marketing philosophies - studentvip · marketing philosophies: production: o the philosophy that...
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Marketing philosophies: Production:
o the philosophy that consumers favour the products that are available and highly affordable, and that management should therefore focus
on improving production and distribution efficiency
o Useful in 2 types of situations: Demand exceed supplies When the production cost is too high and it is needed to bring it down
Examples: Henry Fords an Model T car
Product: o The idea that consumers favours the products that offer the most quality, performance and features, and that the organisation should
therefore devote its energy to making continuous product improvements
o Can lead to market myopia: overlooked the need and concentrated on the product
Selling:
o The idea that consumers won’t buy enough of the organisation’s products unless the organisation undertakes a large-scale selling ad promotion effort
o Practiced with unsought product o Try to sell what they make rather than what market wants short term focus o Examples: Political party: meeting supporters, making speeches, kissing babies and shaking hands
Marketing:
o A firms can achieve their goals if they know the needs and wants of their target markets and deliver the desired satisfaction better
than the competitor do o Different from selling philosophy
Selling Marketing
Starting point Factory Market Focus Existing product Customer needs Means Selling and promoting Integrated marketing Ends Profit through sales volume Profits through customer satisfaction
Societal marketing:
o Marketing strategy should deliver value to customers in a way that maintains or improved both consumers’ and society’s well being
o Socially and environmentally responsible marketing that meets the present
needs of consumers and businesses while also preserving and enhancing the ability of the future generations to meet their needs
Marketing environment
What is the marketing environment?
The actors and forces outside marketing management’s ability to develop and maintain successful transactions with its target customer
Contain 2 major components:
Microenvironment: the forces close to organisation that affects its ability to serve its customers
Macroenvironment: a larger societal forces that affect the whole microenvironment
Why is it important to understand the marketing environment? Because the marketing environment is:
Unpredictable (eg: death of CEO)
Change rapidly (eg: change on government policy, global financial crisis)
May offer opportunities (eg: new technology, investment opportunities in local and oversea)
Have significant impact on organisation’s strategy, operations, positioning, success and marketing program
Six major forces of the microenvironment
Marketing intermediaries: Firm that help the organisation to promote, sell and distribute products to the final customer
Customers:
Competitors:
Gain success through:
B2C
• individuals and household that buy goods and services
for personal and household
consumption
B2B
• organisation that buy goods and
services for further processing and use
in production process
Reseller
• Organisation that buy goods and
services in order to resell them at a
profit
Government
• government agencies that buy
goods and services in order to produce public services and transfer goods and services to others who need them
International
• overseas buyers
Resellers
• Channels that helps the organisation to find customer or make sales to them
• Includes: wholesalers, resellers
Physical distribution firms
• firms that help organisation to stock and move to from their point of origin to their destination
• Eg: warehouse firms, transportation firms (railways, trucing , airlines, shipping organisation)
• Determine the best way to store and ship goods and balancing costs, delivery, speeds and safety.
• Online distribution is the bases for new businesses
Financial intermediaries
• intermediaries that help the banks to finance transaction and insure against the risks with buying and selling goods
• Affect by the credit costs, limited credit or both establish good relationship is important for financial insitutions
• Examples: Banks, credit organisation, insurance organisation
Marketing agencies
• facilitating agencies that help the organisation to target and promote product to the right markets
• Examples: advertising agencies, media firms, export and consulting agencies and local marketing consulting firms
Provide greater customer value and satisfaction than its competitors from adapting to the needs of target customer
positioning their offering against competitors offerings in customers’ minds
Strategy: Large organisation can dominant by providing benefits that small organisation can’t afford
Small organisation is more flexible to give better rates
Consider international competitor
Publics
The company itself:
Designing marketing plans take accounts and work closely with other groups
o Eg: Finance department finds and use funds to carry out marketing plan, R&D focus n designing safe and effective products, human resource ensure
sufficient personnel with appropriate skills
Follow the goals, missions, broad strategies and policies set by the senior management
Six major forces of the macroenvironment
Forces Trends
Demographic (involves people, they make up markets)
Population structures (age, genders, geographic shift, ethnic diversity) Population in general (size, growth rate, income level) Demographic groups (Gen X, Gen Y, baby boomers) Immigration (government policy, immigration rate) Education (skilled laboured for employees, women joining workforces)
Economic (affect consumer buying power and spending patterns)
Income, savings, spending patterns, inflation rate, employment rate, interest rate
Technological (affect new technologies creating new product and market opportunities)
Increased regulations, rapid changes in technology, high R&D budget
Political Legislation (laws), enforcement (ACCC), political stability, ethnic & social responsibility, special interests/pressure groups
Cultural (Institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviours)
Core values (honesty, individualism, freedom/democracy, giving to charity), subculture (aged group, gender based group, ethnic based group, social group), shift in secondary values (people views of themselves and views of others (due to technological advancement), loyalty and trust toward large organisation are declining, social
orientation is changing, views of environment and universe)
Natural (inputs by marketers or which are affected by marketing activities)
Shortage of raw materials, increase cost of energy, increase pollution, government intervention
Marketing research:
What is marketing research?
The function that links the consumer, customer and public to the marketer through information used to:
o identify and define marketing opportunities and problems
o generate, refine and evaluate marketing actions
o monitor marketing performance
o improve understanding of the marketing process
Four stages of the marketing research process
\
Information already exists somewhere Have been collected for another purpose Internal or external
to the organisation
Information collected for the current research purpose
can be carried out internally(own staff) or externally(outsourced to other firms)
Raw data
is check
prior
advance
data
analysis
present the major findings that are useful for the main decisions faced by management. Careful with bias
interpretation
Ethnographic research A form of observational research where a trained observer watch and interact with consumers in their natural environments Webnography research Observing consumers in a natural context on the internet
Highly flexible, quick, low cost, but high risk of respondents not being able to answer questions & low
response rate The moderator facilitates the group discussion on important issues using a pre-designed protocol 6-10 people with moderator
Commonly used in a situation where: It is hard-to-access respondents like busy executives and technical experts Access to groups is limited Group discussions might inhibit responses eg research into condom or tampon use and experiences