Marketing ManagementMarketing Management

““We must learn to do before We must learn to do before we learn by doing”we learn by doing”

How to measure an How to measure an Organisations SUCCESS ????Organisations SUCCESS ????

Customer Satisfaction ??Customer Satisfaction ?? Employee Satisfaction ??Employee Satisfaction ?? Societal Satisfaction ??Societal Satisfaction ?? Financially led objectives Vs Market Financially led objectives Vs Market

led objectivesled objectives

Coca Cola – as a ProductCoca Cola – as a Product

What is the market for this product?

• Who is the producer?

• How many sales were there? (How many returns?)

• What are the substitutes for this product?

• What is the cost of buying this product?

• What are consumers needs?

• How could the producer identify consumers’ needs & wants?

Things that you need to Things that you need to learn…learn…

Introduction to marketing / overview of basic issues / core concepts

• How do you make a product more attractive to consumers?

• Methods for gathering market information

• How do consumers decide what to buy?; What motivates them to choose one product over another?; What are some “secret strategies to fool with people’s minds and make them buy stuff”?

• What effect does advertising have on consumers?

• How do you determine the right price?

• Using the web as a marketing tool

• How do I choose the right location for a store?

How business and marketingHow business and marketing are changing are changing

Changing technology (i.e. internet)Changing technology (i.e. internet) Globalization (i.e. chinese products)Globalization (i.e. chinese products) Deregulation (i.e. fly market)Deregulation (i.e. fly market) Privatization (i.e. Poste Italiane)Privatization (i.e. Poste Italiane) Customer empowerment (i.e. Customer empowerment (i.e.

associations, laws, green number)associations, laws, green number) Customization (taylor made product and Customization (taylor made product and

message)message)

How business and marketingHow business and marketing are changing are changing

HEIGHTENED COMPETITION – HEIGHTENED COMPETITION – domestic and foreign brands / owerful domestic and foreign brands / owerful retailersretailers

INDUSTRY CONVERGENCE – mergersINDUSTRY CONVERGENCE – mergers RETAIL TRANSFORMATION – giant RETAIL TRANSFORMATION – giant

retailers and “category killers”retailers and “category killers” DISINTERMEDIATION – Amazon, eBay, DISINTERMEDIATION – Amazon, eBay,

E’Trade, etc.E’Trade, etc.

Core Marketing Concepts Core Marketing Concepts

Needs, wants, and demands

Productsand services

Value, satisfaction, and quality

Exchange, transactions,

and relationships

Markets

Does the product provide what Does the product provide what customers want???customers want???

What is Marketing?What is Marketing?

All of the above, plus much more!

Personal Selling?Personal Selling?

Advertising?Advertising?

Making products available in stores?Making products available in stores?

Maintaining inventories?Maintaining inventories?

11

What is Marketing?What is Marketing?11

A Philosophy

An Attitude

A Perspective

A Management Orientation

A Set of Activities, including:

Products

Pricing

Promotion

Distribution (Place)

What is Marketing ???What is Marketing ??? “identifying and satisfying consumer

needs” “art of selling”

• What needs do the following products fulfill?

Sachets: Rice: Energy drinks : Diamond Jewellery: Chocolate Bars :

Marketing - DefinitionMarketing - Definition““Marketing is an organisational function and a Marketing is an organisational function and a

set of processes for creating, communicating set of processes for creating, communicating and delivering value to customers and for and delivering value to customers and for managing customer relationships in ways that managing customer relationships in ways that benefit the organisation and the benefit the organisation and the stakeholders”stakeholders”

American Marketing AssociationAmerican Marketing Association

““Marketing is the management process that Marketing is the management process that identifies, anticipates and satisfies CUSTOMER identifies, anticipates and satisfies CUSTOMER REQUIREMENTS profitably”REQUIREMENTS profitably”

The Chartered Institute of The Chartered Institute of MarketingMarketing

““The Right product , in the right place, at The Right product , in the right place, at the right time and at the right price”the right time and at the right price”

Adcock et alAdcock et al

Marketing is the human activity directed Marketing is the human activity directed at satisfying human needs and wants at satisfying human needs and wants through an exchange processthrough an exchange process

Kotler 1980Kotler 1980

‘‘Marketing is a social and Marketing is a social and managerial process by which managerial process by which individuals and groups obtain individuals and groups obtain

what they want and need what they want and need through creating, offering and through creating, offering and exchanging products of value exchanging products of value

with others’with others’Kotler 1991Kotler 1991

Implications of marketingImplications of marketing Who are our existing / potential Who are our existing / potential

customers?customers? What are their current / future needs?What are their current / future needs? How can we satisfy these needs?How can we satisfy these needs?

Can we offer a product/ service that the Can we offer a product/ service that the customer would value?customer would value?

Can we communicate with our customers?Can we communicate with our customers? Can we deliver a competitive product of Can we deliver a competitive product of

service?service?

Why should customers buy from us?Why should customers buy from us?

Nature, Scope & ImportanceNature, Scope & Importance The process begins with identification of The process begins with identification of

customer needs and ends with satisfying them.customer needs and ends with satisfying them. ALL PervasiveALL Pervasive Involves EXCHANGEInvolves EXCHANGE Vital for Organisations SuccessVital for Organisations Success Marketing focuses on the satisfaction of Marketing focuses on the satisfaction of

customer needs, wants and requirements. customer needs, wants and requirements. The philosophy of marketing needs to be The philosophy of marketing needs to be

owned by everyone from within the owned by everyone from within the organization. organization.

Future needs have to be identified and Future needs have to be identified and anticipated. anticipated.

There is normally a focus upon There is normally a focus upon profitability, especially in the corporate profitability, especially in the corporate sector. However, as public sector sector. However, as public sector organizations and not-for-profit organizations and not-for-profit organizations adopt the concept of organizations adopt the concept of marketing, this need not always be the marketing, this need not always be the case. case.

More recent definitions recognize the More recent definitions recognize the influence of marketing upon society. influence of marketing upon society.

Scope of Marketing……What is Scope of Marketing……What is Marketed?Marketed?

GoodsGoods ServicesServices EventsEvents ExperiencesExperiences PersonsPersons

PlacesPlaces PropertiesProperties OrganizationsOrganizations InformationInformation IdeasIdeas

What is Marketed?What is Marketed?GoodsGoods

ServicesServices

Events & ExperiencesEvents & Experiences

PersonsPersons

Places & PropertiesPlaces & Properties

OrganizationsOrganizations

InformationInformation

IdeasIdeas

ImportanceImportance

Value creating and value delivering Value creating and value delivering processprocess

Enhances the standard of livingEnhances the standard of living Generates EmploymentGenerates Employment Greater success through customer Greater success through customer

focusfocus

To sum up…….To sum up…….

Marketing is managing profitable Marketing is managing profitable customer relationships.customer relationships.

Goals: Goals:

1.1. Attract new customers by Attract new customers by promising superior value. promising superior value.

2.2. Keep and grow current Keep and grow current customers by delivering customers by delivering satisfaction.satisfaction.

Simple Marketing SystemSimple Marketing System

Industry(a collection

of sellers)

Market(a collection

of Buyers)

Goods/services

Money

Communication

Information

SuppliersSuppliers

End UserMarket

End UserMarket

MarketingIntermediaries

MarketingIntermediaries

CompetitorsCompetitors Company(Marketer)Company(Marketer)

En

vir

on

men

t En

viro

nm

en

tModern Marketing SystemModern Marketing System

Marketing at Wendy’sMarketing at Wendy’s

““At Wendy's®, we're unrivaled in our At Wendy's®, we're unrivaled in our passion for giving people what they passion for giving people what they want — and uncompromising in want — and uncompromising in giving people what they deserve”giving people what they deserve”

Wendy’sWendy’s

At Wendy's®, we won't cut At Wendy's®, we won't cut corners on anything. Not on corners on anything. Not on fresh, quality ingredients. fresh, quality ingredients. Not on how we treat Not on how we treat people. Not on giving back. people. Not on giving back. And certainly not on being And certainly not on being the defender of good taste the defender of good taste for people everywhere for people everywhere

ReebokReebok

Rbk ‘s new strategy – “To be seen is Rbk ‘s new strategy – “To be seen is to sell”to sell”

Reebok – as a fashion Reebok – as a fashion brandbrand

Leading the entertainment changeLeading the entertainment change Taking the plunge into Celebrity Taking the plunge into Celebrity

marketing and fashion culturemarketing and fashion culture Hollywood style of marketing: Woo Hollywood style of marketing: Woo

celebrities to your brand and celebrities to your brand and everyone else will follow everyone else will follow

Marketing Management PhilosophiesMarketing Management Philosophies

Production ConceptProduction Concept

Product ConceptProduct Concept

Selling ConceptSelling Concept

Marketing ConceptMarketing Concept

Societal Marketing ConceptSocietal Marketing Concept

The Production ConceptThe Production Concept

The Product ConceptThe Product Concept

Marketing and Sales Concepts ContrastedMarketing and Sales Concepts Contrasted

Selling is only the tip of the Selling is only the tip of the icebergiceberg

“There will always be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be

needed is to make the product or service available.”

Peter Drucker

Societal Marketing ConceptSocietal Marketing Concept

Holistic Marketing ConceptHolistic Marketing Concept

Premise: “everything matters” with marketing… a broad integrated perspective is necessary

Focus on: Relationship marketing Integrated marketing Internal marketing Performance marketing

Holistic Marketing DimensionsHolistic Marketing Dimensions

Production Concept

Product Concept

Selling Concept

Marketing Concept

Societal Marketing Concept

•Consumers favor products that are available and highly affordable. Improve production and distribution.

•Consumers favor products that offer the most quality, performance, and innovative features.

•Consumers will buy products only if the company promotes/ sells these products.

•Focuses on needs/ wants of target markets & delivering satisfaction better than competitors.

•Focuses on needs/ wants of target markets & delivering superior value.

Marketing Management Marketing Management PhilosophiesPhilosophies

Marketing Marketing MyopiaMyopia

Sellers pay more Sellers pay more attention to the attention to the specific products they specific products they offer than to the offer than to the benefits and benefits and experiences produced experiences produced by the products.by the products.

They focus on the They focus on the “wants” and lose sight “wants” and lose sight of the “needs.”of the “needs.”

Marketing EnvironmentMarketing Environment

The actors and forces outside The actors and forces outside marketing that affect marketing marketing that affect marketing management’s ability to develop and management’s ability to develop and maintain successful transactions and maintain successful transactions and relationships with its target relationships with its target customers.customers.

Marketing EnvironmentMarketing Environment

Includes:Includes: Microenvironment: factors close to the Microenvironment: factors close to the

company that affect its ability to serve company that affect its ability to serve its customers.its customers.

Macroenvironment: larger societal Macroenvironment: larger societal forces that affect the microenvironment.forces that affect the microenvironment.

Considered to be beyond the control of the Considered to be beyond the control of the organization.organization.

The Marketing The Marketing EnvironmentEnvironment

The Marketing The Marketing EnvironmentEnvironment

Company

Demographic

Economic

Natural

Technological

Political

Cultural Company

Customers

Intermediaries

Suppliers

Competitors

Publics

The Company’s The Company’s MicroenvironmentMicroenvironment

The forces close to the company that The forces close to the company that affect its ability to serve its affect its ability to serve its customers - the company, market customers - the company, market channel firms, customer markets, channel firms, customer markets, competitors and publics, which competitors and publics, which combine to make up the firm’s value combine to make up the firm’s value delivery system. delivery system.

The MicroenvironmentThe Microenvironment

CompanyCompany

CustomersCustomers

PublicsPublics Suppliers Suppliers

CompetitorsCompetitors IntermediariesIntermediaries

Forces Affecting a Company’s Ability to

ServeCustomers

Forces Affecting a Company’s Ability to

ServeCustomers

Micro EnvironmentMicro Environment

Copyright 1999 Prentice Hall

3-453-45

The Company’s MicroenvironmentThe Company’s Microenvironment

• Company’s Internal Environment- functional areas such as top management, finance, and manufacturing, etc.

• Suppliers - provide the resources needed to produce goods and services.

• Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers.

Copyright 1999 Prentice Hall

3-463-46

The Company’s MicroenvironmentThe Company’s Microenvironment

• Customers - five types of markets that purchase a company’s goods and services.

• Competitors - those who serve a target market with similar products and services.

• Publics - any group that perceives itself having an interest in a company’s ability to achieve its objectives.

Copyright 1999 Prentice Hall

3-473-47Customer MarketsCustomer Markets

CompanyCompany

ConsumerMarkets

InternationalMarkets

GovernmentMarkets

BusinessMarkets

ResellerMarkets

Copyright 1999 Prentice Hall

3-483-48

The Company’s MacroenvironmentThe Company’s Macroenvironment

• The larger societal forces that affect the whole microenvironment - demographic, economic, natural, technological, political and cultural forces.

• The company and all of the other actors operate in a larger macroenvironment of forces that shape opportunities and pose threats to the company.

Copyright 1999 Prentice Hall

3-493-49

The Company’s MacroenvironmentThe Company’s Macroenvironment

Copyright 1999 Prentice Hall

3-503-50The MacroenvironmentThe Macroenvironment

DemographicDemographic

TechnologicalTechnological

CulturalCultural EconomicEconomic

PoliticalPolitical NaturalNatural

Forces that ShapeOpportunities

and Pose Threatsto a Company

Forces that ShapeOpportunities

and Pose Threatsto a Company

Copyright 1999 Prentice Hall

3-513-51

The Company’s MacroenvironmentThe Company’s Macroenvironment

• Demographic - monitors population in terms of age, sex, race, occupation, location and other statistics.

• Economic - factors that affect consumer buying power and patterns.

• Natural - natural resources needed as inputs by marketers or that are affected by marketing activities.

Copyright 1999 Prentice Hall

3-523-52Economic EnvironmentEconomic Environment

Changesin Consumer

SpendingPatterns

Changesin Consumer

SpendingPatterns

EconomicDevelopment

EconomicDevelopment

Changes in Income

Changes in IncomeKey

EconomicConcerns for

Marketers

KeyEconomic

Concerns forMarketers

Copyright 1999 Prentice Hall

3-533-53

Natural EnvironmentNatural Environment

Factors Affecting

the Natural

Environment

More GovernmentIntervention

More GovernmentIntervention

Shortages of Raw Material

Shortages of Raw Material

Increased Costsof Energy

Increased Costsof Energy

Higher PollutionLevels

Higher PollutionLevels

Copyright 1999 Prentice Hall

3-543-54The Company’sMacroenvironmentThe Company’sMacroenvironment

• Technological - forces that create new product and market opportunities.

• Political - laws, agencies and groups that influence or limit marketing actions.

• Cultural - forces that affect a society’s basic values, perceptions, preferences, and behaviors.

Copyright 1999 Prentice Hall

3-553-55Technological EnvironmentTechnological Environment

Rapid Pace of Change

Rapid Pace of Change

High R & D Budgets

High R & D Budgets

Focus on MinorImprovements

Focus on MinorImprovements

IncreasedRegulation

IncreasedRegulation

Issues in the TechnologicalEnvironment

Issues in the TechnologicalEnvironment

Copyright 1999 Prentice Hall

3-563-56Political EnvironmentPolitical Environment

GreaterConcern for

Ethics

GreaterConcern for

Ethics

IncreasedLegislation

IncreasedLegislation

Changing Enforcement

Changing Enforcement

KeyTrends in the

PoliticalEnvironment

KeyTrends in the

PoliticalEnvironment

Copyright 1999 Prentice Hall

3-573-57Cultural EnvironmentCultural Environment

OfOrganizations

OfNature

OfOneself

OfSociety

Ofthe Universe

OfOthers

ViewsThat Express

Values

ViewsThat Express

Values