Transcript Chapter 1
Chapter 1 The Field of Marketing Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 1–1 Nature and scope of marketing • Marketers: – Centre on attempts to understand consumers. – Seize an advantage over competitors. – Gain a foothold in a market. – Satisfy consumers. Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 1–2 Who and what is involved in marketing? • Include: – Physical goods—clothes, machines, tractors. – Services—banks, theatres, health insurance. – Ideas—Clean Up Australia, road safety. – People—Cathy Freeman, Barry Humphries (people are a marketable product or brand). – Places—Daintree, a new business estate. – Experiences—travel, yoga. Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 1–3 What is marketing? • Marketing can be described as any exchange activity intended to satisfy human needs or wants. • Marketing is a system of business activities aimed at achieving organisational goals by developing, pricing, distributing and promoting products, services and ideas that will satisfy customers’ wants. Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 1–4 Needs, wants & exchange • Defining a need—basic feeling of deprivation. • Defining a want—the particular forms a need might take. • Defining exchange—offering something of value in return for something else of value. Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 1–5 The stages in the evolution of marketing Production orientation Sales Marketing orientation orientation Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata Societal marketing orientation 1–6 The evolution of marketing The production-orientation stage • Typical thinking of the 1930s. • Focus on increasing production. • Production and engineering staff have control of the organisation; there is a sales department but its function was simply to sell the company’s output at a price set by the production and financial managers. Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 1–7 The sales-orientation stage • Typical thinking from the 1930s–1960s (post-depression Australia) – – – The firm’s emphasis was on selling its output. This was the age of ‘hard sell’. Supply usually exceeded demand. Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 1–8 The marketing-orientation stage • The firm’s goals become customer orientation and profitable sales volume. • Marketing influences all short-term and longrange company planning. • Focus is on marketing rather than selling, encompassing inventory control, warehousing, product planning and implementation of the marketing concept. Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 1–9 The societal marketing concept • • • • Marketer must act in a socially responsible manner. External environment’s influence on firm’s marketing program. Entails the realisation that our natural resources are finite. Increasing emphasis on the management of human resources. Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 1–10 Marketing vs. Selling • Marketing – Company finds out what the customer wants and develops a product to satisfy those wants while yielding a profit. • Selling – A company makes a product and then uses various selling methods to persuade customers to buy it. Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 1–11 The marketing concept • Marketing concept • All company planning and operations should be customer-oriented, focussing on satisfying customers’ needs and wants. • All the marketing activities in a firm should be coordinated and consistent. • Customer-oriented, coordinated marketing activities are seen as the means of achieving the firm’s own objectives. Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 1–12 Three requirements for implementing the marketing concept Marketing concept Customer orientation + Coordinated marketing + Organisation’s performance objectives Customer satisfaction activities Organisational success + Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 1–13 Relationship marketing Relationship marketing focuses on building and maintaining business relationships with customers rather than focussing on each sale. Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 1–14 Relationship marketing • Loyalty marketing schemes—customer rewarded for continuing to buy from the organisation. • Value adding—increasing customer satisfaction by providing extra goods and services over and above the basic product being offered. • Mass customisation—increasing practice of developing many variations in a firm’s offerings. Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 1–15 Quality and marketing • Reducing product quality variability. • Increasing responsiveness to changing customer needs. • Reducing costs through less wastage or reworking. Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 1–16 Marketing management Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 1–17 The planning sequence Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 1–18 The marketing mix • The four key elements of marketing are referred to as the ‘marketing mix’. • These elements are: Product, Price, Promotion and Place (Distribution). • These elements, also known as variables, are controllable by marketers and are the key to attracting a specific target market. Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 1–19 The marketing mix Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 1–20