CHAPTER 1 :

MARKETING IN A CHANGING WORLD –

CREATING CUSTOMER VALUE AND SATISFACTION
 Definitions of Marketing
1. The process by which companies
create value for customers and build
strong customer relationships in order
to capture value from customer in
return.(Kotler & Armstrong, 2016)
2. Marketing is the management process
responsible for identifying,
anticipating and satisfying customer
requirements profitably. (CIM)
 Satisfaction of
Requirements/Problems

 Self – solution
 Force
 Begging
 Exchange
 Have something of value to exchange
 Be capable of communicating
 Be free to accept or reject the exchange
situation
Satisfied! Dissatisfied

Exceed or meet Below

expectation Expectation
 The Concept of Value
How company differentiate and position itself in the
marketplace.
A brand’s value proposition is set of benefits or
values it promises to deliver to customer to satisfy
their needs.
E.g. Facebook helps you “connect and share with
the people in your life”
Youtube “provides a place for people to connect,
inform, and inspire others across the globe”
BMW promises “the ultimate driving machine”
How to satisfy needs and wants?

Value Satisfaction
Exchange (Needs &
(4P’s) Wants)
 Key Concepts of Marketing
1. Needs – state of felt deprivation
2. Wants – the form human needs take as shaped by culture
and individual personality.
3. Demands – human wants that are backed by buying power.
4. Market – the set of all actual and potential buyers of a
product or service.
5. Market offering – some combination of products, services,
information, or experiences offered to a market to satisfy a
need or want.
6. Exchange – The act of obtaining a desired object from
someone by offering something in return.
 Presentation of Activity 2
Now that you were introduced to the
meaning and elements of marketing, let us
share the outcomes of the interview you had
with the chosen entrepreneurs.
Do you think the really capture the essence
of marketing?
Do they understand what marketing really
is?
 Activity 3: Mix and Match.
1. Every group will present the companies assigned to them.
2. Next, the lecturer will explain briefly on the marketing management
philosophies.
3. Students must match the companies with the marketing management
philosophies.
• Production Orientation
• Product Orientation
• Sales Orientation
• Marketing Orientation
• Societal Marketing Orientation

4. Write your answer on a piece of paper.

5. The group with the most correct answers and the most quick to submit will
win this competition.
 Marketing Management Philosophies
1. Production Orientation
2. Product Orientation
3. Sales Orientation
4. Marketing Orientation
5. Societal Marketing Orientation
 1.Production Orientation
Company that operating on the idea
that the more you can produce, the
more you can sell.
Managers assume that consumer only
interested with product availability
and low price and so marketing
activities are not needed.
Production Orientation works when;
 There is high demand for the product
 Consumers are price sensitive
 The organisation has the capacity to mass produce

Advantages of using Production Orientation

 Economies of scale
 Reduction of marketing and production costs

Disadvantages of using Production Orientation

 No ‘contact’ with customers
 No customer loyalty
 2. Product Orientation
This type of orientation is present when
managers in the company believe that the
customers will recognise a good product
and buy it when it is made available.
The believe in their product quality and
there is no need for marketing activities to
be carried out to promote the products.
Product orientation will work when
There is current demand for the
product
There is potential demand for the
product
Products meet customer requirements
 3. Sales Orientation
 With sales orientation, the manager believes that buyers is
persuaded to buy their products by aggressive techniques.
 This involve doing sales and promotion for example giving
discounts and price-offs.
 Sometimes, the salesman are more interested in getting
commissions, they would use disreputable ways, or by
cheating the buyers into buying their products.
 And it can lower the image of their company.
 4. Marketing Orientation
The managers believe that customer is their
main priority and the key to successful
business.
Customer is always first in every plan and
the company will try its best to provide
something that the consumer wants rather
than making them want what we are
selling.
 The characteristics of Marketing
Orientation Strategy:

Customer orientation
Organisational integration
Mutually profitable exchange
 5. Societal Marketing Concept
The societal marketing concept was an offshoot of the
marketing concept wherein an organization believes in giving
back to the society by producing better products targeted
towards society welfare.
The societal marketing concept calls upon marketers to
build social and ethical considerations into their marketing
practices. They must balance and juggle the often conflicting
criteria of company profits, consumer want satisfaction, and
public interest.
 Conflict Between Marketing and Other
Departments
 Production – Issues on product varieties,
scheduling and modification or changes.
 R&D – issues on time it took for research and
costs of the products.
 Purchasing – issues on quality of product versus
price
 Design – standardised versus customised design
 Finance - Price, Promotion budget, credit control
 Group Activity
1. Each group think of a product that
you used that doesn’t satisfy you.
2. Discuss how you will solve it by
differentiating the product and the
added value you can think of.
 Marketing Trivia!
A 30-second advertising spot during the 2012 Super
Bowl cost $3.5 million.
Sponsoring one car during NASCAR costs
$500,000.
Mc Donald’s sales is approximately $85 billion
annually.
 EXTRA
Class Project – Online CREDIT
Course
Please visit this website - https://www.futurelearn.com/courses
Every one of you must select one course that you will undertake for the
duration of the course. Different course for everyone and please write your name
and the courses names on a piece of paper and submit it to me.
At the end of the course, you will get a certificate/email notification proving
you have undergone the course successfully.
Show it to me and you will be awarded with EXTRA 3% ASSESSMENT
MARKS.
Good luck in selecting the perfect course!