The Nature of Marketing

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The Nature of Marketing

• Marketing for Engineers
• ELE 41EMT ELE 31MEL

Lecture 1 28 February, 2005
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The Customer
There is only one Boss - the customer. And he can
fire everybody in the company from the chairman
on down, simply by spending his/her money
somewhere else. Sam Walton
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Marketing Affects Our Daily Lives

• What role does the customer play in the marketing
  system?
• What role does advertising play in increasing
  consumption of everyday products?
• What is behind brand names and company logos?

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Marketing Activities

• Selling,
• Advertising,
• Retailing

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Marketing - What is it?

• For most people, the word Marketing has a
  business connotation.
• Marketing is seen by some people as selling,
  advertising, or retailing (marketing activities).
• At the broadest level, the function of marketing
  activities is to bring buyers and sellers
  together.

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Not-for-Profit Organisations

• Who are non-for-profit organisations?
• What is the nature of their marketing?
• Marketing involves an exchange process, what is
  being exchanged?

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Definition of Marketing
Marketing is the process of planning and
executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to
create exchanges that will satisfy individual and
organisational objectives. (Old 1985) Marketing
is an organizational function and a set of
processes for creating, communicating and
delivering value to customers and for managing
customer relationships in ways that benefit the
organization and its stakeholders. (New
2004) The American Marketing Association
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An alternative definition

• If the circus is coming to town and you paint a
  sign saying, "Circus is coming to Fairgrounds
  Sunday," that's Advertising.
• If you put the sign on the back of an elephant
  and walk him through town, that's a Promotion.
• If the elephant walks through the Mayor's flower
  bed, that's Publicity.
• If you can get the Mayor to laugh about it,
  that's Public Relations.
• And, if you planned the whole thing, that's
  Marketing! --Author Unknown

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Relationship Marketing

• Relationship marketing (management) activities
  are aimed at building long-term relationships
  with parties that contribute to the companys
  success, especially customers.
• Marketing is an activity involved in getting and
  keeping customers.

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What is a Market
A market is a group of potential customers for a
particular product who are willing and able to
spend money or exchange other resources to obtain
the product.
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The Marketing Mix

• Product
• Place
• Promotion
• Price

The Four Ps
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Product

• Definition of a product
• Tangible goods
• Services
• Intangible ideas
• Total product, complete offering

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Place

• How do goods get to customers?
• How quickly can customers get goods?
• In what condition do goods arrive?
• Distribution activities
• Wholesalers and retailers

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Promotion

• Communication with customers
• Methods of communication with customers
• Advertising, personal selling, publicity, and
  sale promotion
• Promotional mix is a combination of communication
  tools.

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Price

• Price is what is exchanged for the product.
• Customer buys product with cash.
• Company buys customers cash with product.
• Price for not-for-profit situation may be
  expressed as volunteered time, votes, or
  donations.
• Process of price determination.

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Thanks for your attention