MARK1012 Lecture Notes - Lecture 1: Marketing Week, Marketing Channel, Retail
Marketing – Week 1 (Chapters 1, 2 & 3)
• Definition: The activity, set of institutions and processes for creating, capturing,
communicating, delivering and exchanging offerings that have value for customers,
clients, partners and society at large
• Marketing is about an exchange – trade of things of value between the buyer and seller
so that each is better off as a result
• Product: Creating Value
i) Services are intangible customer benefits
ii) Goods able to be physically touched
• Price: Capturing Value
i) Includes everything buyer gives up – money, time energy
• Place: Delivering Value
i) All activities necessary to make product available to right customer when the
customer wants it
ii) Marketing channel management (supply chain management) – approaches and
techniques that firms employ to efficiently and effectively integrate suppliers,
manufacturers, warehouses, stores and other firms involved to ensure merchandise
is produced and distributed in right quantity, to the right location at the right time
Minimising system-wide costs and satisfying service levels required by customers
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2
• Promotion: Communicating Value
i) Informs, persuades and reminds potential buyers about a product to influence
opinions and elicit a response
Marketing Can be Performed by Both Individuals & Organisations
• B2C marketing – Business selling to consumer marketing
• B2B marketing – Business selling to business marketing
• C2C marketing – Consumer selling to consumer
• Marketing can impact various stakeholders (supply chain partners & society at large)
Marketing Helps Create Value
• Production-Oriented Era: (1900-1920)
i) Believed that a good product would sell itself
ii) Retail stores considered places to hold merchandise until a consumer wanted it
• Sales-Oriented Era: (1920-1950)
i) Firms dependent on aggressive selling – strong doses of personal selling &
advertising
• Market-Oriented Era: (1950-1990)
i) Focus on what consumers wanted & needed before they designed, made or
attempted to sell goods & services
ii) During this period that firms discovered marketing
• Value-Based Marketing Era: (1990-now)
i) Most successful firms now are market oriented – attempt to discover and satisfy
ustoers eeds ad ats
ii) Good arketig is aout alue reatio – giving customers greater value than what
is offered by the competition
iii) Value – relationship of benefits to costs or, alternatively what you get for what you
give (customers seek fair return for hard-earned money and scarce resources)
iv) Value co-creation – customers act as collaborators in creating product
E.g. creating own investment portfolio with an investment advisor
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