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marketing
what it means
a definition of marketing
the idea of the marketing concept
the relationship between
planning
implementation and
control
the marketing mix: what you control theoretically
environmental factors: what you don’t control
(theoretically)
the American Marketing Association.....
marketing is,
“the performance of business activities that direct
the flow of goods and services from producer to
consumer or user”
makes marketing sound distribution
oriented
and,
does not explain what products should be
provided
another definition.....
“marketing is getting the right goods and services
to the right people at the right place, at the right
time, at the right price, with the right
communication and promotion”
this is getting closer to marketing realities
but,
it is rather business-oriented
and
it may leave out some social areas,
eg,
TAC/Workcare advertising
Christian Television Association advertising
AIDS advertising
Peter Drucker
the “father of marketing”
“marketing is so basic that it cannot be considered
a separate function.....it is the whole business seen
from the point of view of its final result, that is,
from the customer’s point of view”
this is a reasonably workable definition;
it shows the two sides of marketing;
1. the marketer and,
2. the customer
where was selling in that definition?
why was it not there?
because selling is considered to be a sub-set of the
marketing function
people often think that ‘selling’ is the same as
‘marketing’
why?
probably because selling is often the tip of the
iceberg they see, as customers
ie., as customers, often we only see the selling side
of marketing
: cars
: electrical goods
: home renovations
the all-important distinction between marketing
and selling;
selling
is getting rid of what you have
marketing
is about what to produce in the first place
resources
and
capabilities
of the
organisation
the
product
consumer
wants
.....based
on goals that
are realistic
and
achievable
ie,
customer
demand
this matching process may also be seen as
‘the marketing concept’
so far.....
customer/consumer demand
a most misunderstood area of marketing practice
today
‘advertising’
often seen as manipulative and often is
new products
very high failure rates; perhaps 70%
rough rules
people choose products that offer the greatest
benefit at whatever price they are prepared to pay
people’s ideas of benefit/price ratios vary
eg. Bic and Waterman pens
if you do not offer what the people want, you will
not get sales
customers are considered to occupy sub-sets of
markets
these are commonly termed ‘target markets’
the process of locating such target markets which
an organisation can profitably* serve is the role of
marketing management
*or cost-effectively
look for the use and function that lies behind the
buyer’s decision to obtain the product
that is;
do not let your product look for a market
rather,
look at the market and find the product it wants
invention/marketing
looking beyond the product to
the idea of wants and needs
needs
we need
food
shelter
self-actualisation
(growth area?)
needs are basic and mostly unmarketable
wants
how we express our basic needs,
given our individual traits and
cultural, social and political
backgrounds
we want
Macdonald’s food
Ikea furniture
computer skills
.....this is where marketing is supposed to come in
the importance of customers
the person who foots the bill, pays all the salaries
and obtains the product
what marketing should be about:
matching the organisations capabilities with
customer demand
in order to achieve the goals of your organisation
marketing claims that it is not about:
selling alone
exploitation
a working definition of marketing
recognising opportunities and taking advantage of
them
usually in a competitive environment
profitably or cost-effectively
through planning rather than by chance
by concentrating on the needs of customers
by appropriate use of the elements of
product
price
place
promotion
within the resource constraints and goals of the
organisation
within the opportunities and threats imposed by
outside forces, ie., the marketing environment
the marketing concept
more than just ‘thinking marketing’
it also means
‘thinking ahead in marketing terms’ too
to manage the marketing process requires
planning in the first place
sales
market
information
sales
promotion
accounting
research
and
development
personnel
warehousing
export
sales
purchasing
advertising
marketing
production
marketing
sales
accounting
market info
sales prom’n
production
r &d
warehousing
personnel, etc
the
customer
marketing management
a way of thinking that presumes no marketing
activity is worth udertaking unless:
it has been planned in the first place
the execution of that activity can be readily
monitored, controlled and, if necessary,
changed
marketing management
means an understanding of your organisation’s
missions and goals
whether new products are needed
how much to spend on promotion
what price or fee to set (or how to justify the cost of
your operation)
the parameters of these issues should be set
through a planning process
the planning process
the establishment of long-, medium- and
short-term goals by senior management
the goals are best:
if they are understandable
and achievable, especially to middle management
the goals are at their best when they constitute
as close a match as possible between,
what you believe the market wants
and
what your organisation can do
another way of looking at the process.....
marketing planning
the process of
establishing marketing goals
and the
design of marketing programmes (or plans)
that are
to be carried out in the future
a challenge arises.....
planning:
desk-oriented
cosy, fireside stuff
a look into the future from the comfort of
the board room
marketing management:
working to the goals of the plan
in an environment of:
• change
• competition
• time constraints
there are two fundamental types of planning
that an organisation may undertake
1. the ‘corporate’ or ‘business’ plan
tells us what industry or industries we should
be in
(many organisations do not know)
2. the ‘marketing’ plan
tells us what segments or bits of that
industry we should be in
there may be a third level, called ‘product’ plans
so.....
carrying out marketing plans may be divided up
into a series of product plans
these product plans involve such activities as;
setting the price
devising advertising campaigns
developing distribution
personal representation to key accounts
obtaining marketing research
if planning is presumed to be vital, then
planning is useless unless programmes are carried
out
carrying out such programmes is useless without
control
feedback
&
adjustment
how planning and marketing are supposed to be
integrated
corporate goals
process
marketing planning
process
should we
change
plans?
execution of plans
control
1. was the execution
carried through?
should we
change
execution?
2. evaluation; did
performance meet
goals?
yes
no
the marketing management process
a means of saying;
we are going to find target markets - not fall into
them
we are going to plan our future activities with
customer needs as a basis for a profitable
achievement of our organisation’s goals
we are going to manage our markets using people
who know how to use the marketing mix in a way
that achieves our goals
we are going to build on success, admit failure and
are able to modify both, because we planned in the
first place and we know we can measure the
results of our activities
the essence of marketing is not to have a planning
hierarchy alone, but ‘doers’ as well
their tools are the four elements of
the marketing mix
• P
• P
• P
• p
product
goods
services
people
ideas
price
place
distribution
promotion
marketing communication
introducing the marketing mix into the planning
process
write:
corporate plans
that
generate:
marketing plans
that in turn
generate
products
1
2
3
each with a separate identity
ie,
the result of a separate marketing mix
for each separate target market
execution of plans via
product launches and maintenance
evaluation
the marketer’s operating framework
the marketer:
should know the consumer
should understand the organisation’s
corporate and marketing goals
should be able to identify markets and
so-called target markets
should have the greatest possible control
over the marketing mix
should be conversant with the uncontrollable
the two sides of marketing
science
art
reasoning
intuition
analysis
creativity
planned
common sense
the development of marketing
production era
1900s to 1930s
production concept, demand in excess of supply
sales era
1930s to 1950s, demand falls
stronger sales effort required
marketing era
demand returns, but more competition
more consumer choice
need for responsiveness to the consumer
societal marketing.....1980s........
the idea of the marketing concept is at the core of
marketing philosophy
three elements
1. to be oriented toward the consumer
2. to emphasise long-term organisational survival
rather than short-term profit
3. to coordinate all organisational activities
through the marketing function
problems ; concept,function and philosophy
; give up short-term profit
; marketing as the focus