Transcript POM Week 1
Palmer: Introduction to Marketing WHAT IS MARKETING? Chapter 1 SESSION OVERVIEW This session will: • provide a definition of marketing • develop an appreciation of the importance of marketing to private and public sector organisations • introduce core marketing concepts MARKETING DEFINED "The strategic business function that creates value by stimulating, facilitating and fulfilling customer demand - it does this by building brands, nurturing innovation, developing relationships, creating good customer service and communicating benefits.’" - Chartered Institute of Marketing Focus is on customers. Profits result from meeting customers’ needs effectively and efficiently. COMPONENTS OF MARKETING ORIENTATION Narver and Slater noted 3 components: – customer orientation – competitor orientation – inter-functional co-ordination 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 HOW MARKETING ORIENTATED IS AN ORGANISATION? Think about your university or a local service business • Do the opening hours suit staff rather than customers? • Who has the best car parking space? • Many more tell-tale signs about whether it is really marketing orientated! FOUNDATIONS FOR SUCCESS IN BUSINESS • Marketing has not always been the dominant business framework • Marketing became important when excess supply chases limited demand 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’? STREET MARKETS V MULTINATIONAL CORPORATION • Different scale, and more complex issues • But many similar issues faced by both No customers, no business! MARKETING CANNOT STAND STILL • “Smartphones” may have been a recent hot new product • But what will tomorrow’s “hot products” be? • Innovation and understanding of consumers’ needs are crucial KEY MARKETING CONCEPTS Customers Needs Value Exchange Markets UNDERSTANDING VALUE IS CRUCIAL • Value can be complex • Must understand buyers’ definition of value • Fashion for “pre-worn” look of new jeans – does deliberately ripping them result in higher or lower value? Source: © Photodisc THE MARKETING MIX A classification of decisions made by marketers – – – – – – – Product Price Place Promotion People Processes Physical evidence THE MARKETING MANAGEMENT PROCESS 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 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 MARKETING AND SOCIAL RESPONSIBILITY • Growing emphasis on firms being “good citizens” • Rising expectations of organisations ecological responsibilities • Social responsibility usually driven by strategy rather than philanthropy MARKETING AS SCIENCE AND ART • Positivist view: – objectivity, measurability, scientific process • Post-positivist view: – marketing is unlike the natural sciences - true meaning of phenomena is best discovered through more qualitative approaches • Marketers should combine both approaches 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 WHAT MAKES A GOOD MARKETER? • Are marketers born or bred? • Some key skills: – Ability to listen and analyse – Critical thinking – Creativity SUMMARY OF KEY POINTS • Marketing is about organizations meeting customers’ needs as a means of achieving their own objectives. • Marketing is both a philosophy and a set of techniques. • The principles of marketing are not new, but a continually changing marketing environment demands new ways of applying basic principles. • Marketing can be adopted by both profit-seeking and not-for-profit organizations. • Marketers are increasingly expected to act responsibly.