• Marketing refers to the process of planning, promoting, pricing, distributing and selling products or services to create exchanges that satisfy both the customer’s and the company’s objectives.
  • Marketing has also been defined as the business function that involves identifying, anticipating, and satisfying consumer needs and wants profitably
  • A market refers to a group of individuals or organizations who have similar needs and wants, and who are willing and able to purchase a product or service that satisfies those needs and wants.
  • Markets can be segmented based on various factors such as demographics, psychographics, geographics, and behaviour.
  • Philip Kotler, a renowned marketing expert, proposed the following five-step model for understanding and carrying out the marketing process:
    • Understanding customer needs and wants: The first step is to identify and understand the needs and wants of the target market. This can be done through market research, surveys, and customer feedback.
    • Designing a customer-driven marketing strategy: Once the customer needs and wants are identified, the next step is to develop a marketing strategy that addresses those needs and wants. This involves selecting a target market, determining the value proposition, and developing a marketing mix (product, price, promotion, and place).
    • Constructing an integrated marketing program: In this step, the marketing mix is implemented to create a cohesive marketing program. This includes developing the product, setting the price, creating promotional campaigns, and selecting the appropriate distribution channels.
    • Building profitable customer relationships: The goal of marketing is not only to acquire new customers but also to retain and build long-term relationships with existing customers. This is achieved through effective customer service, satisfaction, and loyalty programs.
    • Capturing value from customers to create profits: The final step is to generate profits by capturing value from customers. This can be done by creating superior customer value, building brand equity, and managing customer relationships effectively.
  • Marketing has undergone significant changes throughout history. Here are some key points of its evolution:
    • Pre-industrial era marketing practices: In this era, marketing was limited to trading and bartering goods and services. The production era that followed was characterized by mass production of goods and a focus on efficiency.
    • Early 20th century marketing: The sales era of marketing emerged in the early 1900s, where the focus shifted to selling products rather than just producing them. Sales techniques such as door-to-door selling and telemarketing became popular.
    • Post-WWII marketing: In the 1950s and 60s, marketing evolved into the marketing era, where the emphasis was on understanding customer needs and wants. Marketers began using market research to create and promote products that met those needs.
    • Late 20th century marketing: The relationship marketing era began in the 1980s, where marketers focused on building long-term relationships with customers through personalized experiences and two-way communication.
    • Current marketing trends: In the digital age, marketers have shifted to digital marketing to reach consumers through social media, email, and other online channels. Content marketing and influencer marketing have also emerged as popular strategies.
  • The evolution of marketing can be summed up by looked at the way businesses have approached the discipline of marketing over the years
  • These orientations can be summed up below:
    • Production era
    • Sales era
    • Marketing era
    • Relationship era
  • The product-Oriented approach had the following features:
    • Focus on product design and features
    • High-quality products and constant improvement
    • Limited customer research
    • Advantages of the product-oriented approach include:
      • Quality products meet customer needs
      • Competitive advantage from unique products
    • Disadvantages of the product-oriented approach include:
      • Customer needs not always met
      • Limited flexibility to changing customer needs
  • The Production Oriented Approach had the following features:
    • Focus on efficient production processes and low costs
    • Limited customer research
    • Advantages of the production oriented approach include:
      • Lower costs can lead to lower prices and wider customer base
      • Economies of scale increase efficiency and productivity
    • Disadvantages of the production oriented approach include:
      • Limited focus on customer needs and wants
      • Lack of innovation and differentiation
  • The Sales-Oriented Approach was characterised by:
    • Focus on aggressive selling and promotion techniques
    • Limited customer research
    • Advantages of the sales oriented approach:
      • Helps generate short-term sales and revenue
      • Can help create a sense of urgency among customers
    • Disadvantages of the sales oriented approach:
      • Potential for creating negative customer perception
      • Limited focus on long-term customer satisfaction and loyalty
    • The Market Oriented Approach is characterised by:
    • Focus on understanding and meeting customer needs and wants
    • Extensive customer research and feedback
    • Advantages:
      • Greater customer satisfaction and loyalty
      • Increased market share and profits
    • Disadvantages:
      • Requires extensive resources for research and analysis
      • Difficult to balance multiple customer needs and wants
  • The features of the Marketing Oriented Approach:
    • Focus on creating value for both the customer and the company
    • Comprehensive understanding of customer needs and wants
    • Advantages:
      • Strong customer relationships and loyalty
      • Sustainable competitive advantage through innovation and differentiation
    • Disadvantages:
      • Requires significant resources for research, analysis, and innovation
      • Difficult to achieve without a customer-centric culture and mindset.

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