Lecture 07the Centrality of Marketing

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University of Algiers 3
Faculty of Economics, Business and Management
International business
Bachelor degree
Subject 07: The centrality of marketing
Most management and marketing writers now distinguish: between selling and
marketing. The “selling concept” assumes that resisting consumers have to be
persuaded by vigorous hard-selling techniques to buy non-essential goods or services.
Products are sold rather than bought. The “marketing concept”, on the contrary,
assumes that the producer’s task is to find wants and fill them. In other words, you
don't sell what you make; you make what will be bought. As well as satisfying
existing needs, marketers can also anticipate and create new ones. The markets for the
personal computers, the internet, smartphones, mountain bikes, snowboards, and
genetic engineering, to choose some recent examples, were largely created rather
than identified.
Marketers are consequently always looking for market opportunities profitable

possibilities of filling unsatisfied needs or creating new ones in areas in which the
company is, likely to enjoy a differential advantage, due to its distinctive
competencies (the things it does particularly well) Market opportunities are generally
isolated by market segmentation. Once a target market has been identified, a company
has to decide what goods or service to offer. This means that much of the work of
marketing has been done before the final product or service comes into existence It
also means that the marketing concept has to be understood throughout the company,
e.g. in the production department of a manufacturing company as much as in the
marketing department itself. The company must also take account of the existence of
competitors, who always have to be identified, monitored and defeated in the search
for loyal customers.
Rather than risk launching a product or service solely on the basis of intuition or
guesswork most companies undertake market research (GB) or marketing research
(US). They collect and analyze information about the size of a potential market, about
consumers' reactions to particular product or service features, and so on. Sales
representatives, who also talk to customers, are another important source of
information.
Once the basic offer, e.g, a product concept, has been established, the elements
of a marketing programme, their integration, and the amount of effort that a company
can expend on them in order to influence the target market. The best-known
classification of these elements is the “Four Ps”: product, place, promotion and price.
Aspects to be considered in marketing products include quality, features (standard and
optional) style, brand name, size, packaging, services and guarantee. Place in
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marketing mix includes such factors as distribution channels, locations of points of

sale, transport, inventory size, etc. Promotion group a together advertising, publicity,
sales promotion, and personal selling while price includes the basic list price,
discounts, the length of the payment period, possible credit terms, and so on. It is the
job of product manager or a brand manager to look for ways to increase sale by
changing the marketing mix.
It must be remembered that quite apart from consumer markets (in which people
buy products for direct consumption) there exists are enormous producer or industrial
or business market, consisting of all the individuals and organizations that acquire
goods and services that are used in the production of other goods, or in the supply of
services to others. Few consumers realize that the producer market is actually larger
than the consumer market, since it contains all the raw material manufactured parts
and components that go into consumer goods, plus capital equipment such as
buildings and machines, supplies such as energy and pens and paper, all of which
have to be marketed. There is consequently more industrial than consumer marketing,
even though ordinary consumers are seldom exposed to it.
 The Marketing Mix: From the 04Ps to 07Ps
Marketing is a continually evolving discipline and as such can be one that
companies find themselves left very much behind the competition if they stand still
for too long. One example of this evolution has been the fundamental changes to the
basic Marketing mix. Where once there were 4 Ps to explain the mix, nowadays it is
more commonly accepted that a more developed 7 Ps adds a much needed additional
layer of depth to the Marketing Mix with some theorists going even going further.
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NOTE
Simply put the Marketing Mix is a tool used by businesses and Marketers to
help determine a product or brands offering. The 4 Ps have been associated with
the Marketing Mix since their creation by E. Jerome McCarthy in 1960 (You can
see why there may have been some need to update the theory).
1. PRODUCT: The Product should fit the task consumers want it for, it should
work and it should be what the consumers are expecting to get.
2. PRICE: The strategy behind the pricing of the product needs to be based on
what customers are prepared to pay, costs such as retail mark-up and
manufacturing, as well as other considerations.
3. PROMOTION: Successful marketing strategies include all the promotional
activities across the marketing mix, including advertising, direct marketing, in-
store promotional activities, Personal Selling and, in more recent times, Social
Media are all key communication tools for an organization.
4. PLACE: Where and how your product is displayed and sold should be
directly informed by your customers. The product should be available from
where your target consumer finds it easiest to shop. This may be high street, mail
order or the more current option via e-commerce or an online shop
In the late 70’s it was widely acknowledged by Marketers that the Marketing
Mix should be updated. This led to the creation of the Extended Marketing Mix
in 1981 by Booms & Bitner which added 3 new elements to the 4 Ps Principles.
This now allowed the extended Marketing Mix to include products that are
services and not just physical things.
5. People: All companies are reliant on the people who run them from front line
Sales staff to the Managing Director. Having the right people is essential
because they are as much a part of your business offering as the
products/services you are offering.
6. Processes: The delivery of your service is usually done with the customer
present so how the service is delivered is once again part of what the consumer
is paying for. With the rise in online shopping, digital partnerships and logistics
have become an essential part of the marketing mix.
7. Physical Evidence: the marketing mix must take into consideration all the
things that customers see, hear – sometimes even smell – in relation to the
product. This, of course, includes packaging and branding, but should also bring
in the ways products are displayed in stores, where they are placed, , as well as
digital placement, including on website and social media.
Activity 01: Look quickly through the following text and decide which paragraphs
are about these subjects:
………………….-Company to company marketing
………………….-Identifying market opportunities
………………….- The marketing Mix
………………….-The selling and marketing concept
………………….- The importance of market research
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Activity 02: Match up the words or expressions on the left with the definitions on the
right.
1/ distribution channel A/all the companies or individuals

involved in moving a particular good or
service from the producer to the consumer.
2/ to launch a product B/an idea for a new product: which is
tested with target consumers before the
actual product is developed.
3/ market opportunities C/attributes or characteristics of a product:
quality: price, reliability, etc.
4/ market research D/dividing a market into distinct groups of
buyers who have different requirements or
buying habits.
5/ market segmentation E/places where goods are sold to the
public: shops, stores, kiosks: market stalls:
etc.
6/ packaging F/possibilities of filling unsatisfied needs
in sectors in which a company can
profitably produce goods or services.
7/ points of sale G/someone who contacts existing and
potential customers, and tries to persuade
them to buy goods or services.
8/ product concept H/collecting analyzing and reporting data
relevant to a specific marketing situation
(such as a proposed new product).
9/ product features I/ to introduce a new product onto the
market.
10/sales representative J/wrappers and containers in which
products are sold.

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Subject 07: The centrality of marketing

Marketers are consequently always looking for market opportunities profitable

marketing mix includes such factors as distribution channels, locations of points of

1/ distribution channel A/all the companies or individuals

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