This slide outlines the key areas of learning that will be covered, you may notice how we begin with the marketing concept, how marketing and society are interlocked, then how the marketing concept can be roken down into three smaller mega-marketing concepts and how these are directed towards satisfaction and the establishing the relationship between customer satisfaction and organisational satisfaction.

This slide outlines how the content of the unit has been arranged under two section headings – marketing philosophy & marketing theory. The marketing philosophy section outlines the values embedded in the marketing concept and practicing a marketing philosophy. The marketing philosophy section is arranged into definitions, evolution, & objectives. The marketing theory section provides a detailed account of the theories that shape the thinking of marketing practitioners. The marketing theory section is arranged into the buyer decision process, the total product, and the circle of satisfaction.

This slide outlines 3 business concepts that have evolved with time. The 3 business philosophies are the production concept, the selling concept, and the marketing concept. The most adopted is the marketing concept & it is quite distinct in that it starts with customer satisfaction and the realisation the without customer satisfaction long-term organisational satisfaction is unlikely. We describe the evolution of the marketing concept as the quest to best satisfy and this requires that within an organisation employees who have been trained in another concept must be re-trained to the principles of the marketing concept and the practices of a marketing philosophy.

This slide presents the marketing concept, later in our discussions we will see how this is exploded in greater detail to show the steps that are inferred but hidden in this slide – see the exploded view of the circle of satisfaction. 

When an organisation and the diagram shows a number of organisations to indicate that different organisations may adopt the marketing concept, however, each will develop unique marketing philosophies based on their unique situational factors. WE expand the situational factors to Customer, Organisation, Market, and Product [COMP] factors. We have noted that the COMP factors shape all decisions and this is particularly important to keep in mind as we enter section 3 – application.

In section 1 we explored the evolution of marketing in great detail and the objective was to provide evidence of 4 recurring patterns or quest. The 4 recurring patterns or quests are outlined on the slide, however, the is a reason we went to so much trouble as it is how the market quests can be applied to design, develop, and deliver best satisfying products that is the key message that was delivered. These form the basis of how every organisation should reflect on their present performance and address their potential products.

In section 1 we stated that the COMP factors are constantly evolving. We also explored how marketing theory is developed by marketing academics to make sense & provide guidance to marketing practitioners and marketing students. In this slide we outline how areas of interest emerge, are then researched and, in time, become part of main stream marketing. A word of caution – as a general rule the internet lags well behind academic journals and does not have the order and sequence of academic journals therefore, the internet does not always represent an effective and efficient approach to study.

There is a purpose to marketing that is critical to the survival of organisations and it is outlined in the 9 key objectives of marketing practitioners. We arrange these into 3 headings – financial objective, strategic objectives, and communication objectives. Like the COMP factors the 9 key objectives of marketing practitioners are the centre of the marketing practioners efforts. As you explore these you will see that they are co-dependent.

In this slide we see the 3 time-zones of the buyer decision process and the various stages. It may be prudent to re-read this information in themarketingconcept e-book. 

This slide summarises the key characteristics of each of the 3 time-zones of the buyer decision process. In the purchase behaviour time-zone the consumer is searching &estimating value, in the product delivery time-zone the customer is experiencing & assessing value, & in the post-purchase time-zone the customer is reflecting,  evaluating – punishing, ambivalent, rewarding.

This slide we see the 2nd of the 3 mega-marketing concepts – the total product. We can see in this slide how the foundation of the total product are the brand considerations and this highlights the relationship between the product and the brand. The next layer is the product considerations what marketing practitioners must consider to design, develop, and deliver a new or existing product. Then we have the potential product layer which represents the product under development but not yet available. The next layer is the augmented product layer which is how and organisation delivers a unique product value proposition to the selected customers. Then we have the expected product layer which is what is expected by the customer [or industry standard] for a product at a particular price point. Then we have the core product layer or the core outcomes a product must deliver in the mind of the selected customers. Then at the top are the 6 product components that marketing practitioners employ to create a product with a unique product value proposition. 

This slide [starting at the top] we see how a customer may journey through the buyer decision process and have 1 of 3 post-purchase evaluations dissatisfaction, neutral, or satisfaction. Then we can see how the customer will punish, be indifferent, or reward the organisation. Now at this point it is one customer’s journey, then we can see a diagrammatic representation of the impact of collective satisfaction for all customers where the organisation. If there is a high prevalence of collective dissatisfaction then the organisation will experience a reduced market share, if there is a high prevalence of indifference then the market share will remain static, if there is a high prevalence of satisfaction then the organisation will experience an increase in market share [all proportionate to the collective evaluation of customers].

This slide we see outline the consequence of the buyer decision process following an exchange between a customer and an organisation – in this slide we are viewing it from the perspective of one customer. The major steps are – How quality is what the customer receives, value is the total received [got] against the total costs given, satisfaction is what is got V given V expected. Cumulative satisfaction is after more than one event. This leads to the formation of trust, loyal behaviour, which creates a competitive advantage, leads to an increase in profitability and organisational satisfaction.

The starting point is a consumer who recognised a need then journey through the first time-zone of the buyer decision process, selected a product, transformed from consumer to customer with a series of expectations about what they would get [qualities] and give [costs of money time and effort] from the exchange. The customer would see the get and give as value and the compare it against expectations for an evaluation of satisfaction. If there is satisfaction or if there is more than one episode then the customer will evaluate cumulative satisfaction, this providing it is a satisfactory outcome will lead to a positive attitude and this will lead to loyal behaviour, This will contribute to a competitive advantage and increased profitability. Now this is only the effect of one consumer a competitive advantage transfers into market share an as we have just seen [2 slides previous] when loyal behaviour happens on a collective scale. This leads to improved profitability and then organisational satisfaction.

Sometimes as a student works their way through this slide the ask why is it a complete circle, my reason for closing the loop [see red circles] is because I see it as a continuous ongoing process. Otherwise I would have represented it with a starting and finishing point. Also organisations need to continually invest to ensure that they maintain quality, value, satisfaction, cumulative satisfaction, trust, competitive advantage with all customers and at all times – people talk about a sustainable competitive advantage but I question whether such a state exists as customers are really only loyal to best satisfying products. That is why it is the circle of satisfaction.

If we consider the previous slides we should recognise the difference between brand image – what the organisation communicates [how they would like to be seen] and brand identity – what the collective customers say [what is actually being said]. To reduce the gap between brand image and brand identity is an objective of marketing practitioners and a key part of the business-marketing planning process.

In this slide we see how collective satisfaction, leads to collective trust, collective loyalty and how this builds a competitive advantage and brand equity. Also previously we stated how this requires constant and continuous management for this position of product leadership to be maintained – this is often referred to as strategic intent.

There are occasions when consumers mentally bundle a number of total products [see exemplar Brand Singapore] into one aggregate product. Managers responsible for aggreagate products must manage aggregate satisfaction to build the brand. Tourism destinations are one example, however, there are many more – a shopping mall is another. some marketing practitioners may recognise that an aggregate brand is only as strong as its weakest total product.