Transcript END OF UNIT 1

Specialised & Cause Related
Marketing (SCM812S)
UNIT 1
INTRODUCTION TO SPECIALISED AREAS OF MARKETING
(SOCIAL, CAUSE, SPORT/EVENTS, TOURISM AND GREEN
MARKETING)
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Unit Objectives
At the end of this unit you should be able to:
 detail the evolution of the marketing concept
 describe and give examples of the different variants of
marketing
 discuss the key principles of marketing shared by all
forms of marketing
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1.1 Origins of marketing
 Every day we engage ourselves in activities that are part of
marketing. Whether you are informing someone about your
product or persuading them to buy it, constitute activities of
marketing. What about undertaking research to find out the needs
of your customers? What about giving your product a unique name
to distinguish it from other similar products, or dividing a total
market into groups of consumers with relatively similar needs?
What is Marketing? Do you know where and how the concept of
Marketing developed?
 According to Peattie, Marketing did not become a formally
recognised and explicit management activity until the 1950s, and its
theory and practice have been evolving ever since. However, the
activities that are central to marketing have existed in some form
since the dawn of human commerce, and therefore since people
began to commercially exploit their environment (Peattie, 1992, p.
3).
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1.2 What is marketing?
 The Chartered Institute of Marketing defines it as:
“The management process responsible for identifying,
anticipating and satisfying customer requirements profitably”.
The American Marketing Association (AMA) defines marketing
as:
"The activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have
value for customers, clients, partners, and society at large”.
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Cont’d
A refined definition by AMA is that Marketing “is the process of
planning and executing the conception, pricing, promotion,
and distribution of ideas, goods and services to create
exchanges that satisfy individual and organisational
objectives”.
There are many definitions of marketing, other than the one
provided above, kindly provide any three different definitions of
marketing by different authors and analyse their similarities and
differences.
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The 3 C’s diagram of the marketing
Concept
Customer focus
Competitor focus
PROFITABILITY
inter-functional
Coordination
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Discussing the 3C’s
CUSTOMER FOCUS
 Market research is conducted regularly
 Opening hours are geared to customer needs
 Prime parking spaces reserved for customers not for
senior managers
 Advertising based on what the customer need to
hear, not on what managers want to say.
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Cont’d
Competitor focus
 Competitors and their products are monitored
 Future competition is assessed
 Channels of distribution in place bypasses
competitor’s
 The company is aware of how it is perceived in
relation to its competitors
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Cont’d
Coordination
 Employees have the power to correct customers
complaints as they occur
 Goods are distributed through convenient
distribution channels for customers
 Staffs are trained to put the customer first
Profitability
 Profitability as a result of continuously happy
customers and not just due to mass production
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1.3 The evolution of marketing and marketing
concepts
The development of marketing went through different stages and
concepts as follows (Peattie, 1992, p. 5):
 The product concepts: a belief that customers are mainly
interested in the quality, performance and features of products.
It requires marketing activities to focus on the product
development and improvement, and on maintaining product
quality.
 The production concept: a belief that customers are basically
price sensitive. The aim of marketing will be to make products
efficiently and distribute them widely enough to raise volumes
and drive down unit costs.
 The selling concept: a belief that customers will not buy enough
of the company’s product without some persuasions. It needs
marketing activities which informs and persuades customers
through advertising and promotion.
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Cont’d
The marketing concept: a belief that it is important to
understand customer needs and fulfil them more
effectively than the competition. Marketing activity has
to begin by understanding customer needs and
competitor offerings through marketing research. It also
typically requires a balance of ingredients from other
concepts – developing good products, making them
efficiently and distributing them widely, and informing
and persuading customers.
The societal marketing concept: a belief that satisfying
consumers and generating profits is not enough to guide
businesses. It requires marketing activity to encompass
the interests of society as well as the particular group of
customers that are being served.
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A retrospect of the Marketing
field/Eras or concepts
Market & Competition Eras
Societal Marketing Era
Marketing Era (1980s)
Selling Era (1950s)
Product Era (1930s)
Production Era (Mid-1920s Industrial Revolution)
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The Societal Marketing Concept
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2.Marketing Variants
The basic principles of marketing are relevant to all businesses and to
many non-business organisations or not-for-profit organisations.
However, experience shows that the practicalities of marketing in a
small company as compared to a large one, a business compared to a
charity, or a manufacturer compared to a service business – are very
different. One standard, generalised “recipe” for marketing cannot
match everyone’s needs (Peattie, 1992, p. 6). The concept of marketing
has therefore continued to evolve into a variety of distinctly different
forms of marketing. Peattie lists the following Marketing Variants:
1. mass marketing
2. niche marketing
3. industrial marketing
4. not-for-profit marketing
5. societal marketing
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Cont’d
6. services marketing
7. leverage marketing
8. international marketing,
9. global marketing
10. relationship marketing
11. lifestyle marketing
12. micro-marketing, and
13. green marketing.
This course however only deals with Cause,
Sports/Events, Tourism and Green Marketing.
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2.1 Mass marketing
 Formal marketing began as a means of satisfying large mass
markets of customers with similar needs (Peattie, 1992, p. 6).
The mass production era relied upon producing specific
products to cover all segments of a market. These products
were differentiated from competitors’ offerings in order to
capture the largest market share possible. Differentiation was
achieved through pricing, product features, advertising and
branding, and the management of quality levels. Typical
examples of products that are mass marketed in Namibia are
Coca Cola and KFC. These are products that have universal
appeal. Toilet paper is also mass marketed.
http://www.youtube.com/watch?v=5k4d_fBfGWE
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2.2 Niche marketing
Mass marketing complemented mass production as a
way to meet high volume demands with high volume
production. However, it soon became clear that small
market niches with very distinctive needs also existed.
Marketing was still important to secure these niches,
but the techniques of mass marketing needed
amendment to serve them. Niche marketing focuses on
generating very distinctive product offerings, and
building barriers to protect the niche. Examples in
Namibia could be the Body shop, which is in the
wellness business and provide
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2.3 Industrial marketing
Consumers or “end-users” are not the only form of customer which a
company can market to. For many businesses, their customers are
other businesses, who often differ sharply from consumers in their
needs and behaviour. The products that a company supplies to a
business may have to satisfy the needs of several different people
including:
§ Those who use the product,
§ Those who select them,
§ Those who approve their purchase,
§ Those who negotiate their purchase.
Satisfying all these different parties within a company makes
business-to-business or industrial marketing a very different
challenge from consumer marketing. Examples in Namibia is Plastic
Packaging which supplies a wide range of plastic products to
different companies and Office Economix who supplies a range of
office furniture.
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2.4 Not-for-profit marketing
 Although it was stated earlier that marketing involved
satisfying consumers’ needs at a profit, many types of
organisation which do not aim to generate profits have
adopted many of these concepts and practices of
marketing. Many hospitals, universities, charities,
government departments and even churches have adopted
the principles of the importance of customer satisfaction.
Many also now have people responsible for marketing. Notfor-profit marketing can fit into the definition of marketing
if we substitute the profit objective with some other form
of performance target. The Cancer Association and its
promotional campaign of “an apple per day” is an example
of Not-for-profit marketing.
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2.5 Societal marketing
 The late 1970s saw a profound shift in many societal values.
Among them was a developing concern for the environment, a
specific consumerist movement and widespread concern for the
disadvantaged within society. It became clear that marketing
theory could not resolve the potential conflicts that might arise
between the needs of one group of consumers and another, or
between the needs of certain consumers and the needs of
society. The societal marketing concept evolved to try and
resolve these conflicts by adding a long-term concern for society
into the marketing concept. It did this in two key ways:
 By stressing the priority of customer satisfaction over profit.
Customer satisfaction became the means of achieving profit, not
just a different type of objective.
 By viewing the organisation as a total system and considering its
overall impact on society.
Example of societal marketing is the campaigns against rhino
poaching and baby dumping.
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2.6 Service marketing
 During the 1980s there was a considerable focus on the difference
between marketing products and marketing services (Peattie,
1992, p. 6). Services are different from products in several ways
which require a different approach to their marketing:
§ Services are less tangible than products
§ They can rarely be sampled before purchase
§ Production and consumption of a service are simultaneous – a
service cannot be stored
They involve a greater degree of personal contact between the
customer and the seller. The attributes of the service provider will
tend to strongly influence the customer’s perception of service
quality. The tourism industry and financial services industry are some
of the examples where service marketing takes place.
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2.7 Green marketing
Green marketing is a style of marketing which has arisen
in response to the increasing concern about the state of
the global environment and the life it contains (including
human life). This variant of marketing is discussed in
details in Unit 5. Nedbank Namibia with its Go Green
campaigns is an example in Namibia.
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2.8 Sports marketing
According to Fuse marketing (2013) sports marketing is
a form of marketing in which brands use mainstream or
alternative sports to connect with both a broad and/or
targeted group of consumers. Countless companies
and/or brands have used sports marketing to build
positive brand awareness, support retail and sales
promotions and gain an overall advantage in their
market. Common examples of sports marketing include
athlete endorsements, event marketing and in-stadium
advertising.
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2.9 Event marketing
Business Dictionary.com defines event marketing (also
called event creation) as the activity of designing or
developing a themed activity, occasion, display, or
exhibit (such as a sporting event, music festival, fair, or
concert) to promote a product, cause, or organisation.
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2.10
Customised/Personalised/Individual
marketing
This is a type of marketing
variant whereby a marketer tries to
customise the message or offering to the unique needs of a
specific customer or specific subset of customers. It is tailoring
a particular product to the needs of an individual customer.
Customised marketing is generally practiced by companies
whose products are very expensive or unique, such as custom
home builders or airplane manufacturers, because these
products can be designed to suit the special needs of each
customer. Since the company adapts its products and
marketing activities with such high degree of specificity,
customised marketing is considered to be the ultimate form of
target marketing.
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Activity
 Collect newspaper articles related to at least two
Marketing variants related to a specific organisation
& bring the article along to your next class.
 In-class Activity: Identify the variant; identify how the
organisation handles the variant and suggest
alternative variants for organisational improvement.
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END OF UNIT 1
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