Download Marketing Dynamics

Marketing Dynamics
Lecture 1
Jeanette MacNaught
Session objectives
• Definition of marketing
• The development of marketing as a way of
doing business
• Marketing as a business function and an
interface between the organisation and its
customers
• Tasks undertaken in marketing and the range
of different organisational situations in which
marketing is applied
Marketing exposure
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Buy or use a product
Go window shopping
See an advertising board
Watch TV
Listen to friends/colleagues
Surf the internet
Are we reaping the benefits or being a victim?
Marketing function
• Brings you the products you want
• When you want them
• At prices you can afford
• With all the information you need to make an
informed decision and hopefully satisfying
choices
Definition
‘Marketing is the management process
responsible for identifying, anticipating and
satisfying customer requirements profitably’
(Chartered Institute of Marketing , 2001)
Management process
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Planning
Analysis
Resource allocation
Control
Investment
Implementation
Monitoring
Evaluation
Giving customers what they want
• All marketing activities should focus on this
• Aim for customer satisfaction
Identifies and anticipates customer
requirements
The marketer develops the product or service
after researching the market to pinpoint
exactly what the customer wants or will want
in the future
Fulfils customer requirements
profitably
Balancing the need to satisfy the customer with:
– Resource capabilities
– Working within agreed budgets
– Performance targets
Profitability is a major concern but marketing thinking
is also associated with not-for-profit organisations
Marketing offers and exchanges ideas,
goods and services
• Exchange process (Alderson, 1957)
‘I’ve got something you want and you’ve got
something I want’
Both parties value what the other has to offer
From mutual value comes satisfaction and
possible repeat purchases
Activity
Name a product, service or idea that gives you
customer satisfaction and as a direct result of
that satisfaction you repeat purchase without
considering other alternatives
Volume of exchanges
By designing products, setting acceptable &
justifiable prices, creating awareness and
preferences and ensuring availability and
service, a marketer can influence the volume
of exchanges that take place
Wider definition of marketing
‘Marketing is to establish, maintain and
enhance relationships with customers and
other partners, at a profit, so that the
objectives of the parties involved are met.
This is achieved by mutual exchange and
fulfilment of promises’
(Gronroos, 1997)
Relationship marketing
• Making promises to potential buyers and
keeping those promises
• Trust is then established
• Potential for a long-term relationship
Activity
Think about a time when you have been
dissatisfied with a product, service or idea.
What impact did that have on the relationship
between you and the supplier?
Development of Marketing
Ancient history
‘
bartering’
Industrial revolution
Production orientation
‘any colour you want as
long as it’s black’
1950s & 60s
Sales orientation
‘you’re not keen on the
colour, I’ll throw in a free
sun roof’
1970s onwards
Marketing orientation
‘let’s find out if they want
black and if they would pay
for it’
1990s onwards
Ethical/social responsibility
marketing
‘let’s produce it as
“greenly” as possible and
focus on recycling
Corporate social responsibility (CSR)
• Handling marketing in a responsible way
• Businesses are under no obligation to report
on their CSR activities but many do and it is
likely to increase the pressure for
transparency on CSR
• See Vodafone report 07/08
Sustainable marketing
‘The establishment, maintenance and
enhancement of customer relationships so
that the objectives of the parties involved are
met without compromising the ability of
future generations to achieve their own
objectives’
(Brassington & Pettitt, 2006)
Sustainable marketing
The short term gain of individual organisations has to be
balanced against the consequences for society as a whole
e.g. M&S ‘Green Pastures’ project
The scheme is based on a careful assessment of consumer
concerns in animal welfare and food production and sets
standards in each area for farmers and processors to follow
http://www.marksandspencer.com/gp/node/n/43477031
Satisfying customer needs
Product
Promotion
Marketing
Mix
Place
Price
The marketing mix
• Used to satisfy customer needs
• Develop a competitive edge
• Differential advantage
Product
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New product development
Product management
Product features/benefits
Branding
Packaging
After-sales service
Price
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Costs
Profitability
Value for money
Competitiveness
Incentives
Place
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Access to target market
Channel structure
Channel management
Retailer image
Logistics
Promotion
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Developing communications mixes
Advertising management
Sales promotion management
Sales management
Public relations management
Direct marketing
Scope of marketing
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Consumer goods
Industrial goods, B2B
Service goods
Non-profit marketing
Small business marketing
International marketing
Marketing principle
‘If marketers can deliver the right product in
the right place at the right time and at the
right price, then they are making a crucial
contribution towards creating satisfied
customers and successful, efficient and
profitable organisations’
(Brassington and Pettitt, 2006)