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Marketing Principles
(Bachelor Science Horticulture Botanic)
Dave Healy
September 25th, 2008
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Modern Marketing
Management
How Marketing has Evolved
• Marketing Era:
1900 – 1930: Production Orientation,
‘Pile em high, sell em cheap’
1930 – 1960s: Selling Orientation,
‘Push Sales to gain market share’
1960 -1980s: Marketing orientation,
‘Find out what the customers want,
then develop products to satisfy
them!’
1990s – Today: Societal Marketing
orientation, ‘If we’re not ethical in
our marketing practices, we will not
survive in the long term’
(Czinkota calls it ‘Relationship Marketing’, P7)
2005 - Sustainable Marketing
promotes authenticity, community,
and responsibility
The Marketing Concept
• Czinkota , P10
1) Organization exists to identify and satisfy the
needs and wants of its potential and existing
customers
• 2)You satisfy those needs through an integrated
effort within the organization.
• 3)Focus should be on long term cooperative
trading relationships with customers, not short
term exploitation. (Examples, Ikea etc)
The Marketing Concept
• You should analyze the needs of your customers and
then make decisions to satisfy those needs, better than
the competition.
Simple Strategy:
Focusing on customer needs before developing the
product
• Aligning all functions of the company to focus on those
needs
• Realizing a profit by successfully satisfying customer
needs over the long-term
Concepts Related to Marketing Concept
The Production Concept:
Ran until early 1920s;
Can we produce the product?
Can we produce enough of it? Examples
(Mass Production)
The Sales Concept:
Ran from 1930s;
Can we sell the product?
Can we charge enough for it?
Beat the competition to the sale, regardless of
customer satisfaction. Examples?
Marketing as a business philosophy
Peter Drucker’s Observation:
“The purpose of a company is to create
customers.”
(N.W. Ayer & Son, 1948)
“A business has two — and only two — basic
functions: marketing and innovation. Marketing
and innovation produce results: all the rest are
costs.”
Marketing in the 21st Century
Hugely important to individual companies and
economies.
The top 150 economies in the world, only 74
are actually countries, the other 76 are….
World’s biggest company?
21st century marketing will be based around
technology and physcology.
Earth’s 3 Socioecological Classes, p40 (21st Century)
Over Consumers
1.1 Billion
Sustainers
3.3 Billion
Marginals
1.1 Billion
Car & Air
Bicycle & Bus
Foot & Donkey
High Fat, high Cal
Healthy Grain, veg
Nutritionally inadequate
Bootled Water + Soft
Drinks
Clean water/tea
Contaminated water
Throwaway/waste
Unpackaged
goods/recycle
Local biomass / no
waste
Spacious houses
Modest, naturally
ventilated houses
Rudimentary shelter
clothes
Relationship Marketing
•Relationship marketing is a form of marketing
developed from direct response campaigns
•It targets audiences with more directly suited
information on products and services that suit that
particular person’s interests
Customer Satisfaction
(Relationship Marketing)
• Is a measure of how products and services supplied
by a company meet or surpass customer
expectation.
• Customer satisfaction relies on the communication
and acquisition of consumer requirements solely
from existing customers usually involving
permission for contact by the customer through an
"opt-in" system.
Customer Retention, P 306-310
(Relationship Marketing)
• What is it? – It’s about reducing customer defections, leaky bucket
theory – replace disloyal customers.
• Customer defection is getting easier and easier every year.
• Retention Rate is the % of the total number of customers who have
repeatedly placed an order over any 12 month period compared to
the total number of customers in the same period.
• Check Retention Strategies in the book
Marketing & Social Responsibility – ch2
• An organization shows concern for the people and
environment in which it transacts business.
• Behave ethically & treat customers honestly
• these values are communicated and enforced by everyone in
the organization.
• In some cases social responsibility may also manifest itself in
the support of social causes that help society.
And Finally – Sustainable Marketing
• A relatively new concept
• “sourced from sustainable forests”
• “made from sustainable materials”
• See lyonstea.ie for example
• Any other Green Marketing
Next Week
• The Macro & Micro Marketing Environment
• Practical Discussion – Before you can market your
product or service – Starting a business in Ireland;
Sole Trader or Limited Company