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Veikko Laine
MARKETING THEORIES
There is no ”one-size-fits-all” theory. Different Products (= Consumables, Customization,
Durables, Investment Commodities, Services, …) need different operational emphasizing.
1) Basic Marketing Theory: P. Kotler / ”4-P”
(= Product, Price, Place, Promotion)
…Marketing MIX… …Tools for Competition…
Market =
Standard products, mass production &
Products = Goods
Customer =
Main target =
…private consumption…
…(does not cover well ”services”, nor industry)…
Is ”taken for granted”, - (s)he is an ”outsider”…
How to affect the Customer so that (s)he buys…
…psychology, ..manipulation, mental force…
”4-P” suits for: Era of Production, Industrial era
Now however :
We live in a Post Industrial, Knowledge Based, Service Society… ?
Veikko Laine
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MARKETING THEORIES cont.
2) Additional Marketing Theory : Marketing of Services
SERVICES
New Market Key area :
Main difference with ”4-P”: Customer participation, ..(s)he is an insider…
Operational features :
Reliability
Responsiveness
Assurance (knowledge of the service process,
…leading the customer…)
Empathy
Tangibility
3) Theory : Network Marketing
New Market Key area :
Target difference :
Attitude :
(…based on earlier + something new…) See
Network pic.
Industry & Organizations
Not Private consumption, BUT Industrial Production
…no force selling…
Main emphasize is to understand the Market, not so much on ”Marketing” (= the activity)
…the ”place”, the market is not the same everywhere…
Marketing is more like ”Network-Network” (not only ”Company-Company”, B-2-B)
…networks are EVERYWHERE…
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Veikko Laine
MARKETING THEORIES cont.
3) Theory : Network Marketing cont.
Think : What kind of networks are there…? …characteristics…
New components to be considered :
Actors
( who are involved, …who not…, …DMU)
Operations (info… material, financial, services, value added…)
Resources (exchange of…)
New dimension, Relations
(involving)
:
Professional
Technical
Social (human relations)
Planning, design
Commercial
Juridical, formal
New findings :
Customer and supplier are many-headed
Those relations above, are important
Relations outside the buyer/suppl. are also important
=> There is a dependency also with other companies/allies
… Knowledge… (gathering, storing, analyzing, decisionmaking…)
Veikko Laine
Export Marketing
Example of a ”Network” => affecting the operations
Export Marketing
Veikko Laine
MARKETING THEORIES cont.
4) Theory : Total Quality Management (TQM) .
…comes from industry, was adopted by marketing theorists…
? Quality ?
…everyone talks about it… …not well understood…
NOW, the Customer is placed at the Very Center
=> All functions must be directed towards “Quality” => The Customer
5) Present Theory : Customer Relationship Marketing (CRM),
uses all previous theories, with an emphasis on :
Relationships (=> 30 Relationships) Pls. Check the “30-R” Word doc.
Networks
Interaction
Relationship properties, are another new dimension :
Co-operation, collaboration (between everyone involved)
Longevity
(no hit-and-run, switching costs, learning curve etc.)
Commitment, dependency, significance, importance (JOT, Price only,
Price + interaction (personal involvement), - structural dimension = mutual resources)
Veikko Laine
Export Marketing
MARKETING THEORIES cont.
5) Present Theory : Customer Relationship Marketing (CRM),
cont.
Relationship properties, are another new dimension : cont.
Trust, risk, uncertainty (used cars dealer, doctors, banks, consultants)
Power (scarcity, need, urgency, dependency, monopoly)
Frequency, regularity and intensity (training, schooling, buying from a kiosk)
Adaptation (first learn how to use.. learn something again…)
Attraction (high image…”sexy”, Brand name)
Closeness vs. remoteness (physical, mental, emotional, culture, instrumental )
Formality, informality and transparency (legal contracts & understanding)
Routine (efficiency, economy, machine-to-machine, FOB, CIF, L/C)
Content (exchange, Win-Win, value added)
Personal, social properties (age, sex, profession, charisma, chemistry etc.).
The interrelated importance of these properties can vary very much.
…true Expert, Specialist…
Veikko Laine
Export Marketing
The use of a proper M-theory or a mixture of them
Veikko Laine
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Mixture of Marketing Theories
(= Customer Relationship Management)
(= MARKET)
Veikko Laine
Export Marketing
Continue from here . => Marketing gen.