Marketing

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Copyright © 2002 by Harcourt, Inc. All rights reserved.

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• Key learning goals:
This topic will mainly discuss the definition of marketing,
the importance of marketing and the difference between
product and customer orientation.
1. State the definition of marketing
2. State the important features of marketing
3. Explain what factors have made marketing so important in
today’s business environment.
4. Explain the difference between market orientation and
product orientation
5. Explain the main advantages of market orientation for a
business?

Marketing (1)
- Definition of marketing
 What is meant by the term marketing?
Marketing is the management of process involved in
identifying, anticipating and satisfying consumer requirements
profitably.
Marketing is the process by which companies create customer
interest in products or services. It generates the strategy that
underlies sales techniques, business communication, and
business development. It is an integrated process through
which companies build strong customer relationships and
create value for their customers and for themselves.
 Differences between marketing and selling or advertising
• Marketing is not the same as selling. Selling is only one of
many marketing functions, or is just one part of the marketing
process.
• Marketing and advertising are not the same thing, either.
Advertising is just one of a number of tactics used by
marketing departments in a business. Other methods include
promotions, such as free gifts or competition activities.

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 Marketing has at least the following
characteristics:
1. Marketing is aimed at finding out consumer
needs and meeting these needs.
2. Marketing must consider profit as its main
objective.
3. Marketing is ongoing all the time. The marketing
process has no start or end (see next slide).
4. Businesses must be prepared to respond to the
consumer reactions and changes all the time.

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Figure 9-1 Ongoing Marketing Process
Analyze and design marketing strategy
Reconsidering consumer reactions Monitor consumer reactions
Adapt the marketing strategy

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• Marketing is playing a more and more
important role in the success of a business. It
can be said that “no marketing means no
business”.
• There are generally some key factors which
have made marketing so important for
businesses today. The factors can be seen as in
the following table:

--IImmppoorrttaannccee ooff mmaarrkkeettiinngg
Table 9-1 Factors leading to the increasing importance of marketing
Factors Explain how
1. economic
growth
Economic growth leads to an increase of consumers’ incomes. So demand
for products and services will be increased. Through marketing,
businesses can promote their new products and services.
2. fashion
Considerable changes in fashion and consumer taste force businesses to
produce more new products and services. Marketing makes it possible for
businesses to reach these changing customers.
3. technology
New technology has helped the business to create new or high quality
products. It is marketing that can makes customers be aware of these new
products.
4. competition
Facing more and more fierce competition, businesses must rely on
marketing strategy to win in the marketplace.

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• An orientation, in the marketing context, relates to a perception or
attitude a firm holds towards its product or service, essentially
concerning consumers and end-users. Throughout history, marketing
has changed considerably as consumer tastes are changing faster.
• The marketing orientation evolved from earlier orientations namely
the production orientation (1950s), the product orientation (1960s)
and marketing orientation (1970s). Recent approaches in marketing
is the relationship marketing with focus on the customer, the
business marketing or industrial marketing with focus on an
organization or institution and the social marketing (1990s) with
focus on benefits to the society. New forms of marketing also use
the internet and are therefore called internet marketing or more
generally e-marketing, online marketing, personalized marketing or
one-to-one marketing.

--PPrroodduucctt oorriieennttaattiioonn aanndd mmaarrkkeett
oorriieennttaattiioonn TThheeoorriieess
 What is product orientation?
• Product orientation means that the business places the main
focus of attention on the production process and the product
itself. More emphasis on technology and quality, but less focus
on meeting consumer needs in the market.
• Many businesses in the past were product orientated when there
were quite few competitors and when they produced the unique
products in the world, such as the radios when just invented.
• However, today there are still some businesses which are
product orientated. For example, the Concorde airplane
company (high technology, but expensive so not many
customers taking their planes).

oorriieennttaattiioonn TThheeoorriieess What is market orientation?
• Market orientation or consumer orientation means that the
business places the needs or requirements of consumers at
the center of the decision-making process. Market
orientation is perhaps the most common orientation used in
contemporary marketing. It involves a firm essentially
basing its marketing plans around the marketing concept,
and thus supplying products to suit new consumer tastes.
• The implication is that businesses should try best to meet
the need of customers in marketing management.
• A market orientation may have some advantages over
product orientation. These advantages are seen in the
following table:

 Some advantages of a market-orientated business
over a product-orientated business:
1. More able to anticipate market changes
2. Respond quickly to market changes
3. More capable of meeting the challenges of new
competition
4. More successful in new product development
5. Able to produce to produce and sell the right product
at the right time and the right place
6. …

 What might a market-orientated business do
in its marketing management?
1. Do market research continuously.
2. Design the product according to the consumers’
needs and wants.
3. Produce the product in the quantities that
consumers want to buy.
4. Set the price of the product which can be
acceptable by most consumers.
5. Respond to consumer changes quickly…

• Questions for your critical thinking:
1. What are the possible shortcomings of a
product-orientated business?
2. What are the possible disadvantages of a
market-orientated business?

Marketing

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