Trier 2007

Declan FlemingDepartment of Marketing

Topic 1: Marketing Dynamics

SESSION OVERVIEW

This session will:• Provide a definition of marketing• Examine the development of

marketing• Outline the scope of marketing• Introduce core marketing concepts• Highlight the importance of marketing

to private and public sector organisations

WHAT IS MARKETING?

Session 1

Introduction to Marketing

MARKETING AS AN ACADEMIC DISCIPLINE

• Marketing as a subject of study is relatively new

• Has drawn heavily on:– Economics– Psychology– Sociology

• Increasingly developing and contributing its own body of knowledge

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 - points of agreement

(CIB & AMA)

• Management process.

• Giving customers what they want.

• Identifies and anticipates customer requirements.

• Fulfils customers requirements profitably.

Marketing - the Americans go further

• Offers and exchanges ideas, goods and services.

• Assumption that both parties value what the other has to offer (mutual value).

• Proactive selling and willing buyers.

Wider Definition of Marketing

Marketing is to establish, maintain, and enhance

relationships with customers and other partners, at a profit, so that the parties involved are met. This is achieved by mutual exchange

and fulfillment of promises.(Grönroos, 1997)

Lets make this a little simpler

• Marketing is about – Providing the right product or service– At the right price– Available where the customer wants to

buy– And backed up by promotions which

make the customer aware of what is on offer and convinces them to buy your company’s product

– While making a profit for your company.

HOW DO YOU SUCCEED IN THE MARKETS FOR THESE PRODUCTS?

• Fast Moving Consumer Goods (FMCGs) are a challenge for marketers

• Why should a customer buy your product and not the competitors’?

Quotes about marketing

• “There is only one boss – the customer. And he can fire everybody in the company, from the Chairman on down, simply by spending his money somewhere else.”Sam Walton WalMart

Value, Satisfaction and Quality

• Consumers make buying choices based upon their perceptions of the value that various products and services deliver.

• Customer value is based upon the consumer’s assessment of the product’s overall capacity to satisfy his or her needs.

Business orientations

• Production.

• Product.

• Selling.

• Marketing.

Societal Began in 1980s

“Long-term survival only possible through social responsibility and

ethics”

Marketing Since 1970s “The consumer is king!

Sales Prior to 1970s

“Creative advertising and selling will overcome consumers’

resistance and convince them to buy.”

Product Prior to 1950s“Innovation is the key to

survival”

Five Eras in the History of Marketing

EraApproximate Time

Period*Prevailing Attitude

Production Prior to 1920s “Pile them high and sell them cheap”

Production and Product orientation

Table 1.1

Henry Ford’s Mass-production Line (Production

Era)“They (customers) can have any color they want, as long

as it’s black.”

Selling and Marketing orientation

Table 1.1 cont.

MARKETING AS A FUNDAMENTAL BUSINESS PHILOSOPHY

• Distinguish between:– Marketing as a philosophy (e.g. a

company- wide culture of putting the customer first)

– Marketing as a set of techniques (e.g. advertising, market research)

• Techniques are likely to fail if the philosophy is not fully adopted

MARKETING IN RELATION TO OTHER CORPORATE FUNCTIONS

• Viewed as a philosophy, everybody in an organisation should be a “part-time marketer”

• “Marketing is so basic that it cannot be considered to be a separate function. It is the whole business seen from the point of view of its final result, that is, from the customer's point of view". - Peter Drucker

An INTEGRATIVE BUSINESS FUNCTION?

• The role of marketing in bringing (departmental) functions together in emphasing the customer focus?

- marketing the GLUE?

Figure 1.3 Marketing as an Interface

The basic marketing mix (4Ps)

Figure1.4

The Marketing Mix: Product and Promotion

Product

• Development

• Management

• Features/benefits

• Branding

• Packaging

• After-sales service

Promotion• Communication

mix• Advertising• Sales promotion• Sales• Public relations• Direct marketing

The Marketing Mix: Price and Place

Price

• Costs

• Profitability

• Value for money

• Competitiveness

• Incentives

Place• Access to market• Channel structure• Channel

management• Retailer image• Logistics

Additional Ps

• People• Processes• Physical evidence

The extended marketing mix (7Ps)• Price.

• Product.

• Place.

• Promotion.

• People.

• Processes.

• Physical evidence.

Marketing Scope

Consumer goods

Non-profit marketing

eMarketing

Service goodsSmall business

marketing

Internationalmarketing

B2B goods

NOT FOR PROFIT MARKETING

• It’s not just commercial companies that use marketing

• Increasing use of marketing by not-for-profit organisations, e.g. charities, government agencies

• Rising expectations of users of these organisations

• Often, their environment is becoming more competitive

What do marketers do?

Practice of marketing

Marketing job titles

• Brand manager.• Product manager.• Sales manager.• Salesperson.• Advertising manager.• Public relations manager.• Market research manager.

WHAT MAKES A GOOD MARKETER?

• Are marketers born or bred?

• Some key skills:– Ability to listen

and analyse– Critical thinking– Creativity