Marketing I

Tim Malone

Integrated Marketing
Starting point the 4 Ps
What to offer (Product) Where to offer it (Place) How consumer will be informed (Promotion) Price of the product (Price)

Theses are all variables and the mix is one way to differentiate

Feedback from Market Research

Marketing Mix The Target Market

Developing a market offering consisting of: Product or service Distribution network Marketing Communication Price

Groups of customers with similar needs Willing to pay

Main Objective: Maximise profit in the longterm

Objective: Total needs satisfaction

Service component
For organisations with a significant service component, 4 Ps is not adequate
Customer service differentiate business and helps build closer relationships People staff from an integral part of the offering

Processes Policies and procedures influence how offering is created and/or delivered

Market orientation
4 additional important characteristics
Customer focus efforts made to discover customer needs and how best to deliver satisfaction Team approach Cross-functional teams and integrated approach to developing and delivering solutions Competitor orientation continuous recognition of where competitors have an advantage, their competitive position and marketing strategies Social responsibility orientation all above + recognising they must happen within the scope of social responsibility

Enhanced business profitability

Better retention and increased loyalty
increased purchases reduced operating costs referrals (word of mouth) ability to justify price

Business has two main tasks

Acquiring customers Innovation

Marketing orientation

Marketing knowledge

Marketing experience

Marketing orientation

Marketing strategy

Holistic approach - Kottler

Marketing environment volatility requires a holistic approach 4 components
Relationship marketing
Win-Win relationships build a network of consumers, employees, marketing partners, financial community

Integrated marketing
All elements of marketing mix work synergistically to maximise joint effects

Holistic approach - Kottler

Internal marketing
Everyone working in the business embraces and supports marketing efforts Departments aligned to same marketing view

Performance marketing
Understanding marketing metrics and scorecards and impact on financial performance Relationship between marketing and profits Ensuring companys actions are seen to be measurable and based on sound business principles

Change and marketing mix adaption

Launched in 2004 6-month waiting list Response to awareness of environmental challenges

Understanding wider business environment

Company Marketing Environment

Controllables product price promotion (communication) place (distribution)

Major direction of influence

Uncontrollables economy social developments technology advances political implications legislation environmental issues

Marketing effectiveness
Determined by how well company can match offerings to marketplace requirements
Outside-In orientation led by market Tendency to become preoccupied with daily operational needs (fire-fighting)
Loss of contact with needs of customers and market changes Small changes made be precursor to bigger changes

Example of major change

How consumers research and buy
Internet in many product categories
Electronics

Healthcare
Financial Services

Over 50% of customers researched insurance products online before talking to agents (2005) Expected to rise to 80% More consumers visit blogs than visit company websites (McKinsey 2007)

Key drivers of change

Globalisation
Changing industrial structures
Traditional markets have declined

Information revolution
Not just for consumers Levis has real-time feedback from outlets globally

Rising consumer expectations

Nike had 347 different types of running shoes Now, online you can order custom running shoes

Obtaining information
See lecture notes on MIS systems