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Trier 2007
Declan FlemingDepartment of Marketing
Topic 1: Marketing Dynamics
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SESSION OVERVIEW
This session will:• Provide a definition of marketing• Examine the development of
marketing• Outline the scope of marketing• Introduce core marketing concepts• Highlight the importance of marketing
to private and public sector organisations
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WHAT IS MARKETING?
Session 1
Introduction to Marketing
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MARKETING AS AN ACADEMIC DISCIPLINE
• Marketing as a subject of study is relatively new
• Has drawn heavily on:– Economics– Psychology– Sociology
• Increasingly developing and contributing its own body of knowledge
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Marketing defined
Marketing is the management process responsible for identifying, anticipating, and satisfying customer requirements profitably. (CIM, 2001)
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 objectives. (AMA, 1985)
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Marketing - points of agreement
(CIB & AMA)
• Management process.
• Giving customers what they want.
• Identifies and anticipates customer requirements.
• Fulfils customers requirements profitably.
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Marketing - the Americans go further
• Offers and exchanges ideas, goods and services.
• Assumption that both parties value what the other has to offer (mutual value).
• Proactive selling and willing buyers.
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Wider Definition of Marketing
Marketing is to establish, maintain, and enhance
relationships with customers and other partners, at a profit, so that the parties involved are met. This is achieved by mutual exchange
and fulfillment of promises.(Grönroos, 1997)
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Lets make this a little simpler
• Marketing is about – Providing the right product or service– At the right price– Available where the customer wants to
buy– And backed up by promotions which
make the customer aware of what is on offer and convinces them to buy your company’s product
– While making a profit for your company.
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HOW DO YOU SUCCEED IN THE MARKETS FOR THESE PRODUCTS?
• Fast Moving Consumer Goods (FMCGs) are a challenge for marketers
• Why should a customer buy your product and not the competitors’?
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Quotes about marketing
• “There is only one boss – the customer. And he can fire everybody in the company, from the Chairman on down, simply by spending his money somewhere else.”Sam Walton WalMart
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Value, Satisfaction and Quality
• Consumers make buying choices based upon their perceptions of the value that various products and services deliver.
• Customer value is based upon the consumer’s assessment of the product’s overall capacity to satisfy his or her needs.
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Business orientations
• Production.
• Product.
• Selling.
• Marketing.
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Societal Began in 1980s
“Long-term survival only possible through social responsibility and
ethics”
Marketing Since 1970s “The consumer is king!
Sales Prior to 1970s
“Creative advertising and selling will overcome consumers’
resistance and convince them to buy.”
Product Prior to 1950s“Innovation is the key to
survival”
Five Eras in the History of Marketing
EraApproximate Time
Period*Prevailing Attitude
Production Prior to 1920s “Pile them high and sell them cheap”
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Production and Product orientation
Table 1.1
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Henry Ford’s Mass-production Line (Production
Era)“They (customers) can have any color they want, as long
as it’s black.”
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Selling and Marketing orientation
Table 1.1 cont.
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MARKETING AS A FUNDAMENTAL BUSINESS PHILOSOPHY
• Distinguish between:– Marketing as a philosophy (e.g. a
company- wide culture of putting the customer first)
– Marketing as a set of techniques (e.g. advertising, market research)
• Techniques are likely to fail if the philosophy is not fully adopted
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MARKETING IN RELATION TO OTHER CORPORATE FUNCTIONS
• Viewed as a philosophy, everybody in an organisation should be a “part-time marketer”
• “Marketing is so basic that it cannot be considered to be a separate function. It is the whole business seen from the point of view of its final result, that is, from the customer's point of view". - Peter Drucker
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An INTEGRATIVE BUSINESS FUNCTION?
• The role of marketing in bringing (departmental) functions together in emphasing the customer focus?
- marketing the GLUE?
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Figure 1.3 Marketing as an Interface
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The basic marketing mix (4Ps)
Figure1.4
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The Marketing Mix: Product and Promotion
Product
• Development
• Management
• Features/benefits
• Branding
• Packaging
• After-sales service
Promotion• Communication
mix• Advertising• Sales promotion• Sales• Public relations• Direct marketing
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The Marketing Mix: Price and Place
Price
• Costs
• Profitability
• Value for money
• Competitiveness
• Incentives
Place• Access to market• Channel structure• Channel
management• Retailer image• Logistics
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Additional Ps
• People• Processes• Physical evidence
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The extended marketing mix (7Ps)• Price.
• Product.
• Place.
• Promotion.
• People.
• Processes.
• Physical evidence.
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Marketing Scope
Consumer goods
Non-profit marketing
eMarketing
Service goodsSmall business
marketing
Internationalmarketing
B2B goods
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NOT FOR PROFIT MARKETING
• It’s not just commercial companies that use marketing
• Increasing use of marketing by not-for-profit organisations, e.g. charities, government agencies
• Rising expectations of users of these organisations
• Often, their environment is becoming more competitive
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What do marketers do?
Practice of marketing
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Marketing job titles
• Brand manager.• Product manager.• Sales manager.• Salesperson.• Advertising manager.• Public relations manager.• Market research manager.
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WHAT MAKES A GOOD MARKETER?
• Are marketers born or bred?
• Some key skills:– Ability to listen
and analyse– Critical thinking– Creativity