Tonights Schedule

1
Tonights Schedule

• Introductions
• Unit Outline
• Sing-MBA
• Unit website
• Group Project
• Opening Test

• Writing and Referencing
• Chapter 1
• Class Representative
• Group Assignments
• Closing / Valswww.sric-bi.com/VALS/

2
Welcome to Marketing Principles

• Unit Outline
• Unit objectives
• Expectations / Plagiarism
• Assessments
• Group Work

3
Researching and Referencing

• Plagiarism
• Why reference
• Research resources
• Reference Styles
• Elements of Style
• Common Mistakes
• Parts of the Essay

4
A FRAMEWORK for MARKETING MANAGEMENT
Chapter 1 Defining Marketing for the 21st
Century
Kotler Keller
5
Chapter Questions

• Why is marketing important?
• What is the scope of marketing?
• What are some fundamental marketing concepts?
• What are the tasks necessary for successful
  marketing management?

6
Signs you work in Marketing

• You refer to the tomatoes grown in your garden as
  "deliverables."
• You find you really need PowerPoint to explain
  what you do for a living.
• You normally eat out of vending machines and at
  the most expensive restaurant in town within the
  same week.
• You know the people at the airport and hotel
  better than your next door neighbours.
• You ask your friends to "think out of the box"
  when making Friday night plans.

7
Marketing is a profit centre
Corporate Resource Allocation
Finance
Production
RD
Inventory Holding Costs
Cost of Goods Sold
RD Expenditure
Marketing Budget
Net Contribution
Marketing Profit Centre
Advertising Expenditures
Market Research Expenditures
Revenue From Sales
Advertising Agency
Service Firm
Distribution
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What Is Marketing?
Marketing is an organizational function and a
set of processes for creating, communicating,
and delivering value to customers and for
managing customer relationships in ways that
benefit the organization and its stakeholders
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What is Marketing?

• Theodore Levitt (1960)
• Customer-creating value satisfactions rather than
  products
• Survival dependent on focusing on the customer

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What Is Marketing Management?
Marketing management is the art and science of
choosing target markets and getting, keeping,
and growing customers through creating,
delivering, and communicating superior customer
value
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For an Exchange to Occur

• There must be at least two parties
• Each party has something that might be of value
  to the other party
• Each party is capable of communication and
  delivery
• Each party is free to accept or reject the
  exchange offer
• Each party believes it is appropriate or
  desirable to deal with the other party

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What Is Marketed?

• Goods
• Services
• Events and Experiences
• Persons

• Places and Properties
• Organizations
• Information
• Ideas

13
21st-century marketplace
Marketplace transition from the 1950s
Transition of information technology
Logistics/ digitalization
Market orientation
Cost-cutting re-engineering
Price competition
Growing emphasis towards competitiveness
emergence of strategic marketing concept
Rise of quality
Globalization
Re-emergence of competition
Rediscovery of the marketing concept
1980
1970
1950s1960s
1990
2000
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Approaches to Marketing (examples?)

• Product orientation
• Production orientation
• Sales orientation
• Marketing orientation
• All staff focus on consumer needs
• Competitor awareness
• All departments aim for timely solutions
• Market-based management
• Segmentation and target marketing
• Societal/holistic marketing orientation

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Holistic Marketing Dimensions

• Holistic marketing includes these dimensions
• Internal marketing
• Socially responsible marketing
• Relationship marketing
• Integrated marketing

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The Marketing Mix

• Product
• Price
• Place (distribution)
• Promotion
• Services
• People
• Physical evidence
• Processes

17
Key Themes of Integrated Marketing

• Many different marketing activities are used to
  communicate and deliver value
• All marketing activities are coordinated to
  maximize their joint effects

18
Marketing Mix and the 4 Cs

• Customer solution
• Customer cost
• Convenience
• Communication

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Marketing-Mix Strategy

• Offer mix
• Communications mix
• Distribution channels
• Target customers

20
Internal Marketing

• Employees contribute to building long-term
  relationships with customers
• Step 1 Select employees with positive attitudes
• Step 2 Train, motivate, and empower employees
• Step 3 Establish standards for employee
  performance
• Step 4 Monitor actions and reward good
  performance

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Societal Marketing Concept
An organizations task is to determine the
needs, wants, and interests of target markets and
to deliver the desired satisfaction more
effectively and efficiently than competitors in
a way that preserves or enhances the well-being
of both consumer and society
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Fundamental Marketing Concepts

• Needs, wants, and demands
• Target markets, positioning, and segmentation
• Offerings and brands
• Value and satisfaction

• Marketing channels
• Supply chain
• Competition
• Marketing environment
• Marketing planning

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Five Types of Needs

• Stated needs
• Real needs
• Unstated needs
• Delight needs
• Secret needs

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Factors Influencing Marketing Strategy

• Demographic/economic environment
• Technological/physical environment
• Political/legal environment
• Social/cultural environment

25
Marketing Management Tasks

• Developing marketing strategies
• Capturing marketing insights
• Connecting with customers
• Building strong brands

• Shaping market offerings
• Delivering value
• Communicating value
• Creating long-term growth

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Marketing Myopia

• Levitt (1960 )
• Industry definition critical
• Pitfalls of a product orientation
• Planning your own obsolescence
• Danger of the production imperative
• Keep your eye on the consumer
• Organisation customer-creating and
  customer-satisfying organism

27
Marketing Myopia

• Break into groups
• Two minutes each, on your own paper
• What business is your organization in?
• Presently, scale of 0 10?
• (0 totally myopic, 10 20/20 vision)
• What changes would you make to improve
  marketing sight?

28
Market Orientation

• Jaworski Kohli (1993)
• Track customer needs over time
• Market orientation (MO)
• organisation-wide generation of market
  intelligence
• dissemination of the intelligence across
  departments
• organisation-wide responsiveness to intelligence
• MO linked to
• senior management focus
• interdepartmental relationships
• decentralised decision-making and employee
  empowerment
• appropriate reward systems
• cause or effect?

29
Adapting McCarthys Four Ps

• Yudelson (1999)
• Trends
• marketing concept - focus on customers
• inclusion of non-profit and service organisations
• focus on exchange
• TQM
• transaction ? relationship marketing
• value chains
• Performance, Penalty, Perception, Process, and
  Partners

30
Current Issues in Marketing

• Market maturity
• Computers and other technologies
• Societal change
• Economic/political uncertainty
• Demographic changes
• Changing gender roles
• Work/leisure patterns
• Increasing anxiety