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Name, date, place of the event
Elements of Marketing
Miroslav Barták, Ph.D.
Elements of Marketing
What is marketing?
• Science and Art
• Managerial practice
• Relationship between producer and
comsumer
Elements of Marketing
What is marketing?
• As a philosophy, it is based on thinking
about the business in terms of customer
needs and their satisfaction.
• Marketing is not just a selling products.
Elements of Marketing
What is marketing?
• As a practice, it consists in coordination of four
elements called 4P's:
• (1) identification, selection, and development of a
product,
• (2) determination of its price,
• (3) selection of a distribution channel to reach the
customer's place, and
• (4) development and implementation of a promotional
strategy.
Elements of Marketing
What is marketing?
• Marketing is the social process by which
individuals and groups obtain what they
need and want through creating and
exchanging products and value with
others (Kotler).
Elements of Marketing
What is marketing?
• Marketing is the process whereby society,
to supply its consumption needs, evolves
distributive systems composed of
participants, who, interacting under
constraints - technical (economic) and
ethical (social) - create the transactions or
flows which resolve market separations
and result in exchange and consumption.
Elements of Marketing
What is marketing?
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Marketing focuses on the satisfaction of customer needs, wants and
requirements.
The philosophy of marketing needs to be owned by everyone from within
the organization.
Future needs have to be identified and anticipated.
There is normally a focus upon profitability, especially in the corporate
sector. However, as public sector organizations and not-for-profit
organizations adopt the concept of marketing, this need not always be the
case.
More recent definitions recognize the influence of marketing upon society.
Elements of Marketing
Elements of Marketing
Public sector marketing
• In the 1990s, the public sector in various
European countries started to see its
clientele as customers and perceived the
benefits of applying marketing tools and
• strategic marketing planning in order to
‘sell’ policies to citizens.
Elements of Marketing
Public sector marketing
• Public organizations employ four types of
marketing, which differ from each other in
the objectives underlying them.
Elements of Marketing
Public sector marketing
• First, ‘marketisation’ means that certain aspects of
public sector activities become akin to commercial
marketing in the private sector by subjecting products
and services to the competitive forces of the commercial
marketplace.
• The aim is to bring down the price level and to bring the
standard of quality more into linewith customer
demands (Chapman and Cowdell, 1998).
Elements of Marketing
Public sector marketing
• Second, all organizations use marketing
for promoting their self-interest.
• For instance, Burton (1999) suggests that
public organizations use stakeholder
marketing to secure their continued
existence by support from the market and
society.
Elements of Marketing
Public sector marketing
• Third, in the case of local authorities,
marketing is used to promote the area
under the responsibility of the public
organisation, such as city marketing.
• Finally, marketing may be instrumental in
promoting key political objectives, i.e. the
realisation of social effects.
Elements of Marketing
Public sector marketing
• Marketing skills developed in the private
sector can be employed in the public
sector to promote and deliver non-profitmotivated services.
Elements of Marketing
Public sector marketing
• The public sector is constrained in terms
of the services it is obliged to provide and
hence may be unable to implement a
customer-led approach even if this is
desired.
• Constraints may include (Bean and
Hussey, 1997):
Elements of Marketing
Public sector marketing
• legislative restrictions,
• political philosophies,
• lack of physical resources,
• lack of financial resources.
Elements of Marketing
Public sector marketing
• Many public sector organisations provide
services for the public good which are
often restrictive and controlling in nature.
In such cases the user is far from
• public sector does not depend on
individual users for its survival: many
organisations are in place due to
legislation, government policies…
Elements of Marketing
Public sector marketing
• This does not mean that the public sector
organisation loses customers, because it
may be (Bean and Hussey, Ibid.):
Elements of Marketing
Public sector marketing
• a monopoly provider so the customer has
no choice but to accept the service on
• offer even if it does not fully meet its
requirements (e.g. social services);
Elements of Marketing
Public sector marketing
• offering a free service so the customer has to
accept that something is better than nothing –
this is especially so if the customer cannot
afford to pay for an equivalent service (e.g.
basic education services);
• providing a service to customers which they
must have even if they do not want it (e.g.
Revenue & Customs services).
Elements of Marketing
Public sector marketing
• In the pursuit of marketing objectives an
organisation requires a strategy that makesuse
of the marketing mix. This term, originally used
by Borden (1965), comprised ofthe 4Ps
(Product, Price, Promotion and Place).
• The original 4Ps of the marketing mix were
considered by many to be too restrictive,
particularly with the developing service
economy.
Elements of Marketing
Public sector marketing
4C – an alternative approach
• Customer needs and wants
• Cost to the customer
• Convenience
• Communication
Elements of Marketing
Public sector marketing process
• Segmentation
• Positioning
• Value oriented marketing
• Marketing tools in managerial decision
making process
Elements of Marketing
Public sector marketing case studies –
city planing and development
http://www.ff.unilj.si/oddelki/geo/publikacije/dela/files/dela_21/024
%20kim%20inn.pdf
http://www.plantation.org/docs/economic-dev/marketing-plan.pdf
http://www.isocarp.net/Data/case_studies/858.pdf
www.cobraman-ce.eu
Name:
Institution:
Address:
Phone:
e-mail:
web site:
Miroslav Barták
FSE UJEP Ústí nad Labem
Moskevská 54, 400 96 Ústí nad Labem
+420 602 70 53 26
[email protected]
http://fse.ujep.cz
Thank you for your attention!
This project is implemented through the CENTRAL EUROPE Programme co-financed by the ERDF.