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Outcome1.1comparealternativedefinitionsofmarketing1.2identifythemaincharacteristicsofamarketing-orientedorganization1.3explainthevariouselementsofthemarketingconcept1.4identifyandassessthebenefitsandcostsofamarketingapproachUnit1Conceptandprocessofmarketing1Definitions2Marketingconcept:3Marketingprocessoverview:4Costsandbenefits:1.1comparealternativedefinitionsofmarketingOutcome1Definitions:alternativedefinitionsincludingthoseoftheCharteredInstituteofMarketingandtheAmericanMarketingAssociation,satisfyingcustomers’needsandwants,valueandsatisfaction,exchangerelationships,thechangingemphasisofmarketingalternativedefinitionsMarketingisthemanagementofexchangerelationships.Thisemphasisestheroleofmarketinginrelatingtotheworldoutsidetheorganization.theCharteredInstituteofMarketingtheAmericanMarketingAssociation,Marketingisconcernedwithmeetingbusinessobjectivesbyprovidingcustomersatisfactions.Itstresstheimportanceofthecustomersand,moreparticularly,customerssatisfaction.theCharteredInstituteofMarketingMarketingisthemanagementprocessthatidentifies,anticipatesandsuppliescustomerrequirementsefficientlyandprofitably.Thisdefinitionemphasisesthewidescopeofmarketing,rangingfrominitialidentificatinofcustomerneedsbymeansofresearch,rightthroughtoenventual,profitablesatisfactionofthoseneeds.theAmericanMarketingAssociationMarketingistheprocessofplanningandexecutingtheconception,pricing,promotion,anddistributionofideas,goods,andservicestocreateexchangesthatsatisfyindividualandorganizationalgoals.Thisdefinitionexpandsonthepreviousoneandconsiderswhatisinvolvedinmarketingtosatisfyboththecustomersandthecompany.CommonsanddistinctionsCommonsAlldefinitionsservetodemonstrateusefuldistinctionsbetweenmarketingasathingthatisdoneandmarketingasanapproachtohowsomethingisachieved.Method(shapingandmanagingthemarketingmix)andpurpose(mutualsatisfaction)CommonsanddistinctionsDistinctionsThisemphasisestheroleofmarketinginrelatingtotheworldoutsidetheorganization.Itstresstheimportanceofthecustomersand,moreparticularly,customerssatisfaction.Thisdefinitionexpandsonthepreviousoneandconsiderswhatisinvolvedinmarketingtosatisfyboththecustomersandthecompany.Method(shapingandmanagingthemarketingmix)andpurpose(mutualsatisfaction)satisfyingcustomers’needsandwants,valueandsatisfactionNeedistobeinastateoffeltdeprivationofsomebasicsatisfaction.Wantsaredesiresforspecificsatisfiersofneeds.Demandsarewantsforspecificproductsthatarebackedbyanabilityandwillingnesstobuythem.ValueandSatisfactionValueistheconsumer’sestimateoftheproduct’soverallcapacitytosatisfyhisorherneedsdeterminedaccordingtothelowestpossiblecostofacquisition,ownershipanduse.ValueandSatisfactionValue=Benefits/costs=(Functionalbenefits+emotionalbenefits)/(Monetarycosts+timecosts+energycosts+psychiccosts)exchangerelationshipsRelationshipmarketingseekslong-term,“win-win”transactionsbetweenmarketersandkeyparties(suppliers,customers,distributors)Theultimateoutcomeofrelationshipmarketingisauniquecompanyassetcalledamarketingnetworkofmutuallyprofitablebusinessrelationships.thechangingemphasisofmarketingInternetandDigitalageRapidglobalizationRequiremoreethicalandsocialresponsibilityThegrowthofnon-profitorganization1.2identifythemaincharacteristicsofamarketing-orientedorganization2Marketingconcept:evolutionofmarketing,businessorientations,societalissuesandemergentphilosophies,customerandcompetitororientation,efficiencyandeffectiveness,limitationsofthemarketingconceptProductionConceptProductConceptSellingConceptMarketingConceptConsumerspreferproductsthatarewidelyavailableandinexpensiveConsumersfavorproductsthatofferthemostquality,performance,orinnovativefeaturesConsumerswillbuyproductsonlyifthecompanyaggressivelypromotes/sellstheseproductsFocusesonneeds/wantsoftargetmarkets&deliveringvaluebetterthancompetitorsevolutionofmarketing,businessorientations,TheSocietalMarketingConcept(P32)theorganization’staskistodeterminetheneeds,wants,andinterestsoftargetmarketsandtodeliverthedesiredsatisfactionsmoreeffectivelyandefficientlythancompetitorsinawaythatpreservesorenhancestheconsumer’sandthesociety’swell-being.MarketIntegratedmarketingProfitsthroughcustomersatisfactionCustomerneeds(b)ThemarketingconceptFactoryExistingproductsSellingandpromotionProfitsthroughsalesvolumeStartingpointFocusMeansEnds(a)ThesellingconceptCustomerDeliveredValueCustomersFront-linepeopleMiddleManagementTopManagementTraditionalOrganizationChartCustomer-OrientedOrganizationChartCustomersFront-linepeopleMiddlemanagementTopmanage-mentEvolvingViewsofMarketing’sRolea.MarketingasanequalfunctionFinanceProductionMarketingHumanresourcesb.MarketingasamoreimportantfunctionFinanceHumanresourcesMarketingProductionEvolvingViewsofMarketing’sRolec.MarketingasthemajorfunctionMarketingProductiond.ThecustomerasthecontrollingfactorCustomerEvolvingViewsofMarketing’sRolee.ThecustomerasthecontrollingfunctionandmarketingastheintegrativefunctionCustomerMarketingProductionsocietalissuesandemergentphilosophiesThesocietalmarketingcon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