MP22 chapter 1

• Marketing


  • Philosophy/attitude/perspective and management orientation that stresses customer satisfaction
  • Set of activities used to implement philosophy
• Customer satisfaction


  The feeling that a product has met or exceeded the customer's expectations
• Disconfirmation paradigm


  Explains customer satisfaction
• Measuring customer satisfaction


  1. Permanent, ongoing process

  2. Formal research surveys

  3. Analysis of customer complaint data or interviewing staff

  4. Collect information about customers needs from intermediaries – retailers, sales agents and wholesalers
• Herzberg's two-factor model of customer service

  • Hygiene factors (contribute to dissatisfaction)
  • Satisfiers (contribute to satisfaction)
• Benefits of customer satisfaction

  • Lower acquisition cost
  • Base profit
  • Revenue growth
  • Cost savings
  • Referrals
  • Price premium
• Exchange


  Seller and buyer have something of value, can communicate and deliver, are free to accept or reject, and want to deal with each other
• Marketing management philosophies


  • Production orientation
  • Product orientation
  • Sales orientation
  • Consumer orientation (marketing)
  • Societal marketing orientation
  • Relationship marketing orientation
• Sales orientation


  Firm's focus is inward, primary goal is maximum sales volume, uses intensive advertising and promotion, direct product at everybody
• Competitive advantage

  • Service quality
  • Customer value
  • Customer satisfaction
  • Customer-oriented personnel
  • Well-trained employees
  • Employee empowerment
  • Teamwork
• Strategies to establish and maintain a competitive advantage

  • Cost – Shoprite Checkers
  • Quality – Woolworths
  • Flexibility – Taxis
  • Location – Spaza shops
  • Safety – Mercedes Benz
  • Image – Ray Ban
  • Product – Doom
  • Design – Schick
  • Distribution – Pick n Pay
• The marketing process


  1. Understand firm's business and mission; the role of marketing

  2. Set marketing objectives

  3. Collect, analyse and interpret information (SWOT analysis)

  4. Develop marketing strategy

  5. Implement marketing strategy

  6. Design performance measures

  7. Evaluate marketing efforts
• The position and role of marketing in the firm

  • Planning (identify opportunities, set marketing objectives, use marketing instruments)
  • Organising
  • Leading
  • Control