Week 1 Introduction. Starter. What do you understand by the term Marketing? Create a spider diagram of all the words you associate with marketing Find some good and bad examples of marketing. Aim and purpose.
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Week 1 Introduction
Starter • What do you understand by the term Marketing? • Create a spider diagram of all the words you associate with marketing • Find some good and bad examples of marketing
Aim and purpose The aim and purpose of this unit is to give learners an understanding of how marketing, research and planning and the marketing mix are used by all organisations.
Unit Learning outcomes On completion of this unit you should: • 1 Know the role of marketing in organisations • 2 Be able to use marketing research and marketing planning • 3 Understand how and why customer groups are marketed • 4 Be able to develop a coherent marketing mix.
Reading and Resources Essentials of Marketing – eBook • Specifications • Assessment • Expectations • Reading and research for assignments • Getting to the point
Week 1 - Introduction • Know the role of marketing in organisations • Role: overall concept; marketing definitions
Management and Marketing • What is management? • What are the different areas of business • Where does marketing fit in with the rest of business?
Management – A process Planning -> Empowering -> EvaluatingPerformance Teams working towards a common goal Areas in which the business operates Logistics Production Marketing and sales Maintenance R&D HRM Company infrastructure Aim Achieve the intended market outcomes Economic and financial performance (Figure 1) Jan ChadamZbigniewPastuszak, (2005),"Marketing aspects of knowledge based management in groups of companies: case of Poland", Industrial Management & Data Systems, Vol. 105 Issue 4 pp. 459 – 475 Permanent link to this document: http://dx.doi.org/10.1108/02635570510592361
Adding Value • How does business add value? • What is a value chain? • Where does marketing fit in?
Adding Value Adding Value to Pineapples You have inherited a pineapple plantation, how can your business ADD VALUE
Value chain • These activities can be classified generally as either primary or support activities that all businesses must undertake in some form. Process view of organisations System, made up of subsystems each with; • inputs • transformation processes • outputs Inputs, transformation processes, and outputs involve the acquisition and consumption of resources; • Money, labour, materials • Equipment, buildings, land • Administration and management
Primary activities According to Porter (1985), they are: • Inbound Logistics - involve relationships with suppliers and include all the activities required to receive, store, and disseminate inputs. • Operations - are all the activities required to transform inputs into outputs (products and services). • Outbound Logistics - include all the activities required to collect, store, and distribute the output. • Marketing and Sales - activities inform buyers about products and services, induce buyers to purchase them, and facilitate their purchase. • Service - includes all the activities required to keep the product or service working effectively for the buyer after it is sold and delivered.
Secondary activities • Procurement - is the acquisition of inputs, or resources, for the firm. • Human Resource management - consists of all activities involved in recruiting, hiring, training, developing, compensating and (if necessary) dismissing or laying off personnel. • Technological Development - pertains to the equipment, hardware, software, procedures and technical knowledge brought to bear in the firm's transformation of inputs into outputs. • Infrastructure - serves the company's needs and ties its various parts together, it consists of functions or departments such as accounting, legal, finance, planning, public affairs, government relations, quality assurance and general management. • References • Porter, Michael E., "Competitive Advantage". 1985, Ch. 1, pp 11-15. The Free Press. New York. • Rowe, Mason, Dickel, Mann, Mockler; "Strategic Management: a methodological approach". 4th Edition, 1994. Addison-Wesley. Reading Mass.
Marketing Philosophies • Break into groups • Find a definition of each concept • Agree an example business who may use this concept • Discuss as a group and put the concepts into order from newest to oldest • Which is the most recent, why do you think this? • Which concepts are still valid?
Your Research • How did you go about your research? • What sources did you use? • What are valid sources of information? • Library use
Marketing Philosophies http://www.equerry.co.uk/the-marketing-concept/ http://courses.unt.edu/kt3650_1/sld004.htm
The Five Concepts Described – Hand out The Selling Concept • Consumers ordinarily not buy enough of the selling company’s products • Aggressive selling and promotion effort • Consumers typically show buying inertia or resistance and must be coaxed into buying • Effective selling and promotional tools to stimulate more buying • Most firms practice the selling concept when they have overcapacity • Their aim is to sell what they make rather than make what the market wants • http://www2.nau.edu/~rgm/ha400/class/professional/concept/Article-Mkt-Con.html • Source: Kotler, Philip. (2000) Marketing Management. Upper Saddle River, New Jersey: Prentice Hall. The Production Concept • Oldest of the concepts in business • Consumers will prefer products that are widely available and inexpensive • High production efficiency, low costs, and mass distribution • Consumers are primarily interested in product availability and low prices • Makes sense in developing countries, where consumers are more interested in obtaining the product than in its features The Product Concept • Products that offer the most quality, performance, or innovative features • Making superior products and improving them over time. • Buyers admire well-made products and can appraise quality and performance • Do not realize what the market needs • Management might commit the “better-mousetrap” fallacy, believing that a better mousetrap will lead people to beat a path to its door
The Marketing Concept Being more effective than competitors in creating, delivering, and communicating customer value to its selected target customers. The marketing concept rests on four pillars: target market, customer needs, integrated marketing and profitability. The Sales Concept focuses on the needs of the seller. The Marketing Concept focuses on the needs of the buyer. The Sales Concept is preoccupied with the seller’s need to convert his/her product into cash. The Marketing Concept is preoccupied with the idea of satisfying the needs of the customer by means of the product as a solution to the customer’s problem (needs).
The Societal Marketing Concept – hand out The Marketing Concept has evolved into a fifth and more refined company orientation: The Societal Marketing Concept. This concept is more theoretical and will undoubtedly influence future forms of marketing and selling approaches. The Societal Marketing Concept. This concept holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors (this is the original Marketing Concept). Additionally, it holds that this all must be done in a way that preserves or enhances the consumer’s and the society’s well-being. This orientation arose as some questioned whether the Marketing Concept is an appropriate philosophy in an age of environmental deterioration, resource shortages, explosive population growth, world hunger and poverty, and neglected social services. Are companies that do an excellent job of satisfying consumer wants necessarily acting in the best long-run interests of consumers and society? The marketing concept possibly sidesteps the potential conflicts among consumer wants, consumer interests, and long-run societal welfare. Just consider: The fast-food hamburger industry offers tasty but unhealthy food. The hamburgers have a high fat content, and the restaurants promote fries and pies, two products high in starch and fat. The products are wrapped in convenient packaging, which leads to much waste. In satisfying consumer wants, these restaurants may be hurting consumer health and causing environmental problems.
Figure 1: Adopted from Marketing an Introduction (Kotler et al, 1993) Illustrating the relationships between Society, Company, and Consumers to design with intention and impact. http://rohitsangwaniimtprofessionalcollege.blogspot.co.uk/2011/04/introduction-to-marketing.html
Customer Care • Why is the customer at the centre? • What does customer care mean? • What is the difference between customer care and customer service? • Who is really good at customer care? • What methods are used in customer care? • Who is bad at customer care?
Customer Centricity • Marketing is but one function within business. • It interprets customers’ needs and requirements • Translates them into products and services • Drives repeat business • Without which a business cannot continue • Modern view puts customers in the centre Marketing as the interpretive function Surrounding the customer • Other major functions of the business surrounding • Geared towards the satisfaction of customers’ The notion of customer care
Amazon Case Study http://www.amazon.com/Careers-Homepage/b?ie=UTF8&node=239364011 http://thecustomerblog.co.uk/2014/03/08/amazon-earths-most-customer-centric-company/ http://delight.us/earths-most-customer-centric-company/
What does this mean? • Why has there been a change? • Do you agree with this model?
Definitions of Marketing http://www.notesdesk.com/notes/marketing/what-is-marketing-and-basic-marketing-concepts/ Dr.Philip Kotlerdefinesmarketing as; The science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures and quantifies the size of the identified market and the profit potential. It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services.
Definitions of Marketing • In small groups research and find different definitions of marketing • How valid are the definitions? • Compare them, what is similar, what is different? • Create your own definition
Key Elements of Marketing http://www.tutor2u.net/business/marketing/what_is_marketing.asp