marketing principles week 1 & 2-g

7/28/2019 Marketing Principles Week 1 & 2-G

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Introductions

Who you are

What you do and where

Your expectations hereTwo things you like

Two things you dislike


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Setting classroom norms

Mobile phones

Hot drinks

Moving in and out during lectures

Time keeping

Contributing during lectures

Mutual respect

Questions

Any other.


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Learning outcomes

1) Definitions of marketing

2) The marketing concept

3) The marketing process

4) Cost & benefits of marketing orientation.

5) Macro & Micro environment6) Segmentation, Targeting & positioning

7) Consumer buying behaviour

8) The Tools of marketing(the 7 Ps)

9) Consumer markets and organizational markets10) Service marketing

11) International marketing


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Assignment

Having covered the above learning outcomes,

apply the knowledge gained onto your

assignment. If in doubt, ask your Lecturer

The sooner you start working on your

assignment the better chances you have of

passing.

Do not wait till the last few days to start your

assignment .


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Marketing at work

Samsung Galaxy 3 versus I phone


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The Samsung Galaxy SIII was unveiled last

week (04/05/2012) at Earls Court, London

http://www.vodafone.co.uk/galaxys3 (watch

video clip on you tube)
http://www.vodafone.co.uk/galaxys3http://www.vodafone.co.uk/galaxys3


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The Samsung Galaxy S III is the mostadvanced smartphone on the planet. Fromthe super smooth body that's designed to fit

naturally in your palm, to the powerful quadcore processor at its core, it's state of the art.There's next generation voice recognition,and, unbelievably, on screen multitasking

watch HD videos in a small window whilesurfing the web.

(Carphone warehouse)


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What its got:-

Eye movement recognition

On-screen multitasking

Voice recognition

Ice Cream Sandwich

MicroSD

Quad core processor

4.8" screen


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I Phone 4S


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I phone 4S features

your voice to use your iPhone

Dual-core A5 chip.The most powerful iPhone processor ever.(BeforeGalaxy s3)

Clear HD video & photo capability Very advanced operating system

FaceTime which lets you hear a voice and see the facethat goes with it iPhone to iPhone, iPad 2, iPod

touch or Mac over Wi-Fi. etc


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According to ABCnews(www.abcnews.go.com) ,rumours are

going round that Apple is already working on I

phone 5
http://www.abcnews.go.com/http://www.abcnews.go.com/


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SO;-

What role would you say marketing will beplaying in the business arena between the

two companies (Samsung and Apple) ?


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Marketing Defined

Many academics have tried to define

the concept of marketing for a longtime:-


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Felton, (1959), proposed that

marketing is:-

a corporate state of mind that exists on the

integration and coordination of all the

marketing functions which in turn are

melded with all other corporate functions,for the basic objective of producing long-

range profits


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Kotler et al (1996) have suggested that

the defining characteristic is that:-

the marketing concepts holds that achieving

organizational goals depends on determining

the needs and wants of target markets and

delivering the desired satisfaction more

effectively and efficiently than competitors

do


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A.M.A reviewed more than 25

definitions in 1985 to arrive at:-

Marketing is the process of planning and

executing the conception, pricing, promotion

and distribution of ideas, goods and services

to create exchanges that satisfy individualand organisational objectives


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Webster (1997), points out that;-

Of all the management functions, marketing

has the most difficulty in defining its position

in the organization, because it is

simultaneously culture, strategy and tactics.

Websters argument is that marketing

involves the following:-


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1) Organisational culture:-

Marketing may be expressed as the

marketing concept, i.e. a set of values and

benefits that drive the organization through

commitment to serving customers needs asthe path to sustained profitability


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2) Strategy:-

As a strategy, marketing seeks to develop

effective responses to changing marketing

environments by defining market segments,

and developing and positioning productofferings for those target markets


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3) Tactics:-

Concerned with day to day activities of

product management, pricing, distribution

and marketing communications

NB// Thus, the challenge of building a

customer orientation is culture, strategy and

tactics.


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In the 1990s, the Marketing Science Institute

attempted to identify the specific activities

that translate the philosophy of marketing

into reality i.e. market orientation.

Kohli and Jaworski (1990), defined market

orientation in the following terms:-


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1} one or more departments engaging inactivities geared toward developing anunderstanding of customers current and

future needs and factors affecting them2)Sharing of these understanding across

departments

3) The various departments engaging inactivities designed to meet selectedcustomer needs.


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In parallel studies, Narver & Slater

(1990) defined market orientation as:-

the organisational culture that most

effectively and efficiently creates the

necessary behaviours for the creation of

superior value for buyers and , thuscontinuous superior performance for the

business

From this work; a number of componentsand the context of marketing are proposed:-


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1) Customer orientation

2) Competitor orientation

3) Inter-functional co ordinnation 4) Organisational culture

5)Long-term profit focus


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Webster (1994), suggest a new way oflooking at the marketing concept which cancater for problems of market-orientation

implementation: according to Webster, thefabric of the new marketing conceptcomprise of:-

1) Create customer focus throughout thebusiness

2) Listen to the customers


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3) Define the nature of organisations core

competencies

4) Define marketing as market intelligence

5) Target customers precisely

6) Manage for profitability and not sales volume

7) Make customer value the guiding star

8) Let the customer define loyalty

9) Measure and manage customer expectations


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10) Build customer relationships and loyalty

11) Define the business as a service business

12) Commit to continuous improvement andinnovation

13) Manage culture along with strategy and

structure

14) Grow with partners and alliances

15) Destroy marketing bureaucracy


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Piercy et al (2001); Market led

strategic change;

Defines market orientation as an organisationalculture where beating competition through thecreation of superior customer value is theparamount objective throughout the business

Graham Hooley, John Saunders and Nigel Piercy(2004); Marketing strategy and CompetitivePositioning identifies the following components

of a Market-Orientation:-(1) Customers(2)competition (3)inter-functionalcollaboration(4) culture(5) long term profit focus


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Assumptions of market-led strategic

management, Piercy(2001);-

1) Organisations must follow what is happening inthe market closely in order to survive

2) By being market-led, (and not marketing-leddepartment), and having a customer focus,

organisations can become more effective3) Barriers to being market-led comes from the

way organisations are run

4) Becoming market-led may require an upheavale.g robust strategy

5) Becoming market-led requires serious andcommitted strategic change.


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Challenges of market-led

organisation, Piercy (2001):-

1) New customers with rising and ever changingexpectations, sophisticated needs, cynicism towardsmarkets

2) New competitors; e.g. Due to globalisation, ICT such

as internet and websites, direct marketingcompanies etc

3) New types of organisations, e.g. outsourcing andcollaboration arrangements, alliances, growingstakeholder influences such as pressure groups and

consumer watchdogs4) New ways of doing business e.g. Database

marketing, direct marketing etc


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Group activity:

Discuss the role of marketing in strategic

management


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Role of Marketing:

1) Identify customer requirements

2) Determine competitive positioning

3) Implement strategy to deliver satisfaction.

Internal marketing could enhance this.

NB// Ohmae, suggested the strategic triangle

to deal with marketing orientation. This

triagle has customer needs, competitors &

company.


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customer needsAim to satisfy customer needs

interfere with competitors efforts

Company competitors

have competitor focus as an organisation


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CIM Definition of Marketing:-

The management process responsible for

identifying, anticipating and satisfying

customer requirements profitably. {C.I.M}.

The process of planning and executing the

conception, pricing, promotion, and

distribution of ideas, goods and services to

create exchanges that satisfy individual andorganizational goals. {A.M.A}.


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The development of the Marketing

orientation.

1900-1930:- Production orientation.

1930-1960:- Selling orientation.

1960-Present:- Marketing orientation.


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Other business orientations:

Product orientation

Customer orientation

Societal marketing


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Can you identify key differences between a

marketing orientation and sales orientation?

Can you think of examples of eachorientation?


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Marketing orientation Vs Sales

orientation

Marketing-orientation

Products for customer needs

R & D very important to keep

ahead of rivals

Continuous customer

research inform decision

makers

Effective Marcomms pursued

Long term relationships sort

Sales -orientation

Focus on making what can

inexpensively be made

quickly Production capabilities

emphasized

Sometimes , could reduce

cash flow problems


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Limitations of marketing & sales

orientation:-

Marketing orientation

Extensive research needed

Expensive & time

consuming Threat from imitators and

me too products

Consumer behaviour could

change unexpectedly Constantly changing

business environment

Sales orientation

No product innovation- you

sell what you can produce

A lot of sales promotionsupport required to sell

Very transactional in nature

so less likely-hood of long

term relationships Limited loyalty due to lack

of customer focus.


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Relationship Marketing VS

Transactional marketing

Relationship Marketing

Customer retention focus

Focus on product benefits

Long term focus Customer service high

Customer contact high

Quality the concern of all in

the organization

Transactional Marketing

Single sale focus

Emphasis on product

features Short term focus

Not much customer focus

Not much customer contact

Product quality is theconcern of the production

department.


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The Marketing Process


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Questions to ask in marketing

process:-

1) Where are we now? (marketing audit)

2) Where do we want to go? (vision, mission,

objectives & targets)

3) How do we get there? (Strategies)

4) Getting there (Implementation, tactics)

5) How do we ensure arrival? (monitoring)6) Did we get there? (evaluation)


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Marketing Process(Source: Tutor 2 u)


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Where are we now?

1) Macro-analysis:- P.E.S.T.E.L

2) Micro-analysis:- S.P.I.C.C

3) Internal analysis:- Mckinsey 7 Ss, etc

4) S.W.O.T


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Where do we want to go?

1) Vision

2) Mission

3) S.M.A.R.T Objectives (Corporate, Functional,

operational)


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How do we get there?

1) Strategies;- corporate

2) Strategies;- functional

3) Strategies;- operational


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Getting there;- Tactics

1) Product

2) Price

3) Promotion

4) Place

5) Process

6) People7) Physical evidence


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How do we ensure arrival?

Monitoring and control


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Did we get there?

Evaluation and continuous research. The cycle

begins again.


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References

1) BPP Learning Media, Business Essentials,

Supporting HNC/HND and Foundation

degrees, Marketing and Promotion Course

Book, (July 2010)

2) Marketing Research; An Integrated Approach,

2nd edition, (2006), by Alan Wilson, Published

by Prentice Hall ISBN:9780273694748.


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3) BPP Learning media, Business Essentials, SupportingHNC/HND and Foundation degrees, MarketingPrinciples Course Book, (July 2010)

4) Consumer Behaviour; A European Perspective, 4TH

edition by Michael R. Solomon, Gary Bamossy, SorenAskegaard and Margaret K. Hogg, (Published byPrentice Hall) ISBN: 9780273717263

5) Strategic Marketing Planning, 2nd edition, (2009) by

Colin Gilligan and Richard M.S Wilson, published byButterworth-Heinemann, ISBN: 9781856176170

marketing principles week 1 & 2-g

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