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Fundamental Concepts

Defining Marketing
Developed by:

Stephen P. DAlessandro
M.A. (Mrktg), B.A. (Hons.) Bus. Mang, FIM, MCIM, TEP, MIOD

Clive Scerri
B.Com. (Hons.), MIM, MAWOP

This module has been level-rated at MQF Level 5 by the Malta Qualifications Council according to the
European Credit System for Vocational Education & Training - ECVET.

The Marketing Process

The aim of marketing is to make selling
unnecessary. - Peter Drucker
Understand the
marketplace
and customer
needs and
wants

Design a
Client-drawn
marketing
strategy

Construct an
integrated marketing
programme that
delivers superior
value

Build profitable
relationships and
create Client
delight

Capture value
from customers
in return

Source: Philip Kotler, Armstrong G. 2010. Principles of Marketing. Pearson. Pg 29

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The Marketing Process

The first step is to analyse the current marketplace
Understanding what people want is essential to
begin a successful marketing campaign
Only a few companies have been able to
anticipate their Client wants e.g. Apple
This is thanks to the profound understanding
that they have of their Client base
This is where the profits lie, as by the time
competitors catch up, the Company comes up
with new products
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The Marketing Process

The first step is to analyse the current marketplace
(cont.)
It is possible to find a potential niche for a
product or service, even without the research
resources of multinational companies like Apple
What is a niche market? It is simply a subset, a
particular product or service in the market
Sometimes it simply requires conducting
research about competitors and similar items
currently available on the market
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The Marketing Process

The first step is to analyse the current marketplace
(cont.)
After identifying these factors, a plan is required
to launch the good or service
Sales methods, franchising, and partnerships
are all aspects of the product launch that need
to be looked into for an effective launch

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The Marketing Process

The next step is to draft a strategic plan within
which the whole operation of the business can be
developed
It establishes the manner in which the products
are to be positioned on the market and
marketed to the different market niches
Every business requires a clear vision of what it
seeks to achieve and management wants to
achieve it - the mission

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The Marketing Process

The next step is to draft a strategic plan within which
the whole operation of the business can be
developed

The vision would then need to be further split into

tangible goals and objectives with clear metrics to
monitor progress
Depending on the time and resource constraints,
this strategy will often involve the breaking down
target audiences into smaller groups to better
understand the various differences
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The Marketing Process

The next step of the marketing process is to focus
on the creation of value for both the clients and the
company

Defining value is an arduous task

A simplistic explanation would be that Clients
are satisfied enough to consider building a
solid relationship with the organisation and
possibly recommend its product or service
On the other hand, this value proposition
needs to be designed in a way that the
organisation will obtain long term profitability
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The Marketing Process

The next step of the marketing process is to
focus on the creation of value for both the clients
and the company (cont.)

This calls for an assessment of the organisations

internal strengths and weaknesses and their
comparison to whats on the market
Such an analysis should lead to the
identification of the organisations core
competencies, i.e. what the organisation is
particularly good at
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The Marketing Process

The next step of the marketing process is to
focus on the creation of value for both the clients
and the company (cont.)

These core competencies then need to be

assessed and evaluated in the context of the
external environment to establish
opportunities and threats.

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The Marketing Process (Cont)

The traditional approach was that once the
product is launched, the marketers role was to
sell it
Todays broader perspective of marketing calls
for the marketer to focus on developing
sustainable customer satisfaction
Other than the direct profits from the initial
purchase of a product, a Client has a life-time
potential value to the organisation

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The Marketing Process (Cont)

Convincing a potential Client to purchase a
product solely through advertising is very
expensive
On the other hand, ensuring Client
satisfaction within the restricted resources of
the organisation enables repeated purchases
and free recommendations

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The Marketing Process (Cont)

If the organisations reputation is not maintained
properly, it can become increasingly difficult to
find additional consumers interested in the
goods or services being offered
Particularly in the context of the SME, the
people side of the business becomes critical to
the development of the value proposition to the
client
The whole operations of the company need
to be focused on adding value to the client in
a way that is in the mutual interests of both
the client and the organisation
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Practitioners perspectives
Marketing is the management process
responsible for identifying, anticipating and
satisfying customer requirements profitably
The Chartered Institute of Marketing

Marketing is an organisational function and a

set of processes for creating, communicating
and delivering value to customers and for
managing customer relationships in ways that
benefit the organization and its stakeholders
The American Marketing Association

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