CIM Coursebook 06/07 Marketing Fundamentals

Frank Withey, Geoff Lancaster

• Publisher: Routledge
• Year: 2007
• Print ISBN:
  9780750680073
  9781138441200
• Edition: 1
• eBook ISBN:
  9781136420894
• Topic: Business
• Subtopic: Business General
• Index: Business

Elsevier/Butterworth-Heinemann's 2006-2007 Official CIM Coursebook series offers you the complete package for exam success. Comprising fully updated Coursebook texts that are revised annually and independently reviewed. The only coursebooks recomended by CIM include free online access to the MarketingOnline learning interface offering everything you need to study for your CIM qualification. Carefully structured to link directly to the CIM syllabus, this Coursebook is user-friendly, interactive and relevant. Each Coursebook is accompanied by access to MARKETINGONLINE (www.marketingonline.co.uk), a unique online learning resource designed specifically for CIM students, where you can: *Annotate, customise and create personally tailored notes using the electronic version of the Coursebook *Search the Coursebook online for easy access to definitions and key concepts *Access the glossary for a comprehensive list of marketing terms and their meanings

unit 1

the development
of marketing
and marketing
orientation

Learning objectives

Learning outcomes

By the end of this unit, you will be able to:

Explain the development of marketing and the ways it can benefit business and organizations.

Identify the main steps in, and barriers to, achieving a marketing orientation within the organization.

Knowledge and skills

By the end of this unit, you will be able to:

Explain the development of marketing as an exchange process, a philosophy of business and a managerial function (1.1).

Recognize the contribution of marketing as a means of creating customer value and as a form of competition (1.2).

Appreciate the importance of a market orientation to organizational performance and identify the factors that promote and impede the adoption of a market orientation (1.3).

Explain the role of marketing in co-ordinating organizational resources both within and outside the marketing function (1.4).

Describe the impacts of marketing actions on society and the need for marketers to act in an ethical and socially responsible manner (1.5).

Examine the significance of buyer-seller relationships in marketing and the role of relationship marketing in facilitating the retention of customers (1.6).

Study Guide

This first unit is an introduction to the development, meaning and role of marketing in the contemporary organization. In short, this unit sets the scene for the remaining units in the guide. In a way, the unit reflects the process that must occur in an organization, if it is to improve its performance in marketing, in as much as the first step towards this improvement is an understanding of what marketing means and how it can be implemented. We shall start by looking at the definitions of marketing, moving on to consider the so-called ‘marketing concept’ and ‘marketing orientation’. We shall look at the development of marketing and the notion of marketing as an exchange process, a philosophy of business and a managerial function. We shall also look at the importance of a marketing orientation to organizational performance and the issues and problems in implementing a marketing orientation through building and enhancing a marketing culture. The important contribution of marketing as a means of creating customer value and as a form of competition is considered, together with the role of marketing in co-ordinating organizational resources, both within and outside the marketing function. We shall consider the changing role of marketing, and in particular the wider range of applications for marketing these days; the importance of environmental, ethical and social issues in marketing and the growth of the so-called ‘relationship marketing’. Finally, we shall introduce you to the increasing importance of new technology in marketing these days, a theme that will be explored in each of the units in the coursebook.

We would expect you to take about 3 hours to work through this first unit, and suggest you allow a further 3–4 hours to undertake the various activities suggested. Other than your notebook and writing equipment you will not need anything further to complete this unit.

This first unit will also help you familiarize with the approach and style of our coursebooks. Of course, if you are studying other subjects using the Butterworth-Heinemann coursebooks, you will be used to the approach. However, in case you are new to the coursebook series, you will find that the coursebooks have been developed to ensure that you acquire not only the knowledge necessary for examination success but also the skills to apply that knowledge, both in the examination and in your work as a practising marketer. Some of the elements, outlined at the start of the coursebook and especially the activities and questions and so on, are designed, of course, to help you develop these application skills. Remember then, these activities and so on are central to the design of the coursebooks and you are therefore advised to avoid the temptation to leave them out.

Learning outcomes/unit guide

Before we start to work through this first unit, we felt it would be useful to provide you with an overview of how each of the key learning outcomes for the Fundamentals module, as set out in the CIM specification for this module, relate to this and the other units in the coursebook. The full CIM specification for the module is, in fact, contained in Appendix 5 of your coursebook; and the following table maps out or signposts the main CIM learning objectives and in which unit(s) these are covered.

Learning outcomes	Study units/syllabus reference
Explain the development of marketing and the ways it can benefit business and organizations (5.23.1)	Unit 1/Element 1
Identify the main steps in, and barriers to, achieving a marketing orientation within the organization (5.23.1)	Unit 1/Element 1
Explain the context of, and process for, marketing planning and budgeting including related models (5.23.3)	Unit 2/Element 2
Explain the concept of segmentation and the different bases for effective segmentation (5.23.4)	Unit 2/Element 2
Identify and describe the individual elements and tools of the marketing mix (5.23.5)	Units 3, 4, 5, 6, 7, 8/Elements 3, 5, 6, 7, 8
Identify the basic differences in application of the marketing mix involved in marketing products and services within different marketing contexts (5.23.6)	Unit 9/Element 4

Having established the signposts for the major learning objectives and the coursebook units, we can now proceed to commence with your first unit.

What is marketing?

We don’t expect a formal definition at this stage but do you really know what marketing is?

Study tip

Organize your study materials from the beginning of your course:

Use file dividers to keep broad topic areas indexed and relevant materials and articles with the relevant notes.

Look out for relevant articles, newspaper reports and so on that you feel provide good examples of the key concepts and techniques covered in the coursebook. You will find these useful to illustrate examination answers.

Activity 1.1

In your own words, describe what you think marketing is all about.

Different people will have different views of what marketing is but it would be surprising if many did not have one or more of the following in their description.

Marketing is about:

Selling

Market research

Advertising.

Or perhaps for those of you who work in marketing, it is about ‘Selling products that don’t come back to customers who do’.

For those of you who prefer a more formal approach, marketing may be about ‘Analysis, Planning, Implementation and Control in order to develop a competitive advantage’.

The common theme that runs through this variety of viewpoints about what marketing entails is that marketing is a set of activities or, more specifically, a set of managerial activities or functions required to be performed in an organization. Certainly, marketing does encompass activities such as selling, researching markets, attracting and keeping customers, and developing and implementing plans. In short, it is true that it is a managerial function. In fact, this managerial function of marketing is enshrined in the CIM’s own definition of marketing as follows.

Key definition

Marketing – Is ‘The management process which identifies, anticipates and satisfies customer requirements efficiently and profitably’.

We can see, though, that the CIM definition, in addition to confirming marketing as a management process, also highlights the fact that the central focus of this process is on the ‘customer’ and the aim is ‘satisfying’ his or her requirements or ‘needs’. Finally, all this must be done in the most efficient way possible with a view to achieving maximum profitability.

In fact, as you would expect, most of the formal definition...

Table of contents

• Cover Page
• Half Title Page
• Title Page
• Copyright Page
• Contents
• Preface Welcome to the CIM coursebooks
• Unit 1 The development of marketing and marketing orientation
• Unit 2 Marketing planning and budgeting
• Unit 3 The marketing mix and related tools: overview and issues
• Unit 4 The marketing mix: product
• Unit 5 The marketing mix: price
• Unit 6 The marketing mix: place
• Unit 7 The marketing mix: promotion
• Unit 8 The marketing mix: people, service, customer care and customer relationship management (CRM)
• Unit 9 Marketing in context: further and future issues, integrating the marketing mix
• 1 Guidance on examination preparation
• 2 Assignment-based assessment
• 3 Answers and debriefings
• 4 Past examination papers and examiners’ reports
• 5 Curriculum information and reading list
• Index