilities of organisation
partners, and Marketing can promote well-being of society in the long term
society at large
2. Understanding the relationship marketing perspectives.
o Relationship marketing is the commercial activity between economic partners, service
providers and consumers aiming to create, maintain and terminate these relationships
to achieve mutually beneficial objectives based on profit and trust between these
parties.
o Purpose of relationship marketing is establish, maintain and enhance relationships with
customers and other partners at a profit, so that objectives of parties involved are met.
This is achieved by mutual exchange and fulfilment of promises'.
o Relationship marketing objectives:
Create, maintain and build existing consumer relations through focused and
cost-effective solutions based on consumers’ needs
Expand relationships through existing consumers
Ensure consumers are satisfied by offering collective products and services that
address their needs
Offer services at a lower cost by decreasing operational and communication
costs through an integrated approach
Enhance corporate brand organisation through strategic and tactical
relationship building
Develop or use existing databases to integrate relationship marketing and
interactions with consumers in order to ensure consumer retention, extension
and selection
, o Following elements are crucial to relationship marketing (Brink & Berndt 2004, Kitchen
1999):
Trust: Trust is crucial not only to marketing, but also to personal relationships.
Therefore, it is equally important in relationship marketing. Trust is necessary
for perceptions of seller and buyer to receive a fair division of available
resources. Three points are crucial to trust: trust is about equity; looking ahead,
using past and present behaviours to inform an understanding of what might
occur in future; and trust is about allocation of scarce resources such as time,
money and product benefits. Trust reduces conflict and increases satisfaction
and confidence between partners. Trustworthiness comprises two elements:
credibility and benevolence. Credibility is belief that a partner has expertise to
perform a task effectively and reliably, and benevolence is the belief that a
partner's intentions and motivations will be beneficial to both parties when
circumstances arise.
Commitment: A desire to maintain a valued relationship. Commitment to a
partnership implies that the partner is prepared to make an effort for
relationship and avoid other partners in order to continue partnership's
existence. Commitment also implies a degree of vulnerability.
Social support: Provides benefits such as reduction and control of uncertainty,
an increase in self-acceptance, and social integration within larger community.
Social support can also be key factor in development of relationships between
organisations and customers.
3. Understand the nature of cause related marketing perspectives.
4. Different steps for marketing plans: you should understand all the steps of a
marketing plan and be in a position to apply to the given scenarios
o Step 1: Situation analysis
Current position/product Market analysis should be confirmed by means of proper market research.
Internal and external environments should be analysed using SWOT analysis (to
determine organisation’s strengths, weaknesses, opportunities and threats)
Is product or service adding value to customer?
What is sales history of product?
Target market Who are the customers?
Where are customers residing?
What is their demographic profile?
Competition What similar products or services are being offered by competition?
Who are the competitors?
o Step 2: Marketing opportunities
Present markets Where is product currently being sold?
Buyers Who are the buyers?
Growth markets Which markets are unexplored and can add growth of product or
service?
Product service development and Can product be changed to better suit needs of customer?
innovation Is there an opportunity for better service delivery?
1. Definition of marketing
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’.
(American Marketing Association, 2009)
Key elements of the 2008 definition of marketing by the American Marketing Association (2009):
Activity, processes Marketing is no longer a function – also an educational process
Set of institutions Marketing is a science, and educational process and a philosophy, and not
just a management system
Creating Through creative messages, marketing management must try to change
unfavourable conditions in market place into opportunities
Communicating Marketing communication must include messages and media about
product or service which, must include new media and social media
platforms
Delivering Marketing must ensure that promises that have been made to customer
are kept
Exchanging Marketing must persuade customers to buy; 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, clients, partners and society can obtain satisfaction from
customers, clients, resources and abilities of organisation
partners, and Marketing can promote well-being of society in the long term
society at large
2. Understanding the relationship marketing perspectives.
o Relationship marketing is the commercial activity between economic partners, service
providers and consumers aiming to create, maintain and terminate these relationships
to achieve mutually beneficial objectives based on profit and trust between these
parties.
o Purpose of relationship marketing is establish, maintain and enhance relationships with
customers and other partners at a profit, so that objectives of parties involved are met.
This is achieved by mutual exchange and fulfilment of promises'.
o Relationship marketing objectives:
Create, maintain and build existing consumer relations through focused and
cost-effective solutions based on consumers’ needs
Expand relationships through existing consumers
Ensure consumers are satisfied by offering collective products and services that
address their needs
Offer services at a lower cost by decreasing operational and communication
costs through an integrated approach
Enhance corporate brand organisation through strategic and tactical
relationship building
Develop or use existing databases to integrate relationship marketing and
interactions with consumers in order to ensure consumer retention, extension
and selection
, o Following elements are crucial to relationship marketing (Brink & Berndt 2004, Kitchen
1999):
Trust: Trust is crucial not only to marketing, but also to personal relationships.
Therefore, it is equally important in relationship marketing. Trust is necessary
for perceptions of seller and buyer to receive a fair division of available
resources. Three points are crucial to trust: trust is about equity; looking ahead,
using past and present behaviours to inform an understanding of what might
occur in future; and trust is about allocation of scarce resources such as time,
money and product benefits. Trust reduces conflict and increases satisfaction
and confidence between partners. Trustworthiness comprises two elements:
credibility and benevolence. Credibility is belief that a partner has expertise to
perform a task effectively and reliably, and benevolence is the belief that a
partner's intentions and motivations will be beneficial to both parties when
circumstances arise.
Commitment: A desire to maintain a valued relationship. Commitment to a
partnership implies that the partner is prepared to make an effort for
relationship and avoid other partners in order to continue partnership's
existence. Commitment also implies a degree of vulnerability.
Social support: Provides benefits such as reduction and control of uncertainty,
an increase in self-acceptance, and social integration within larger community.
Social support can also be key factor in development of relationships between
organisations and customers.
3. Understand the nature of cause related marketing perspectives.
4. Different steps for marketing plans: you should understand all the steps of a
marketing plan and be in a position to apply to the given scenarios
o Step 1: Situation analysis
Current position/product Market analysis should be confirmed by means of proper market research.
Internal and external environments should be analysed using SWOT analysis (to
determine organisation’s strengths, weaknesses, opportunities and threats)
Is product or service adding value to customer?
What is sales history of product?
Target market Who are the customers?
Where are customers residing?
What is their demographic profile?
Competition What similar products or services are being offered by competition?
Who are the competitors?
o Step 2: Marketing opportunities
Present markets Where is product currently being sold?
Buyers Who are the buyers?
Growth markets Which markets are unexplored and can add growth of product or
service?
Product service development and Can product be changed to better suit needs of customer?
innovation Is there an opportunity for better service delivery?
