Transcript What is marketing?

BSP420: MARKETING MANAGEMENT
hanaka Jayawardhena
Room. BE 2.19
 (01509 22) 8831
 [email protected]
Session structure
•
A lecture (up to an hour)
•
Followed by a break (10-15 minutes)
•
A case study/video presentation scenario discussion/
presentation in small groups (up to an hour)
•
A concluding discussion (up to 45 minutes)
CHANAKA JAYAWARDHENA
BSP 022 MARKETING MANAGEMENT
What is marketing?

To attract and retain customers at a
profit (Drucker, 1999)

To establish, develop and
commercialise long-term customer
relationships so that the objectives
of the parties involved are met
(Gronroos, 1989)
CHANAKA JAYAWARDHENA
BSP 022 MARKETING MANAGEMENT
Efficiency and Effectiveness
Ineffective
Effective
Inefficient
Goes out of
business quickly
Survives
Efficient
Dies Slowly
Does well
Thrives
CHANAKA JAYAWARDHENA
BSP 022 MARKETING MANAGEMENT
5
The Marketing Concept
Marketing concept
Marketing Concept
The achievement
of corporate
The achievement of corporate
goals
through meeting and
goals through meeting and
exceeding
needs
exceedingcustomer
customer needs
better than the competition
better
than the competition
Customer
orientation
Customer
orientation
Integrated
efforteffort
Integrated
Goal
achievement
Goal achievement
Corporate activities are
Corporate
activities
focused upon providing
are
focused
upon
customer
satisfaction
providing customer
satisfaction
All staffaccept
accept thethe
All
staff
responsibility for creating
responsibility
for
customer satisfaction
creating customer
satisfaction
The
belief
that corporate
The
belief
that
goals can be achieved
corporate
goals can
through customer
satisfaction
be achieved
through
CHANAKA JAYAWARDHENA
BSP 022 MARKETING MANAGEMENT
customer satisfaction
2
Production Orientation
Production
capabilities
Manufacture
product
Aggressive
sales effort
Customers
CHANAKA JAYAWARDHENA
BSP 022 MARKETING MANAGEMENT
3
Marketing Orientation
Customer
needs
Potential
market
opportunities
Marketing
products
and services
Customers
CHANAKA JAYAWARDHENA
BSP 022 MARKETING MANAGEMENT
4
Evolution of the
Marketing Concept
Integrated
customer
focus
Marketing
Orientation
Long run profits
through customer
satisfaction
Push! Push!
Sell! Sell!
by promotion
Sales
Orientation
Short term
gains in profit
via sales increases
Production &
assembly line
refinement
CHANAKA JAYAWARDHENA
BSP 022 MARKETING MANAGEMENT
Production
Orientation
Profits through
production controls
6
Market-driven Management
Market
intelligence
Shared
values
Shared
andvalues
beliefs
and
Market
Skills in
intelligence
understanding and
responding to
customers
beliefs
 customer first
Customer
focus
Market-led
strategy
Market-led
 Linking
distinctive
strategy
competencies to
market opportunities
 Competitive advantage
the driving force
CHANAKA JAYAWARDHENA
BSP 022 MARKETING MANAGEMENT
Implementation
Structure and
systems
Structure
 structure
and based on
strategy
systems
 team work
Implementation
 people
 incentives
 communications
 persuasion
7
Creating Customer Value
Positive
Perceived
benefits
Product benefits
Service benefits
Relational benefits
Image benefits
CHANAKA JAYAWARDHENA
BSP 022 MARKETING MANAGEMENT
Customer
value
Negative
Perceived
sacrifice
Monetary costs
Time costs
Energy costs
Psychological
costs
8
Creating Customer Satisfaction
Delight
Customer satisfaction
‘Delighters’
‘More is better’
Neutral
‘Must be’
Dissatisfaction
Absent
CHANAKA JAYAWARDHENA
BSP 022 MARKETING MANAGEMENT
Presence of the characteristic
Fulfilled
9
Brittany Ferries
Brittany Ferries
promote the benefit
of relaxation
CHANAKA JAYAWARDHENA
BSP 022 MARKETING MANAGEMENT
10
An Effective Marketing Mix
Matches
customer needs
Creates a
competitive
advantage
Effective
marketing
mix
Well
balanced
Matches corporate
resources
CHANAKA JAYAWARDHENA
BSP 022 MARKETING MANAGEMENT
11
Marketing Mix and Customer Needs
Customer
needs
CHANAKA JAYAWARDHENA
BSP 022 MARKETING MANAGEMENT
Key
customer
requirements
Competitive
advantage
Marketing
mix
12
Marketing Mix and Customer Needs
Customer needs
Economic
Psychological
Performance
Customer
 Availability
needs
 Reliability
 Durability
 Productivity


CHANAKA JAYAWARDHENA
BSP 022 MARKETING MANAGEMENT




Self-image
Key
customer
Quiet
life
requirements
Pleasure
Convenience
Risk reduction
Competitive
advantage
Marketing
mix
13
Marketing Mix and Customer Needs
Marketing
mix
Customer
needs
Key
customer
requirements
Competitive
advantage




CHANAKA JAYAWARDHENA
BSP 022 MARKETING MANAGEMENT
Marketing
mix
Product
Price
Promotion
Place
14
Ericsson
Style is an important
choice criterion for
brands that are
conspicuous in use
CHANAKA JAYAWARDHENA
BSP 022 MARKETING MANAGEMENT
15