marketing

1
marketing

• what it means
• a definition of marketing
• the idea of the marketing concept
• the relationship between
• planning
• implementation and
• control
• the marketing mix what you control theoretically
• environmental factors what you dont control
• (theoretically)

2
the American Marketing Association.....

• marketing is,
• the performance of business activities that
  direct the flow of goods and services from
  producer to consumer or user
• makes marketing sound distribution
• oriented
• and,
• does not explain what products should be
• provided

3

• another definition.....
• marketing is getting the right goods and
  services to the right people at the right place,
  at the right time, at the right price, with the
  right communication and promotion
• this is getting closer to marketing realities
• but,
• it is rather business-oriented
• and
• it may leave out some social areas,
• eg,
• TAC/Workcare advertising
• Christian Television Association advertising
• AIDS advertising

4

• Peter Drucker
• the father of marketing
• marketing is so basic that it cannot be
  considered
• a separate function.....it is the whole business
  seen
• from the point of view of its final result, that
  is,
• from the customers point of view
• this is a reasonably workable definition
• it shows the two sides of marketing
• 1. the marketer and,
• 2. the customer

5

• where was selling in that definition?
• why was it not there?
• because selling is considered to be a sub-set of
  the
• marketing function
• people often think that selling is the same as
• marketing
• why?
• probably because selling is often the tip of the
• iceberg they see, as customers
• ie., as customers, often we only see the selling
  side
• of marketing cars

6

• the all-important distinction between marketing
  and selling
• selling
• is getting rid of what you have
• marketing
• is about what to produce in the first place

7

• resources
• and
• capabilities
• of the
  consumer
• organisation the wants
• product
• .....based
  ie,
• on goals that
• are realistic
  customer
• and
  demand
• achievable

this matching process may also be seen as
the marketing concept
8

• so far.....
• customer/consumer demand
• a most misunderstood area of marketing practice
• today
• advertising
• often seen as manipulative and often is
• new products
• very high failure rates perhaps 70

9

• rough rules
• people choose products that offer the greatest
• benefit at whatever price they are prepared to
  pay
• peoples ideas of benefit/price ratios vary
• eg. Bic and Waterman pens
• if you do not offer what the people want, you
  will
• not get sales

10

• customers are considered to occupy sub-sets of
• markets
• these are commonly termed target markets
• the process of locating such target markets which
• an organisation can profitably serve is the role
  of
• marketing management
• or cost-effectively

11

• look for the use and function that lies behind
  the
• buyers decision to obtain the product
• that is
• do not let your product look for a market
• rather,
• look at the market and find the product it wants
• invention/marketing

12

• looking beyond the product to
• the idea of wants and needs
• needs we need food
• 
  shelter
• 
  self-actualisation
• (growth
  area?)
• needs are basic and mostly unmarketable
• wants
• how we express our basic needs, given our
  individual traits and cultural, social and
  political backgrounds
• we want Macdonalds food
• Ikea
  furniture
• computer
  skills
• .....this is where marketing is supposed to come
  in

13

• the importance of customers
• the person who foots the bill, pays all the
  salaries
• and obtains the product

14

• what marketing should be about
• matching the organisations capabilities with
• customer demand
• in order to achieve the goals of your
  organisation
• marketing claims that it is not about
• selling alone
• exploitation

15
a working definition of marketing

• recognising opportunities and taking advantage of
• them
• usually in a competitive environment
• profitably or cost-effectively
• through planning rather than by chance
• by concentrating on the needs of customers
• by appropriate use of the elements of
• product
• price
• place
• promotion
• within the resource constraints and goals of the
• organisation

16

• the marketing concept
• more than just thinking marketing
• it also means
• thinking ahead in marketing terms too
• to manage the marketing process requires
• planning in the first place

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• sales market sales research
• information promotion
  and
• 
  development
• accounting
  personnel
• warehousing
• export purchasing production
• sales
• advertising
  marketing
• sales
• accounting
• market info
  the
• marketing sales promn
  production
  customer
• r d
• warehousing

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• marketing management
• a way of thinking that presumes no marketing
• activity is worth udertaking unless
• it has been planned in the first place
• the execution of that activity can be readily
• monitored, controlled and, if necessary,
• changed

19

• marketing management
• means an understanding of your organisations
• missions and goals
• whether new products are needed
• how much to spend on promotion
• what price or fee to set (or how to justify the
  cost of your operation)
• the parameters of these issues should be set
• through a planning process

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• the planning process
• the establishment of long-, medium- and
• short-term goals by senior management
• the goals are best
• if they are understandable
• and achievable, especially to middle management
• the goals are at their best when they constitute

21

• another way of looking at the process.....
• marketing planning
• the process of
• establishing marketing goals
• and the
• design of marketing programmes (or plans)
• that are
• to be carried out in the future

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a challenge arises.....

• planning
• desk-oriented
• cosy, fireside stuff
• a look into the future from the comfort of
• the board room
• marketing management
• working to the goals of the plan
• in an environment of
• change
• competition
• time constraints

23

• there are two fundamental types of planning
• that an organisation may undertake
• 1. the corporate or business plan
• tells us what industry or industries we
  should
• be in
• (many organisations do not know)
• 2. the marketing plan
• tells us what segments or bits of that
• industry we should be in
• there may be a third level, called product plans

24

• so.....
• carrying out marketing plans may be divided up
• into a series of product plans
• these product plans involve such activities as
• setting the price
• devising advertising campaigns
• developing distribution
• personal representation to key accounts
• obtaining marketing research

25

• if planning is presumed to be vital, then
• planning is useless unless programmes are carried
  out
• carrying out such programmes is useless without
• control
• feedback
• adjustment

26
how planning and marketing are supposed to be
integrated

• corporate goals
• process
• marketing planning
• process
• should we
• change
• plans?
• execution of plans
• control
• 1. was the execution
• carried through?
• should we
• 2. evaluation did change
• performance meet execution?
• goals?

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the marketing management process

• a means of saying
• we are going to find target markets - not fall
  into
• them
• we are going to plan our future activities with
• customer needs as a basis for a profitable
• achievement of our organisations goals
• we are going to manage our markets using people
• who know how to use the marketing mix in a way
• that achieves our goals
• we are going to build on success, admit failure
  and
• are able to modify both, because we planned in
  the
• first place and we know we can measure the
• results of our activities

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• the essence of marketing is not to have a
  planning
• hierarchy alone, but doers as well
• their tools are the four elements of
• the marketing mix
• P
• P
• P
• p

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• product goods
• services
• people
• ideas
• price
• place distribution
• promotion marketing communication

30
introducing the marketing mix into the planning
process

• write corporate plans
• that
• generate marketing plans
• that in turn
• generate
• products 1 2 3
• each with a separate
  identity
• ie,
• the result of a separate marketing mix
  for each separate target market
• execution of plans via
• product launches and
  maintenance

31
the marketers operating framework

• the marketer
• should know the consumer
• should understand the organisations
• corporate and marketing goals
• should be able to identify markets and
• so-called target markets
• should have the greatest possible control
• over the marketing mix
• should be conversant with the uncontrollable

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the two sides of marketing

• science art
• reasoning intuition
• analysis creativity
• planned common sense

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the development of marketing

• production era
• 1900s to 1930s
• production concept, demand in excess of supply
• sales era
• 1930s to 1950s, demand falls
• stronger sales effort required
• marketing era
• demand returns, but more competition
• more consumer choice
• need for responsiveness to the consumer

34
the idea of the marketing concept is at the core
of marketing philosophy

• three elements
• 1. to be oriented toward the consumer
• 2. to emphasise long-term organisational survival
  rather than short-term profit
• 3. to coordinate all organisational activities
  through the marketing function
• problems concept,function and philosophy
• give up short-term profit
• marketing as the focus