Transcript MARKETING - Cambridge MBA Weblog

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MA Law Oxford University (1963)
MFA Drama Stanford CA (1965)
“Working” life
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27 Years Marketing Brand Management (1966-93)
 UK Spain Sweden Finland Switzerland Chile Argentina Australia
Portugal
 P&G 1966-1982
 Others 1982-1993
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H&R Johnson Tiles Group (Marketing Director)
Silentnight Holdings PLC (Group Marketing Director)
Cinzano (IDV Diageo) Marketing Director
BP Spain Consumer Goods (Sales and Marketing Director)
19 years McDonald’s Franchisee and Marketing Coop V-P
Spain
MA Marketing & Innovation ARU LAIBS 2011
PhD Research Project Marketing & Brand Management ARU
LAIBS Cambridge (2012) – objective - “Doc” Pete 2015
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Day 1 – Marketing Introduction
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Day 2 – Brand Management I - Portfolio
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What is marketing? What is it for? Who does it? Who
does it sell to?
Getting the products “right” for the right people
Day 3 – Brand Management II - Brand
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Getting the sale right for the right people – what do
we say to whom and how do we say it?
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Boots for the natives
NOT
INVENTED
HERE
An Introduction to Marketing
Pt 1
History
Straw Men
Ashcans
Definitions
Operationalisation
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What has marketing been in the past?
What is marketing today – new lamps for old?
What is marketing for?
What is marketing trying to achieve?
Concept
History
Practice
Theory and
Study
Process
Profession
and Career
Education
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http://www.youtube.com/watch?v=VX5au0L
OJp8
Dove sketches
http://www.youtube.com/watch?v=XpaOjM
XyJGk&feature=youtu.be
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http://www.youtube.com/watch?v=2XXskAC
Whm8&list=PL451D9B062269A056
Practice
Practice
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“And as imagination bodies forth
The forms of things unknown, the poet's pen
Turns them to shapes and gives to airy nothing
A local habitation and a name”.
 Shakespeare A Midsummer Nights Dream “The Lunatic,
the lover and the poet”
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Has many poets!
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Now including the MBA Class of ‘13/’14
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A name, a label, a word ….
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much used/abused and little understood
 THINK “MATRIX”
 Neo
 Rama-Kandra
 Neo
 R-K
“I just have never...
….heard a program speak of love?
It's a... human emotion.
No, it is a word. What matters is the
connection the word implies.”
 The Matrix Revolutions – Wachowski Brothers
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What connections does the word “Marketing”
imply?
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Philip Kotler ……“the link between society’s
needs and its pattern of industrial response”
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“If you would understand anything, observe its
beginning and its development”.
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Aristotle
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the discipline of marketing (marketing
thought) is defined by each generation in light
of the contemporary environment…...but..
….marketing objectives have not altered much
over the ages.
 Holden and Holden Psychology & Marketing 1998
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the discipline of marketing (marketing
thought) is defined by each generation in light
of the contemporary environment
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Source: Several 20th C Academics
 They (incidentally?) made reputations and quite a lot of
money out of discovering it
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Nigel Piercy (Sage and teacher of “New Marketing”) –
2007 …
Kevin Roberts (Guru and peddler of “New Marketing”
– Saatchi & Saatchi Worlwide CEO) – 2012….
THE 20th C. BIRTH & DEATH OF
MARKETING
THE (alleged) BIRTH & DEATH OF
20th C. MARKETING
Do not believe anything anyone tells you
1945 World War II ends
1945-1960 Everything in short supply
1960 -1975 Supply exceeds demand
Competition revives
Marketing thrives
1970-1975 Opec, Vietnam and Inflation
1975-2008 The beancounters rule
Marketing “dies”
….. (with a whimper)
2008
Lehman Bros + Chaos
(death of the Beancounters??)
2013
Marketing is (widely
pronounced) Dead
Universal sameness
and parity
Universal sameness and parity
Selling by yelling
Universal sameness and parity
Selling by yelling
Paralysis by analysis, the
dreaded research vampires
Universal sameness and parity
Selling by yelling
Paralysis by analysis, the
dreaded research vampires
Meaningless innovation
Universal sameness and parity
Selling by yelling
Paralysis by analysis, the
dreaded research vampires
Meaningless innovation
A command and control
mentality
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Kevin Roberts
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Actually earlier if you believe Piercy
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1900s: discovery of basic concepts and their exploration
1910s: conceptualisation, classification and definition of terms
1920s: integration on the basis of principles
1930s: development of specialisation and variation in theory
1940s: reappraisal in the light of new demands and a more
scientific approach
1950s: reconceptualisation in the light of managerialism, social
development and quantitative approaches
1960s: differentiation on bases such as managerialism, holism,
environmentalism, systems, and internationalism
1970s: socialisation; the adaptation of marketing to social
change
 Robert Bartels A History of Marketing Thought 1976
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Marketing – the 100 year’s concept?
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.. was above all (in chronological order) :
Procter & Gamble
 Ralph Starr Butler
 Levitt
 Drucker
 Kotler
 THE CUSTOMER/CONSUMER
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20th C. Marketing was above all (in
chronological order) :
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Procter & Gamble
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1870 – 2013 P&G has practiced “core” marketing for over 130 years
1875 P&G launches Ivory soap (still around today – with the same
Advertising Agency – today called Saatchi & Saatchi -since 1920)
1914 a recent ex-employee of P&G - Butler - was the first to use the word
“Marketing” in a modern context and wrote “Marketing Methods”.
1924 P&G (Paul ‘Doc’ Smelser) formed the first market and consumer
research department
1930 P&G formalised Brand Management with appointment of the world’s
1st Brand Manager (Neil McElroy)
2013 P&G today markets over 300 brands globally– each brand a discrete
business with its own dedicated “Brand Manager”
1930 – 2013 All Chief Executives (10) are ex-Brand Managers.
1999 P&G receives“Marketer of the Century” award from Advertising Age
1837 – 2013 175 years of marketing best practice, competing aggressively
and with obsessive secrecy
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20th C. Marketing was above all (in
chronological order) :
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Procter & Gamble
Ralph Starr Butler
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Ralph Starr Butler
 P&G 1907-1910
 University of Wisconsin 1911-1916
 “Marketing Methods” 1914
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20th C. Marketing was above all (in
chronological order) :
Procter & Gamble
 Ralph Starr Butler
 Drucker
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Peter Drucker (1953)
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‘The business enterprise has two and only
two basic functions—Marketing and
Innovation. Marketing and innovation
produce results: all else is cost
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20th C. Marketing was above all (in
chronological order) :
Procter & Gamble
 Ralph Starr Butler
 Drucker
 Levitt
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Theodore Levitt (1960) Marketing Myopia
‘Management must think of itself not as producing products but as
providing customer-creating value satisfactions. It must push the
idea … into every nook and cranny of the organisation, It has to do
this continuously and with the kind of flair that excites and
stimulates people.
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20th C. Marketing was above all (in
chronological order) :
Procter & Gamble
 Ralph Starr Butler
 Drucker
 Levitt
 Kotler
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PHILIP KOTLER
“.. done more than any other writer or scholar to promote the importance
of marketing, transforming it from a peripheral activity, bolted on to the
more "important" work of production.
….shifting emphasis away from price and distribution to a greater focus
on meeting customers' needs and on the benefits received from a product
or service.
…broadened the concept of marketing from mere selling to a more general
process of communication and exchange, and has shown how marketing
can be extended and applied to charities, political parties and many other
non-commercial situations.”
 (FT 2003)
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.. held that marketing can be applied not only to products,
services, and experiences, but also to causes, ideas, places and
persons.
 (Wikipedia)
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20th C. Marketing was above all (in
chronological order) :
Procter & Gamble
 Ralph Starr Butler
 Levitt
 Drucker
 Kotler
 THE CUSTOMER/CONSUMER
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….marketing objectives have not altered much
over the ages.
 Holden and Holden Psychology & Marketing 1998
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When was marketing born?
1900?
Academic hubris – “Nothing exists until it is
worthy of scholarly study”
But Brands have been around a long, long time
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Brand is the "name, term, design, symbol, or
any other feature that identifies one seller's
product as distinct from those of other sellers“
“People buy products. But they choose Brands”
As soon as you get competition you get brands
 Products have been distinguished from others sellers,
people have been choosing and competition has been
around for a while – a long while
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Commercial brands began some 5,000 years ago in Mesopotamia when
traders needed some assurance of the value and origins of oils, wines and
other products, an anthropologist believes.
While many scholars trace the beginning of branding to the Western
Industrial Revolution, David Wengrow, an anthropologist at
University College of London, presents evidence that labels and stoppers
on ancient containers actually functioned as brand identifications that
told a purchaser important information about contents
An examination of the material and cognitive properties of sealing
practices and the changing functions of seals in their transition from
personal amulets to a means of labeling mass‐produced goods helps to
unpack the interlocking (pre)histories of quality control, authenticity,
and ownership that make up the modern brand.
 (Current Anthropology 2008)
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Without “Brands” there is no marketing
OK
But “Without Marketing there are no
brands”???????
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Some old brands
Chyawanprash (1100-500 BC)
 Schloss Johannisberg (1100 AD)
 Chateau de Goulaine (1000)
 The Bingley Arms (953)
 Antinori (1385)
 Cambridge University Press (1534)
 Mulliner (1599)
 Hoares Bank (1672)
 Ede and Ravenscroft (1689)
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Wedgewood
Coca Cola
Uncle Bens Rice
Kellogg
Del Monte
Sunlight
Pears
Ivory
Lyle’s Golden Syrup
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A Brand
Something that (lots of) people
(buyers/customers/consumers) wanted
Value? (more anon)
They were ready to exchange money for the brand (an
exchange of values)
 Year after year after year after year….
Did they perceive value without any stimulus?
Did they dig into their piggies without a sale being
made?
Did noone sell to them?
Was all this spontaneous? Did noone take the
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Implicit in the commercial definitions are the
origins of “marketing” in all organic
transactions
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Actor procures an exchange of values (Kotler)
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A “marketer” as initiator tailors an offer to meet or
anticipate the needs or desires of another person
and stimulates an acceptance action which delivers
benefit to both actors – offerer and accepter
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Promote an exchange of values for mutual benefit
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We do it pretty well as fauna
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We do it pretty well as individuals
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We do it quite badly in organisations
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“..the Marketing Society was founded in 1959. The whole
thing has been a huge success.”
“The UK’s marketing achievement over these 30 years is
rather less impressive. In fact, it has been the worst period of
decline in our share of market since the Industrial
Revolution…”
“In 1950 the UK had a 26% share of world exports of
manufactured goods. By 1979 it was down to 9½%”.
“on the whole you could say that our espousal of marketing
has come at the very time that our marketing performance
has been most dismal”
 King 1985
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“In the literature there are a great many definitions of marketing, most of
them rather abstract. They tend to strain hard to be comprehensive and
cover all eventualities. As a result, however well thought out they may
be, they usually do not trip very readily off the tongue, and are received
by practical marketing men with a surge of apathy.
The approach among the practitioners is very different. They tend not to
define anything at all. They act first and give it a name afterwards. As a
result, there is a wide spread of activities which are called marketing, and
many of them seem to have failed.”
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King 1985
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(1) Thrust Marketing
(2) Marketing Department Marketing
(3) Accountant’s Marketing
(4) Formula Marketing
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King 1985
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King identifies four routes to failed marketing including :
Thrust marketing which is essentially selling with a target of getting a
cheap product on shelf.
Marketing departments marketing is bedeviled by endless and
expensive studies of consumer wants commissioned by teams who lack
the authority to make any changes to the offer.
Accountants marketing is driven by those who lack of experience of
customers and markets and overemphasise short term financial goals.
Finally Formula marketing makes excessive use of checklists and
rulebooks which engender a homogeneous mediocrity of ideas.
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Professor Caroline Tynan 2001
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We may wish to update the names of these failed approaches but
I’m sure that we all recognise the same sorry mistakes in the
practice of marketing management today.
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Professor Caroline Tynan 2001
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Putting the customer first – not the distribution system.
Giving satisfaction over time – not just profits this
month.
Using all the company resources – not just one
department’s.
Innovating – not just stick to formulae.
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Dead?
Old?
New?
Failed?
Never tried?
Dispersed?
Thriving?
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(est. 630.000 managers in marketing/sales in USA alone in 2012)
MARKETER THEORETICAL INTERFACE WITH
CONSUMERS
MARKETER
CONSUMER
Public
Relations
Professional
Relations
IT
Market
Analysis
Logistics
P
CIM
E
Human
Resources
Consumer
Research
Advertising
Specialists
Gurus
Finance &
Accounting
Operations
Legal
The Board
Manufacturing
Family &
Friends
R&D
The Boss
Sales/
Key Accounts
Shareholder
MARKETER
P
L
E
CONSUMER
Greenery
Societal
Marketing
Relationship
Management
DAGMAR
Global
Marketing
Supply Chain
SWOT
Competition
Ethics
Time
Management
‘P’
Inflation
Value Chain
PEST
Connectivity
The Internet
Partnership
Marcomms
Theory
E
A
S
Trade
Marketing
Packaging
I
D
Networks
Team
Building
O
Politics
Brand
Equity
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Who are we after?
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The customer/consumer
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Who are we after?
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The Customer/Consumer
What are we trying to do to/with
him/her/them?
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??????
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This is not the first time - others have been here before
In 1993 Henley Management College researchers
studied 100 separate definitions of Marketing
concluding
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“significant evolution in the concept of marketing since its
earliest definition”
“greatest change in the ‘nature of relationship” theme (i.e.
between provider and user)
Broadening and softening of the original concept and its
transfer into other domains – services, not for profit etc.
Marketing….adaptable, flexible, international and open. ‘this
latitude has allowed ambiguity to creep into its definition and
cause confusion. Definitional clarity is essential in future’
 Baker 1999
1 a : the act or process of selling or purchasing in a
market
1 b : the process or technique of promoting,
selling, and distributing a product or service
2 an aggregate of functions involved in moving
goods from producer to consumer
Merriam Webster
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The action of “market” - verb; an instance of
this.
Spec. The action, business, or process of
promoting and selling a product etc., including
market research, choice of product, advertising,
and distribution. (OED)
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“The management process responsible for
identifying, anticipating and satisfying customer
requirements profitably”
CIM (Chartered Institute of Marketing)
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PRE 2007
“The strategic business function that
creates value by stimulating, facilitating
and fulfilling customer demand.
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It does this by building brands, nurturing innovation,
developing relationships, creating good customer
service and communicating benefits.
With a customer-centric view, marketing brings
positive return on investment, satisfies shareholders
and stakeholders from business and the community,
and contributes to positive behavioural change and a
sustainable business future.”
CIM Post 2007 indulging in a bout of definition inflation (see Parkinson’s Law)
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Work expands so as to fill the time available for
its completion
Marketing defined
Marketing is to establish, maintain and enhance
relationships with customers and other partners,
at a profit, so that the objectives of the parties
involved are met. This is achieved by mutual
exchange and fulfilment of promises.
Grönroos 1997
Marketing is 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.
(AMA Approved October 2007)
Marketing is the management process for
identifying, anticipating and satisfying
customer requirements profitably.
CIM Pre 2007
Marketing is .. the management function
responsible for making sure that every
aspect of the business is focused on
delivering superior value to customers in
the competitive marketplace.
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Peter Drucker (1953)
‘The business enterprise has two and only
two basic functions—Marketing and
Innovation. Marketing and innovation
produce results: all else is cost
Marketing defined
Marketing is the management process responsible for
identifying, anticipating, and satisfying customer
requirements profitably. (CIM, 2001)
Marketing is the process of planning and executing the
conception, pricing, promotion and distribution of ideas,
goods and services to create exchange and satisfy
individual and organisational objectives. (AMA, 1985)
Marketing defined
Marketing is to establish, maintain and enhance
relationships with customers and other partners,
at a profit, so that the objectives of the parties
involved are met. This is achieved by mutual
exchange and fulfilment of promises.
Grönroos 1997
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“Marketing is everything.” — Regis McKenna
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Write your own definition of Marketing
What is it trying to achieve?
How does it seek to achieve it?
How does it contribute to delivering the
mission/objectives – long and short term – of
commercial organisations? Or of a noncommercial organisations (e.g. a charity,
political party? Or both.)