The development of marketing thought

Dr.Sc. (Econ.) Carl-Johan Rosenbrijer Department of Economy, Media and Engineering ARBIT Applied Research in Business an IT carl-johan.rosenbroijer@arcada.fi arbit.arcada.fi

The development of marketing thought

Network Customer Relationship

2000-

Network Management
Customer Relationship Management (CRM) Service Marketing Traditional Marketing
Product Customer encounter Personnel Core competence The companys resources Innovativeness, learning

Customer Contact

1990-

Episode

19801970-

Transaction

SIDA 2

Competitive Base

Source: Tore Strandvik (2000)

The development of marketing thought

What? How? Service Product / brand: Production and consumption often Production oriented simultaneous Technical quality Functional quality Capacity The customer encounter (moment Price of truth) Distribution Different services connected to the product Advertising and other Service concept = way of operating sales promotion / way of life E.g.: Presidentti E.g.: Robert Paulig Coffee coffee, Coca Cola, Company, IKEA, Kone, etc. Scania etc.

SIDA 3

The development of marketing thought

Where?

Place of purchase Distribution cental Understanding the

customer process is vital

Where is the
customer customer flow?

Offer existing
products/services in new places

When? Timing time: 24 hx7, life-cycle Seasons: Summer, autumn,winter and spring Seasons: christmas,eastern etc. The customers perception of time, changes (e.g. computers,mobile phones etc.) E.g. Fazer Bakerys, Teleoperators,Banks etc.

E.g.: Esso and

SIDA 4

groceries, R-kioski and Post, Internet, home etc.

The role of marketing and product/service development New

Role of Product and Service development
Role of Marketing and sales

PRODUCT/ SERVICE
Old

Product/service Development And marketing

Role of marketing and sales

Old
SIDA 5

New

MARKET

The traditional push role of marketing

Marketing Mix: product price place sales promotion
SP SP SP SP

C
U S T O M E

S U P L I E R

Efficient sales: Take it or leave it principle

SP=Sales person
SIDA 6

Purchasing and competitive buying

S
Marketing mix

S
Efficient purchasing: Competitive buying I have the power principle

C U S T B O M E R
B=BUYER

S
SIDA 7

The role of marketing in the organisation is changing

Marketing is not a function in a company

From product to customer focus

SIDA 8

Marketing is not a function in a company

OPERATIVE MANAGEMENT

PRODUCTION

LOGISTICS

ACCOUNTING

MARKETING

IT

Marketing as an isolated function!

THE ACTIVITIES ORGANISED AS INDEPENDENT FUNCTIONS NO COORDINATION AND COMMUNICATION
THE COMPANY IS A PRISONER OF ITS FUNCTIONS AND CUSTOMER GETS WHAT IS PRODUCED!

SIDA 9

Marketing is not a function in a company

PRODUCTION

MANAGEMENT
LOGISTICS ACCOUNTING

IT

SIDA 10

From product to customer focus

Product focus Production Technical quality Product development dominates Very transparent price functional comparisons easy First produced then sold

SIDA 11

From product to customer focus

The problems of the product focus
The customer is in a minimal role or not taken into consideration at
all What is the role of the customer? Consumer not a producer of value The victim of sales dependent on the supplier A comparer of different product and a competitive buyer What does the customer get? A product that perhaps does not create the value he could get A product without any service A product that is produced on the suppliers terms
SIDA 12

From product to customer focus

Customer focus The customer is the starting point Time perspective important Focus on the customers perceived value The customer is unique The customer relationship and understanding it in focus Trust Customer loyalty - commitment

SIDA 13