Download The Marketing Process

The Marketing Process
Mike Morgan
D114
595174
[email protected]
What is marketing about?
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Customers
How to find them
How to satisfy them
How to keep them
The British Chartered Institute of Marketing defines marketing as :
"The Management Process responsible for
identifying, anticipating and satisfying
customers needs profitably. "
How does this happen
"Marketing is a process by which
individuals and groups obtain what
they need and want through creating
and exchanging products and value
with each other"
Philip Kotler Marketing Management
• Not just goods and services but political and social
objectives
What marketing is not
• Not just advertising
 Not just selling
• Selling products that don't come back to
customers who do. Baker (1985)
• converting consumer spending power into
effective demand for a specific product .
Rodger (1971)
Marketing as Process
• Analysis
 What is our business?
 Who are our customers
 What are they buying
 What is value to them
• Planning
 Who to target
 How to gain a competitive advantage
Implementation
• four key elements, described by McCarthy
(1981)
as the Four Ps of the Marketing Mix:
 Product - what to offer
 Price - how much to charge for it
 Promotion - how to tell people about it
 Place - how or where people can buy it
 all decided with the customer's needs and
values in mind.
The 4ps -over-simplistic?
• only tools to implement a strategy, they are
not a strategy in themselves (Kotler)
• First you need to decide
– Segmentation
– Targeting
– Competitive Positioning
• Booms and Bitner (1981) say the Services Marketing Mix
also includes
• People – the way staff interact with
customers
 Training, supervision and motivation issues
• Process – the systems that ensure that
customer satisfaction is delivered
 Quality assurance procedures
• Physical evidence – the tangible elements
of an intangible product
 Uniforms, décor, signs, printed material
• Lauterborn says that the 4Ps are too
company orientated and should be
translated into the 4Cs
Product
Customer Need
Price
Cost to the customer
Place
Convenience
Promotion
Communication
Marketing as a Philosophy
• marketing is too important to be left to the
marketing department
• It is the whole business seen from the
viewpoint of the end-user, the customer
• Peter Drucker (1954)
Marketing as Relationship
Management
• The Swedish writer, Christian Grönroos, proposed a
Nordic definition of marketing :
• The aim of Marketing is to establish,
develop and commercialise long-term
customer relationships so that the
objectives of the parties are met.
• This is done by a mutual exchange and
keeping of promises. (Gronroos (1989)
• Gronroos also emphasises the key role of
Service Management even for tangible
products.
• When the core products are alike, it is the
service quality that differentiates and gives
a competitive advantage
Leisure marketing - why is it
different ?
• Leisure activities are
 intangible
 perishable
 inseparable
 variable
 and competing for the customer's spare
time and disposable income.
Beyond Customer Needs
• “What is certain is that we are living in a
desire economy. The majority of people
have all the things they need. So you have
to ensure consumers feel they want what
you have.
• Emotional pull is central to brand
attractiveness, rather than functional
product performance”
Tamar Kasriel, The Henley Centre www.henleycentre.com
The Experience Economy
Pine and Gilmore 1999
• Service is not enough to create an advantage
• Offer a unique and memorable experience
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‘Work is theatre and every business a stage’
Venue = stage set
Staff = cast
Create a script which needs the customer to
take part
• The most valuable resource in the future
will be good stories (Jensen 1999 The Dream Society)
Resources
Web Site
• http://apollo4.bournemouth.ac.uk/si/mmorgan/index.html