Transcript 1408095211_462544

12.0 MARKETING
 Definitions, perspectives and contexts
 Market research
 Segmentation, targeting and positioning
 Branding
 Product, price, promotion and place
 Buyer behaviour
 Marketing and the economy and the state
 Consumerism
 Marketing and developments in technology
 Social, cultural and institutional issues
 Organization issues
 Marketing strategy
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.1 MARKETING – DEFINITIONS I
‘The process by which companies create value for
customers and build strong customer relationships
in order to capture value for customers in return.’
(Armstrong and Kotler 2007)
‘The achievement of corporate goals through
meeting and exceeding customer needs better than
the competition.’ (Jobber 2001)
‘Marketing is not a specialized activity at all. It
encompasses the whole 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 1968)
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.2 MARKETING – DEFINITION II
Marketing is:
 An interactive process
 That is aimed at satisfying customer needs
 That operates in a competitive and dynamic
environment
 That concerns goods, services and ideas
 That exists in all types of organization
 That involves product design, pricing, promotion and
distribution
 That is the responsibility of all members of the
organization
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.3 PERSPECTIVES ON MARKETING
 Product orientation
 Selling orientation
 Marketing orientation
 Relationship marketing
 Societal marketing
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.4 CONTEXTS OF MARKETING
 Product marketing
 Business to business marketing
 The marketing of services
 The marketing of images
 International and global marketing
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.5 ELEMENTS OF MARKETING
 Market research
 Segmentation
 Targeting
 Positioning
 Branding
 Product, price, promotion and place (the 4 Ps)
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.6 MARKET RESEARCH
There are several overlapping activities
 Information about current products and their
market position
 Market intelligence - competitor behaviour and
market trends
 Feasibility testing of new products
 Evaluation of products on an ongoing basis
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.7 SEGMENTATION, TARGETING AND
POSITIONING
 Segmentation - where the market is broken down into
distinctive consumer groups.
 Targeting – developing products and a marketing mix
for specific segments.
 Positioning - finding the appropriate niche in the market
to place a product or service.
 Repositioning – aiming a product at a different group to
increase sales.
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.8 SEGMENTATION OPTIONS
 Offer a single or small range of products or services to
a single segment or small range of segments.
 To offer many products and services to many different
segments.
 To offer a single product or service to an
undifferentiated mass market.
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.9 BENEFITS OF SEGMENTATION, TARGETING
AND POSITIONING
 Assist market penetration by focusing on the needs of a
particular group
 Competitive advantage via specialist knowledge of a
particular market segment
 Product development via increased knowledge of a
particular market
 Adaptation of products across other groups
 Efficient use of resources by targeting marketing efforts
 Effective targeting and positioning can add value to
products
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.10 BRANDING
An important source of product differentiation via name,
logo or symbols. Importance due to:
 It has replaced technological differentiation as a source of
competitive advantage.
 Major markets have become stagnant - brands give products
prominence.
 Branding was important in specific markets e.g. clothing and
fashion accessories, cosmetics, cars. But its importance is
now much broader.
 Brands can outlive companies.
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.11 ATTRIBUTES OF A BRAND
 Brand as a product
 Brand as an organization
 Brand as a person
 Brand as a personality
 Brand as a symbol
 Brand as a country of origin
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.12 ADVANTAGES OF BRANDING TO THE FIRM
 Increase market share by appealing to different
segments
 Capture new markets via brand switching
 Gain more exposure in retail outlets
 Means of organizing the business
 Builds brand loyalty and repeat purchases
 Assist in launching new products
 Adding value to the business via brand equity
 As a means of structuring the organization
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.13 TOP GLOBAL BRANDS
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.14 CRITICISMS OF BRANDING
 Misleads consumers by drawing false distinctions
between products.
 Redirects investment from product development to
packaging and promotion.
 Encourages status consciousness especially amongst
the young.
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.15 THE 4 Ps
 Product
 Price
 Promotion
 Place
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.16 THE 4 Cs
Suggested as an alternative to the 4Ps by Armstrong
and Kotler (2007)
 Customer solution – associated with product
 Customer cost – associated with price
 Convenience – associated with place
 Communication – associated with promotion
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.17 THE PRODUCT
 Relates to manufactured goods, services, people,
organizations, ideas etc.
 Broad concept covering brand, packaging and aftersales service
 Product line - variations in the same product
 Product mix - portfolio of different products
 Marketing informs product development
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.18 THE PRODUCT LIFE CYCLE
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.19 ADVANTAGES AND WEAKNESSES OF THE
PRODUCT LIFE CYCLE CONCEPT
Advantages
 Assist in planning a campaign
 Identifies what, where and when action is needed when
sales decline
 Assesses relative strengths and weaknesses of the
product portfolio
Weaknesses
 Over-simplification of the behaviour of markets
 Much variation in the nature and timing of the cycle
between sectors and products
 Difficult to assess when a product has reached a certain
stage in the cycle
 Ignores the knock-on effects of a changing market
position
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.20 PRICE
Determinants include
 Supply and demand
 Cost
 Consumer behaviour
 Competition
 Management goals
 Organization size
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.21 PROMOTION
 Advertising - includes design of the message, choice
of media, cost, evaluation
 Sales promotion - ‘below the line’
 Direct marketing
 Personal selling
 Publicity
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.22 FUNCTIONS OF ADVERTISING
 Inform customers and potential customers
 Create initial demand
 Persuade customers to buy
 Build up a brand image
 Remind customers and encourage repeat
purchases
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.23 PLACE
Involves consideration of:
 Marketing channels - how goods and services reach
the consumer
 Methods of physical distribution
 Use of intermediaries
 Impact of direct marketing and e-commerce
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.24 CUSTOMER SERVICE AND THE 7Ps
To product, price, promotion and place are added:
 People – important that all staff recognize that they
are involved in the marketing process
 Process – need to be effective to identify customer
needs and to handle orders and complaints
 Physical evidence – importance of lay-out and
design of space to attract customers and make them
feel comfortable
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.25 BUYER BEHAVIOUR
 A complex process difficult to predict
 Important to predict viability of innovative products.
Rogers (1962) model identifies types of buyer
- Innovators
- Early adopters
- Early majority
- Late majority
- Laggards
 Customer loyalty is the important goal
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.26 CUSTOMER LOYALTY AND CUSTOMER
SATISFACTION
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.27 ENVIRONMENTAL ASPECTS OF
MARKETING
 Interaction with the economy
 Interaction with the state
 Consumerism
 Interaction with technology
 Cultural, social and institutional influences
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.28 INTERACTION WITH THE ECONOMY
• Many marketing ideas are based on economic theory
• Economic restructuring - shift to service economy,
globalization, privatization - present new challenges for
marketing
• Segmentation is linked to uneven distribution of wealth
and income
• Economic changes - fall in demand, exchange rate shift,
inflation, interest rates - impact on marketing strategies
• Marketing strategies attempt to protect the firm from the
adverse consequences of economic change
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.29 INTERACTION WITH THE STATE
 The state uses marketing to provide information on
government policy
 The state uses marketing to promote desired behaviour
in the population - healthy living, education and training
 The state directs public consumption via taxes and
pricing policy
 The state attempts to regulate marketing through laws
and other measures
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.30 CONSUMERISM I
Basic principles
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The right of the consumer to be informed
The right to choose
The right to be heard especially by governments
The right to redress
The right to safety
The right to the satisfaction of basic needs
The right to consumer education
The right to a healthy environment
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.31 CONSUMERISM II
The growth of consumerism is related to
 The need for protection against dangerous products
and damaging services
 The need for protection against dishonest producers
 Popularity of consumer pressure groups
 More educated, affluent and demanding consumers
 Growth of media interest and consumer press
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.32 INTERACTION WITH TECHNOLOGY
 Information and promotion of new developments in
products and processes
 Product life cycles can be stimulated by technological
innovations
 Increased demand via promotion must be matched by
technological capacity to meet the demand
 Technological developments have assisted marketing e-commerce, the use of the internet for social
interaction
 Developments in transport and communications have
assisted distribution
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.33 RECENT TECHNOLOGICAL DEVELOPMENTS
IN MARKETING
 E-marketing
 Digital marketing
 Social media marketing
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.34 DIGITAL MARKETING
 Use of digital technologies e.g. the web, apps, emails
 The growth of on-line marketing
- highly flexible
- much lower cost than TV advertising
- can target specific groups
- use of emails and display and pop-up ads
 Use by companies of search engine marketing to
increase corporate visibility on search engines
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.35 SOCIAL MEDIA MARKETING
 Use of such as Facebook, Twitter and YouTube
 Mirrors the rapid growth of social media usage
 Shift in emphasis from the company to the consumer
through the establishment of discussion groups and
sites where consumers can submit views e.g.
Tripadvisor
 Can have significant positive and negative impacts
 Some drawbacks but now a powerful marketing tool
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.36 SOCIAL AND CULTURAL INFLUENCES
 Used as a basis for segmentation
 Advertising plays on core cultural values e.g. family
 Marketing needs to respond to changing demographics
 Globalization has resulted in some convergence in
marketing practice
 Growth of a global media and increase in types of media
have increased opportunities for advertising and
reduced cost
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.37 VARIATIONS DUE TO CULTURAL AND
INSTITUTIONAL DIFFERENCES
 Advertising spend
 Emphasis on different elements of the marketing mix
 Importance of language
 Legal controls
 Nature of advertising
There are dangers of cultural stereotyping
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.38 THE ORGANIZATION OF MARKETING
 Emerged as a specialist function with the growth in
size and complexity of organizations
 Marketing itself has grown and developed its own
specialist activities
 The organization can take one of several forms:
- As a specialist activity in a functional structure
- Product management - incorporated in product
groups
- Area management - structure based on markets
- Outsourcing to specialist agencies
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
12.39 MARKETING STRATEGY – AN OVERVIEW
 Product strategy
 Pricing strategy
 Promotion strategy
 Distribution strategy
 Segmentation and positioning strategy
 Branding strategy
 Integrated strategy
For use with Business in Context 6e
by David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd