This module provides an introduction to the basic concepts of marketing. The premise is that marketing is the delivery of customer value at a profit (this does not necessarily mean excess profit). The process of exchange through which both parties, the company and its customers, benefit is central to this module. As such the concepts of needs, wants and demands are critical, and the concept of a product as that which provides a solution to a need, forms the basis of the discussion about the difference between customer satisfaction and customer value. Understanding customer perceptions of value can aid marketing companies in building good relationships in the belief that profitable transactions will follow. This module also emphasises the need to manage demand. While customer value plays a large role in the success of marketing, the key philosophy of marketing management is to create value within the capabilities of the company. As such, de-marketing may be as much a part of success as marketing in retaining customers. Building profitable customer relationships is the central philosophy in the marketing and societal marketing concepts. This chapter provides a brief introduction to the five marketing management philosophies, production, product, selling, marketing and societal marketing; and introduces some factors that will be significant in the future of marketing such as the growth of non-profit marketing, rapid globalisation, information technology advances and changes to the world economy.
1. Define marketing and outline the steps in the marketing process.
2. Explain the importance of understanding customers and the marketplace, and identify the five core marketplace concepts. Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy.
3. Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return.
4. Describe the main trends and forces that are changing the marketing landscape in this age of relationships.