Transcript Introduction to Marketing

Introduction to Marketing
Definition
 The process by which companies create value for customers and
build strong customer relationships in order to capture value
from customers in return. Kotler and Armstrong (2010).
 Marketing is the management process for identifying,
anticipating and satisfying customer requirements profitably. The
Chartered Institute of Marketing (CIM).
The twofold goal
Attract new customers by
promising superior value
Keep and grow current
customers by delivering
satisfaction
All ways low prices
The Marketing Process
Create value for customers and build customer
relationship
Understand
the market
place &
customer
needs and
wants
Design a
customerdriven
marketing
strategy
Construct
an
integrated
marketing
programme
that delivers
superior
value
Capture values from
customers in return
Build
profitable
relationships
and create
customer
delight
Capture
value from
customers
to create
profits and
customer
quality
Marketing Concept
Marketing is not only much broader than selling, it is not a
specialized activity at all. It encompasses the entire business.
It is the whole business seen from the point of view of the
final result, that is, from the customer's point of view.
Concern and responsibility for marketing must therefore
permeate all areas of the enterprise. Drucker (1955, 2007).
 Production orientation- focus was on the science of
manufacturing
 Product orientation- focus on the quality and desirability of a
certain product
 Sales orientation- products sold based upon features rather than
the benefits to the individual customer and his or her needs
 Market orientation- needs and wants are satisfied through the
delivery of value to satisfied customers
Marketing Mix
The extended Marketing Mix
Marketing Mix for Burger King
 Product
 As a fast food hamburger restaurant chain, BK produces,
hamburgers, cheeseburgers as well as Fries, Salads, Hash browns,
Coffee, Juice, Shakes, cookies and pies.
 Offering a retail line of microwaveable Burger King Brand French
fries at select retailers in the United States
 Starbucks Corp.'s Seattle's Best Coffee to all its U.S. restaurants
 Price
 The Price that is charges for the products on offer
 $1 double cheese burger
 Slushy drinks for $1
 The Premium Burger at a higher price
 Place
 Burger King operates its business via franchises, under a franchise
arrangement, the franchisees invest in the equipment, signage, and
decor, while the company owns/leases the land and building
 Promotion
 Driving sales through Facebook
 The BK Crown Card
 BK eGift card
 ATL campaigns
 YouTube Videos
Get a tasty new look
Gift Card
Facebook Campaign
The New Marketing Landscape
The Digital Age
 The rise of the Internet
 New communication and advertising tools (Cellphones,
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ipods, interactive TV, etc..)
Bricks-and-mortar to click-and mortar
The pace/speed of innovation
Better segmentation
More focused communications
Rapid Globalization
 Global competition
 International supply chain
 Irrelevance of country of origin concept
E.g: Coke offers more than 400 Brands in 200 countries
Product range
Ethics & Social responsibility
 Marketers to take greater responsibility for social &
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environmental impact
Increase in consumer out cries and legal issues
Companies may react to this in different ways
Some take a pro-active approach
E.g: Patagonia- Pledging 1% of sales or 10% of profits, which
ever is higher, to the protection of the natural environment
Growth of Not-for-profit marketing
 This includes colleges, hospitals, museums, zoos, etc…
 Colleges compete for students and funds
 NFP’s-YMCA, The Salvation Army, etc.. Compete for
membership
 Government agencies- branches of the US military, US postal
service