Basic

principles of
marketing
Chapter 1
Introduction

• Marketing has evolved over the years and,

with the advent of modern technology,
has become more complex, requiring
faster and better responses to changes in
the marketing environment
• Marketing will always be important in
business although the methods and
means used may change and differ
• The importance of marketing lies in the
fact that it defines what customers need
and want, and it directs the resources of
the business to meet these needs
Introduction

• Furthermore, marketing is the function in

the organisation that generates money,
while the other functions are cost centres
• The environment is constantly changing,
and management's task is to adapt to
these changes .
• Successful marketers are those who can
best define and satisfy consumer
requirements in the context of an ever -
changing marketing environment
What is
marketing?
• Marketing can be viewed from two
viewpoints:

FIRST, as a philosophy, an attitude, a

perspective or a management
orientation that stresses customer
satisfaction and
SECOND, as a set of activities used to
implement this philosophy
Today, marketing must be understood,
not in the old sense of making a sale -
'telling and selling' - but in the new
sense of satisfying customers' needs

If the marketer understands the basic

activities of marketing (understanding
consumer needs, developing products
that provide superior value, pricing
products correctly, distributing and
promoting effectively), then the
chances of product success are much
greater
Marketing Definition

“The process of planning and executing

the conception, pricing, promotion and
distribution of ideas, goods and services
to create exchanges that satisfy
individual and organisational goals”.
Marketing is therefore
about:

• Anticipating and satisfying

consumer needs
• Creating a mutually beneficial
exchange process
• Doing so profitably and more
effectively than competitors by
employing efficient managerial
processes.
Gaps between production and
consumption
• The place where a product is produced is
not necessarily the place where it is
consumed
• This creates gaps in the marketing process
• Identifying these gaps can be described as
core marketing aspects
• The gaps in the marketing process are, in
essence, the intervals between the needs of
the consumer arising and the arrival of the
end product to satisfy those needs
Gaps between production and
consumption
In the process of satisfying customer needs,
other gaps also need to be filled

The successful marketing of a suitable

market offering is possible only if all the
gaps in the process have been effectively
bridged .
Five types of gaps

01. Space Gap

02. Time Gap
03. Information Gap
04. Ownership Gap
05. Value Gap
Let's take seasonal fruits, such as South African avocados, as an example to
explain these marketing gaps:

Spatial Gap: Avocados are grown in South Africa but are also in demand in
Europe and Asia. To bridge this gap, exporters use global distribution channels,
including cold storage and shipping logistics.

Time Gap: Avocados are harvested during a specific season, but consumers
want them year-round. This gap is addressed through cold storage, controlled
ripening, and imports from countries with different growing seasons.
Information Gap: European consumers might not be aware of the
superior quality or sustainable farming practices of South African
avocados. Marketing efforts, including labeling, certification (e.g.,
organic or Fairtrade), and promotions, help inform consumers.

Ownership Gap: Consumers need a way to purchase avocados

conveniently. Supermarkets, online grocery platforms, and farmer’s
markets ensure accessibility, while payment options like digital
transactions make ownership seamless.

Each of these gaps represents a core marketing challenge, and

addressing them effectively ensures that the product reaches the
right consumer at the right time in the right way.
Intermediaries
Today, the activities intended to bridge the gap between the buyer and
seller are performed by intermediaries:

1. Agents and brokers

Agents are on a permanent basis between buyers and
sellers; whereas brokers on a temporary basis only. Both
are paid a commission for each sale and do not take
ownership of the goods being sold.
2. Wholesalers and resellers
Wholesalers buy products from manufacturers in bulk
and then resell them usually to retailers or other
3. Distributors businesses in smaller quantities.
Distributors expedite sales between the manufacturer
and retailers or agents and brokers. They can be paid
by commission, or they can be paid in fees from the
4. Traditional and online retailers
manufacturer.
A retailer can be defined as any organisation or
business that sells directly to the consumer. This
includes corner stores, shopping malls and e -
commerce websites
Definitions

Price Perceived
price
Price reflects the Not only its monetary
value of a value, but also includes
factors such as the time
specific product
cost and the emotional
to the buyer. cost.
Price & Perceived price

• The value that a buyer attaches to a product or service is the price.

• The perceived price of a product is not only its monetary value but also
includes factors such as the time cost (the amount of money that could
have been generated in the time spent on obtaining the product)

• and the emotional cost (the emotional effort that the consumer had to
make to obtain the product, for example, frustration with an
unprofessional shop assistant)
• Today, the consumer does not simply buy a physical object: they buy a
market offering that combines the physical object with other need -
satisfying qualities.

• An example is Woolworths Food. Consumers who shop at Woolworths aren’t

just buying groceries—they are paying for premium quality, ethically
sourced products, and a superior shopping experience.
• Woolworths markets itself as a brand that offers sustainability, convenience,
and health-conscious options, which differentiates it from other retailers.
• Many consumers are willing to pay higher prices because they associate
the brand with freshness, responsibly sourced ingredients, and an
aspirational lifestyle.
Marketing Activities
Marketing activities are those
activities used to transfer the
market offering to the buyer .

It can be grouped into 3 categories :

01 Primary
02 Auxiliary
03 Exchange
Primary Marketing Activities

Transport
• The primary or most basic marketing
activity is transport.

• The main aim of transport is to ensure

that products are delivered to the
consumer in the quickest and safest
way possible
Auxiliary Marketing Activities

• Those additional activities that are required in

the marketing process, and include:
⚬ Sourcing and supplying information.
⚬ Standardisation and grading
⚬ Storage
⚬ Financing
⚬ Risk taking
Exchange Marketing Activities

• The Exchange activities are buying and selling.

• Ownership is transferred from one person to another.
• On the one hand, an organisation's buying activities are not
regarded as a marketing task, but rather as the responsibility of
the purchasing department.
• Selling, on the other hand, is an extremely important task of the
marketing department of any organisation.
Marketing Definition

Marketing is “a combination of management tasks and

decisions aimed at meeting opportunities and threats in a
dynamic environment. It is done in such a way that the
organisation's market offerings lead to the satisfaction of
consumer needs and wants, in order to achieve the objectives
of the enterprise, the consumer and society. (p17)
Marketing process

The marketing process is more complex and entails…

- a n a lys in g m a rke t in g o p p o rt u n it ie s ,
- s e le c t in g a p p ro p ria t e t a rg e t m a rke t s ,
- d e ve lo p in g t h e m o s t s u it a b le m a rke t in g m ix fo r
the se se g m e nts, a nd
- m a n a g in g t h e m a rke t in g e ffo rt s t h ro u g h im p le m e n t a t io n
a n d c o n t ro l a c t ivit ie s .
Marketing process
Understand the
marketplace and customer

Generate value for customers and

demand

build customer relationships

Formulate a marketing
strategy that is centered
around the customer

Design a marketing strategy

that conveys superior value

Make profitable relationships

and generate customer desire

Gather value from customers

in order to make profits and
customer equity
The marketing process can consist of these steps:
1. Understanding the organisation's mission and the role that marketing plays in
fulfilling that mission
2. Setting marketing objectives
3. Scanning the environment
4. Developing a marketing strategy by selecting a target market strategy
5. Developing and implementing a marketing mix
6. Implementing the strategy
7. Designing performance measures
8. Evaluating marketing efforts
9. Making necessary changes.
The four “P’s”

01. The product itself

The place where it is to be sodl

02. (distribution of the product)

The promotion (marketing

03. communication methods) to be
used to inform the consumer

04. the price of the product, which

should reflect its value to the
consumer