CIM Coursebook 08/09 Introductory Certificate in Marketing

Neil Botten

• Publisher: Routledge
• Year: 2009
• ISBN:
  9781136442803
• Edition: 1
• Topic: Business
• Subtopic: Business General
• Index: Business

'Butterworth-Heinemann's CIM Coursebooks have been designed to match the syllabus and learning outcomes of our new qualifications and should be useful aids in helping students understand the complexities of marketing. The discussion and practical application of theories and concepts, with relevant examples and case studies, should help readers make immediate use of their knowledge and skills gained from the qualifications.'
Professor Keith Fletcher, Director of Education, The Chartered Institute of Marketing 'Here in Dubai, we have used the Butterworth-Heinemann Coursebooks in their various forms since the very beginning and have found them most useful as a source of recommended reading material as well as examination preparation.'
Alun Epps, CIM Centre Co-ordinator, Dubai University College, United Arab Emirates Butterworth-Heinemann's official CIM Coursebooks are the definitive companions to the CIM professional marketing qualifications. The only study materials to be endorsed by The Chartered Institute of Marketing (CIM), all content is carefully structured to match the syllabus and is written in collaboration with the CIM faculty. Now in full colour and a new student friendly format, key information is easy to locate on each page. Each chapter is packed full of case studies, study tips and activities to test your learning and understanding as you go along. •The coursebooks are the only study guide reviewed and approved by CIM (The Chartered Institute of Marketing).
•Each book is crammed with a range of learning objectives, cases, questions, activities, definitions, study tips and summaries to support and test your understanding of the theory.
•Past examination papers and examiners' reports are available online to enable you to practise what has been learned and help prepare for the exam and pass first time.
•Extensive online materials support students and tutors at every stage. Based on an understanding of student and tutor needs gained in extensive research, brand new online materials have been designed specifically for CIM students and created exclusively for Butterworth-Heinemann. Check out exam dates on the Online Calendar, see syllabus links for each course, and access extra mini case studies to cement your understanding. Explore marketingonline.co.uk and access online versions of the coursebooks and further reading from Elsevier and Butterworth-Heinemann. INTERACTIVE, FLEXIBLE, ACCESSIBLE
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Part 1 What is Marketing?

Overview

The first half of this book covers Unit 1 of the Introductory Certificate in Marketing syllabus.

This part of the sylllabus seeks to provide the backdrop to the importance of marketing in terms of what marketing is and how it is defined. It focuses on the role of marketing, its cross-functional importance and its contribution to business success. It also looks at the role of marketing as a service provider within the organisation.

It provides a basic understanding of the internal and external marketing environment and the marketing mix, with consideration of how these factors differ from one sector to another.

It also provides the foundations needed for the functional and aspirational goals of the Level 3 market, whilst giving explanation to the language and terminology of marketing.

After working through this half of the book, students should be able to demonstrate a sound knowledge and understanding of marketing and its contribution to organisational success.

Overarching Learning Outcomes

By the end of this unit, students should be able to:

• Define marketing in the context of an exchange process.
• Determine the importance of marketing as a cross-functional activity contributing towards business success.
• Explain the importance of understanding the organisation’s marketing environment and the impact it has upon an organisation’s ability to satisfy customer needs and wants.
• Identify each element of the marketing mix in the context of customer needs and achieving customer satisfaction.
• Apply the marketing mix to a range of different organisational sectors and contexts.

Learning Outcomes and Syllabus Content

Chapter 1

Understanding the role and function of marketing (weighting 15%)

1. 1.1 Define marketing as an exchange process
2. 1.2 Explain the role of marketing in achieving customer satisfaction
3. 1.3 Determine the importance of the role of marketing as a cross-functional activity within the organisation. The links with marketing and other functions
4. 1.4 Explain the key differences between internal and external marketing and the role of marketing as an internal service provider within the organisation.

Chapter 2

Understanding the marketing environment (weighting 30%)

1. 2.1 Explain the importance of understanding the organisation’s marketing environment in order to effectively manage the marketing process, and satisfy customer needs.
2. 2.2 Explain the concept of the PESTEL model and show how each of these factors impact upon the organisation, its ability to undertake marketing activities successfully, cost-effectively and competitively.
3. 2.3 Identify the key characteristics of the micro-marketing environment.
4. 2.4 Explain the processes that can be used for monitoring the marketing environment.

Chapter 3

The marketing mix (7 Ps) (weighting 40%)

1. 3.1 Explain the importance of the 7 Ps of the marketing mix as a series of tools co-ordinated to develop and delivered to meet customer needs and wants

Chapter 4

How marketing is applied in different organisational contexts (weighting 15%)

1. 4.1 Explain the different ways in which customers (Business to Business) and consumers (Business to Consumer) make their buying decisions.
2. 4.2 Explain the different ways in which the marketing mix is used in different organisations to influence the buying-decision making units.

The Role and Function of Marketing

DOI: 10.4324/9780080949635-1

Marketing as an Exchange Process

Definitions of Marketing

Newspapers and other media tend to use ‘marketing’ as an alternative to selling, advertising, or retailing. Marketing is, however, a much broader concept embracing all these areas plus many others besides. Marketing is in evidence all around us, from the packaging on the products we buy, to our recognition of companies through their logos and symbols, or the television advertisements we watch. The choices we make as consumers are likely to be shaped in some way by marketing. So what exactly is marketing?

The Chartered Institute of Marketing (CIM), when answering this question, suggests that all organisations either knowingly or unknowingly engage in marketing to some degree:

Think about what you do. You probably make a particular effort to know your customers well. Your instincts tell you that getting to know what your customers want on an individual basis and giving it to them is what will keep you in business. You know that you can’t stand still, and that you need to improve and extend existing products and sometimes develop new ones. (CIM)

If this description rings true, then your marketing activity closely fits the classical definition of marketing.

Marketing is –the management process responsible for identifying, anticipating and satisfying customer requirements profitably. (CIM)

This definition acknowledges the importance of the customer, their requirements and the careful planning processes needed to achieve the organisation’s goals. It follows that marketing is a business activity that should be at the core of any organisation. Marketing is relevant to any business irrespective of its size or nature of operation. Kotler (2003) is not alone in believing it is key to achieving organisational goals.

It is all about getting the right product or service to the customer at the right price, in the right place, at the right time. Business history and current practice both remind us that without proper marketing, companies cannot get close to customers and satisfy their needs. And if they don’t, a competitor surely will.

The Exchange Process

The process of marketing is said by Michael Baker, University of Strathclyde, to be:

concerned with the establishment and maintenance of mutually satisfying exchange relationships.

In order that this process can actually embed itself within the organisational culture, we must ensure that our customers become aware of the products and services that have been developed to meet their needs. Communication is, therefore, key to the continuance of the marketing process and continuous evolution of the products and services offered.

Baker’s definition also encompasses the communication between the organisation and its immediate environment (Figure 1.1). It is essential that relationships with other stakeholders such as suppliers, distributors and the internal audience are fully developed to ensure mutually beneficial communication will result in sustainable competitive advantage for all involved in the process.

Figure 1.1 Exchange relationships

Marketing and Customer Satisfaction

Marketing, Analysis and Planning

When we looked at definitions earlier, the first definition of marketing was based on ‘identifying, anticipating and satisfying customer requirements’. This definition clearly shows that the marketing process has a close relationship with various stages of the strategic planning process, as follows.

• During the analysis of the organisational environment, marketing can perform marketing research to help the organisation understand the nature of customers, markets and competitors. It is important that any such analysis is not just static (i.e. looking at current customer requirements), but also dynamic (in terms of forecasting changing customer requirements over the planning period).
• During the analysis of the organisation’s position, marketing research can focus on the effectiveness (or otherwise) of the current marketing activity.
• During the setting of objectives, marketing should ensure that customer satisfaction is at the centre of the organisation’s aims (see below).
• When identifying and evaluating alternative strategies, marketing can evaluate the likely impact of strategic options, both on the organisation’s marketing function and on customers.

Making Customer Satisfaction a Business Objective

Satisfying customers is at the heart of marketing. Who then assumes responsibility for this important function? Possibly the marketing department or the sales force? True, such personnel can have an influence on customer satisfaction, but marketing as a philosophy is wider than this narrow group of employees. Employees outside the marketing department or sales force can also play an important role in determining customer satisfaction.

Marketing is more than just a range of techniques that enables the company to determine customer requirements; rather it is a shared business ethos. The marketing concept is a philosophy that places customers central to all organisational activities. The long-term strategies of an organisation might be centred on profit maximisation, market share growth, or growth in real terms but none of this can be achieved without satisfying customers. Without custom...

Table of contents

• Cover Page
• Half Title Page
• Title Page
• Copyright Page
• Contents
• Part 1: Part 1 What is Marketing?
• Part 2: Understanding Customer Relations
• Appendix: Feedback and answers
• Index