Transcript Marketing in B202

Block 1 Section 2
Five Business Functions
(An Introductory Overview)
Waddah Tibawi
Marketing in B202
(Pg. 26/27 Binder)
Throughout the course, we will examine
 Block 2: Relationships (e.g. with
customers), crucial to marketing.
3: Information – good marketing is
based on information. Information systems
key.
 Block
 Block
4: Innovation/impact of technology
on marketing
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Marketing Definition
(Pg. 2 Marketing textbook)
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
organizational objectives.
(American Marketing Association)
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What is Marketing?
"Marketing is the management
process responsible for identifying,
anticipating and satisfying
customer requirements profitably."
Chartered Institute of Marketing (2001).
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Marketing Involves:
A
management process.
 Identifying, anticipating and
satisfying customer
requirements.
 Making a profit.
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Marketing Mix
 Product
 Price
 Place
 Promotion
 People
 Physical
evidence
 Processes
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Core Marketing Concepts
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Needs, Wants and Demands
Human
Need
Human Want
Demands
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Case Study 1 : O’Gara-Hess & Eisenhardt
Group Work (Pg. 11/12 Marketing textbook)
Read the Case and answer the
following:
1. What changes in the world situation
might help O’Gara to sell more
vehicles.
2. Why does O’Gara convert luxury
saloon cars rather than use readymade military vehicles and convert
them for civilian use?
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Case Study 1 : O’Gara-Hess & Eisenhardt
Group Work (Pg. 11/12 Marketing textbook)
3.
4.
5.
What might be the company’s reason
for establishing a presence in SouthEast Asia?
Why might a senior corporate
executive want to learn anti-terrorist
driving techniques?
What needs does the O’Gara
armoured vehicle meet?
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Marketing environment

Comprised of actors and forces affecting
marketing management’s ability to
develop and maintain successful
relationships with its target customers.
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Marketing micro-environment

The micro-environment

incorporates the forces close to the company
that affect its ability to serve its customers
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Marketing macro-environment

The macro-environment

includes the larger societal forces
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Demographics




The EU combined with the European Free
Trade Area EFTA has a population of 379
million, with another 120 million from
Eastern Europe and a further 280 million
from the former USSR.
Today’s population of approx 6.3 billion is
expected to increase to 8.9 billion by 2050.
Ageing population and increased life
expectancy in first world countries.
Changing consumer spending patterns
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Economic
An increase in the value of the trading
currencies increases the prices of products
in overseas markets.
 Income distribution and changes in
purchasing power

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Environmental analysis
Shortages of raw materials such as oil and
coal
 Increased cost of energy
 Increased pollution
 Government intervention in natural
resource management

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Technological environment
Fast pace of technological change
 High research and development costs and
equally high budgets to ensure
advancement.

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Political and legal environment
New legislation requiring the company
product to be modified for safety reasons.
 Protecting companies and consumers

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Cultural and social
Institutions and other forces that affect
society’s
 Persistence of cultural values.
 Shifts in secondary cultural values

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The Marketing Environment
SWOT ANALYSIS (17 Marketing textbook)
INTERNAL FACTORS
STRENGTHS
WEAKNESSES
EXTERNAL FACTORS
OPPORTUNITIES
THREATS
POSITIVE FACTORS
NEGATIVE FACTORS
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SWOT ANALYSIS
(Pg. 17 Marketing textbook)
Strengths
 What
are we best at?
 What intellectual property do we own?
 What specific skills does the workforce
have?
 What financial resources do we have?
 What connections and alliances do we
have?
 What is our bargaining power with both
suppliers and intermediaries?
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SWOT ANALYSIS
(Pg. 17 Marketing textbook)
Weaknesses
 What
are we worst at doing?
 Is our intellectual property outdated?
 What training does our workforce
lack?
 What is our financial position?
 What connections and alliances
should we have, but don’t?
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SWOT ANALYSIS
(Pg. 17 Marketing textbook)
Opportunities
 What
changes in the external environment
can we exploit?
 What weaknesses in our competitors can we
attack?
 What new technology might become
available to us?
 What new markets might be opened up to
us?
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SWOT ANALYSIS
(Pg. 17 Marketing textbook)
Threats
 What
might our competitors be able to do to
hurt us?
 What new legislation might damage our
interests?
 What social changes might threaten us?
 How will the economic (boom-and-bust) cycle
affect us?
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