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THE MARKETING CONCEPT Changes in commercial function Definitions of the concept and key principles Dynamics of the marketing approach Ethics of the concept Laurence Chérel Catherine Madrid BORDEAUX IUT MARKETING TECHNIQUES The birth of commercial function (late 19th century - 1914) •Large companies cross a threshold •The growth of commercial function comes up against two hurdles According to Meuleau M. (1988), “The introduction of marketing in France: 1880 –1973” Revue French Management Review, September – October Laurence Chérel Catherine Madrid BORDEAUX IUT MARKETING TECHNIQUES General management Accounting Production PurchasingManufacturing Sales Laurence Chérel Catherine Madrid BORDEAUX IUT MARKETING TECHNIQUES The conditions for the advent of marketing coincide (1918-1939) •The roaring twenties: the start of mass consumption •The crisis of 1929: a trigger Laurence Chérel Catherine Madrid BORDEAUX IUT MARKETING TECHNIQUES General management Accounting Production Purchasing Manufacturing Sales & mktg Sales Sales preparation Laurence Chérel Catherine Madrid BORDEAUX IUT MARKETING TECHNIQUES Marketing is established in France (1950 -1970) •A very different economic setting •From the client to the anonymous consumer Laurence Chérel Catherine Madrid BORDEAUX IUT MARKETING TECHNIQUES General management Research Human resources Finances Marketing Production Sales & Mktg Laurence Chérel Catherine Madrid BORDEAUX IUT MARKETING TECHNIQUES ONE OF THE DEFINITIONS OF MARKETING in the context of companies • ALL COMPANY ACTIVITIES FOR CREATING, PROMOTING AND DISTRIBUTING PRODUCTS AND SERVICES IN A COST-EFFECTIVE WAY WITH A VIEW TO MEETING THE PRESENT OR FUTURE DEMANDS OF CONSUMERS. A MORE GENERAL DEFINITION: The management of commercial exchange in a competitive environment Laurence Chérel Catherine Madrid BORDEAUX IUT MARKETING TECHNIQUES The supply/demand system Gathering and analysing the information Describing current and potential customers as well as the competition Information A set of vendors Goods/services A set of buyers Money Commercial activity Developing an appropriate offer Establishing a marketing approach According to Marion,2005 Laurence Chérel Catherine Madrid BORDEAUX IUT MARKETING TECHNIQUES THE KEY PRINCIPLES for managing the supply system: • A rationale for analysing the environment • demand: a central concept • A rationale for strategic action: forewarning rather than suffering the consequences. • avoid "marketing myopia" • create and maintain a differential advantage • spread the marketing mindset throughout the company. Laurence Chérel Catherine Madrid BORDEAUX IUT MARKETING TECHNIQUES THE DYNAMICS OF THE MARKETING APPROACH 3 1 Marketing strategy: Choice of supply/market duo Competitive positioning Knowledge of the environment: gathering of • l information 6 4 2 Understanding of the environment: Analysis of the information Overall design of supply: product, price, Choice of distribution chains communication: publicity, sponsorship Marketing and analysis of the environment Commercial activity: product, price, distribution (point-ofsale management) promotion, POP, fairs, Direct marketing 5 Operational Incorporation of decisions into the company Marketing and competitive strategy marketing Laurence Chérel Catherine Madrid BORDEAUX IUT MARKETING TECHNIQUES OUTSIDE THE CONTEXT OF THE COMPANY Marketing can also be applied Laurence ChérelCatherine Madrid MARKETING TECHNIQUES Bordeaux The three-way EVOLUTION OF MARKETING Setting To Consumers economic environment Professionals Children Product Goal Services Associations Cultural projects Humanitarian projects Political projects Public services High tech, Fashion, Luxury Laurence ChérelCatherine Madrid MARKETING TECHNIQUES Bordeaux A more general definition can be applied to all of the areas of application: generic marketing • The process by which the stakeholders - those who supply and those who demand - get what they want through an act of exchange where a value is expressed • This is not necessarily a monetary value • The concept of exchange is central to this definition • For further details, refer to the bibliography, or contact your tutorial leader when considering your career project, Laurence Chérel Catherine Madrid BORDEAUX IUT MARKETING TECHNIQUES Limitations to the traditional definition of marketing • The constraint of the customer as king, • The need/product relationship may be interactive • Requirements expressed in anticipation of latent needs • The question of innovations Laurence Chérel Catherine Madrid BORDEAUX IUT MARKETING TECHNIQUES Ethical limitations • In the implementation of the marketing strategy • For example, the abuse of documents • In the design of the product offer • Inducement toward impulse buying • Positioning on suggestive topics • “Opportunistic” product without added quality Laurence Chérel Catherine Madrid BORDEAUX IUT MARKETING TECHNIQUES For example… • products presented in a circular at an attractive price for a period of a week, which rapidly become unavailable for sale; • an offer of free credit whereas the consumer is locked into revolving credit; The rental company UCAR chose to be provocative in leading the charge to make the government institute a scrapping incentive to promote the replacement of old cars. May 2008 http://auto.rtl.fr/article/une-publicite-tres-provocatrice-autour-de-la-voiture-propre-106544 Laurence Chérel Catherine Madrid BORDEAUX IUT MARKETING TECHNIQUES What arbiter(s) should one use? • The consumer, • The marketing manager • Value creation, Laurence Chérel Catherine Madrid BORDEAUX IUT MARKETING TECHNIQUES The value associated with the offer: • From marketing focused on the consumer and on personal satisfaction • To marketing aiming simultaneously to provide personal satisfaction by way of an appropriate solution for the entire company • The mission of the brand: to chart the way Marketing 3.0 Philip Kotler, Ed de Boeck 2012 Publication may be included as reading matter http://www.altereco.com/ Laurence Chérel Catherine Madrid BORDEAUX IUT MARKETING TECHNIQUES Is the company I am analysing pursuing a marketing strategy? yes Is there a marketing department ? no Does the company stay up-to-date on customer expectations Does the company stay up-todate on the competition Is the company designing products suited to the markets Existence of a marketing strategy YES