Download Intro to Marketing -Concepts and Trends

ENT 4310
Business Economics and Management
Marketing – Concepts and Trends
Arild Aspelund
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Outline
• What is Marketing and what are its primary activities?
• How can we establish a common discussion?
– central concepts of marketing
• Where is the field of marketing going?
– Recent trends in marketing
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Marketing
• What is Marketing?
– Some say it’s is about needs…
• Marketing deals with identifying and meeting human and social needs
• “Meeting needs profitably” (Kotler and Keller, 2006)
– And some say its about value…
• “Marketing is about communicating values to potential and existing
customers” (Lodish et al., 2001)
• “Marketing is an organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its stake holders”
(AMA)
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…, but there is a clear distinction to selling…
• Selling simply refers to pushing an transaction
• In its most ambitious sense, marketing should render selling
unnecessary. “… The aim of marketing is to know and understand the
customer so well that the product or service fits him and sells itself.
Ideally, marketing should result in a customer who is ready to buy”
(Peter Drucker, 1973)
• Example:
Fujitsu Siemens Pocket LOOX
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… and there is also a clear distinction to advertising…
• Advertising is only one of
many means by which
you can communicate
with existing and
potential customers
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What is marketing?
• Marketing deals with the two fundamental question of:
– “What am I selling?”
– “To whom am I selling it?”
• The marketing literature seek to answer these questions through five
fundamental concepts
–
–
–
–
–
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Value
Segmentation
Positioning
Targeting
Buying behavior
Marketing – A Textbook Example…
How to trade water for
~ 100 NOK per liter…
- Imsdal for Kids
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Imsdal for Kids Segmentation:
- Parents of small kids (1 year to pre-school)
Value proposition:
- Thirst quencher
- Clear conscience
- Tranquililty
- Enjoyment
- And everything on the go…
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Ex: Imsdal for Kids
Positioning:
- An healthy alternative
- Manageable even for small kids
Targeting:
- No advertising
- Promotion through product placing!
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Imsdal for Kids
- Positioning and targeting through product placing
Product not placed here…
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But here…
Buying behavior - Reitanruta, Trondheim
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Or how about 420 NOK ~ Do You Bling?
• «It's not for everyone,
just those that Bling.
So the question is: Do
You Bling?»
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Marketing Management
• What is Market Management?
• “Marketing Management is the art and science of choosing target
markets and getting, keeping, and growing customers through creating
delivering, and communicating customer value” (Kotler and Keller,
2006)
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What are the tasks of market management?
•
Capturing marketing insight
•
Communicating value
•
Shaping the market offering
•
Building brands and market
recognition
•
Developing marketing strategies
and plans
•
Creating long-term growth
•
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Connecting with customers
Marketing
• Marketing’s markets
– There can be made a variety of distinctions between types of markets; goods, services, events, experiences, persons, places, properties,
organizations, information, and ideas
• Most commonly distinctions of
–
–
–
–
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Consumer markets
Business markets
Global markets
Non-profit and governmental markets
Marketing trends
Different marketing trends for bringing value to customers
• The product concept
– “consumers will prefer products with the most quality, performance and
innovative features”
• The selling concept
– The market does not consume sufficiently if let alone. Aggressive selling
and promotion is needed in order to boost revenues
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Marketing trends
Different marketing trends for bringing value to customers
• The marketing concept
– “the quest is not to identify the right customers for our products, but the
right products for our customers”
– “selling focuses on the needs of the seller, marketing focuses on the needs
of the customer”
• The holistic marketing concept
– “everything matters”
– Consists of:
•
•
•
•
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Relationship marketing
Integrated marketing
Internal marketing
Social responsibility marketing
Trends
• From the marketing division to the marketing organization
• From product units to market segments
• Outsourcing and inter-organizational market integration
• Globalization
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Summary and continuation…
• To sum it all up:
– The two fundamental questions of marketing are ”what am I selling?” and
”who am I selling it to?”
– Marketeers seek to answer these questions through defining five concepts
•
•
•
•
•
Value
Segmentation
Targeting
Positioning
Customer and buying behavior
• Next we will look into:
– An introduction to the strategic marketing process
– How to make good market plans
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