session 1 - the nature of marketing
TRANSCRIPT
8/8/2019 Session 1 - The Nature of Marketing
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162MKT
Introduction toMarketing
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Lecture Objectives
• The Marketing Concept• Different business orientations that firms
adopt• How to create customer satisfaction andvalue
• How an effective marketing mix is designed
• The relationship between adopting amarketing philosophy and businessperformance
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Essential Reading
• Author - Jobber, D and Fahy, J
• Edition - 2009 3rd edition
• Title - Foundations of Marketing
• Publisher - McGraw-Hill
• Library - 658.8
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“Marketing is simply sales
with a college education.”
JOHN FREUND
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Marketing Definitions
“Because the purpose of business is to create and keep customers, it only has two central functions – marketing and innovation. The basic function of marketing is to attract and retain customers at a profit.”
Peter Drucker
“The objective of marketing is to establish, develop
and commercialize long-term customer relationships so that the objectives of the parties involved are met.”
Gronroos
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Marketing Orientation
Integratedcustomer
focus
Long run profitsthrough customer
satisfaction
Sales Orientation
Push! Push!Sell! Sell!by promotion
Short termgains in profitvia sales increases
Evolution of theMarketing Concept
Production Orientation Production &
assembly linerefinement
Profits throughproduction controls
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Marketing Concept
The achievement of corporategoals through meeting andexceeding customer needs
better than the competition
Customer orientationCorporate activities
are focused uponproviding customer
satisfaction
Integrated effortAll staff accept theresponsibility forcreating customer
satisfaction
Goal AchievementThe belief that
corporate goals canbe achieved through
customer satisfaction
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Marketing Orientated
Businesses
INSERTTABLE 1.1
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Marketing Orientated
Businesses
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Creating Customer Value
Product benefits
Service benefitsRelational benefits
Image benefits
Monetary costs
Time costsEnergy costs
Psychological costs
Customer value
Perceived
benefits
Perceived
sacrifice
Positive Negative
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Creating Customer SatisfactionDelight
Neutral
DissatisfactionAbsent Fulfilled
Presence of the characteristic
Customersatisfa
ction
‘Delighters’
‘More is better ’
‘Must be’
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Expedia.co.uk
CustomerValue
10
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Efficiency and
Effectiveness
Inefficient
Efficient
Goes out ofbusiness quickly
Dies slowly
Survives
Does wellThrives
Ineffective Effective
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Marketing and Other BusinessFunctions
R & D
Finance HRM
Production
Marketing
Our Organisation
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The Marketing Mix
c
Product Price
Promotion Place
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An Effective Marketing Mix
Effective marketing
mix
Matches
customer needs
Creates acompetitiveadvantage
Wellbalanced
Matchescorporateresources
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Market-driven Management
Sharedvalues and
beliefs
Customer
focus
Market-led
strategy
Structure
and
systems
Implementation
Market
intelligence
Shared valuesand beliefs
customer first
Market
intelligenceSkills in
understanding andresponding to
customers
Structure and
systems structure based on
strategy
team work
Market-ledstrategy
Linking distinctive
competencies tomarket opportunities
Competitive advantage
the driving force
Implementation
people incentives
communications
persuasion
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Lucozade Sport Hydro Active
This advert for Lucozade’sHydro Active brandcommunicates the productbenefits for peopleengaged in physicalexercise.
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Limitations of the Marketing
ConceptThe marketing concept as an ideology.
Marketing and society.
Marketing as a constraint on innovation.
Marketing as a source of dullness.
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Conclusion
• Always looking for a
Competitive Edge
• Or a Differential
Advantage
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Exercise for the Weekend
Visit the following websites:
www.amazon.com
www.yahoo.com
www.ebay.co.uk
www.tesco.com
Describe how these companies are creatingvalue for their customers and post yourobservations on one of them onto the Module
Discussion Forum
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Allocated Seminars
Advertising & Business PLUSMarketing
Advertising & Business PLUS Marketing
Mon 10-11am WM105 Sophie
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Allocated Seminars
Advertising & Marketing
• Mon 12-1pm WM105 Maggie
• Tues 9-10am WM233 Maggie
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Allocated seminars
Business & Marketing
• Thursday 9-10am WM105 Sophie
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Allocated Seminars - SAM
• Mon 11-12pm WM105 Maggie
• Mon 4-5pm WM 304 Maggie
• Mon 4-5pm WM330 Emma
• Tues 10-11am WM304 Emma
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Allocated Seminars – Not
MKT or SAM• Tues 11-12pm WM304 Sophie
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To do this week!
• Buy Jobber & Fahy
• Read Chapter 1 & 2• Sign up for seminars
• Look at websites