MARKETING 2:
Marketing orientation – the way that we look at things.
VUCA – volatile, uncertain, complexity, ambiguous
THE MARKETING CONCEPT:
Chapter 1.
Glossary:
Critical marketing – “Involves challenging orthodox views that are central to the core principles of the
discipline”
Customer satisfaction – “A state that results when an exchange meets the needs and expectations of
the buyer”
Marketing – “Individual and organisational activities that facilitate and expedite satisfying exchange
relationships in a dynamic environment through the creation, distribution, promotion and pricing of
goods, services and ideas”
Marketing concept – “The philosophy that an organisation should try to provide products that satisfy
customers’ needs through a coordinated set of activities that also allows the organisation to achieve its
goals”
Marketing era – “The period in which product and aggressive selling were no longer seen to suffice if
customers either did not desire a product or preferred a rival brand, and in which customer needs were
identified and satisfied”
Marketing mix – “The tactical ‘toolkit’ of the marketing programme; product, place/distribution,
promotion, price and people variables that an organisation can control in order to appeal to the target
market and facilitate satisfying exchange"
Marketing opportunity – “One that exists when circumstances allow an organisation to take action
towards reaching a particular group of consumer or business customers”
Marketing orientation - "A marketing-oriented organisation devotes resources to understanding the
needs and buying behaviour of customers, competitors’ activities and strategies, and of market trends
and external forces – now and as they may shape up in the future, inter-functional coordination ensures
that the organisation’s activities and capabilities are aligned to this marketing intelligence"
Marketing process – "Analysis of market conditions, the creation of an appropriate marketing strategy,
the development of marketing programmes designed to action the agreed strategy and, finally, the
implementation and control of the marketing strategy and its associated marketing programmes"
Marketing strategy – “The selection of which marketing opportunities to pursue, analysis of target
market(s), and the creation and maintenance of an appropriate marketing mix that will satisfy those
people in the target market(s)".
Digital marketing - "The use of technology-led channels of communication and selling to manage
customer interaction and provide customer experience in a digitally-connected environment" p.18.
,What is marketing and a marketing orientation?
“Marketing consists of individual and organisational activities that facilitate and expedite satisfying
exchange relationships in a dynamic environment through the creation, distribution, promotion and
pricing of goods, services and ideas.” (Dibb et al., 2016 & 2023)
According to Dibb et al. the following key aspects are important in defining marketing:
• Satisfying customers
• Identifying and maximising marketing opportunities
• Targeting the ‘right’ customers
• Facilitating exchange relationships
• Staying ahead in dynamic environments
• Endeavouring to beat or pre-empt competitors
• Utilising resources/assets effectively
• Increasing market share (in core target markets)
• Enhancing profitability
• Satisfying the organisation’s stakeholders
A marketing-oriented organisation ‘allocates resources to understanding the needs, wants and buying
behaviours of customers, competitors’ activities and strategies, and market trends and external forces’
(Dibb et al., 2016 & 2023). It involves doing so for both the current situation and the future scenario. There
are a few organisations that can claim to be marketing orientated (some are sales-led), but a marketing
orientation is of substantial benefit to an organisation as it enables a better understanding of customers
and helps a business to prepare for external market developments, threats and opportunities.
The marketing process
Continual changes in the marketing environment, competitors and their activities as well as changing
customer needs, expectations, perceptions and buying behaviour mean that marketers must undertake
analyses of these market conditions to ensure that marketing strategies and their associated marketing
programmes are truly effective.
,According to Dibb et al. (2016 & 2023, pg. 11) the marketing process involves analysing market
conditions, creating marketing strategies, developing marketing programmes to execute the strategy
and, finally, implementing and controlling these plans.
The marketing concept and its evolution:
Over the years, marketing has evolved, taking on different forms and philosophies. Dibb et al. (2016 &
2023) presents the evolution of marketing from the industrial revolution to the modern-day marketing
philosophies of the 21st century.
• The production era – A classic example of this philosophy is that of Henry Ford with his Model T,
he said, “You can have any colour you want as long as it’s black”. Ford believed that whatever
they made would be accepted and bought by consumers . How things have changed!
• The sales era – In South Africa today, telemarketers selling insurance or mobile solutions seem
to have this focus. They are not concerned with whether the customer has a need for the product
or not, they only focus on the sale.
• The marketing era – by the early 1950s, businesses found that they first had to determine what
customers want and then produce it, rather than simply making products. As more organisations
realised the importance of identifying customers’ needs, businesses entered the marketing era
(era of customer orientation). This gave birth to the marketing concept, which is a way of
thinking, a management philosophy about an organisation’s entire range of activities. The
marketing concept states that an organisation should try to provide products and services that
satisfy customers’ needs through a coordinated set of activities that also allows the organisation
to achieve its goals (Dibb et al. 2016 , 2023). Companies track customer needs and wants and
provide products to match these needs, for example, Apple and Samsung are using this strategy
to produce products customers want.
• The relationship-marketing era – many marketers now believe long-term brand loyalty is an
essential goal, rather than focusing only on a single transaction with a customer. Relationship
marketing still emphasises the targeted customer, but in order to build long-term relationships
the emphasis is on ‘looking after’ the customer once the initial business has been
won. Relationship marketing refers to ‘long-term, mutually beneficial arrangements in which
both the buyer and seller focus on value enhancement through the creation of more satisfying
exchanges’ (Dibb et al., 2016 & 2023). For example, to enhance relationships with its customers,
FNB sends congratulatory birthday messages to its customers. The digital era – the internet has
brought about a completely new set of behaviours, both for consumers and brands to engage,
communicate, learn and share opinions. Multi-channel marketing, mobile marketing, social
media, big data and customer relationship management (CRM) processes are some of the main
consequences.
• Customer-to-customer (C2C) communication about brands, products and experiences based
on social media, taking much control over brand messaging away from marketers. For example,
websites like Bid or Buy and have created markets for customers to interact, not to mention the
myriad of social media networking sites.
• Other developments – The uptake of the marketing process and toolkit for non-commercial
purposes has also been a recent phenomenon, with social marketing encouraging positive
behavioural and attitude changes around health, well-being and sustainability. There has also
been the growth of what has come to be termed critical marketing. This questions whether the
, actions of marketers are truly acceptable, beneficial or for the greater good. Examples are
organisations promoting the practise of safe sex to reduce HIV infection among the youth.
What is marketing?
Marketing consists of individual and organisational activities that facilitate and expedite satisfying
exchange relationships in a dynamic environment through the creation, distribution, promotion and
pricing of goods, services and ideas.
The essential concepts of marketing:
Some of the essential concepts of marketing (and the marketing process) are mentioned in Dibb et al.
(2023, pg 21-28). Below is a summary of these concepts Please refer to the textbook for more detail.
Marketing orientation – the way that we look at things.
VUCA – volatile, uncertain, complexity, ambiguous
THE MARKETING CONCEPT:
Chapter 1.
Glossary:
Critical marketing – “Involves challenging orthodox views that are central to the core principles of the
discipline”
Customer satisfaction – “A state that results when an exchange meets the needs and expectations of
the buyer”
Marketing – “Individual and organisational activities that facilitate and expedite satisfying exchange
relationships in a dynamic environment through the creation, distribution, promotion and pricing of
goods, services and ideas”
Marketing concept – “The philosophy that an organisation should try to provide products that satisfy
customers’ needs through a coordinated set of activities that also allows the organisation to achieve its
goals”
Marketing era – “The period in which product and aggressive selling were no longer seen to suffice if
customers either did not desire a product or preferred a rival brand, and in which customer needs were
identified and satisfied”
Marketing mix – “The tactical ‘toolkit’ of the marketing programme; product, place/distribution,
promotion, price and people variables that an organisation can control in order to appeal to the target
market and facilitate satisfying exchange"
Marketing opportunity – “One that exists when circumstances allow an organisation to take action
towards reaching a particular group of consumer or business customers”
Marketing orientation - "A marketing-oriented organisation devotes resources to understanding the
needs and buying behaviour of customers, competitors’ activities and strategies, and of market trends
and external forces – now and as they may shape up in the future, inter-functional coordination ensures
that the organisation’s activities and capabilities are aligned to this marketing intelligence"
Marketing process – "Analysis of market conditions, the creation of an appropriate marketing strategy,
the development of marketing programmes designed to action the agreed strategy and, finally, the
implementation and control of the marketing strategy and its associated marketing programmes"
Marketing strategy – “The selection of which marketing opportunities to pursue, analysis of target
market(s), and the creation and maintenance of an appropriate marketing mix that will satisfy those
people in the target market(s)".
Digital marketing - "The use of technology-led channels of communication and selling to manage
customer interaction and provide customer experience in a digitally-connected environment" p.18.
,What is marketing and a marketing orientation?
“Marketing consists of individual and organisational activities that facilitate and expedite satisfying
exchange relationships in a dynamic environment through the creation, distribution, promotion and
pricing of goods, services and ideas.” (Dibb et al., 2016 & 2023)
According to Dibb et al. the following key aspects are important in defining marketing:
• Satisfying customers
• Identifying and maximising marketing opportunities
• Targeting the ‘right’ customers
• Facilitating exchange relationships
• Staying ahead in dynamic environments
• Endeavouring to beat or pre-empt competitors
• Utilising resources/assets effectively
• Increasing market share (in core target markets)
• Enhancing profitability
• Satisfying the organisation’s stakeholders
A marketing-oriented organisation ‘allocates resources to understanding the needs, wants and buying
behaviours of customers, competitors’ activities and strategies, and market trends and external forces’
(Dibb et al., 2016 & 2023). It involves doing so for both the current situation and the future scenario. There
are a few organisations that can claim to be marketing orientated (some are sales-led), but a marketing
orientation is of substantial benefit to an organisation as it enables a better understanding of customers
and helps a business to prepare for external market developments, threats and opportunities.
The marketing process
Continual changes in the marketing environment, competitors and their activities as well as changing
customer needs, expectations, perceptions and buying behaviour mean that marketers must undertake
analyses of these market conditions to ensure that marketing strategies and their associated marketing
programmes are truly effective.
,According to Dibb et al. (2016 & 2023, pg. 11) the marketing process involves analysing market
conditions, creating marketing strategies, developing marketing programmes to execute the strategy
and, finally, implementing and controlling these plans.
The marketing concept and its evolution:
Over the years, marketing has evolved, taking on different forms and philosophies. Dibb et al. (2016 &
2023) presents the evolution of marketing from the industrial revolution to the modern-day marketing
philosophies of the 21st century.
• The production era – A classic example of this philosophy is that of Henry Ford with his Model T,
he said, “You can have any colour you want as long as it’s black”. Ford believed that whatever
they made would be accepted and bought by consumers . How things have changed!
• The sales era – In South Africa today, telemarketers selling insurance or mobile solutions seem
to have this focus. They are not concerned with whether the customer has a need for the product
or not, they only focus on the sale.
• The marketing era – by the early 1950s, businesses found that they first had to determine what
customers want and then produce it, rather than simply making products. As more organisations
realised the importance of identifying customers’ needs, businesses entered the marketing era
(era of customer orientation). This gave birth to the marketing concept, which is a way of
thinking, a management philosophy about an organisation’s entire range of activities. The
marketing concept states that an organisation should try to provide products and services that
satisfy customers’ needs through a coordinated set of activities that also allows the organisation
to achieve its goals (Dibb et al. 2016 , 2023). Companies track customer needs and wants and
provide products to match these needs, for example, Apple and Samsung are using this strategy
to produce products customers want.
• The relationship-marketing era – many marketers now believe long-term brand loyalty is an
essential goal, rather than focusing only on a single transaction with a customer. Relationship
marketing still emphasises the targeted customer, but in order to build long-term relationships
the emphasis is on ‘looking after’ the customer once the initial business has been
won. Relationship marketing refers to ‘long-term, mutually beneficial arrangements in which
both the buyer and seller focus on value enhancement through the creation of more satisfying
exchanges’ (Dibb et al., 2016 & 2023). For example, to enhance relationships with its customers,
FNB sends congratulatory birthday messages to its customers. The digital era – the internet has
brought about a completely new set of behaviours, both for consumers and brands to engage,
communicate, learn and share opinions. Multi-channel marketing, mobile marketing, social
media, big data and customer relationship management (CRM) processes are some of the main
consequences.
• Customer-to-customer (C2C) communication about brands, products and experiences based
on social media, taking much control over brand messaging away from marketers. For example,
websites like Bid or Buy and have created markets for customers to interact, not to mention the
myriad of social media networking sites.
• Other developments – The uptake of the marketing process and toolkit for non-commercial
purposes has also been a recent phenomenon, with social marketing encouraging positive
behavioural and attitude changes around health, well-being and sustainability. There has also
been the growth of what has come to be termed critical marketing. This questions whether the
, actions of marketers are truly acceptable, beneficial or for the greater good. Examples are
organisations promoting the practise of safe sex to reduce HIV infection among the youth.
What is marketing?
Marketing consists of individual and organisational activities that facilitate and expedite satisfying
exchange relationships in a dynamic environment through the creation, distribution, promotion and
pricing of goods, services and ideas.
The essential concepts of marketing:
Some of the essential concepts of marketing (and the marketing process) are mentioned in Dibb et al.
(2023, pg 21-28). Below is a summary of these concepts Please refer to the textbook for more detail.