Transcript Marketing

Trier 2007
Declan Fleming
Department of Marketing
Topic 1: Marketing Dynamics
SESSION OVERVIEW
This session will:
• Provide a definition of marketing
• Examine the development of marketing
• Outline the scope of marketing
• Introduce core marketing concepts
• Highlight the importance of marketing to
private and public sector organisations
Introduction to Marketing
WHAT IS MARKETING?
Session 1
MARKETING AS AN ACADEMIC
DISCIPLINE
• Marketing as a subject of study is
relatively new
• Has drawn heavily on:
– Economics
– Psychology
– Sociology
• Increasingly developing and contributing
its own body of knowledge
Marketing defined
Marketing is the management process responsible for
identifying, anticipating, and satisfying customer
requirements profitably. (CIM, 2001)
Marketing is the process of planning and executing the
conception, pricing, promotion and distribution of ideas,
goods and services to create exchange and satisfy
individual and organisational objectives. (AMA, 1985)
Marketing - points of agreement
(CIB & AMA)
•
Management process.
•
Giving customers what they want.
•
Identifies and anticipates customer requirements.
•
Fulfils customers requirements profitably.
Marketing - the Americans go further
•
Offers and exchanges ideas, goods and services.
•
Assumption that both parties value what the other has to
offer (mutual value).
•
Proactive selling and willing buyers.
Wider Definition of Marketing
Marketing is to establish, maintain,
and enhance relationships with
customers and other partners, at a
profit, so that the parties involved are
met. This is achieved by mutual
exchange and fulfillment of promises.
(Grönroos, 1997)
Lets make this a little simpler
• Marketing is about
– Providing the right product or service
– At the right price
– Available where the customer wants to buy
– And backed up by promotions which make
the customer aware of what is on offer and
convinces them to buy your company’s
product
– While making a profit for your company.
HOW DO YOU SUCCEED IN THE
MARKETS FOR THESE PRODUCTS?
• Fast Moving
Consumer Goods
(FMCGs) are a
challenge for
marketers
• Why should a
customer buy your
product and not the
competitors’?
Quotes about marketing
• “There is only one boss – the customer.
And he can fire everybody in the company,
from the Chairman on down, simply by
spending his money somewhere else.”
Sam Walton WalMart
Value, Satisfaction and Quality
• Consumers make buying choices based
upon their perceptions of the value that
various products and services deliver.
• Customer value is based upon the
consumer’s assessment of the product’s
overall capacity to satisfy his or her
needs.
Business orientations
•
Production.
•
Product.
•
Selling.
•
Marketing.
Five Eras in the History of Marketing
Era
Approximate Time
Period*
Prevailing Attitude
Production
Prior to 1920s
“Pile them high and sell them cheap”
Product
Prior to 1950s
“Innovation is the key to survival”
“Creative advertising and selling will
Sales
Prior to 1970s
overcome consumers’ resistance and
convince them to buy.”
Marketing
Since 1970s
“The consumer is king!
Societal
Began in 1980s
“Long-term survival only possible
through social responsibility and ethics”
Production and Product orientation
Table 1.1
Henry Ford’s Mass-production
Line (Production Era)
“They (customers) can have any
color they want, as long as it’s
black.”
Selling and Marketing orientation
Table 1.1 cont.
MARKETING AS A FUNDAMENTAL
BUSINESS PHILOSOPHY
• Distinguish between:
– Marketing as a philosophy (e.g. a
company- wide culture of putting the
customer first)
– Marketing as a set of techniques (e.g.
advertising, market research)
• Techniques are likely to fail if the
philosophy is not fully adopted
MARKETING IN RELATION TO OTHER
CORPORATE FUNCTIONS
• Viewed as a philosophy, everybody in an
organisation should be a “part-time
marketer”
• “Marketing is so basic that it cannot be
considered to be a separate function. It is
the whole business seen from the point of
view of its final result, that is, from the
customer's point of view". - Peter Drucker
An INTEGRATIVE BUSINESS
FUNCTION?
• The role of marketing in bringing
(departmental) functions together in
emphasing the customer focus?
- marketing the GLUE?
Figure 1.3 Marketing
as an Interface
The basic marketing mix (4Ps)
Figure1.4
The Marketing Mix:
Product and Promotion
Product
• Development
• Management
• Features/benefits
• Branding
• Packaging
• After-sales service
Promotion
•
•
•
•
•
•
Communication mix
Advertising
Sales promotion
Sales
Public relations
Direct marketing
The Marketing Mix:
Price and Place
Price
• Costs
• Profitability
• Value for money
• Competitiveness
• Incentives
Place
• Access to market
• Channel structure
• Channel
management
• Retailer image
• Logistics
Additional Ps
• People
• Processes
• Physical evidence
The extended marketing mix (7Ps)
•
Price.
•
Product.
•
Place.
•
Promotion.
•
People.
•
Processes.
•
Physical evidence.
Marketing Scope
Consumer goods
Non-profit
marketing
eMarketing
B2B goods
Small business
marketing
Service goods
International
marketing
NOT FOR PROFIT MARKETING
• It’s not just commercial companies that use
marketing
• Increasing use of marketing by not-for-profit
organisations, e.g. charities, government
agencies
• Rising expectations of users of these
organisations
• Often, their environment is becoming more
competitive
What do marketers do?
Practice of marketing
Marketing job titles
•
•
•
•
•
•
•
Brand manager.
Product manager.
Sales manager.
Salesperson.
Advertising manager.
Public relations manager.
Market research manager.
WHAT MAKES A GOOD
MARKETER?
• Are marketers born
or bred?
• Some key skills:
– Ability to listen and
analyse
– Critical thinking
– Creativity