Chapter 1: Marketing and Marketing management

What is marketing?

• activity to satisfy consumer needs

• Right product, place, price and time (what is right for consumer)

• Marketing Management approach

• Customer orientation

  • customer and/or consumer is key and center

Managerial process

• Analysis

• Planning

• Strategy

• Implementation

• Control

more recently

increasing importance of the role of institutions

• Role of government

• Role of marketing institutions: auctions, cooperatives

Today’s “affluent society”

• quality > quantity

• need for variation

• New products, differentiation, innovation

• Sustainability

The core concepts of marketing

• Needs, wants and demand

• Products

• Value, cost and satisfaction

• Exchange, transactions and relationships

• Markets

• Marketing and marketeers

Need

State of feeling of deprivation (shortage)

Want

desire for specific satisfier

Demand

want backed up by spending power and willingness to pay

Product

• offers satisfaction to a need or a want

• Physical product or service

Value

estimate of the capacity to satisfy a need

Exchange

one way to obtain a product

• two parties

• things of value for both parties

• communication and delivery

• freedom to accept or reject

• belief in appropriateness to deal

Market

• group of people sharing same need/want

• Willing and able to engage in exchange

• Aim: satisfy the need or want

Marketeer

• party seeking exchange more actively

• Counterpart = prospect

Marketing concept vs Selling concept

Possible company orientations towards markets

	Production orientation	Product orientation	Selling orientation	Market orientation
Major attention point	Product availability (low cost, high production)	Product quality (good products)	Selling and promotion efforts	Needs and wants of target market → to deliver satisfaction

The marketing concept

1. Market orientation (consumers’ needs, food companies) < - > (production orientation: produce more, farming businesses)

2. Customer focus

3. Coordinated effort

4. Profit oriented

4 pillars of the marketing concept

1. Market

• As starting point, but a focus is needed

• Choose your target market

2. Customer focus

• Define need from customer viewpoint

• Realise customer retention

• Through providing customer satisfaction

• Maximise the opportunity to complain

3. Coordinated effort

• Involving all marketing functions

• Together with other company departments

4. Profitability

• Make profit to stay in business

• By satisfying needs/wants/customers better than competitors do

==> combine 4 P’s towards optimal results:

• Product

• Price

• Promotion/ Communication

• Place of distribution

Driving forces to adopt the marketing concept

• Sales decline

• Slow market growth

• Changing buying patterns

• Increasing competition

  • food vs non-food expenditures

  • at home vs out of home consumption

Marketing model in this course