foundations

of

MARKETING

Chapter

The Nature
of Marketing

Copyright 2003 by Nelson, a division of Thomson Canada Limited.

The Nature of Marketing

Chapter

Objectives
1. Define marketing and describe its primary nature.
2. Show how marketing bridges the gap between
producer and consumer.
3. Outline the functions of marketing.
4. Demonstrate the scope of marketing.
5. Contrast activities in each of the three orientations of
business in the marketing domain.
6. Position marketing as one of the basic business
functions.
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The Nature of Marketing

Chapter

The Purpose of Business

To create a CUSTOMER

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The Nature of Marketing

Chapter

The Marketing Functions

1-3

Buying
Selling
Transporting
Storing
Grading
Financing
Risk taking
Information collecting and disseminating
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The Nature of Marketing

Chapter

The Essence of Marketing

The Exchange Process

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The Nature of Marketing

Chapter

The Exchange Process

The means by which two or more
parties give something of value to one
another to satisfy felt needs.

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The Nature of Marketing

Chapter

Marketing
Process of planning and executing the
conception, pricing, promotion, and
distribution of ideas, goods, and
services to create exchanges that
satisfy individual and organizational
objectives.

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The Nature of Marketing

Chapter

Utility
The want-satisfying power of a product
or service.

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The Nature of Marketing

Chapter

The Utilities

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Form
Time
Place
Ownership

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The Nature of Marketing

Chapter

Types of Business Orientation

Product or Production
Sales
Market

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The Nature of Marketing

Chapter

Product Orientation
A focus on the product itself rather than
on the consumers needs.

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The Nature of Marketing

Chapter

Sales Orientation
A focus on developing a strong sales
force to convince consumers to buy
whatever the firm produces.

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The Nature of Marketing

Chapter

Market Orientation
A focus on understanding customer
needs and objectives, then making the
business serve the interests of the
customer rather than trying to make
the customer buy what the business
wants to produce.

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The Nature of Marketing

Chapter

Marketing Concept
Organization-wide philosophy that
holds that the best route to
organizational success is to find an
unserved or underserved need in
society and meet that need better than
anyone else, while still meeting longterm organizational objectives.
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The Nature of Marketing

Chapter

Societal Marketing Concept

An organization-wide philosophy that
holds that the best route to organizational
success is to find an unserved or
underserved need in society and meet
that need better than anyone else, while
still meeting long-term organizational
objectives and also considering the long
term impact on society.
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The Nature of Marketing

Chapter

The Importance of Marketing

People
Companies
Economy

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The Nature of Marketing

Chapter

Figure 1.2

Marketing from the Inside Out

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Copyright2003byNelson,adivision