Introduction to MarketingDr Al MarshallSchool of BusinessACU

Lecture AgendaDefining MarketingHistoryWhat Can Be Marketed?Marketing OrientationsDefining Marketing OrientationsThe Central ConceptThe Focus of Marketing Defining Marketing ManagementComponents of the Managerial Marketing ProcessThe Marketing Mix (The Basis of Strategy)Need to Understand EnvironmentsMacro and Micro Factors That Marketers Must Account ForIngredients of Successful MarketingKey Marketing Terminology

Defining MarketingIn the popular imagination it is often confused with advertising and/or personal selling (also retailing)A philosophy, an applied business system or process plus an academic disciplineThe process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organisational goals (AMA)Exchange of items of value is at the heart of marketing

http://www.youtube.com/watch?v=EnbHtOAtqRU

HistoryDates from early 20th century as an applied business system and an academic discipline. Origins in economics. Argument though that the fundamentals have a much longer history in businessOrigins with agricultural commodities in the American Midwest, later on consumer goods and servicesBusiness to business, social and non-profit applications later onElectronic marketing (principally internet) a large part of the future wave

What Can Be Marketed?GoodsServicesEventsExperiencesPeoplePlacesPropertiesOrganisationsInformationIdeas

Marketing OrientationsFour possible orientations influencing how organisations regard marketing and their customersProduction orientationSales orientationMarketing orientationRelationship marketing orientationBroadly conforms to a time line, though some organisations still locked in to a production or sales orientation

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Defining Marketing OrientationsProduction orientation focuses on internal capacities of an org to develop and produce better and cheaper productsSales orientation focuses on aggressive sales techniques to obtain high sales volume and profitsMarketing orientation focuses on satisfying customers needs and wants and org goalsRelationship marketing orientation focuses on keeping existing customers and suppliers for repeat exchange processesSales and marketing orientation the most used A lot claim to practice the relationship orientation!

The Central Concept (1) The marketing concept central to marketing and relationship marketing orientationsPremised on idea that an org aims all its efforts in a coordinated and integrated manner in order to simultaneously satisfy its customers while achieving its own organisational objectivesBased partly on idea of identifying and producing what customers needCore ingredients include ensuring customer satisfaction, total company effort/integration,, profit (not just sales) as a company objective

The Central Concept (2)Not all organisations embrace the marketing concept (or find process of adoption easy). Still stuck back with production or sales orientationsHigh level of competition in the marketplace one key reason to adopt, as is the need to build relationships with customers http://www.youtube.com/watch?v=4yefGOif2WU

The Focus of Marketing (1)Can be conceptualised as existing on two levels: micro (managerial marketing) and macro (macro marketing)Managerial focuses on activities performed by individual orgs in relation to serving potential customers in specific markets Macro marketing focuses on the contribution of marketing to the economic welfare of the whole society as part of the whole production-distribution system

Defining Managerial MarketingManagerial Marketing is the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer service (Kotler & Keller)

The Focus of Marketing (2)Managerial marketing begins with anticipating potential customer needs, and considering whether these can be met by organisational efforts while providing returns Is used by a whole range of organisations (profit and non profit)Macromarketings role in contrast is to match heterogeneous supply and demand while simultaneously meeting societys objectivesFocus of most texts is managerial marketing (the position of the firm looking out into the world)

Components of the Managerial Marketing ProcessFinding out what benefits customers want the organisation to deliver (market opportunity analysis)Developing a marketing strategy to satisfy the needs or wants of customers in the selected target market (market planning and strategy)Gathering, analyzing and interpreting information about the environment (environmental scanning)Implementing the strategy and monitoring in order to adjust if necessary as the marketing plan impacts the marketplace and customers in the marketplace

The Marketing Mix (the Basis of Strategy)The mix comprises Product, Price, Place and PromotionA couple of dimensions of each: Product good or services, brands, benefits Price costs, list price, value, terms Place distribution, channels, retailers Promotion - advertising, personal selling

Need to Understand EnvironmentsMacro Environment Political, Economic, Social, Technology, Environmental, Legal (see PESTEL)

Micro Environment

Buyers, Suppliers, Customers, Substitutes, New Entrants (see Porter)

Macro and Micro Factors Marketers Must Account For...Network information technologyGlobalisationDeregulationPrivatisationIncreased competitionIndustry convergenceRetail transformationDisintegrationConsumer powerConsumer participationConsumer resistance

Ingredients of Successful MarketingOffer products that perform well in terms of identified customer benefitsUse marketing to sustain a real competitive advantage in the marketplaceUnderstand and define value from the customers perspective, and price accordingly Meet and deliver on customer expectations (try to exceed)Develop and sustain customer relationships with the brand and the organisation

Key Marketing TerminologyExchangeNeeds and wantsCustomer benefitsDemand and supplyGoods and servicesTarget markets and positioningCustomer satisfactionSellers and buyersRelationships and brand loyaltyCompetition and market shareValue and satisfactionPlanning and strategy

http://www.youtube.com/watch?v=7hbRZ3ZCyI8