chapter 1 marketing today
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part one: this is marketing. Chapter 1 Marketing today. an opening challenge. You tell friends who are studying sciences that you are doing a marketing course. One says, ‘You’re studying advertising, what fun.’ Is he right – is marketing just another name for advertising?. agenda. - PowerPoint PPT PresentationTRANSCRIPT
CHAPTER 1MARKETING TODAY
part one: this is marketing
an opening challengeYou tell friends who are studying sciences that you are doing a marketing course. One says, ‘You’re studying advertising, what fun.’
Is he right – is marketing just another name for advertising?
agenda• marketing defined• origins of marketing• demand and supply theory• the concept of exchanges
– types of exchange• strategic orientations• customers or consumers?• modern marketing
marketing definitions
‘The management process which identifies, anticipates and satisfies customer requirements efficiently and profitably.’ (The Chartered Institute of Marketing, n.d.)
marketing definitions 2‘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.’ (The American Marketing Association, 2007)
what is a market?
a place where buyers and sellers meet
photo courtesy of Dave Pickton
the marketing processmarket research & analysis
marketingobjectives
marketing tasks
feedback& control
market research and analysis where and who we are now
• market research • competitive research
– what is our position in the market? • organisation research
– what are we good at? – what are we bad at?
• what worked well in the past? • are we risk takers?
marketing objectiveswhere and who we want to be
• aims• targets
– e.g. market share, sales, brand image, brand awareness, number of sales outlets, new product launches, customer satisfaction levels, etc.
marketing taskshow we are going to make it happen
• planning • staffing• budgets• promotion• sales• pricing
• distribution• product management• branding• market entry• customer service • customer management
feedback and controlhow we will keep track of things
• objectives• customer feedback• checklists and deadlines• market position
why marketing?
mass production
excess supply
competition
urban development
middlemen
market classifications market typical purchase descriptions consumer personal purchases industrial things used to make other products b2b things used in the course of another business
not for profit purchases made by charities, trades unions, associations, etc.
government purchases by central and local government, health services, schools, libraries, armed forces, police, etc.
reseller goods to be sold on overseas all the above categories – but in other countries internal other divisions, subsidiaries or employees
the theory of demand and supply
price
quantity demanded, i.e. sales volume
supplyof goods
demandfor goods
the equilibrium point
price
quantity demanded, i.e. sales volume
supplyof goods
demandfor goods
X
supply equalling demand
the relationship between price and
sales
as pricegoes up
sales volumegoes down
and vice versa:as price goes down, sales volume (demand) goes up
exchanges
products/services
customer seller
payment
value
strategic orientations
orientation focuses on typical objectives
production production efficiencyhigher profits through reduced costs
productproduct quality and features
increased sales through product improvements
sales sales techniques and advertising
sales volume – often short term
customer customers’ needsincreased long-term sales through customer loyalty, positive image
marketcustomers’ needs and competitors’ strategies
long-term profits through good customer relations and a sustainable competitive advantage
market orientation
• focus on customers and competitors• coordination of all business functions
– marketing, HR, finance, operations, R&D• taking marketing research seriously• long-term view of markets and products
focus on customers
• ‘the customer is king’• importance of customer service• employee priorities• customer or consumer?
– how influential are consumers?– depends on purchase type and occasion
advantages of a market orientation
• better understanding of customer needs• better customer relations• a better reputation in the marketplace• more new customers • more repeat purchases• improved customer loyalty• more motivated staff• competitive edge
modern marketing
transactionmarketing
relationshipmarketing
• one-off sales• short-term view• hard sell
• repeat sales• long-term view• ongoing relationship
retaining valuable customers AQ – text missing
the marketing mixthe 4Ps
ProductPromotionPricePlace
marketing today and tomorrow
• digital technologies• social change• social networking media• communications overload• marketing metrics• lifestyle branding• consumerism• eco-consumers
summary
• what marketing is, and is not– definitions and scope
• exchanges of value• importance of long-term relationships• demand and supply theory• strategic orientations
– the importance of a customer focus• the fast-changing world of marketing
references• American Marketing Association (AMA) (2008)
‘AMA releases new definition for marketing’. Available at: http://www.marketingpower.com/AboutAMA (accessed 03/08/13).
• Chartered Institute of Marketing (CIM) (n.d.) Marketing Glossary. Available at: http://www.cim.co.uk/cim/ (accessed 11/06/07).