Export MarketingVeikko Laine

MARKETING THEORIESThere is no ”one-size-fits-all” theory. Different Products (= Consumables, Customization,

Durables, Investment Commodities, Services, …) need different operational emphasizing.

1) Basic Marketing Theory: P. Kotler / ”4-P” (= Product, Price, Place, Promotion)

…Marketing MIX… …Tools for Competition…

Market = Standard products, mass production & …private consumption…

Products = Goods …(does not cover well ”services”, nor industry)…

Customer = Is ”taken for granted”, - (s)he is an ”outsider”…

Main target = How to affect the Customer so that (s)he buys……psychology, ..manipulation, mental force…

”4-P” suits for: Era of Production, Industrial era

Now however :

We live in a Post Industrial, Knowledge Based, Service Society… ?

Export MarketingVeikko Laine

MARKETING THEORIES cont.

2) Additional Marketing Theory : Marketing of Services

New Market Key area : SERVICES

Main difference with ”4-P”: Customer participation, ..(s)he is an insider…

Operational features : ReliabilityResponsivenessAssurance (knowledge of the service process,

…leading the customer…)EmpathyTangibility

3) Theory : Network Marketing (…based on earlier + something new…) See Network pic.

New Market Key area : Industry & OrganizationsTarget difference : Not Private consumption, BUT Industrial Production

Marketing is more like ”Network-Network” (not only ”Company-Company”, B-2-B)

Main emphasize is to understand the Market, not so much on ”Marketing” (= the activity)…the ”place”, the market is not the same everywhere…

…networks are EVERYWHERE…

Attitude : …no force selling…

Export MarketingVeikko Laine

MARKETING THEORIES cont.

3) Theory : Network Marketing cont.

Think : What kind of networks are there…? …characteristics…

New dimension, Relations (involving) :

ProfessionalTechnicalSocial (human relations)Planning, designCommercialJuridical, formal

New components to be considered :Actors ( who are involved, …who not…, …DMU)Operations (info… material, financial, services, value added…)Resources (exchange of…)

New findings : Customer and supplier are many-headed Those relations above, are important Relations outside the buyer/suppl. are also important => There is a dependency also with other companies/allies … Knowledge… (gathering, storing, analyzing, decisionmaking…)

Export MarketingVeikko Laine

Example of a ”Network” => affecting the operations

Export MarketingVeikko Laine

4) Theory : Total Quality Management (TQM) .

MARKETING THEORIES cont.

? Quality ? …everyone talks about it… …not well understood…

NOW, the Customer is placed at the Very Center

=> All functions must be directed towards “Quality” => The Customer

…comes from industry, was adopted by marketing theorists…

5) Present Theory : Customer Relationship Marketing (CRM),

uses all previous theories, with an emphasis on :

Relationships (=> 30 Relationships) Pls. Check the “30-R” Word doc.NetworksInteraction

Relationship properties, are another new dimension :

Co-operation, collaboration (between everyone involved)

Longevity (no hit-and-run, switching costs, learning curve etc.)

Commitment, dependency, significance, importance (JOT, Price only, Price + interaction (personal involvement), - structural dimension = mutual resources)

Export MarketingVeikko Laine

MARKETING THEORIES cont.

5) Present Theory : Customer Relationship Marketing (CRM), cont.

Relationship properties, are another new dimension : cont.

Trust, risk, uncertainty (used cars dealer, doctors, banks, consultants)

Power (scarcity, need, urgency, dependency, monopoly)

Frequency, regularity and intensity (training, schooling, buying from a kiosk)

Adaptation (first learn how to use.. learn something again…)

Attraction (high image…”sexy”, Brand name)

Closeness vs. remoteness (physical, mental, emotional, culture, instrumental )

Formality, informality and transparency (legal contracts & understanding)

Routine (efficiency, economy, machine-to-machine, FOB, CIF, L/C) Content (exchange, Win-Win, value added)

Personal, social properties (age, sex, profession, charisma, chemistry etc.).

The interrelated importance of these properties can vary very much. …true Expert, Specialist…

Export MarketingVeikko Laine

The use of a proper M-theory or a mixture of them

Export MarketingVeikko Laine

(= Customer Relationship Management)

(= MARKET)

Mixture of Marketing Theories

Export MarketingVeikko Laine

Continue from here . => Marketing gen.