MGMT100 Lecture 1: Week 1 detailed
Week 1. What is marketing.
Marketing is the activity, set of institution and processes for creating, communicating,
delivering and exchanging offerings that have value for customers, clients, partners and
society as a whole.
Marketing exchange.
- The notion that people give up something to receive something they would rather
have.
For an exchange to take place 5 conditions need to occur.
1- There must be at least 2 parties
2- Each party must have something of value other party wants.
3- Each party must communicate and deliver the goods sought by parties
4- Each party must be free to accept or reject the offer.
5- Each party must want to exchange.
Marketing orientations
Marketing orientations influence how the organization interacts with you as a customer.
There are 5 marketing orientations:
i. Production orientation: organization focuses on the internal capabilities to
develop and produce better and cheaper products.
ii. Sales orientation: organization focuses on aggressive sales to encourage high
sales volume and high profits.
iii. Marketing orientation: focusing on customer needs an wants and organizational
goals thereby helping to develop the social and economic objectives of the
business.
iv. Relationship marketing orientation: focus is on existing customers and
suppliers. This approach expands the marketing orientation by recognizing that
other parties that complement or help facilitate the exchange are an essential
component of the success of the organization.
v. Societal marketing: embraces the notion of preserving or improving an
individuals or societies long term interests.
Production orientation:
- Focuses on the internal capabilities of the organization rather than on the needs and
desires of the marketplace.
- The only downfall with this orientation is that it doesn’t consider whether the
products the organization produces meets the needs of the marketplace.
Sales orientation:
- Believes that people will purchase products if a more aggressive sales technique is
used and that will result in higher profits being made.
- Intermediaries are encouraged to push manufacturers to make more products.
- This orientation to businesses means selling products and collecting money.
- Downfall is the lack of understanding of the needs and wants of the marketplace
and at times teams lack the understanding of what is important to customers.
Marketing orientation:
