Outline of the components of marketing practice and the text book

Learning objectives
1 Define the term marketing 2 Explain the marketing exchange conditions and their influence on marketing 3 Explain the five competing business orientations that impact on marketing strategy 4 Describe the marketing process 5 Give several reasons for studying marketing

Learning objective

Define the term marketing

1 What is marketing?
Personal selling Advertising Making products available in stores Maintaining inventories

All of the above, plus much more

1 What is marketing? (cont.)

A philosophy plus A set of activities, including: An attitude products A perspective pricing A management promotion orientation
distribution.

1 What is marketing? (cont.)

Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational goals.
American Marketing Association definition

Learning objective

Explain the marketing exchange conditions

and their influence on marketing

2 Five conditions of a marketing exchange

At least two parties Something of value Desire to deal with other party Ability to communicate offer Freedom to accept or reject

Learning objective

3
Explain the five competing business orientations that impact on marketing strategy

3 Marketing orientations
Competing marketing management philosophies
production sales marketing relationship societal.

3 Marketing orientation(cont.)

3 Production orientation
Focus on the efficiency of internal operations better and cheaper products a philosophy that focuses on the internal capabilities of the organisation, rather than on the desires and needs of the marketplace.

3 Sales orientation
Focuses on aggressive techniques for overcoming customer resistance The idea that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits.

3 Market orientation requirements

Top management leadership Customer focus Competitor intelligence Inter-functional coordination Customer relationships

3 The marketing concept

The idea that the social and economic justification for an organisations existence is the satisfaction of customer wants and needs, while meeting organisational objectives.

3 The marketing concept

Focusing on customer wants and needs can be a source of competitive advantage through:
creating customer value maintaining customer satisfaction building long-term relationships.

3 Relationship marketing orientation

The name of a strategy that entails forging long-term partnerships with customers, which is based on the marketing orientation.

3 Relationship marketings importance

Attracting a new customer may be ten times the cost of keeping an old customer.

3 Societal marketing orientation

Marketing that preserves or enhances the long-term best interests of society or an individual. an less toxic products
more durable products products with reusable or recyclable material.

3 Competitive advantage
The idea that a product can solve a set of customer problems better than any competitors product.

3 Customer value
The ratio of benefits to the sacrifice necessary to obtain those benefits.

3 Customer value requirements

Offer products that perform. Give consumers more than they expect. Avoid unrealistic pricing. Give the buyer facts. Offer organisation-wide commitment in service and after-sales support.

3 Customer satisfaction
The feeling that a product has met or exceeded the customers expectations.

3 Maintaining customer satisfaction

Meet or exceed customer expectations

Focus on delighting customers

Provide solutions to customer problems.

3 Building long-term relationships

Customer-oriented personnel Effective training programs Empowered employees Teamwork

3 From marketing to relationship

Marketing
(Simple exchanges)

Relationship marketing
Holiday Inn building a relationship beyond selling a place to sleep

Learning objective

Describe the marketing process

4 The marketing process

Organisation mission Market opportunity analysis Marketing strategy Target market selection Marketing objectives Marketing mix product distribution promotion price Implementation Evaluation

Environmental scan

4 Marketing process activities

Understand the organisations mission Set marketing objectives Gather, analyse and interpret information Develop a marketing strategies for markets Implement the marketing strategy Design performance measures Evaluate marketing efforts change if needed.

4 Environmental scanning
Collection and interpretation of information about forces, events and relationships in the external environment that may affect the future of the organisation or the marketing plan implementation.

4 The marketing mix

A unique blend of
product distribution promotion pricing strategies.

designed to produce mutually satisfying exchanges with a target market.

4 Product strategies
The starting point of the four Ps Includes physical unit, package, warranty, service, brand, image and value

4 Distribution (place) strategies

Product availability where and when customers want them Involves all activities from raw materials to finished products Impact of the Internet

4 Promotion strategies
Role is to bring about exchanges with target markets Includes integration of personal selling, advertising, sales promotion, and public relations, direct marketing and Internet marketing

4 Pricing strategies
What is given up in an exchange to acquire a good or service.

Learning objective

Describe several reasons for studying marketing

5 Why study marketing?

Plays an important role in society
Vital to business survival, profits and growth Offers career opportunities Affects your life every day

5 Why study marketing? (cont.)

Marketing is too important to be left to
the marketing department.
David Packard, Hewlett-Packard

5 Why study marketing? (cont.)

Global opportunities Fastest route up the corporate ladder Important in all business sectors Understanding everyday life Professional selling Marketing research Advertising Retail buying Distribution management Product management Product development Wholesaling

5 Why study marketing? (cont.)

Half of every dollar spent by consumers pays for marketing costs. Become a better-informed consumer.

Class discussion
Is the term marketing ethics an oxymoron?

 Ethical problems in marketing research

Alleged invasions of personal privacy Gathering marketing information in exchange for money or free offers

Ethical problems in product strategy

Product quality Planned obsolescence Brand similarity Packaging

 Ethical problems in distribution strategy

Determining the appropriate degree of control over a channel Determining whether a company should distribute its products in marginally profitable outlets that have no alternative source of supply

Ethical problems in pricing

Probably the most regulated aspect Most unethical pricing behaviour is also illegal

 Ethical problems in promotional strategy

The source of the majority of ethical questions Ethically questionable personal selling
Gifts and bribes

Questionable advertising Promotion of questionable features (air bags) Questionable WWW related promotional practices