1-Introduction-understunding_Mktg__Mktg_Mngnt.ppt
- 1. Marketing Management MKT 600 M M B B A A Understanding Mktg & Mktg Mngnt
- 3. The today's business environment Worldwide competitive environment Technological development Mergers & acquisitions between companies Product life cycle shortening Employees new profiles New Legal environment Demanding customers
- 4. .......we all believe that by globalization and in an environment with no trade barriers, the world will became a single united market. Whoever reaches it first will become the best. Donald Shinkel, Vice President Wall-Mart Stores
- 5. Few successful examples from the Geek market
- 6. Marketing Management Lecture Overview What is Marketing? Marketing as an organisation and management function Marketing as a concept and philosophy Evolution of Marketing concept Core concept of marketing Marketing orientations The competitive environment Marketing mix i i i i i
- 7. WHAT IS MARKETING? Marketing is everyone’s business. Every person working for an organisation should understand the importance of marketing. Definitions: “ Marketing is the management process responsible for identifying, anticipating and satisfying consumer requirements profitably” – CIM “Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange and satisfy individual and organisational needs.” AMA
- 8. Why It’s Important Effective marketing puts the products in the hands of its targeted customers.
- 9. Basics of Marketing A market is a group of customers who share common wants and needs, and who have the ability to purchase a particular product.
- 10. Basics of Marketing Marketing is the process of creating, promoting, and presenting a product to meet the wants and needs of consumers.
- 11. One fundamental question: Is Marketing creating or satisfying needs?
- 12. Key Words market marketing marketing concept target marketing relationship marketing marketing mix break-even point
- 13. Key Words market research demographics channel of distribution direct distribution indirect distribution wholesaler retailer
- 14. MARKETING IS AN ORGANISATIONAL FUNCTION The diagram below shows the many functions that can be carried out in organisations which, dependant on the organisation, can be classified as operational functions of marketing. The operational functions of marketing Advertising P.R. Selling Financing Buying Forecasting Pricing Publicity Merchandising Market Research Transporting Risk Taking Servicing Stockholding Display CRM Sales Promotion
- 15. MARKETING AS A MANAGEMENT FUNCTION Here the role of marketing is ensuring that the operational activities of the organisation (not just marketing) are clearly directed towards the principal objective of meeting the needs of the customers effectively. It involves analysing customers and anticipating their needs, planning, resource allocations, control and investment in terms of money, appropriate skilled people and physical resources to ensure both customer and organisational needs are met to each’s satisfaction. Marketing as a Business Concept – in this regard marketing is the study of exchange processes especially those associated with the provision of goods and services. It takes its lead from the social sciences in that, the basic tenant of society is that we all need each other. The idea here is, if I’ve got something you want and you’ve got something I want, then we do a deal (which is the exchange process)
- 16. MARKETING AS A BUSINESS CONCEPT Customer Supplier Something of value Goods, services, benefits Something of value Money, exchange of goods The Exchange Process
- 17. EXCHANGE TRANSACTIONS ConsumersCosts & Benefits Organisations Customer Cash Quench thirst Pepsi Patient Insurance premiums Medical treatment Private Hospital Student Fees Education University
- 18. EXCHANGE TRANSACTIONS ConsumersCosts & Benefits Organisations Volunteer Time Sense of community service Non-profit youth group Voter Vote Sense of economic/social progress continued employment etc Politic Party Reader Lone parent Taxes Public Library, Benefit agency
- 19. MARKETING AS A BUSINESS PHILOSOPHY Simply a way (i.e. orientation) towards how the business will behave. As a philosophy it recognises the importance of the customer and that all business exists to serve customers rather than manufacturing products. To quote Adam Smith C A in his famous text ‘ The wealth of “Consumption is the sole purpose of production and the interests of the product ought to be attended o only so far as it may be necessary for promoting those of the customer”
- 20. CORE CONCEPTS OF MARKETING Needs Wants Demand Products/ Services Value & Satisfaction Exchange Process Exchange Transactions Relationships Markets Marketing
- 21. EVOLUTION OF MARKETING CONCEPT AND MARKETING ORIENTATION Self-sufficiency – No exchange process Simple – Start of exchange process Local markets – Economic specialisations Money economy – Medium of exchange Industrial revolution – Rapid growth in world population leading to increased demand. Problem – How to supply? Production orientation – More efficient production eventually led to oversupply. Problem changed to – How to dispose? Soles orientation – Economic theory states: when supply exceeds demand, reduce price and use other techniques to stimulate demand. Product orientation – Demand. Problem – how to keep customers? Companies sought to keep customers by increasing emphasis on product design, Problem – competition quickly copied and the design didn’t suit everyone. Too many products than they demand for them. Marketing orientation – Production based on customer needs and wants. Specific markets identified and matched their requirements to the capabilities of the company to ensure both parties needs were satisfied.
- 22. BUSINESS ORIENTATION Orientation Profit Driver Approximate Time Frame Characteristics Production Production Methods Up to 1940’s Improvement of production and in order to achieve a reduction of costs and improved efficiency. Product Quality of Product Until 1960’s The quality of the product is paramount. Focus on product not customer needs. Selling Selling Methods 1950-1970’s Effective selling and promotion are the new drivers to success. Marketing Needs and wants of customers 1970 to date Focus on providing the goods and services that satisfy the needs and wants of consumers. Further approaches to marketing Relationship Marketing Building and keeping good customer relations 1990’s to date Emphasis placed on keeping as well as winning customer strategies. Societal Marketing Benefit the society 1990’s to date Similar to marking orientation but also concerned with the long term impact of organisational activities on the environment (society)
- 23. Marketing Mix: The 4 Ps Place Promotion Product Price The Marketing Mix
- 24. Importance of 4Ps by Industry – examples of promotions Advertising Sales Promotion Personal Selling PR Advertising Sales Promotion Personal Selling PR Consumer Goods Industrial Goods Importance High Low
- 25. Push versus Pull Push Strategy Manufacturer Intermediary End User e.g Lever Brothers Pull Strategy Manufacturer Intermediary End User e.g. P & G Demand Demand Demand Demand