Marketing Dynamics Lecture 1 Jeanette MacNaught

Session objectives Definition of marketing The development of marketing as a way of doing business Marketing as a business function and an interface between the organisation and its customers Tasks undertaken in marketing and the range of different organisational situations in which marketing is applied

Marketing exposure Buy or use a product Go window shopping See an advertising board Watch TV Listen to friends/colleagues Surf the internet Are we reaping the benefits or being a victim?

Marketing function Brings you the products you want When you want them At prices you can afford With all the information you need to make an informed decision and hopefully satisfying choices

Definition ‘Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably’ (Chartered Institute of Marketing, 2001)

Management process Planning Analysis Resource allocation Control Investment Implementation Monitoring Evaluation

Giving customers what they want All marketing activities should focus on this Aim for customer satisfaction

Identifies and anticipates customer requirements The marketer develops the product or service after researching the market to pinpoint exactly what the customer wants or will want in the future

Fulfils customer requirements profitably Balancing the need to satisfy the customer with: – Resource capabilities – Working within agreed budgets – Performance targets Profitability is a major concern but marketing thinking is also associated with not-for-profit organisations

Marketing offers and exchanges ideas, goods and services Exchange process (Alderson, 1957) ‘I’ve got something you want and you’ve got something I want’ Both parties value what the other has to offer From mutual value comes satisfaction and possible repeat purchases

Activity Name a product, service or idea that gives you customer satisfaction and as a direct result of that satisfaction you repeat purchase without considering other alternatives

Volume of exchanges By designing products, setting acceptable & justifiable prices, creating awareness and preferences and ensuring availability and service, a marketer can influence the volume of exchanges that take place

Wider definition of marketing ‘Marketing is to establish, maintain and enhance relationships with customers and other partners, at a profit, so that the objectives of the parties involved are met. This is achieved by mutual exchange and fulfilment of promises’ (Gronroos, 1997)

Relationship marketing Making promises to potential buyers and keeping those promises Trust is then established Potential for a long-term relationship

Activity Think about a time when you have been dissatisfied with a product, service or idea. What impact did that have on the relationship between you and the supplier?

Development of Marketing Ancient history ‘ bartering’ Industrial revolutionProduction orientation‘any colour you want as long as it’s black’ 1950s & 60sSales orientation‘you’re not keen on the colour, I’ll throw in a free sun roof’ 1970s onwardsMarketing orientation‘let’s find out if they want black and if they would pay for it’ 1990s onwardsEthical/social responsibility marketing ‘let’s produce it as “greenly” as possible and focus on recycling

Corporate social responsibility (CSR) Handling marketing in a responsible way Businesses are under no obligation to report on their CSR activities but many do and it is likely to increase the pressure for transparency on CSR See Vodafone report 07/08

Sustainable marketing ‘The establishment, maintenance and enhancement of customer relationships so that the objectives of the parties involved are met without compromising the ability of future generations to achieve their own objectives’ (Brassington & Pettitt, 2006)

Sustainable marketing The short term gain of individual organisations has to be balanced against the consequences for society as a whole e.g. M&S ‘Green Pastures’ project The scheme is based on a careful assessment of consumer concerns in animal welfare and food production and sets standards in each area for farmers and processors to follow

Satisfying customer needs Marketing Mix ProductPricePlacePromotion

The marketing mix Used to satisfy customer needs Develop a competitive edge Differential advantage

Product New product development Product management Product features/benefits Branding Packaging After-sales service

Price Costs Profitability Value for money Competitiveness Incentives

Place Access to target market Channel structure Channel management Retailer image Logistics

Promotion Developing communications mixes Advertising management Sales promotion management Sales management Public relations management Direct marketing

Scope of marketing Consumer goods Industrial goods, B2B Service goods Non-profit marketing Small business marketing International marketing

Marketing principle ‘If marketers can deliver the right product in the right place at the right time and at the right price, then they are making a crucial contribution towards creating satisfied customers and successful, efficient and profitable organisations’ (Brassington and Pettitt, 2006)