Transcript Open file - PebblePad

The Market Environment
Scott Jones
Session aims and objectives
• Define the term ‘marketing’
• Discuss key marketing myths
• Analyse what relationship marketing is
• Examine the marketing mix and apply the
marketing mix to Ryan Air
What is marketing?
• A term given to those activities that that are carried
out at the interface between the organisation and it’s
customers.
• Marketing is concerned with meeting business
objectives by providing customer satisfaction.
• Marketing is the management process which
identifies, anticipates and supplies customers
requirements efficiently and profitably (CIM)
• Kotler – Evolution of Marketing
Development of a Marketing Orientation
• Production Orientation – People will buy anything as long
as it’s cheap enough. The prevailing attitude is that getting
production right is all that matters.
• Product Orientation – Produce an ideal product that all
customers want and add ‘better’ features in an attempt to
please the mass market.
• Sales Orientation – The view that customers will not
ordinarily buy enough of the firm’s products to meet the
firm’s needs, and therefore will be persuaded to buy more
– through sales techniques
Sell what you make
Development of a Marketing Orientation
• Customer/Market Orientation -
The entire company
should be aware of customer needs and wants and should be
organised and integrated to ensure that customer requirements are
met.
• Times have changed and marketers take the view customers are
intelligent enough to buy what they need, can recognise value for
money when they see it and will not buy again from an organisation if
they do not get value for money. This is the basis of the marketing
concept.
• The marketing concept affects all areas of the business – very difficult
to implement
Make what you sell
Prepare notes for a discussion
Think about what the following organisations deliver and their values .
Have you seen any evidence they understand their customers needs and
wants as indicated through their marketing approach?
Relationship Marketing
Marketing Myths
Satisfied customer is a
loyal customer
Strong brand is
invincible
Cheap price – is what
customers want and
equates to sales
A big name brand can
sustain a higher price
Advertising
always affects
sales
Members of distribution
channels do not
influence marketing
Development of a Marketing Orientation
• Societal Marketing – Marketers should take some
responsibility for the needs of society at large, and for
the sustainability of their production activities.
• Marketing is shifting towards the long term effects on
society. Body Shop was thinking like this over 20 years
ago. This is the new marketers field.
The Service Mix
The Service Mix
In summary, the Service Mix is all about…
•
What makes a customer want a certain type of service?
•
What makes them choose a certain service provider?
•
What makes people come back time and time again?
The Service Mix is 100% service driven.
The 3 P’s are inserted along side the main body of the 4 P’s Marketing Mix.
The People are the basic foundation to delivering customer quality and satisfaction.
The Process is how we deliver what we promise.
The Physical Evidence is surrounded by the whole experience our customers receive.
Marketing mix in action
• The model was developed by Borden (1964). The
use of the words mix and combination are
important here, because successful marketing relies
on interaction and synergy between the marketing
mix elements.
• Haagen Dazs ice cream – perfectly good, quality product, high price to
reflect this and sold in prestigious glass cabinets in cinemas and
supermarkets. It’s phenomenal success only came after an innovative
and daring advertising campaign that emphasised certain adult
orientation product
benefits