Intro to Marketing
Introduction The marketing philosophies (orientations)
® Importance of marketing is to build brands and achieve customer ® Marketing philosophies is the management thinking used by an
satisfaction organisation to guide its marketing efforts. This relates to a philosophy a
® Example is the growth of Capitec which can be attributed to a deep business uses to identify and fulfil the needs of its customers.
understanding of marketing and applying this knowledge effectively. ® Cunningham (2018, p.4) identifies 5 well-known philosophies:
® Using the fundamentals of marketing and applying them effectively will • Production orientation:
lead to satisfied customers and thereby builds successful companies. - emphasis is on the manufacturing capabilities of an
organisation rather than on the customers’ needs and wants.
- Motivation is for the product to be available without
Marketing defined considering the customers needs.
® Kotler and Keller (2016) state that marketing is one of the key - Example: Henry Ford with his T model in the early 1920’s
departments in an organisation as it promotes the vision and mission
thereof. • Sales orientation:
® The aim of marketing is to identify the changing needs and wants of - Emphasizes selling the product to a customer without
customers and create offerings that can satisfy them. considering whether they need it or not.
- Companies use extensive promotional and selling efforts to
Generally accepted definitions of marketing: push the product to customers and increase sales and
& American Marketing Association (2013): ‘the activity, set of profits.
institutions, and processes for creating, communicating, delivering and - Example: insurance companies using telemarketing to sell their
exchanging offerings that have value for customers, clients, partners products.
and society at large.
• Market orientation:
& The Chartered Institute of Marketing (2015): ‘the - To understand the customers’ needs FIRST and THEN
management process responsible for identifying, anticipating and design product offerings to satisfy these needs.
satisfying the customer requirements profitably’ - Fundamentally important to understand customers’ needs in
order to ensure the customer gets the correct perceived
& Kotler (2014): ‘satisfying customers needs and wants through an product to build customer satisfaction.
exchange process’ - Example:
• It is clear marketing revolves around activities aimed at processes • Societal marketing concept:
of exchange, attracting customers, creating value, reaching and - One reason a marketing-orientated firm may choose to
satisfying customers through offering the business and its NOT deliver the benefits sought by consumers s because
products/services to its potential customers/clients. they may not be beneficial to individuals or society
- This is an IMPORTANT modification of the marketing concept
that acknowledges that an organisation exists beyond satisfying
, customers’ needs and wants to meet the firms’ objectives, but The marketing mix
additionally, to preserve/improve individuals and society’s long-
term interests.
- Example: when retailers and restaurants replaced plastic straws with ® Forms the CORE of marketing
more environmentally friendly alternatives, thus focusing on the good ® 7 P elements (4 originally but added 3 services elements)
of society as a whole rather than customer convenience.
• Relationship marketing orientation:
- Developing profound, lasting relationships with individuals and
organisations that directly/indirectly affect the success of the
firms marketing activities.
- Aims to build mutually satisfying long term relationships with key
customers in order to earn and return their business (Kotler
& Keller, 2016).
- Can include developing loyalty programmes (example: eBucks
from FNB, checkers Xstra savings etc.) The motivation behind the
programmes is to have a deeper understanding of customer
behaviour and design offerings catered to their needs.
Customer satisfaction and loyalty
® Customer satisfaction leads to loyalty and ultimately increases
profits.
® Satisfy customer = more likely to come again and generate more
profit for your business.
® Satisfied customer is when their needs and wants are fulfilled.
® Customer satisfaction is also the degree to which an individual’s
needs, wants or demands are fulfilled through consumption or
utilization of a particular company offering.
« NB! – study definitions and difference between needs, wants and
demands and benefits explained by Cunningham (p5-7). In addition,
study Maslow’s hierarchy of needs can be useful in identifying the levels
of needs human beings move through
, Management tasks in marketing
Marketing managers roles and tasks within a business:
• Identification of strengths, weaknesses, opportunities and threats
(SWOT analysis)
• Conducting competitive analysis
• Understanding the target consumers behaviour and segmenting,
targeting and positioning offerings towards these consumers
• Compiling marketing data (marketing research)
• Making relevant product decisions to meet customers’ needs
• Making decisions on pricing strategies
• Making decisions on how to effectively communicate (promote)
the offering
• Making decisions on how the offering will be made available to
customers (place)
Conclusion unit 1:
Today marketing companies have started to look at the needs of different
customers in order to provide value to their chosen target markets.
Consumers needs and wants are constantly changing and companies should
adapt to these changing needs. Marketers can use the marketing mix (7p’s)
to build offerings that satisfy their customers’ needs and in turn build
customer loyalty.
Introduction The marketing philosophies (orientations)
® Importance of marketing is to build brands and achieve customer ® Marketing philosophies is the management thinking used by an
satisfaction organisation to guide its marketing efforts. This relates to a philosophy a
® Example is the growth of Capitec which can be attributed to a deep business uses to identify and fulfil the needs of its customers.
understanding of marketing and applying this knowledge effectively. ® Cunningham (2018, p.4) identifies 5 well-known philosophies:
® Using the fundamentals of marketing and applying them effectively will • Production orientation:
lead to satisfied customers and thereby builds successful companies. - emphasis is on the manufacturing capabilities of an
organisation rather than on the customers’ needs and wants.
- Motivation is for the product to be available without
Marketing defined considering the customers needs.
® Kotler and Keller (2016) state that marketing is one of the key - Example: Henry Ford with his T model in the early 1920’s
departments in an organisation as it promotes the vision and mission
thereof. • Sales orientation:
® The aim of marketing is to identify the changing needs and wants of - Emphasizes selling the product to a customer without
customers and create offerings that can satisfy them. considering whether they need it or not.
- Companies use extensive promotional and selling efforts to
Generally accepted definitions of marketing: push the product to customers and increase sales and
& American Marketing Association (2013): ‘the activity, set of profits.
institutions, and processes for creating, communicating, delivering and - Example: insurance companies using telemarketing to sell their
exchanging offerings that have value for customers, clients, partners products.
and society at large.
• Market orientation:
& The Chartered Institute of Marketing (2015): ‘the - To understand the customers’ needs FIRST and THEN
management process responsible for identifying, anticipating and design product offerings to satisfy these needs.
satisfying the customer requirements profitably’ - Fundamentally important to understand customers’ needs in
order to ensure the customer gets the correct perceived
& Kotler (2014): ‘satisfying customers needs and wants through an product to build customer satisfaction.
exchange process’ - Example:
• It is clear marketing revolves around activities aimed at processes • Societal marketing concept:
of exchange, attracting customers, creating value, reaching and - One reason a marketing-orientated firm may choose to
satisfying customers through offering the business and its NOT deliver the benefits sought by consumers s because
products/services to its potential customers/clients. they may not be beneficial to individuals or society
- This is an IMPORTANT modification of the marketing concept
that acknowledges that an organisation exists beyond satisfying
, customers’ needs and wants to meet the firms’ objectives, but The marketing mix
additionally, to preserve/improve individuals and society’s long-
term interests.
- Example: when retailers and restaurants replaced plastic straws with ® Forms the CORE of marketing
more environmentally friendly alternatives, thus focusing on the good ® 7 P elements (4 originally but added 3 services elements)
of society as a whole rather than customer convenience.
• Relationship marketing orientation:
- Developing profound, lasting relationships with individuals and
organisations that directly/indirectly affect the success of the
firms marketing activities.
- Aims to build mutually satisfying long term relationships with key
customers in order to earn and return their business (Kotler
& Keller, 2016).
- Can include developing loyalty programmes (example: eBucks
from FNB, checkers Xstra savings etc.) The motivation behind the
programmes is to have a deeper understanding of customer
behaviour and design offerings catered to their needs.
Customer satisfaction and loyalty
® Customer satisfaction leads to loyalty and ultimately increases
profits.
® Satisfy customer = more likely to come again and generate more
profit for your business.
® Satisfied customer is when their needs and wants are fulfilled.
® Customer satisfaction is also the degree to which an individual’s
needs, wants or demands are fulfilled through consumption or
utilization of a particular company offering.
« NB! – study definitions and difference between needs, wants and
demands and benefits explained by Cunningham (p5-7). In addition,
study Maslow’s hierarchy of needs can be useful in identifying the levels
of needs human beings move through
, Management tasks in marketing
Marketing managers roles and tasks within a business:
• Identification of strengths, weaknesses, opportunities and threats
(SWOT analysis)
• Conducting competitive analysis
• Understanding the target consumers behaviour and segmenting,
targeting and positioning offerings towards these consumers
• Compiling marketing data (marketing research)
• Making relevant product decisions to meet customers’ needs
• Making decisions on pricing strategies
• Making decisions on how to effectively communicate (promote)
the offering
• Making decisions on how the offering will be made available to
customers (place)
Conclusion unit 1:
Today marketing companies have started to look at the needs of different
customers in order to provide value to their chosen target markets.
Consumers needs and wants are constantly changing and companies should
adapt to these changing needs. Marketers can use the marketing mix (7p’s)
to build offerings that satisfy their customers’ needs and in turn build
customer loyalty.
