slides prepared by petra bouvain university of canberra
TRANSCRIPT
Slides prepared byPetra BouvainUniversity of Canberra
Chapter 1An overview of marketing
Learning objectives
1 Define the term marketing
2 Explain the marketing exchange conditions and their influence on marketing
3 Discuss the differences between the sales and marketing concept orientations
4 Give several reasons for studying marketing
5 Describe the marketing process
Learning objective 1
Define the term marketing
What is marketing?
All of the above, plus much more
• Personal selling?
• Advertising?
• Making products available in
stores?
• Maintaining inventories?
1
What is marketing? (cont.)
plus
A set of activities, including:
• products
• pricing
• promotion
• distribution.
• A philosophy
• An attitude
• A perspective
• A management orientation
1
What is marketing? (cont.)
Marketing is the process of planning
and executing the conception,
pricing, promotion and distribution
of ideas, goods and services
to create exchanges that satisfy
individual and organisational goals.
American Marketing Association definition
1
Learning objective 2
Describe four marketing management philosophies.
Explain the marketing exchange
conditions and their influence on
marketing
Five conditions of a marketing exchange
2
• At least two parties
• Something of value
• Desire to deal with other party
• Ability to communicate offer
• Freedom to accept or reject
Learning objective 3
Describe four marketing management philosophies.
Discuss the differences
between the sales and
marketing concept
orientations
Marketing management philosophies
3
• Production
• Sales
• Marketing
• Relationship.
Competing marketing management philosophies:
Marketing management philosophies (cont.)
Philosophy Key ideas
Production
Sales
Marketing
Relationship
Focus on efficiency of internal operations – better and cheaper products
Sale depends on customer’s decision topurchase product
Focus on keeping existing customers and suppliers
Focus on aggressive techniques for overcoming customer resistance
3
Competitive advantage
The idea that a product can solve a set of customer problems better than any competitors product.
3
Market orientation requirements
• Top management leadership
• A customer focus
• Competitor intelligence
• Inter-functional coordination
• Customer relationships
3
Societal marketing orientation
Marketing that preserves or enhances an individual’s and society’s long-term best interests.
• Less toxic products• More durable products• Products with reusable or
recyclable materials
3
The marketing concept
The idea that the social and economic justification for an organisation’s existence is the satisfaction of customer wants and needs while meeting organisational objectives.
3
The marketing concept (cont.)
Focusing on customer wants and needs can be a source of competitive advantage by:
• creating customer value
• maintaining customer satisfaction• building long-term relationships.
3
Customer value
The ratio of benefits to the sacrifice necessary to obtain those benefits.
3
Customer value requirements
• Offer products that perform.
• Give consumers more than they expect.
• Avoid unrealistic pricing.
• Give the buyer facts.
• Offer organisation-wide commitment in
service and after-sales support.
3
The feeling that a product has met or exceeded the customer’s expectations.
Customer satisfaction3
Maintaining customer satisfaction
• Meet or exceed customer’s expectations.
• Focus on delighting customers.
• Provide solutions to customer’s problems.
3
Relationship marketing
The name of a strategy that entails forging long-term partnerships with customers and which is based on the marketing orientation.
3
Relationship marketing’s importance
Attracting a new customermay be ten times the cost of keeping an old customer.
3
Building long-term relationships
• Customer-oriented personnel
• Effective training programs
• Empowered employees
• Teamwork
3
Learning objective 4
Describe several reasonsfor studying marketing
Why study marketing?
• Plays an important role in society
• Vital to business survival, profits and growth
• Offers career opportunities
• Affects your life every day
4
‘Marketing is too important
to be left to the marketing
department.’
David Packard, Hewlett-Packard
Why study marketing? (cont.)4
• Global
opportunities• Fastest route up
the corporate
ladder• Important in all
business sectors• Understanding
everyday life
• Professional selling
• Marketing research
• Advertising
• Retail buying
• Distribution management
• Product management
• Product development
• Wholesaling
Why study marketing? (cont.)4
• Half of every dollar spent by consumers pays for marketing costs.
• Become a better-informed consumer.
Why study marketing? (cont.)4
Learning objective 5
Describe the marketing process
The marketing processOrganisation mission
Market opportunity analysis
Marketing strategy
Target marketselection
Marketing objectives
Marketing mix•product•distribution•promotion•price
Implementation
Evaluation
Environ-mentalscan
5
Marketing process activities
• Understand the organisation’s mission.
• Set marketing objectives.
• Gather, analyse, interpret ‘SWOT’ information.
• Develop a marketing strategy.
• Implement the marketing strategy.
• Design performance measures.
• Evaluate marketing efforts – change if needed.
5
Environmental scanning
Collection and interpretation of
information about forces, events
and relationships in the external
environment that may affect the
future of the organisation or the
marketing plan implementation.
5
Environmental scanning (cont.)
• Examination of macro-environmental forces, including: social demographic economic technological political/legal competitive.
• Helps identify market opportunities.• Provides guidelines for design of
marketing strategy.
5
A unique blend of: product, distribution, promotion, and pricing strategies
designed to produce mutually satisfying exchanges with a target market.
The marketing mix5
Marketing mix: The ‘four Ps’
• Product
• Place
• Promotion
• Price
5
Product strategies
• The starting point of the ‘four Ps’
• Includes physical unit, package, warranty, service, brand, image and value
5
Distribution (place) strategies
• Product availability – where
and when customers want
them
• Involves all activities from raw
materials to finished products
• Impact of the Internet
5
Promotion strategies
• Role is to bring about exchanges with target markets
• Includes integration of personal selling, advertising, sales promotion, and public relations, direct marketing and Internet marketing
5
Pricing strategies
What is given up in an exchange to acquire a good or service.
5