marketing concept , a brief introduction

Agenda Brief introduction to the background Definition of marketing concept Category of marketing concept with examples

customer-orientation coordinated marketing activities achieving organizational objectives

Is marketing concept necessary ? Recommendation Evaluation Conclusion

Background: Evolution of Marketing

Marketing conceptDefinition: How organizational goals are achieved by

identifying the needs and wants of customers and delivering products that satisfy customers more effectively than competitors could.

Reference: William O’ Bearden, Thomas N. Ingram and Raymond W. Laforge (2007) Marketing principles and perspectives, Boston: McGraw-Hill, PP 6-7

It contains 3 fundamental principle:1.Customer orientated2.Coordinated marketing activities3.Meet organizational objectives

1.Customer orientatedAims: To keep enduring relationship with the

targeted customers Be viewed as partners

Reference: Etzel, M., Walker, B., Stanton, W., Marketing 13Edition,1(14-15), McGraw Hill Company Marketing, 1(14-15)

1.Customer orientated continueMeans:CRM1.Sort and analyze datasupplied by customersgathered from third partiescollected from previous transactionsTo understand them better*The data is shared within the whole

company for coordinated marketing activities. (discuss later)

Reference:Kerin, A., Berkowitz, N., Hartley, W., Rudlius, W. Marketing 7 th Edition , 1(16-18)

1.Customer orientated continue2.Monitor the market place continuouslyTrendsCompetitors’ strategyChanging environmentTo monitor changes of

customers’expectation(value)To develop our own competitive advantages

Reference: Etzel, M., Walker, B., Stanton, W., Marketing 13Edition,1(14-15), McGraw Hill Company Marketing, 1(14-15)

1.Customer orientated continue3.Create value

What is value?

Customers perception of benefits of products

Cost of products

Value

Reference:Kerin, A., Berkowitz, N., Hartley, W., Rudlius, W. Marketing 7 th Edition , 1(17)

1.Customer orientated continueHow to create value?Offer products that performGive more Give professional factsBefore and after sales service+support

Repurchase!Satisfied

Reference: Etzel, M., Walker, B., Stanton, W., Marketing 13Edition,1(14-15), McGraw Hill Company Marketing, 1(14-15)

1.Customer orientated continueTherefore 1.Customers’ preference and needs can be

found out. 2.Identify prospective buyers ( new

needs>>> new products) 3.Build long term relation (up ladder)

Reference: Etzel, M., Walker, B., Stanton, W., Marketing 13Edition,1(14-15), McGraw Hill Company Marketing, 1(14-15)

Up the Loyalty ladder

Suspects

Prospects

First time customers

Clients

Partners

Reference: Randall, G. Principle of marketing, 2 (29-30)

References: http://hk.acnielsen.com/news/20071002.shtml

Why relationship is that important???

Examples1.Sun Hung Kei PropertyResearch datas from customers, prospective

buyers continuously

Better understand their needs Continuously improve service

Reference: http://www.shkpclub.com/en/activities/activities.php

Example continuedThe SHKP Club (forum)

Ken: 請問那裡可以取得住宅的 Floor Plan 呀？ 20:48:56 24 January 2007

請問那裡可以取得住宅的 Floor Plan 呀？

新地論壇回應 : 單位平面圖 11:42:50 25 January 2007

有關單位的平面圖已刊載於各物業的售樓書中。

Reference: http://www.shkp.com.hk/zh-hk/scripts/cs/cs_forum.php?page_no=5

Example continued

Lion Brand cooking oil:Identify new market after research: health

conscious group

Reference:http://www.hkbrand.org/5/5_2_1_1.html?id=68

Example continued

Café Pacific: Personalized service

http://www.youtube.com/watch?v=S8hJWY1U7oA

Create value is not just about cheap in price!

Coordinated marketing activities

PriceProductPromotionPlace

Coordinated !

Target Customers

Middle to high income group

Positioning A modern, elegant, Luxury and supreme

property

Prestigious Home for sophisticate

Landmark of the West Kowloon

Reference: http://www.shkp.com.hk/zh-hk/scripts/news/news_press_detail.php?press_id=3489

ProductAfter sales service team Online checking of the defect

progress report 10 days inspection of property2 years maintenance guarantee Senior management visits residents

Reference: http://www.shkp.com.hk/data/publication/quarterly/24/24/24_360.pdf http://www.shkp.com.hk/data/publication/quarterly/24/24/24_362.pdfhttp://www.shkp.com.hk/zh-hk/scripts/news/news_press_detail.php?press_id=3543http://www.shkp.com.hk/zh-hk/pdf/news/corp_brochure/co_brochure_2004.pdf

• Club House facilities

PriceAverage $6,750 to $6,927 per square feet for

typical units Avearge $10,500 to $11,500 per square feet

for special units (e.g. 4 bedrooms) Average $25,000 per square feet for duplex

penthouses

Reference: www.addidea.com/Article/file/pmshow/dcsj/20070122082400.html

http://www.shkp.com/zh-hk/scripts/news/news_press_detail.php?press_id=3493 http://www.irasia.com/listco/hk/shkp/newsflash/cn070329.htm

http://news.sina.com.hk/cgi-bin/news/show_news.cgi?ct=finance&type=headlines&date=2007-09-11&id=2454933

PlaceMidland HoldingsCentaline Property Agency Ltd.Ricacorp Property Ltd.Hong Kong Property

Sales department of the Sun Hung Kai Property Group

Promotion Manhattan Hill TV advertisementhttp://www.shkp.com.hk/zh-hk/scripts/news/video/

covideo_2007c.php

The 'jaguar' theme adopted for the property promotional campaign

Exhibition named “Majic Happens” in the International Finance Centre

Reference: http://www.shkp.com/zhhk/scripts/news/news_press_detail.php?press_id=3493http://www.shkp.com.hk/zh-hk/scripts/news/news_press_detail.php?press_id=3523

3.Achieving organizational objectives

what is a organization’s objective?

Money(profit)

All the organizations want to have a long-term and stable income as much as possible.

Reference: William O’ Bearden, Thomas N. Ingram and Raymond W. Laforge (2007) Marketing principles and perspectives, Boston: McGraw-Hill, P.6

How can firms achieve their goals?

Build a long-term cooperative trading relationships with customers by Brand building

Brand building When you want some coffee and have a leisure time …

When you want some soft drinks …

When you want to go by air…

Brand building Why we will first come up with these companies?

they have build a good brand name by the firm’s

Good quality product Good service to the consumer social responsibility

Win customers’ trust

More sales

More profits

Example1. Sun Hung Kai properties Mission: building home with heart Service provided

1. SHKP club Provide the latest information to members Held various kinds of activities for members Promoting the appreciation of home

Aim: Building long term relationship

Create loyal customers

Build up a positive brand image

Sources: main page of Sun Hung Kai properties http://www.shkp.com/en/scripts/main/main.php.

Example2. Cathay Pacific Objective : Safety FirstMission: Providing Service Straight From the

Heart

Service provided 1. Marco Polo Club 2. Partner Frequent Flyer Programme

Sources: http://www.cathaypacific.com/cpa/en_HK/homepage

Is marketing concept necessary? continue

Depend on the type of business

B to C YES

B to B NOT NECESSARY

Is marketing concept necessary? continue

Marketing concept is less important

1. If the company have natural advantage over competitors, eg patent/monopoly

The sales of the chicken wings is so good that there are news report of it. 「東西燒」 took 37 months to invent the machine.Even a Japanese company is interested to buy its patent…

為港增光東西燒

Reference: http://hk.geocities.com/amylam_star/dinner.ht

m

Is marketing concept necessary? continue

2.If there is excess demand

In the war time, during a crisis……

But this is rarely sustainable in the future.But sometimes, there are substitutes!

Also, people’s preference changes.

Reference: Meldrum, M., McDonald, M.(2007) Marketing in a nut shell, Discipline of marketing

Is marketing concept necessary ?Many successful companies in the world have

adopted the marketing concept. P&G, Wal-Mart, Toyota~~~ some company which do not implement the

marketing concept well, have lost substantial market : such as IBM, Philips, Fiat. Which have failed to adjust their strategies in marketing.

Recommendation to Sun Hung Kai properties: they can develop some new style of

department for display, then collect information from the customer.

To Cathay Pacific: as the increase of the international students,

they can provide some long-term round trip ticket for students.

EvaluationCost of marketing = >50%

Cost of production = 30%

Sometimes cost in marketing cannot be covered.

Difficult to predict outcome

Reference: E tzel, M., Walker, B., Stanton, W., Marketing 13Edition,1(14-15), McGraw Hill Company Marketing, 1(14-15)

Conclusion Marketing concept is not necessary to

all kinds of companies because the cost of it is very high.

So firms need to make choices depending on their affordability and size

Q & A section

The End