Marketing Management MKT 600

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Marketing Management MKT 600
Understanding Mktg Mktg Mngnt
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Achieving Corporate Success
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The today's business environment
Worldwide competitive environment
Demanding customers
New Legal environment
Employees new profiles
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• .......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

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Few successful examples from the Geek market
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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

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WHAT IS MARKETING?

• Marketing is everyones 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

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Why Its Important
Effective marketing puts the products in the
hands of its targeted customers.
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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.
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Basics of Marketing
Marketing is the process of creating, promoting,
and presenting a product to meet the wants and
needs of consumers.
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One fundamental question Is Marketing creating
or satisfying needs?
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Key Words
market marketing marketing concept target
marketing relationship marketing marketing
mix break-even point
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Key Words
market research demographics channel of
distribution direct distribution indirect
distribution wholesaler retailer
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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.

Advertising
P.R.
CRM
Sales Promotion
Selling
Display
Financing
Stockholding
The operational functions of marketing
Buying
Servicing
Forecasting
Risk Taking
Pricing
Publicity
Merchandising
Market Research
Transporting
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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 eachs 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 Ive
• got something you want and youve got something I
  want, then we do a deal
• (which is the exchange process)

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MARKETING AS A BUSINESS CONCEPT
The Exchange Process
Something of value
Goods, services, benefits
Customer
Supplier
Money, exchange of goods
Something of value
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EXCHANGE TRANSACTIONS
Consumers Costs Benefits Organisations



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



Time
Sense of community service
Volunteer
Non-profit youth group
Vote
Sense of economic/social progress continued
employment etc
Voter
Politic Party
Taxes
Reader
Public Library, Benefit agency
Lone parent
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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

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CORE CONCEPTS OF MARKETING
Needs Wants Demand
Products/ Services
Value Satisfaction
Exchange Process Exchange TransactionsRelationshi
ps
Markets
Marketing
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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 didnt 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.

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BUSINESS ORIENTATION
Orientation Profit Driver Approximate Time Frame Characteristics
Production Production Methods Up to 1940s Improvement of production and in order to achieve a reduction of costs and improved efficiency.
Product Quality of Product Until 1960s The quality of the product is paramount. Focus on product not customer needs.
Selling Selling Methods 1950-1970s 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 Further approaches to marketing Further approaches to marketing Further approaches to marketing
Relationship Marketing Building and keeping good customer relations 1990s to date Emphasis placed on keeping as well as winning customer strategies.
Societal Marketing Benefit the society 1990s to date Similar to marking orientation but also concerned with the long term impact of organisational activities on the environment (society)
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Marketing Mix The 4 Ps
Place
Promotion
Product
The Marketing Mix
Price
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Importance of 4Ps by Industry examples of
promotions
Consumer Goods
Industrial Goods
High
Advertising
Personal Selling
Sales Promotion
Sales Promotion
Importance
Personal Selling
Advertising
PR
PR
Low
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Push versus Pull
Demand
Demand
Push Strategy Manufacturer Intermediary End
User e.g Lever Brothers
Demand
Demand
Pull Strategy Manufacturer Intermediary End
User e.g. P G
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? e?????? t?? f???s?f?a? t?? Marketing

• 5. F???s?f?a ?????????? Marketing
• e??t?µat??? e?? t? 4 ap?te?e?
• e???????? ? e??a? ? ???? p??sa?at???sµ??
• ??? e?e??e??? t?? Marketing

• 1. ? f???s?f?a t?? pa?a?????
• ? p??? pa?a??
• ???sp??e?a pa?a????? p????? p?????t??
• Se ?aµ???? t?µ??
• ?e?t??s? pa?a?????
• ??a??p???t??? d?a??µ?

• 4. F???s?f?a t?? Marketing
• ????? ???? ? ?a????sµ? a?a???? ep???µ???
• Targeted Marketing
• ???sa?µ??? st?? pa?a???? d?a??µ? a?t?? t??
  p?????t??

• 2. F???s?f?a ??????t??
• ?e?t??s? p???t?ta?
• Best value for money
• ? ?at/t?? ep???µe? ta p?????ta p?? t?? p??sf?????
  t?? µe?a??te?? ??a??p???s?

• 3. F???s?f?a ????se??
• ?a p?????ta p?????ta? de? a???????ta?
• ? e????e?a t?? a????? e??a? ? ap??t?s? st?
  e????sµa t?? p???se?? ??? st?? a????e? t??
  ?ata?a??t?
• Push vs pull strategy

Marketing Management Athens Metropolitan
College ??sta? Ge??????p?????
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? a??pt??? t?? sp??da??t?ta? t?? Marketing

• ?????? ??????µ?a t?? pa?a?????
• ?a???? µ??? ??a eµ??a t?? ???????e?a, ??????
  p??t??e??? t?µ?a?)
• ??µ??????a p?e???sµat?? (surplus)
• (simple trade era)
• ??a??? d?ast????t?ta? a?ta??a???
• ???? t?? ??????µ?a? t?? a????? t?? pa?a?????
• ???µ??a???? epa??stas?, 18?? a???a?)
• ??a??? t?? ??????µ?a? t?? ?p??es???

Marketing Management Athens Metropolitan
College ??sta? Ge??????p?????