ENT 4320 Marketing Management Marketing Concepts and Trends

ENT 4320 Marketing Management Marketing – Concepts and Trends Arild Aspelund

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

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)

…, 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: IPhone

… 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 • http: //www. na 24. no/propaganda/

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 – – – Value Segmentation Positioning Targeting Buying behavior

Marketing – A Textbook Example… How to trade water for ~ 100 NOK per liter… - Imsdal for Kids

Imsdal for Kids Segmentation: - Parents of small kids (1 year to pre-school) Value: - Thirst quencher - Clear conscience - Tranquililty - Enjoyment - And everything on the go…

Ex: Imsdal for Kids Positioning: - An healthy alternative - Manageable even for small kids Targeting: - No advertising - Promotion through product placing!

Imsdal for Kids - Positioning and targeting through product placing Product not placed here… But here…

Buying behavior - Reitanruta, Trondheim

Or how about 420 NOK ~ Do You Bling? «It's not for everyone, just those that Bling. So the question is: Do You Bling? »

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)

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 • 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 – – Consumer markets Business markets Global markets Non-profit and governmental markets

Marketing trends Different marketing trends for bringing value to customers • The production concept “Customers will prefer products that are widely available and inexpensive” • 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

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: • Relationship marketing • Integrated marketing • Internal marketing • Social responsibility marketing

Marketing Trends • From the marketing division to the marketing organization • From product units to market segments • Outsourcing and inter-organizational market integration • Globalization

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