Presentation on theme: "CONTEMPORARY ISSUES IN MARKETING: WHAT IS MARKETING COMING TO? Marketing Practice."— Presentation transcript:
CONTEMPORARY ISSUES IN MARKETING: WHAT IS MARKETING COMING TO? Marketing Practice
Session Objectives Examine the proposed new CIM definition of marketing Discuss what this new definition says about how marketing has evolved Explore perceptions of marketing
Introduction Chartered Institute of Marketing is proposing a debate on the future of marketing In order to start the debate they have suggested a new definition of marketing
Current Definition The current CIM definition of marketing is: 'The management process responsible for identifying, anticipating and satisfying customer requirements profitably ’. Chartered Institute of Marketing (2001), Baines, Fill & Page (2008)
5 Definition 2 Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders (AMA,2005) http://www.marketingpower.com/mg-dictionary-view1862.php
6 Definition 3 Marketing is the process by which the companies create value for customers and build strong customer relationships in order to capture value from customers in return Kotler and Armstrong (2010, p.28), Armstrong and Kotler (2009)
What about this definition? “ 'The strategic business function that creates value by stimulating, facilitating and fulfilling customer demand. It does this by building brands, nurturing innovation, developing relationships, creating good customer service and communicating benefits. By operating customer- centrically, marketing brings positive return on investment, satisfies shareholders and stakeholders from business and the community, and contributes to positive behavioural change and a sustainable business future.’ ” Charles (2007)
So What Has Changed? Definition concentrates on functions/activities of marketing. Definition is driven by what marketers do Therefore, because what marketers do has changed, the definition has to change Remember process centric definition?
This Means? New elements of “definition” Creating value Building brands Nurturing innovation Developing relationships Good customer service Communicating benefits ROI and shareholder value Stakeholders Sustainability
What Else is New in Marketing? Some things that have changed are not in the “definition”… Services Technology Globalisation General opinion of marketing
Broad Areas of Change A number of areas have affected the thinking behind this new definition, including Marketing now not a management function? Expansion of marketing into new areas Increasing complexity of marketing roles Attitudes towards marketing Ethics, sustainability and social aspects Now we will look at some of these
Reasons for Changes Short definition is 30 plus years old Marketing has changed, evolved and grown In the past 10 years the number of people working in marketing has increased by 80% (Thorp, 2007) Now more that half a million people working in broad area of marketing (Thorp, 2007) Long definition is suggested as a beginning point for a debate on what marketing is
Marketing as a “ Business Function ” Previously marketing was seen as a “management function” i.e. something done by managers Now “everyone in a company acts as a marketer to a lesser or greater degree” ( Thorp, 2007, p. 9)
Marketing as a “Business Function” Originally a service marketing concept, Coined by Evert Gummesson (e.g., see Gummesson, 1997) “ part-time marketers typically outnumber several times the full-time marketers,” Gronroos (1997) Now has moved to general marketing There is a recognition that “ quality is marketing ” All employees, customer facing or not, service or not, have a role to play in improving the quality of the organisation’s offering
Expansion of Marketing Not just growing in terms of numbers of participants Also expanding into new areas and opening new job roles Some reasons for this Increasing specialisation (Thorp, 2007) Improvements in technology (Reynolds 2007) Marketing being used in new contexts, e.g., services, not for profit (Thorp,2007)
Marketing’s Growing Pains This growth and self examination of marketing is not new Has been a continual process, maybe always will be “symptomatic of an inherent insecurity and concern for intellectual vindication” (Woodall, 2007, P. 1284) In the early 1990’s marketing experienced a “mid-life crisis” (Brady and Davis, 1993 cited by Denison and McDonald, 1995). Holbrook and Hulbert (2002) even suggested that “specifically the marketing function is dead” (citing Fitzroy, 1998; Lehmann and Jocz, 1997)
Expansion of Marketing Now marketing “…creates value by stimulating, facilitating and fulfilling customer demand. It does this by building brands, nurturing innovation, developing relationships, creating good customer service and communicating benefits.” These, and other (?), areas are becoming increasingly important and separate in marketing. In fact these areas can often be sub-divided even more
Is There Such a Thing as Marketing? Does marketing exist as a single definable element within an organisation? Thorp (2007, P.6) argues that “increasingly it’s difficult for a marketer to attempt to be expert in all the areas we currently define as ‘marketing’.” In past marketing was more straightforward, easier to be expert in many areas
“Renaissance Men”/Polymaths Leonardo da Vinci Artist, engineer, anatomist, scientist Lower levels of knowledge etc, made this easier
Jack of All Trades? Definition highlights Brand building Innovation Relationship marketing Customer service Communications Each can be seen as a very specialist role – requiring specialist skills and training
Expansion of Marketing The CIM suggest that “in the future, marketers could follow one of three broad paths: Science…Arts…Humanities” (Thorp 2007, P. 6) No one would be expected to be an expert in all three Specialising in one of these areas allows more time to study how the rest of the business works
Attitudes Towards Marketing Second half of definition almost a defence of marketing “By operating customer-centrically, marketing brings positive return on investment, satisfies shareholders and stakeholders from business and the community, and contributes to positive behavioural change and a sustainable business future.” Remember “inherent insecurity” (Woodall, 2007, P.1284)
Whose Attitude is it Anyway? Definition refers to several groups Customers Shareholders “Stakeholders from business and the community” And highlights value to each Customer centric operations “Positive return on investment” “Positive behavioural change and a sustainable business future” We will explore how the attitudes of stakeholders inside and outside the organisation might be formed
Within Organisations The value of marketing to organisations is debated (Simms, 2008; Thorp, 2007) Marketers seen as more loyal to marketing than to organisations (Simms, 2008; Thorp, 2007) Marketers seen as having too little knowledge about the organisation as a whole (Simms, 2008; Thorp, 2007)
General Attitude to Marketing “ The cumulative impact of billions of corporate dollars spent marketing their products, year after year after year, stimulating, reinforcing and exacerbating people’s consumerist fantasies, is almost wholly pernicious ” (Jonathon Porritt cited by Thorp, 2007, P. 4) Marketing stimulates greed and excess consumption Marketing is purely about communications, all flash and no substance
General Attitude to Marketing If your product is not good enough, lie about it to convince people it is
General Attitude to Marketing Also “consumers believe that, rather than ‘active, rational decision-making people’ they are perceived as ‘Passive sentimental lightweights’” (Kanter, 1988/89, P.33 cited by Woodall, P. 1290) Instead consumers now actively seek relevant marketing (Holbrook and Hulbert, 2002) and will reject and actively avoid irrelevant marketing (Fry, 2008) Also consumers actively communicate with each other concerning their experiences with marketing communications, products, etc… “Trialogue” (Walmsley, 2007)
Six learned blind men go to ‘see’ an elephant Each experiences only a small part of the whole, a leg or a tusk or the trunk or tail Each believes and argues that the whole of the elephant is what they have experienced
So? The beliefs of people outside of marketing are influenced by what they experience of marketing Adverts for loans and HFSS (high fat, sugar and salt) food Junk mail Silent calls Pushy salespeople As population becomes more educated and sophisticated, they see through bad/badly targeted marketing more easily
Social Aspects of Marketing Another aspect of marketing that people are increasingly aware of is the impact on society Negative impact receiving more attention Binge drinking (McAlinden, 2007) Childhood obesity ( Online junk food…,2008) http://www.youtube.com/watch?v=-vSoax7OX6U http://www.youtube.com/watch?v=-vSoax7OX6U Increasing personal debt (Marshall, 2007) Ironically, first two are a result of PR from pressure groups trying to get their point across!
Ethics and Sustainability Marketing industry reactions to issues include Fair trade Organic Green Save today, Save tomorrow, EDF Energy Save today, Save tomorrow, EDF Energy Ethically sourced Could be driven by: Consumers (Darmon, 2005) Industry Expansion of marketing into new areas
Things to Think About Marketing is an evolving changing definition It is growing in terms of numbers of marketers and areas in which marketing appears Attitudes to marketing are worsening Mainly driven by “bad” uses of marketing
References Charles, G. (2007) News Analysis: Fit for purpose?”, downloaded from http://www.brandrepublic.com/login/Research/740535/ on January 22 nd 2008. http://www.brandrepublic.com/login/Research/740535/ Darmon, R.Y., (2005), Is Ethical Marketing a Myth? In D. Daianu and R. Vranceanu (Ed) Ethical Boundaries of Capitalism [Electronic version], 175-197, Aldershot; Ashgate. Denison, T. & McDonald, M., (1995), The role of marketing past, present and future [Electronic version], Journal of Marketing Practice: Applied Marketing Science, 1 (1), 54-76. Fry, A., (2008, January, 16 th ), Avoidance tactics gather pace, Marketing, 19 Gronroos, C., (1997) From marketing mix to relationship marketing – towards a paradigm shift in marketing [Electronic version], Management Decision, 35 (4), 322-339.
References Gummesson, E. (1997) Relationship marketing as a paradigm shift: some conclusions from the 30R approach [Electronic version}, Management Decision, 35 (4), 267-272. Holbrook, M.B. & Hulbert, J.M., (2002) Elegy on the death of marketing: Never send to know why we have come to bury marketing, but ask what you can do for your country churchyard [Electronic version], European Journal of Marketing, 36 (5/6), 706-732. Kotler, P. and Armstrong, G. (2010). Principles of Marketing. 13 ed. Pearson Kotler, P. & Keller, K. (2009) Marketing Management. 13th ed. Pearson McAlinden, M., (2007) Shop alcohol offers 'unethical' downloaded from http://news.bbc.co.uk/1/hi/scotland/7155825.stm on January 24 th, 2008 http://news.bbc.co.uk/1/hi/scotland/7155825.stm Marshal, B., (2007), The Hard Sell, downloaded from http://www.guardian.co.uk/media/2007/aug/18/advertising.comment on February 11 th, 2008 http://www.guardian.co.uk/media/2007/aug/18/advertising.comment Online junk food adverts ban call, (2008), downloaded from http://news.bbc.co.uk/1/hi/health/7199236.stm on January 24 th, 2008 http://news.bbc.co.uk/1/hi/health/7199236.stm
References Reynolds, J., (2007), Editorial [Electronic version], Journal of Targeting, Measurement and Analysis for Marketing, 15, 199-200. Simms, J., (2008, January 16 th ),Marketing 2008 – a discipline in crisis, Marketing, 26-28. Thorpe, D. (2007), Tomorrow’s Word [Electronic version], Shape the agenda, Chartered Institute of Marketing. Walmsley, A., (2007, June 13 th ), Democracy overpowers deific brands, Marketing, 17. Woodall, T., (2007) New marketing, improved marketing, apocryphal marketing: Is one marketing concept enough [Electronic version], European Journal of Marketing, 41 (11/12), 1284-1296.
Your consent to our cookies if you continue to use this website.