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Slide 1 of 16 Marketing Principles (Bachelor Science Horticulture Botanic) Dave Healy September 25th, 2008 Registration Registration Packs?? Has everyone registered? Modern Marketing Management How Marketing has Evolved • Marketing Era: 1900 – 1930: Production Orientation, ‘Pile em high, sell em cheap’ 1930 – 1960s: Selling Orientation, ‘Push Sales to gain market share’ 1960 -1980s: Marketing orientation, ‘Find out what the customers want, then develop products to satisfy them!’ 1990s – Today: Societal Marketing orientation, ‘If we’re not ethical in our marketing practices, we will not survive in the long term’ (Czinkota calls it ‘Relationship Marketing’, P7) 2005 - Sustainable Marketing promotes authenticity, community, and responsibility The Marketing Concept • Czinkota , P10 1) Organization exists to identify and satisfy the needs and wants of its potential and existing customers • 2)You satisfy those needs through an integrated effort within the organization. • 3)Focus should be on long term cooperative trading relationships with customers, not short term exploitation. (Examples, Ikea etc) The Marketing Concept • You should analyze the needs of your customers and then make decisions to satisfy those needs, better than the competition. Simple Strategy: Focusing on customer needs before developing the product • Aligning all functions of the company to focus on those needs • Realizing a profit by successfully satisfying customer needs over the long-term Concepts Related to Marketing Concept The Production Concept: Ran until early 1920s; Can we produce the product? Can we produce enough of it? Examples (Mass Production) The Sales Concept: Ran from 1930s; Can we sell the product? Can we charge enough for it? Beat the competition to the sale, regardless of customer satisfaction. Examples? Marketing as a business philosophy Peter Drucker’s Observation: “The purpose of a company is to create customers.” (N.W. Ayer & Son, 1948) “A business has two — and only two — basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs.” Marketing in the 21st Century Hugely important to individual companies and economies. The top 150 economies in the world, only 74 are actually countries, the other 76 are…. World’s biggest company? 21st century marketing will be based around technology and physcology. Earth’s 3 Socioecological Classes, p40 (21st Century) Over Consumers 1.1 Billion Sustainers 3.3 Billion Marginals 1.1 Billion Car & Air Bicycle & Bus Foot & Donkey High Fat, high Cal Healthy Grain, veg Nutritionally inadequate Bootled Water + Soft Drinks Clean water/tea Contaminated water Throwaway/waste Unpackaged goods/recycle Local biomass / no waste Spacious houses Modest, naturally ventilated houses Rudimentary shelter clothes Relationship Marketing •Relationship marketing is a form of marketing developed from direct response campaigns •It targets audiences with more directly suited information on products and services that suit that particular person’s interests Customer Satisfaction (Relationship Marketing) • Is a measure of how products and services supplied by a company meet or surpass customer expectation. • Customer satisfaction relies on the communication and acquisition of consumer requirements solely from existing customers usually involving permission for contact by the customer through an "opt-in" system. Customer Retention, P 306-310 (Relationship Marketing) • What is it? – It’s about reducing customer defections, leaky bucket theory – replace disloyal customers. • Customer defection is getting easier and easier every year. • Retention Rate is the % of the total number of customers who have repeatedly placed an order over any 12 month period compared to the total number of customers in the same period. • Check Retention Strategies in the book Marketing & Social Responsibility – ch2 • An organization shows concern for the people and environment in which it transacts business. • Behave ethically & treat customers honestly • these values are communicated and enforced by everyone in the organization. • In some cases social responsibility may also manifest itself in the support of social causes that help society. And Finally – Sustainable Marketing • A relatively new concept • “sourced from sustainable forests” • “made from sustainable materials” • See lyonstea.ie for example • Any other Green Marketing Next Week • The Macro & Micro Marketing Environment • Practical Discussion – Before you can market your product or service – Starting a business in Ireland; Sole Trader or Limited Company