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Unit 9 Lecture 1 Marketing (Definition: Marketing is the activity, set of…
Unit 9 Lecture 1
Marketing
Definition: Marketing is the activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large. (American Marketing Assoc. 2013)
Marketing is 'active' changing and developing, not like static things like physics. Very dynamic field which expands across an org
A set of institutions. Tangible goods, NGOs, government and so on.
Focus on Companies, Consumers and Partners
Marketing managers can market 7 x entities:
Products
Services
Events
Experiences - coffee shops for example
People - Madoonna, Obama
Places - neighbourhoods, cities
Ideas - Quality, health, freedom etc
Marketable things surround us. Services, products, events, etc.
The history of Marketing Thought
1870 - 1930: Production Era. Mass production as demand oustripped supply and products sold themselves
1930 - 1950: Sales Era.
1950 - : Marketing era. Competition became more fierce but consumers also became less keen on standardised products. It became much more about customer desire.
Marketing philosophy
Product Orientation: Concentrate on high efficiency, low costs and mass production
Sales Orientation: Aim to sell what is made, coaxing, promotion/incentive
Marketing orientation: Design the right product/service for customers. The key to achieving goals is to be more effective than competitors in superior customer value
Size, nature of product etc will affect the marketing philosophy - Microsoft Vs takeaway
Marketing has extended beyond its boundaries as an economic consideration and now also encompasses third sector and services - e.g NHS becoming more patient led, NGOs etc
Criticisms of MS:
Under limited conditions of competition , stabel market , turbulent industries and booming economies, marketing orientation may not be linked to performance
Marketing mix:
Price, Product, Place, Promotion
Customer Focus:
The company segments the market, chooses the best segments and develops a strong position in each segment. Understand what customers want by asking or researching them
Understanding Customer Needs:
The company maps its csutomer's needs, perceptions, preferences and behaviour and motivates its stakeholders to obsess about customer satisfaction and service
Competitor Analysis:
The company knows its competitors and their strengths/weaknesses. You can observe their activities. You can search online, look at how they develop and promote their products. Look for reports
Stakeholder Management:
The company builds partners out of its stakeholders and generously rewards them
Innovation and Change:
The company develps systems for identifying opportunities, ranking them, and choosing the best ones.
Marketing planning and implementation:
The company manages a marketing planning system that leads to insightful long term and short term plans. Geopolitical events, changes with suppliers, changes to customer demand
Controlling Market Entities:
The company exercises strong control over it's product and service elements. However an obsession with control can be counter productive
Branding and Communications Strategy:
The company builds strong brands by using the most relevant communication and promotion tools and techniques and other mix elements
Marketing Orientation;
The company builds marketing leadership and a team spirit among its various departments
Technology as a source of competitive advantage:
The company constantly adds tech that gives it the comp advantage
Perceptions of Marketing
Marketing management can be at a disadvantage in orgs because of organisational and environmental pressures:
Uncertain definitions of the term 'Marketing' and lack of understanding.
Tyranny of Profit and Loss or financial focus on short term gain rather than long term growth
Difficulty measuring Marketing productivity
Limiting of Marketing to top management in the org
Cost or Investment:
Marketing demands ever increasing command over resources. Marketeers have failed to convicne orgs that these are investments rather than expenses.Failure to establish quantifiable and accurate measures to be able to judge ROI
Marketing Decisions
In practical terms it is a set of decisions including:
What features should the prod have
Which distribution channels should we use
What is the most appropriate price point
How to communicate with customers
If there is indecision try to simplify to these 4 decisions
Marketing Managers and the 4 P's
Get involved in a variety of activities inc prod devlopment, marketing research, segmentation and advertising
Try to set marketing objectives using the 4 x P's
The Marketing Mix:
The manager has a mix of short and long term decisions to make once the comp has slected a target market.Marketing mix decisions must encompass the distributions, pricing strategy and so on. from their point of view each marketing tool should be designed to offer a customer benefit
Criticisms and Limitations to the 4 x P's
Oversimplifies the reality of marketing
Some people hold the 7 Ps
People Process and physical evidence
Markets, groups, individuals, products and services are simply too complex!!!
Problems with the marketing concept:
Constrains innovation and technology
Ignores resource use and environment
Ingores other relations and stakeholders
Does not take into account importance of relationship and services marketing for contemporary environment
Kotler's 10 Marketing Commandments
Critically think it!!!!
