Marketing Management MKT 600 Understanding Mktg Mktg Mngnt

Marketing Management MKT 600 Understanding Mktg & Mktg Mngnt

Achieving Corporate Success

The today's business environment Technological development Worldwide competitive environment Demanding customers Mergers & acquisitions between companies Product life cycle shortening Employees new profiles New Legal environment

. . . . we all believe that by globalization and in an environment with no trade barriers, the world will became a single united market. Whoever reaches it first will become the best. Donald Shinkel, Vice President Wall-Mart Stores

Few successful examples from the Geek market

Marketing Management Lecture Overview § § § § What is Marketing? Marketing as an organisation and management function Marketing as a concept and philosophy i Evolution of Marketing concept Core concept of marketing Marketing orientations The competitive environment Marketing mix

WHAT IS MARKETING? Marketing is everyone’s business. Every person working for an organisation should understand the importance of marketing. § Definitions: “ Marketing is the management process responsible for identifying, anticipating and satisfying consumer requirements profitably” – CIM “Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange and satisfy individual and organisational needs. ” AMA

Why It’s Important Effective marketing puts the products in the hands of its targeted customers.

Basics of Marketing A market is a group of customers who share common wants and needs, and who have the ability to purchase a particular product.

Basics of Marketing is the process of creating, promoting, and presenting a product to meet the wants and needs of consumers.

One fundamental question: Is Marketing creating or satisfying needs?

Key Words marketing concept target marketing relationship marketing mix break-even point

Key Words market research demographics channel of distribution direct distribution indirect distribution wholesaler retailer

MARKETING IS AN ORGANISATIONAL FUNCTION The diagram below shows the many functions that can be carried out in organisations which, dependant on the organisation, can be classified as operational functions of marketing. CRM Sales Promotion Advertising P. R. Selling Display Financing Stockholding The operational functions of marketing Buying Servicing Forecasting Risk Taking Transporting Pricing Market Research Merchandising Publicity

MARKETING AS A MANAGEMENT FUNCTION Here the role of marketing is ensuring that the operational activities of the organisation (not just marketing) are clearly directed towards the principal objective of meeting the needs of the customers effectively. It involves analysing customers and anticipating their needs, planning, resource allocations, control and investment in terms of money, appropriate skilled people and physical resources to ensure both customer and organisational needs are met to each’s satisfaction. § Marketing as a Business Concept – in this regard marketing is the study of exchange processes especially those associated with the provision of goods and services. It takes its lead from the social sciences in that, the basic tenant of society is that we all need each other. The idea here is, if I’ve got something you want and you’ve got something I want, then we do a deal (which is the exchange process)

MARKETING AS A BUSINESS CONCEPT The Exchange Process Something of value Goods, services, benefits Supplier Customer Money, exchange of goods Something of value

EXCHANGE TRANSACTIONS Consumers Costs & Benefits Organisations Cash Quench thirst Customer Pepsi Insurance premiums Patient Medical treatment Private Hospital Fees Education Student University

EXCHANGE TRANSACTIONS Consumers Costs & Benefits Organisations Time Volunteer Sense of community service Non-profit youth group Voter Sense of economic/social progress continued employment etc Politic Party Taxes Reader Lone parent Public Library, Benefit agency

MARKETING AS A BUSINESS PHILOSOPHY Simply a way (i. e. orientation) towards how the business will behave. As a philosophy it recognises the importance of the customer and that all business exists to serve customers rather than manufacturing products. To quote Adam Smith C A in his famous text ‘ The wealth of “Consumption is the sole purpose of production and the interests of the product ought to be attended o only so far as it may be necessary for promoting those of the customer”

CORE CONCEPTS OF MARKETING Needs Products/ Value Wants Services & Demand Exchange Process Exchange Transactions Relationships Satisfaction Markets Marketing

EVOLUTION OF MARKETING CONCEPT AND MARKETING ORIENTATION § Self-sufficiency Simple Local markets Money economy Industrial revolution § Production orientation § Soles orientation § Product orientation § Marketing orientation § § – No exchange process – Start of exchange process – Economic specialisations – Medium of exchange – Rapid growth in world population leading to increased demand. Problem – How to supply? – More efficient production eventually led to oversupply. Problem changed to – How to dispose? – Economic theory states: when supply exceeds demand, reduce price and use other techniques to stimulate demand. – Demand. Problem – how to keep customers? Companies sought to keep customers by increasing emphasis on product design, Problem – competition quickly copied and the design didn’t suit everyone. Too many products than they demand for them. – Production based on customer needs and wants. Specific markets identified and matched their requirements to the capabilities of the company to ensure both parties needs were satisfied.

BUSINESS ORIENTATION Orientation Profit Driver Approximate Time Frame Characteristics Production Methods Up to 1940’s Improvement of production and in order to achieve a reduction of costs and improved efficiency. Product Quality of Product Until 1960’s The quality of the product is paramount. Focus on product not customer needs. Selling Methods 1950 -1970’s Effective selling and promotion are the new drivers to success. Marketing Needs and wants of customers 1970 to date Focus on providing the goods and services that satisfy the needs and wants of consumers. Further approaches to marketing Relationship Marketing Building and keeping good customer relations 1990’s to date Emphasis placed on keeping as well as winning customer strategies. Societal Marketing Benefit the society 1990’s to date Similar to marking orientation but also concerned with the long term impact of organisational activities on the environment (society)

Marketing Mix: The 4 Ps Place Promotion The Marketing Mix Price Product

Importance of 4 Ps by Industry – examples of promotions Consumer Goods Industrial Goods High Advertising Personal Selling Sales Promotion Personal Selling Advertising PR PR Importance Low

Push versus Pull Demand Push Strategy Manufacturer Demand Intermediary End User e. g Lever Brothers Demand Pull Strategy Manufacturer Demand Intermediary End User e. g. P & G