The nature of marketing

​The nature of marketing review

What is the purpose of the marketing function?

• Finding and satisfying customers needs

• Attract / gathering new customers, increase market share, increase competitiveness

• creating added values and innovations.

The Marketing Function:

The main purpose of the marketing function is the Marketing Mix plus Market Research, but what does this mean?

​Two different types of market: Consumer market and industrial market:


The consumer market is made up of companies selling products to individuals. On the contrary, the industrial market comprises companies selling products to other companies.

Product VS Market Orientation:

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Guerrilla marketing is a creative and unconventional way of promoting your brand, product, or message to your target audience. It can generate buzz, word-of-mouth, and viral exposure for your business, but it also requires careful planning, execution, and evaluation.

Multiple Choice

This orientation focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace.

• Production Orientation

• Sales Orientation

• Market Orientation

• Societal Marketing Orientation

Multiple Choice

Product orientation is

• Consumers will favor products that are available and highly affordable

• Consumers favor products that offer the most quality, performance, and features.

• Consumers will not buy enough of the firm’s products

• Know the needs and wants of the target markets and deliver the desired satisfactions better than competitors.

​MArketing managers need to know how free markets work to determine prices. The key is to find the equilibrium.

​Features of market: location, size, growth, market share and competitors

​Important marketing concepts:
1. Creating added values.
2. Mass marketing and niche marketing
3. Market segmentation.

​Marketing is focus on making added values for customers:
- USP: Unique selling point / proposition: the special feature of a product that differentiates it from competitors.
- Product diferentiation: making a product distinctitive so that it stands out from competitors products in consumer's perception.

​Mass marketing VS Niche marketing

NIche marketing: identifying and exploiting a small segments of a larger market by developing product to suit in. Example: louis vuiton, happy clinique perfume.

Mass marketing: selling the same products to the whole market with no attemopt to target groups within it. Example: Tooth paste, vacuum cleaner, fizzy drink.

Definition of Market segmentation:

Market segmentation can be defined as the process of dividing a potential/target market into smaller, more defined categories. It segments customers and audiences into groups that share similar characteristics such as demographics, interests, needs, or location.

Importance of Market Segmentation

• Increase customer retention

• Increased efficiency and lower costs

• enjoy higher sales and profits

• ability to identify a market segment which is not having its needs fully met; opportunity to increase sales

• grow the business

Task 2: Explain the benefits of Toyota producing a large range of cars aimed at different market segments.

​Conclusion:
- Marketing can help to create a USP and add/create value to products.