Marketing Management MKT 600 Understanding Mktg & Mktg Mngnt

Achieving Corporate Success

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

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

Few successful examples from the Geek market

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 ii ii

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

Why It’s Important Effective marketing puts the products in the hands of its targeted customers.

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.

Basics of Marketing Marketing is the process of creating, promoting, and presenting a product to meet the wants and needs of consumers.

One fundamental question: Is Marketing creating or satisfying needs?

Key Words market marketing marketing concept target marketing relationship marketing marketing mix break-even point

Key Words market research demographics channel of distribution direct distribution indirect distribution wholesaler retailer

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 AdvertisingP.R. Selling Financing Buying Forecasting Pricing PublicityMerchandisingMarket ResearchTransporting Risk Taking Servicing Stockholding Display CRMSales Promotion

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)

MARKETING AS A BUSINESS CONCEPT CustomerSupplier Something of value Goods, services, benefits Something of value Money, exchange of goods The Exchange Process

EXCHANGE TRANSACTIONS ConsumersCosts & Benefits Organisations Customer Cash Quench thirst Pepsi Patient Insurance premiums Medical treatment Private Hospital Student Fees Education University

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

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”

CORE CONCEPTS OF MARKETING Needs Wants Demand Products/ Services Value & Satisfaction Exchange Process Exchange Transactions Relationships MarketsMarketing

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.

BUSINESS ORIENTATION OrientationProfit DriverApproximate Time Frame Characteristics ProductionProduction MethodsUp to 1940’sImprovement of production and in order to achieve a reduction of costs and improved efficiency. ProductQuality of ProductUntil 1960’sThe quality of the product is paramount. Focus on product not customer needs. SellingSelling Methods ’sEffective selling and promotion are the new drivers to success. MarketingNeeds and wants of customers 1970 to dateFocus 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 dateEmphasis placed on keeping as well as winning customer strategies. Societal Marketing Benefit the society1990’s to dateSimilar to marking orientation but also concerned with the long term impact of organisational activities on the environment (society)

Marketing Mix: The 4 Ps Place PromotionProduct Price The Marketing Mix

Importance of 4Ps by Industry – examples of promotions Advertising Sales Promotion Personal Selling PR Advertising Sales Promotion Personal Selling PR Consumer GoodsIndustrial Goods Importance High Low

Push versus Pull Push StrategyManufacturerIntermediaryEnd User e.g Lever Brothers Pull StrategyManufacturerIntermediaryEnd User e.g. P & G Demand

Παραγωγή MarketingΠροϊόν Πωλήσεις 1. Η φιλοσοφία της παραγωγής n Η ποιό παλαιά n Προσπάθεια παραγωγής πολλών προϊόντων n Σε χαμηλές τιμές n Βελτίωση παραγωγής n Ικανοποιητική διανομή 2. Φιλοσοφία Προϊόντος n Βελτίωση ποιότητας n Best value for money n Ο κατ/τής επιθυμεί τα προϊόντα που του προσφέρουν την μεγαλύτερη ικανοποίηση 3. Φιλοσοφία Πωλήσεων n Τα προϊόντα πωλούνται δεν αγοράζονται n Η ενέργεια της αγοράς είναι η απάντηση στο ερέθισμα των πωλήσεων & όχι στις ανάγκες του καταναλωτή n Push vs pull strategy 4. Φιλοσοφία του Marketing n Κύριο έργο ο καθορισμό αναγκών & επιθυμιών n Targeted Marketing n Προσαρμογή στην παραγωγή & διανομή αυτών των προϊόντων Η εξέλιξη της φιλοσοφίας του Marketing 5. Φιλοσοφία Κοινωνικού Marketing ερωτηματικό εάν το 4 αποτελεί ευχολόγιο ή είναι ο νέος προσανατολισμός Των ενεργειών του Marketing Marketing Management – Athens Metropolitan College – Κώστας Γεωργικόπουλος

Η ανάπτυξη της σπουδαιότητας του Marketing Αρχική οικονομία της παραγωγής Παράγω μόνο για εμένα & την οικογένεια, κυρίως πρωτογενής τομέας) Δημιουργία πλεονάσματος (surplus) (simple trade era) Έναρξη δραστηριότητας ανταλλαγών Αρχή της οικονομίας της αγοράς & της παραγωγής Βιομηχανική επανάσταση, 18ος αιώνας) Έναρξη της οικονομίας των υπηρεσιών Marketing Management – Athens Metropolitan College – Κώστας Γεωργικόπουλος