Fundamentals of Marketing MKT104J1

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Fundamentals of Marketing MKT104J1

• Teaching Staff
• Geoff Simmons, Gillian Armstrong
• Lecture / Seminar times
• You must READ ATTEND!!
• We usually have a 15-20 failure rate. To avoid
  this, as an absolute minimum
• Buy read one of the Recommended texts
• Attend participate in class

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Fundamentals of Marketing MKT104J1

• WebCT
• http//odl.ulst.ac.uk
• Access via module code MKT104J1
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  access
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Topic 1 An Introduction to Marketing

• By the end of this session you will
• Be able to define marketing
• Understand the role of marketing within exchange
  processes
• Identify the function of marketing in linking
  buyers and sellers and creating customer value
  and satisfaction

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Marketing Definitions

• What are the essential elements of a marketing
  oriented company ?

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Marketing Definitions

• The management process which identifies,
  anticipates and supplies customer requirements
  profitably (CIM, cited in Dibb et al, 1997)
• A social and managerial process by which
  individuals and organisations obtain what they
  need and want through creating and exchanging
  value with others (Armstrong Kotler, 2005)

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A Simple Model of the Marketing Process
(Armstrong Kotler, 2005)
Create value for customers
Understand the marketplace, customer needs and
wants
Design a customer driven marketing strategy
Construct a marketing programme that
delivers superior value
Build profitable relationships create customer
delight
Capture value from customers to create profits
customer equity
Capture value from customers in return
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Marketing as a Management Process

• A planned activity
• To identify, anticipate and satisfy customer
  requirements (needs, wants, demands)
• To do this efficiently and profitably
• Vital across all private and public sector
  product and service industries large and small
  companies

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The Marketing Mix
The marketing mix
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Criticisms of Mix (4Ps) Approach

• Oversimplifies the reality re. people, process,
  physical evidence
• Adequate for mass marketing of consumer goods -
  but these markets are fragmenting
• A supplier to consumer model - one way
  communication
• More applicable for a society where the emphasis
  is on production rather than consumption (in most
  Western societies now)

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Functions of the Marketing Department (Morden,
1993)

• 1. Identifying Market Opportunities
• Research needs and wants of different types of
  customers in the market
• Be aware of technological and new product
  developments taking place

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Functions of the Marketing Department (ctd)

• 2. Managing Products
• Forecast and manage the rate of supply and
  distribution of the companys existing products
• Determine what new products (and services) should
  be developed

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Functions of the Marketing Department (ctd)

• 3. Choosing and Motivating the Channels of
  Distribution
• These direct the flow of products from producers
  to consumers
• Should make products available at the right time,
  in the right place, and in the right quantity
• Channel decisions determine a products presence
  and buyers accessibility to the product

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Functions of the Marketing Department (ctd)

• 4. Promoting Products and Services (advertising,
  personal selling, sales promotions, public
  relations, direct marketing, the Internet and
  online promotion)
• Communicate the existence of its products and the
  benefits to be obtained from purchasing them, to
  target market customers
• Advertise / promote to
• communicate, encourage, persuade, inform,
  reassure, repeat purchase, ...

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Functions of the Marketing Department (ctd)

• 5. Setting Prices
• Close involvement in agreeing and setting market
  prices, terms of supply and payment conditions,
  which will include
• Analyse competitors prices
• Formulate pricing policies
• Set prices (and discounts for various types of
  buyers)

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Marketing Orientation outside-in sense and
respond
Potential market opportunities
Marketing products and services
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Marketing Orientation

• Efficiency doing things right
• Produces goods economically Cost Focused
• Effectiveness doing the right things
• Focus on current and latent market needs to
  attract and retain customers Customer Focused

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The Dangers of Marketing Myopia

• The risk of paying more attention to the specific
  products a company offers than to the benefits
  experiences produced by those products (Levitt,
  1960)
• Inside out, make sell production oriented
  approach

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The Marketing Concept
Marketing Concept The achievement of corporate
goals through meeting and exceeding customer
needs better than the competition
Customer orientation Corporate activities are
focused upon providing customer satisfaction
Integrated effort All staff accept the
responsibility for creating customer satisfaction
Goal achievement The belief that corporate goals
can be achieved through customer satisfaction
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Limitations of the Marketing Concept

• 1. An ideology (or article of faith) integrate
  to balance customer satisfaction with achieving
  other company requirements (Brownlee Saren,
  1992)
• 2. Impact on society consider social impact of
  collective individual purchases (Wensley, 1990)
• 3. Marketing as a constraint on innovation
  relying on customers alone to guide the
  development of new products is dangerous. Need
  more proactive NPD (Tauber, 1974)

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Limitations of the Marketing Concept, ctd

• 4. Marketing as a source of dullness with
  me-toos, copycat promotions, etc
• Create rather than reflect demand tease,
  tantalise and torment (Brown, 2001)
• Concept of retromarketing with exclusivity,
  secrecy, amplification, entertainment,
  tricksterism, ...

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Conclusion Marketings Shift in Emphasis

• Increased emphasis on building customer
  relationships - CRM
• Companies are now focusing on delivering superior
  value and satisfaction to customers
• This may mean developing networks with other
  companies to do so
• Focus on RETAINING loyal customers building
  the right relationships with the right customers
  (Armstrong Kotler, 2005)

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Conclusion Contemporary Influences

• Market technology
• Global opportunities
• Ethical and social responsibility

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Customer Relationship Groups (Harvard Business
Review, 1992)

• Projected loyalty
• Short term customers Long term
  customers
• High
• Butterflies True Friends
• Potential
• Profitability
• Low Strangers Barnacles

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• Think of 2 examples of organisations that you
  consider to provide customer satisfaction.
• How do they do it ?

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• And finally
• What barriers might a marketing manager face when
  trying to convince other people within an
  organisation that they should adopt the marketing
  concept?