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24108 Marketing Foundations

1. Introduction to Marketing and the Marketing Environment
What is marketing? * “The activity, set of institutions, and processes for creating, communicating, delivering and exchanging offers that have value for customers, clients, partners and society at large” * Marketers need to learn what customers, clients, partners and society want * Marketers use information, develop new ideas and offer something unique/special * Ongoing process

Why study marketing? * Market orientation firms have better performance * Better profits, sales volume, market share, return on investment * Marketing drives economic growth/stimulates consumer demand * Every employee is a stakeholder in the success of their organisation

The Marketing Evolution * Changed from: * Trade * Production orientation * Sales orientation (e.g. black vs. blue) * Market orientation (i.e. what colour do you want, and matching the product) * Societal market orientation (e.g. to stop consumerism) * Used by small and large, those selling goods and services, private, public, profit and non-for-profit

Marketing Exchange * Mutually beneficial transfer of offerings of value between buyer and seller * Two or more parties, each with something of value * All must benefit * Exchange must meet expectations of both parties

What is value? * “A customers overall assessment of the utility of an offering based on perception of what is received and given” * Refers to the ‘total offering’

What is the market? * Group of customers with heterogeneous (different) needs and wants (e.g. geographic, demographic, product markets) * Customers * Consumers * Clients (customers of non-for-profit) * Partners (all who are involved in activities of

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