Chapter 1 intro to E marketing

Marketing Definitions & Core Philosophy

• Kotler’s Definition: Marketing is a "social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others."

  • Puts exchange of value at the center.

• Process Orientation

  • Matches customer wants & needs with an organisation’s ability to satisfy them.

  • Conducted through the exchange of value between customer and firm.

  • Primary organisational revenue-generating interface.

• Modern Philosophy (Philip Kotler, 21st century)

  • Move from “telling & selling” to creating value by interacting and co-working with customers.

  • Requires a balanced, planned & integrated use of the marketing mix.

Marketing Trends Driving Importance

• Smart Insights (2017) identifies three accelerators:

  • Increasing competition

  • Greater consumer choice & consumer power

  • Technology & wider access to information

What Gets Marketed?

• Tangible & Intangible market entities (Chiefmartec.com):

  • Goods

  • Services

  • Experiences

  • Events

  • Persons

  • Places

  • Properties

  • Organisations

  • Information

  • Ideas

Core Activities of Marketers

• S-T-P Framework:

  • Segmenting the overall market.

  • Targeting chosen segments.

  • Creating & communicating value (Positioning + tactical mix).

Characteristics of a Marketing-Oriented Organisation

• Customer satisfaction as a central focus.

• Products defined by customer needs, not by production capability.

• Marketing activities integrated across the whole organisation (no silo).

• Marketing intelligence actively collected, valued, shared.

Marketing as a Matching Process

• Diagrammatically:
  \text{ORGANISATION RESOURCES} \longleftrightarrow \boxed{\text{MATCHING}} \longleftrightarrow \text{CUSTOMER WANTS & NEEDS}

• Matching is constrained/enabled by the Marketing Environment.

Macro-Environment Factors (PEST + N)

• Economic, Political, Socio-cultural, Technological, Legal, Natural.

Micro-Environment Factors

• Organisation itself.

• Value-chain partners & intermediaries.

• Suppliers.

• Customers.

• Competitors.

• Publics / Stakeholders (not directly involved).

The Marketing Mix (Four Ps)

• Product – what to make and sell; features, design, quality, branding.

• Price – the charged amount; discounts, allowances, payment period.

• Place – distribution channels, coverage, locations, logistics.

• Promotion – advertising, personal selling, sales promotion, publicity.

Four-P Example – iPhone (Altimeter Consulting, 2014)

• Product: phone + iPod + web browser; 3G broadband; innovative design.

• Price: depends on tariff & model, range 350\text{–}750 (GBP); trend downward.

• Place: O2 exclusive (locked); unlocked via online retailers.

• Promotion: web & TV ads, retail presence, extensive PR, product placement.

Goods vs Services Marketing

• Goods Marketing

  • Durable goods: physical, used over extended time.

  • Non-durable goods: consumables (non-metal/wood/hard-plastic).

• Services Marketing (Smart Insights 2010)

  • Rented-goods services: car lease, hotel room, equipment rental.

  • Owned-goods services: repair, maintenance, lawn/home care.

  • Non-goods services: advice, tutoring, legal & accounting.

Marketing Planning Process

• A series of coordinated activities that set marketing objectives & craft strategies to achieve corporate mission & goals.

Marketing Audit – Three Analytic Layers

1. Macro environment → PEST analysis.

2. Industry/Micro → Porter’s Five Forces.

3. Organisation/SBU → SWOT analysis (often mapped to each “P”).

• Audit tools recap:

  • \text{PEST}

  • \text{Porter’s 5 Forces}

  • \text{SWOT}

Segmentation, Targeting & Positioning (STP)

Market Segmentation

• Effort to identify & categorise customers/markets by shared traits.

• Four primary consumer segmentation bases:

  1. Geographic – nations, states, regions, cities.

  2. Demographic – age, gender, family size/life-cycle, income.

  3. Psychographic – social class, lifestyle, personality.

  4. Behavioral – occasions, benefits sought, usage, response.

Market Targeting

• Evaluate segments & focus resources on those with high potential to respond (country, region, group of people).

Positioning

• Occupying a clear, distinctive place in the consumer’s mind vs competitors using:

  • Attribute/Benefit

  • Quality & Price

  • User or Usage Occasion

  • Competitive frame of reference

Consumer Behaviour Framework

• Influencing factors:

  • Psychological – motivation, perception, learning/memory, beliefs, attitudes, personality, self-concept.

  • Personal – age/life-cycle, occupation, education, economic situation, lifestyle.

  • Social – household type, reference groups, roles, status.

  • Cultural – culture, subculture, social class.

  • Environmental – economic, technological, political, prior experiences.

• Buyer Decision Process → shapes responses such as product category, brand, reseller, timing, amount, and repurchase interval.

Buying Decision Roles (can involve up to five distinct actors)

1. Initiator – first suggests idea.

2. Influencer – shapes evaluation/criteria.

3. Decider – has final authority to choose.

4. Buyer – executes purchase.

5. User – ultimately consumes/uses.

ADDITIONAL:

Ethical, Philosophical & Practical Implications

• Value creation over mere selling implies long-term relationship orientation & ethical respect for consumer welfare.

• Consumer power & information access heighten the need for transparency and trust.

• Integrated intelligence sharing encourages cross-functional collaboration and data-driven decision making.

Numerical & Statistical References (explicitly mentioned)

• Marketing mix price illustration: iPhone range 350\text{–}750 GBP.

• Contemporary era reference: 21^{st} century marketing shift.

Connections to Foundational Models

• STP builds on the classical Four Ps, making targeting & positioning explicit.

• Porter’s Five Forces links marketing to strategic management & industry structure.

• PEST analysis extends macro-environment scanning from corporate strategy into day-to-day marketing planning.