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Session 4: The Marketing Concept - Coggle Diagram
Session 4: The Marketing Concept
What is "marketing"?
'...management process responsible for identifying, anticipating and satisfying customer requirements profitably.'
(Chartered Institute for Marketing, 2015)
'...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 Association, 2013)
Marketing key points:
Process of activities that make possible an exchange.
Something that is offered for exchange
Provision of value for the parties involved in the exchange.
Organisations trying to satisfy customer requirements (marketing orientation).
Marketing Function
Can be a team or one person.
Responsibilities
(Dibb at al., 2016...)
Monitoring and analysing market and developing trends, opportunities, threats and competitors.
Determining objectives and strategies in alignment with the organisations mission, vision and value.
Identifying most appropriate consumers to target and ensuring products and services meet their needs and suitable positioned in the market.
Managing brands to project a coherent and compelling brand identity that attracts customers for strong rep and future income.
Ensuring products and services are communicated, delivered and offered at a price consumers are willing to pay.
Marketing Process
Have to understand the marketplace and customer needs and wants.
Steps in process:
Determine organisations' mission, values and vision.
Analysis of the market.
Strategy Selection
Formulation of the offering.
Implementation, monitoring and evaluation.
Mission, values and vision
Maintain steady course in a dynamic environment.
Successful Mission Statement will...
be specific to guide staff behaviour
be based on fulfilling customer needs and satisfaction rather than product characteristics.
encapsulate organisations' key skills.
signal opportunities and threats.
be achievable.
Visions
Future-based
"...widely communicated statement that captures the needs of the time" (Kotler, 2005)
Mission embodies organisations purpose and guided by vision of the future.
Values
Guide behaviour in novel situations. (Wilkins and Ouchi, 1983).
"This is what we believe in and this is how we think our business should be conducted" (Harris, 2002, p. 28).
Not to be confused with the concept of customer value.
Corporate Strategy
Mission, vision and values help determine supporting objectives.
Helps to allocate support, resources and functional coordination for its areas of business.
Support overall organisation objectives.
Organisational Opportunities and Resources
3 Considerations:
(Dibb at al., 2016, p. 46)
Evaluating Marketing Opportunities
Environmental Scanning
Understanding organisations' capabilities and assets.
Helps to establish a competitive advantage for market differentiation.
Strategic Windows
Business must identify them and fit into them.
Allow for maximum payback from investments into products/services.
Windows are dynamic and forever changing.
Getting timing right for entering and exiting these windows is key for marketers.
SWOT analysis is a great tool to help identify where organisation sits in a market and strategic window.
Types of Changes in Markets:
(Abell, 1978)
Changes from new needs in a marketplace.
Changes from developments of new technology.
Changes in a channel.
Changes from market redefinition due to changes in a product or in competitors product strategies.
Strategic Options to Respond to Market Changes:
(Abell, 1978)
gather resources to address gap between market requirements and organisations' capability to meet them.
transfer focus to market segments with a better fit to organisations' capabilities.
scale back future investment in the affected marketplace and extract whatever short-term profit is there.
exit the affected marketplace.
Globalisation
Offers opportunities to enter or expand into new markets.
Is a threat of others attempting to enter or expand into your current market.
SWOT is used to analyse marketing environment.
Crucial before determining an appropriate marketing strategy and developing a suitable marketing programme.