An Introduction to Marketing Basics for Business

Dr. Stephanie J. Morgan School of Management Department of Organizational Psychology (.5) Crosslight Management Ltd. Non-Executive Director PCT Marketing Principles & Practices

Marketing Principles & Practice
House-keeping (fire regs, break-out rooms, timings)
Overview of course content, aims and objectives
Themes
Reading and assessment
Marketing defined: the role of marketing in organizations today
Seminar – general discussion/questions

Overview of course content
Lecture 1 – Marketing defined
Lecture 2 – The psychology of buyer behaviour
Lecture 3 – Segmentation, targeting and positioning
Lecture 4 – Marketing mix 1: Product
Lecture 5 – Marketing Mix 2: Price and Place
Lecture 6 – Internet & Globalisation

Course Content Cont.
Lecture 7 – Marketing Mix 3: Promotion
Lecture 8 – Beyond the 4P’s - Services
Lecture 9 – Marketing research and information systems
Lecture 10 – Competitive and environmental analysis
Lecture 11 – Formulating and applying marketing strategy
Summer term – revision sessions
***See Overview of course for full details of sessions, readings etc. – also available on the website***

Module Aims
Aims:
Critical understanding of the basic concepts and practices of marketing and marketing management process
Overview of the operation of the marketing function within a wide range of organizations.

Objectives
Objectives:
Able to demonstrate an understanding of importance and role of marketing in organizations, link theory and practice to:
Outline classical marketing approach and recent developments
Analyse marketing opportunities
Demonstrate an understanding of buyer behaviour
Describe the fundamental principles of market research
Discuss need for a professional approach
Evaluate the impact of new technology and globalisation

Module Themes
Impact of technology and globalisation
Ethics in marketing
Shift to services
Linking theory and practice

Reading & Assessment
Reading: *LIBRARY, ELECTRONIC JOURNALS*
Jobber, 2001
Enis, Cox & Mokwa, 1995 (or International edition)
Kotler, 2003
Journal articles (see Reading Lists)
Assessment
Essay, 2,500 words 10 th December deadline
Exam, 3 questions out of 8

Lecture 1: Marketing Defined
Objectives :
Recall in broad outline the classical marketing approach
Explain in general terms the role of marketing in organizations and modern society
Discuss the value of marketing planning and a customer orientation

Organizations?
Private: Global, international, plc, SME, partnerships…
Public: Government, education, health, armed forces…
Charities: Global, international, national, local…

2 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Marketing Concept The achievement of corporate goals through meeting and exceeding customer needs better than the competition The Marketing Concept Customer orientation Corporate activities are focused upon providing customer satisfaction Integrated effort All staff accept the responsibility for creating customer satisfaction Goal achievement The belief that corporate goals can be achieved through customer satisfaction Marketing concept The achievement of org. goals through meeting and exceeding customer needs better than the competition Customer orientation Activities are focused upon providing customer satisfaction Integrated effort All staff accept the responsibility for creating customer satisfaction Goal achievement The belief that org. goals can be achieved through customer satisfaction

Evolution of the Marketing Concept D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill 6 Production Orientation Production & assembly line refinement Profits through production controls Sales Orientation Push! Push! Sell! Sell! by promotion Short term gains in profit via sales increases Marketing Orientation Integrated customer focus Long run profits through customer satisfaction

2 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill The Marketing Environment Company Microenvironment Macroenvironment Legal Physical Technological Social Economic Suppliers Customers Distributors Competitors Political

The Context – the New Economy
Increase in buying power,
Increased expectations,
Greater increase in easily available information
Greater variety of goods and services, increased competition
Greater ease in placing and receiving orders 24/7
Increased globalisation
Increased attention to societal and environmental issues?

Company & Marketer Responses?
Re-engineering, outsourcing, e-commerce, benchmarking, alliances etc.,
Customer relationship marketing, customer lifetime value, target marketing, customisation, customer database, knowledge systems, employee as marketer, model-based decision making.

11 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Responses to environmental change Retrenchment Gradual strategic repositioning Radical strategic repositioning Environmental change Ignorance Delay Barriers to change

Marketing Scope
Types of Demand:
Goods, services, experiences, events, persons, places, properties, organizations, information, ideas
Demand States:
Negative, no demand, latent demand, declining demand, irregular, full, overfull, unwholesome…
Marketing Orientation?
Production, product, selling, marketing, customer, societal, ethical…
Distinction external and internal marketing.

7 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Market-driven Management Shared values and beliefs Customer focus Market-led strategy Structure and systems Implementation Market intelligence Shared values and beliefs
customer first
Market intelligence Skills in understanding and responding to customers Structure and systems
structure based on strategy
team work
Market-led strategy
Linking distinctive competencies to market opportunities
Competitive advantage the driving force
Implementation
people
incentives
communications
persuasion

Integrating Marketing, Effects on Organization Marketing Strategy Production Finance Distribution And Storage Service and Support Human Resources Product, Price, Place Promotion, People, Physical Evidence,Processes Systems and Procedures

14 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Marketing Mix and Customer Needs Customer needs Key customer requirements Competitive advantage Marketing mix
Product
Price
Promotion
Place
Marketing mix

13 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Marketing Mix and Customer Needs Customer needs Key customer requirements Competitive advantage Marketing mix Psychological Economic Customer needs
Performance
Availability
Reliability
Durability
Productivity
Self-image
Quiet life
Pleasure
Convenience
Risk reduction

11 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill An Effective Marketing Mix Effective marketing mix Matches customer needs Creates a competitive advantage Well balanced Matches corporate resources

Criticisms of the 4P’s Approach
Oversimplifies reality of marketing management
Services require 7-P’s (add people, process and physical evidence)
Insufficient attention to long-term relationships in industrial marketing.
Danger of missing the two c’s – customer and competition
But – is useful, memorable heuristic – tools are reliant on how well understood, used, and implemented.

2 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Re-definition The marketing planning process Marketing planning at the business level Marketing planning at the product level Business mission Marketing audit SWOT analysis Marketing objectives Core strategy Marketing mix decisions Organization and implementation Control

Key Planning Questions
Where are we now?
How did we get there?
Where are we heading?
Where would we like to be?
How do we get there?
Are we on course?

3 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Re-definition Planning at the business level Strategic thrust Strategic objectives Business mission Marketing audit SWOT analysis Marketing objectives

4 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Planning at the product level Core strategy Marketing mix decisions Organization and implementation Control Target markets Competitive advantage Competitor targets Redefine

The Ashridge Mission Model D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill 5 Source: Campbell, A. and K. Tawadey (1990) Mission and Business Philosophy: Winning Employee Commitment, Oxford: Heinemann. Reproduced with Permission Purpose (Why the company exists) Company values (What senior management believes in) Standards and behaviours (The policies and behaviour patterns that guide How the company operates) Strategy (The commercial rationale)

Marketing Audit - External Macro environment : Economic, Social, Technological, Political, Ecological The market : Market size, growth rates, trends Customers, who, how, when, where Choice criteria, how rate us vs. competition Market segmentation Distribution, power changes etc. Where are we now? How did we get there? Where are we heading?

The External Audit (cont.) The competitive analysis Who are the major competitors: actual and potential? What are their objectives and strategies What are their strengths (distinctive competencies) And weaknesses (vulnerability analysis) Market shares and size, profitability analysis, entry barriers

Internal Audit Operating results Strategic Issues Marketing Mix Marketing Structures Marketing Systems

10 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Strategic thrust: the generic options Products Markets New/Related New/Related Existing Existing New/related Existing New/related Product Development Market Penetration or Expansion Enter New Markets Market Development

Strategic Objectives
Build (especially new products)
Hold (maintain equilibrium)
Harvest (allow share to fall but maximise profit)
Divest (drop or sell-off product)
Use Portfolio models to aid decision making (e.g. BCG Growth-Share matrix, General Electric Market Attractiveness-Competitive Position model)
But – use cautiously – danger in over-focusing one aspect, issues with averaging ratings, failure to show up synergies between different parts of business.

11 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Testing core strategy Clearly defines target customers and their needs Resource and managerially supportable Internally consistent Derived to achieve product market objectives Creates a competitive advantage Incurs acceptable risk Core strategy

Problems in Making it Work
Political – is a resource allocation process, power, career, salaries etc., affected.
Opportunity-cost? Argument used by those not comfortable with intensive planning.
Reward Systems – often very short-term.
Information – finding good data, asking good questions, getting the answers!
Culture – may not ‘fit’ or challenge status quo.
Knowledge and skills lacking

Approaches to marketing Unsures Sales Supporters Departmental Marketeers Marketing Philosophers Function: Primarily sales and promotional support Identifying and meeting customer needs A guiding philosophy for the whole organization Confined to what the marketing department does

The Advantages of Marketing Planning
Consistency
Encourages monitoring of change
Encourages organizational adaptation, accept inevitability of change.
Stimulates achievement – focuses on objectives, strategies and results.
Resource allocation achieved
Promotes search for competitive advantage
Some evidence increased performance (cross-sectional)

10 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Strategic marketing fit Fit Fit Fit
Limitations/Problems include:
Balancing the above, integrating demands of business and customers
Focus on individual leads to negative impact on society
Over-focus on customer may reduce innovation
Environment Strategy Organization

Marketing Philosophy
Avoid marketing myopia (Levitt)
Consider not just economics, but sociology, politics, psychology…(Alderson)
Different types of exchange involved, of universal applicability (Bagozzi)
Go beyond product sales approach to societal considerations and the use of marketing principles for all organizations (Kotler & Levy)
Consider the issues involved, including ethics, implementation & change management,

9 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Creating Customer Satisfaction Delight Neutral Dissatisfaction Presence of the characteristic Customer satisfaction ‘ Delighters ’ ‘ More is better ’ ‘ Must be ’ Absent Fulfilled

Objectives – have they been achieved?
Objectives :
Recall in broad outline the classical marketing approach
Explain in general terms the role of marketing in organizations and modern society
Discuss the value of marketing planning and a customer orientation

Marketing Principles & Practices
QUESTIONS!

http://www.slideshare.net	28
http://www.bizface.co.uk	11
http://www.bizfaceworld.com	3
file://	1
http://www.lmodules.com	1
http://roymogg.com	1

An Introduction to Marketing Basics for Business

by RoyMogg Blog on Jan 24, 2009

Accessibility

Categories

Tags

Upload Details

Usage Rights

6 Embeds 45

Statistics

An Introduction to Marketing Basics for Business — Presentation Transcript