understanding marketing

1. Marketing Management
MKT 600
M
M B
B A
A
Understanding Mktg & Mktg Mngnt

2. Achieving Corporate Success

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

4. .......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

5. Few successful examples from the
Geek market

6. Marketing Management
Lecture Overview
 What is Marketing?
 Marketing as an organisation and management function
 Marketing as a concept and philosophy
 Evolution of Marketing concept
 Core concept of marketing
 Marketing orientations
 The competitive environment
 Marketing mix
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7. 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

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

9. 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.

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

11. One fundamental question: Is Marketing creating
or satisfying needs?

12. Key Words
market
marketing
marketing concept
target marketing
relationship marketing
marketing mix
break-even point

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

14. 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.
The operational
functions of marketing
Advertising P.R.
Selling
Financing
Buying
Forecasting
Pricing
Publicity
Merchandising
Market Research
Transporting
Risk Taking
Servicing
Stockholding
Display
CRM Sales Promotion

15. 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)

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

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

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

19. 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”

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

21. EVOLUTION OF MARKETING CONCEPT AND
MARKETING ORIENTATION
 Self-sufficiency – No exchange process
 Simple – Start of exchange process
 Local markets – Economic specialisations
 Money economy – Medium of exchange
 Industrial revolution – Rapid growth in world population leading to increased demand.
Problem – How to supply?
 Production orientation – More efficient production eventually led to oversupply. Problem
changed to – How to dispose?
 Soles orientation – Economic theory states: when supply exceeds demand, reduce
price and use other techniques to stimulate demand.
 Product orientation – 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.
 Marketing orientation – 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.

22. BUSINESS ORIENTATION
Orientation Profit Driver Approximate
Time Frame
Characteristics
Production 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 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)

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

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

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

26. Παραγωγή
Marketing
Προϊόν
Πωλήσεις
1. Η φιλοσοφία της παραγωγής
 Η ποιό παλαιά
 Προσπάθεια παραγωγής
πολλών προϊόντων
 Σε χαμηλές τιμές
 Βελτίωση παραγωγής
 Ικανοποιητική διανομή
2. Φιλοσοφία Προϊόντος
 Βελτίωση ποιότητας
 Best value for money
 Ο κατ/τής επιθυμεί τα προϊόντα
που του προσφέρουν την
μεγαλύτερη ικανοποίηση
3. Φιλοσοφία Πωλήσεων
 Τα προϊόντα πωλούνται δεν
αγοράζονται
 Η ενέργεια της αγοράς είναι η
απάντηση στο ερέθισμα των
πωλήσεων & όχι στις ανάγκες
του καταναλωτή
 Push vs pull strategy
4. Φιλοσοφία του Marketing
 Κύριο έργο ο καθορισμό
αναγκών & επιθυμιών
 Targeted Marketing
 Προσαρμογή στην
παραγωγή & διανομή
αυτών των προϊόντων
Η εξέλιξη της φιλοσοφίας του Marketing
5. Φιλοσοφία Κοινωνικού Marketing
• ερωτηματικό εάν το 4 αποτελεί
ευχολόγιο ή είναι ο νέος προσανατολισμός
Των ενεργειών του Marketing
Marketing Management – Athens Metropolitan College – Κώστας Γεωργικόπουλος

27. Η ανάπτυξη της σπουδαιότητας του
Marketing
Αρχική οικονομία της παραγωγής
• Παράγω μόνο για εμένα & την οικογένεια, κυρίως
πρωτογενής τομέας)
Δημιουργία πλεονάσματος (surplus)
• (simple trade era)
Έναρξη δραστηριότητας ανταλλαγών
Αρχή της οικονομίας της αγοράς & της παραγωγής
• Βιομηχανική επανάσταση, 18ος αιώνας)
Έναρξη της οικονομίας των υπηρεσιών
Marketing Management – Athens Metropolitan College – Κώστας Γεωργικόπουλος