chap 18 Flashcards
Introduction
- Marketing means much more than the traditional view of advertising and public relation
- Marketing = business philosophy + functional management.
- Marketing theory involves = changing marketing mix ( product, price, place and promotion)
Marketing
” Marketing is the process of planning and executing the concepts of pricing, promotion and distribution of ideas, goods and services in order to create exchanges that satisfy individual and organizational objectives.”
As defined by the Chartered Institute of Marketing (UK)
“ Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably. “
- Requirements = research !
According to Kotler,
“Marketing is getting the product or service to the customer, at the right price, at the right time.” - Product = something that is offered to a market ( e.g. soap & haircut) (physical and service)
Strategic and Tactical Marketing
• Marketing involves several activities + products may be fundamental to co.`s existence.
• Strategic marketing : tied with corporate strategy + focused on strategic goals.
• Tactical marketing: short term objectives + focus on particular variables of marketing mix.
* For further details : read article downloaded.
2 - What is Marketing Management
“Marketing management iis the process of devising, implementing and monitoring the process of marketing plan.”
What involves in marketing management?
Marketing management involves analysis, planning and control.
Analysis :
• involves identifying customers + why they buy + satisfied?
• This needs marketing research + Process includes :
• quantitative analysis (No. of customers+ market share + competitors).
• Qualitative analysis (why buy ? + motivation ? + attitudes + personality.)
• Market info is used with marketing information system + used by managers + better decision making.
Planning :
• Mgt uses marketing analysis to develop marketing response - marketing strategic plan.
• Identifying selected targets in each market.
• Forecasting future demands in each market.
• Setting levels of each element of marketing mix for each target market.
Control :
• Checking quantifiable targets + checking performance. + if necessary : remedial action.
3 - The marketing Mix
• People are subjected to different marketing actiivities.
• Promotion / Marketing communication : adds, posters, pop up adds, messages.
• Ultimate aim is to persuade people to want to purchase certain products or services.
• 7 Ps of Of marketing mix:
The Extended marketing Mix the 7 Ps
The Traditional Marketing Mix Additional 3 Ps
Product People (5th P)
Price Processes
Place Physical Evidence
Promotion
Referred to in relation to cosumer goods Reffered to describe the issues in service industries
• Exam:
Q - Traditional Ps - Answer only 4 Ps.
Q - 5 elements of marketing mix - Add 5th people
Q - Longer question + marks = all 7 Ps.
4 - The Marketing Concept and The Marketing Orientation
- Marketing consideration can influence activities of the organization.
- The concepts of value chain and internal customer show how ideas related to customer satisfaction and customer value can be implemented through the organization.
• Marketing concept and marketing orientation are two interrelated terms.
♠ Marketing Concept
A philosophy of business, permeating whole organization that holds, that holds the key to organizational success is meeting the customer needs effective and efficiently than the competitors.
♠ Marketing Orientation An approach to business that centres its activities on satisfying the needs and wants of its customers.
The Marketing Concept
- A marketing concept is a belief system having beliefs and pattern of behaviour of people in the organization.
- The organization may believe in the ‘ customer first ‘ slogan and may add this in their vision statement. But these are often just theoretical claims - with little basis of facts.
The Marketing Concept in Practice
• marketing matches customer needs + persuasive sales force is always needed.
• Satisfying customer needs + persuasion = success.
• Market led approach is more acceptable to customers.
• After persuasion, follow these :
○ Developing leads
○ Better customer service
○ Identify and meet customer requirements.
The Marketing Orientation
Typically, marketing focus on persuading cunsumers to buy products and services.
• Production orientation: assumption = consumers would buy whatever the firm poduced. E.g. Model T Ford (Black colour)
• Sales orientation: Focus on needs of the seller rather than the buyer.
Marketing orientations and other orientations
• Marketing orientation often compared with other orientations.
♣ Production Orientation:
• A production orientation may be defined as the management view that success is achieved through producing goods of optimum quality and cost.
* The major task is improved production and efficient distribution. * It assumes that customers will always be around to buy the product. * Comparison of Marketing Orientation and Product Orientation * Marketing Orientation: Determine customer needs -> invest resources -> Make product/service -> Market it (profit via customer satisfaction) -> Market Feedback. • Product Orientation: Determine feasibility of product -> Invest resources -> make product/ service -> Sell it (profit via increased turnover)
♣ Sales Orientation
• The sales orientation may be defined as the management`s view that success can be achieved through effective selling and good communication.
* A good sales force can just sell anything to anybody. * Under a sales orientation the tendency is to make the product and then actively and aggressively sell it.
♣ The potential impact of a marketing orientation
• The marketing concept suggests that companies should focus their operations on their customers needs rather than be driven solely by the organizations technical competence or resource capability.
• Perfect marketing = products meet customer requirements at a price that customers accept. Now little sales effort is needed.
♣ Push vs Pull
• Traditionally, marketing: products pushed out to resellers and consumers.
• Pull approach on the other hand, aims to produce a product that customers demand which automatically is pulled into retail outlets.
♣ The Value Chain
• Describes how all the activities of organization contribute towards creating products and services that customers value.
• Porter (1985) grouped various activities (sequentially) of an organization into a value chain. Picture No. 1 (Pg : 470 and 471) One attraction to this idea: encouraginging service-oriented attitude in external interaction, it will become second nature of employees and will spill-over into dealings with external customers. Thus the customer concept in pervasive in the organization.
The Marketing Concept: Summary
The marketing has three dimensions:
• It`s a culture. Put customer first.
• It invloves strategy: select product and market. These selections are strategic decisions.
• It invloves Tactics: marketing tactics = 7Ps of marketing mix.
5 - Relationship Marketing
- Marketing orientation: Needs of customer first of all.
- Relationship marketing: Build longterm relationship b/w org and customer.
- A marketing event can be a simple transaction, conducted once. However relationship marketing focuses on building a bond b/w org and customer.
- E.g. purchase of a house from an estate agent is oneoff transaction, unless reseller, rarely develops business relationship.
- E.g. Purchase of bottled water. Nestle vs abc water. Nestle builds relationship by branding relationship of its products with the customers.
- E.g. Dawlance, Apple Computers and Cocacola.
- Relationship marketing emphasises on the view that companies progress and succeed through building relationship of customer with their product.
• Benefits:
♣ Less cost to sell. Business from repeated customers is more profitable.
♣ Customer loyalty is maintained.
♣ Customer to advocate of organization.
6 - The Marketing Department
Because marketing activities is linked with corporate strategy in many ways, therefore marketing approach influences corporate strategy. However, marketing is also one way by which corporate strategy is implemented.
- Marketing activities : Large organization -> Departements + Small organization -> one or two people.
- Marketing manager has a key role in planning, resource allocation, monitoring and controlling.
Picture of Page 474 and initial of pg 475
7 - The Marketing Environment
All organizations exist, interact and influenced by their environment. PESTEL Factors • Political • Economic • Social / Cultural • Technological • Ecological • Legal Picture of 7.4 of page 475 and 476
