Sree BegTutor in MarketingModule LeaderMarketingLecture 1: Introduction

Plan for this sessionIntroduction to the module Whos teaching youOutline SeminarsReading ListAssignment SurreyLearn

Introduction to Marketing & Understanding the Environment

Whos teaching you ...Sree Beg: Module Leader, Digital Marketing & Marketing Strategy s.beg@surrey.ac.uk, room 11MS03

Monica Hope: International Retailing, Relationship Marketing m.hope@surrey.ac.ukDr. Jing Wong (tbc)

Principles & Practice of Marketing (Jobber 6e)

Core text for Marketing MANM017

With FREE supporting Online Learning Centre

Lecturer: Sree Beg

You can then access the Student Content

Module Details

SeminarsNo seminar this weekSeminars in Alternate weeks (weeks 2, 4, 6, 10)Use extra weeks to catch up on reading and assignmentDo any prior preparation

Your seminar group is on your timetable

AssessmentAssessment for the module (30%) Assignment Group report, Mon 12 Nov 2012Group / team registration via Surreylearn.Assignment submission and feedback via Surreylearn within 3 weeks (excluding bank holidays and university closure days)Mark contribution sheet

Examination (70%) Revision2 out of 5 essay questions

SureylearnAll your module information can be found hereDownload lecture notes before the lecture/or seminar materialPost any questions using the discussion forumParticularly assignment or exam queries !!!!!!Check regularly announcementsMain method of communication to you !Submit your group assignment via SurreylearnRegister your group membersSubmit assignment online

ExpectationsIndependent LearnersReferencing (Harvard style of referencing)Critical thinkers

Knowledge & UnderstandingApplication & Analysis

What is Feedback ? Not Just assignment Feedback ..

Answering Questions in Seminars and on Surrey learn Instant feedback on progress with MCQ tests One to one discussions on progress

Assignment Feedback Group Feedback Sheet - each section has mark - general strengths/weaknesses

Generic marking criteria

Feedback Report/Lecture

What is Marketing ?

Marketing Production Concept

Marketing Concept

CUSTOMERS

Quick exerciseTurn to the person next to you and introduce yourselfDiscuss all the Positive and Negative aspects of Marketing ..

PositiveNegative

Marketing Plan

Environmental AnalysisWhere we are ?Internal, External analysisPESTLE, Porters 5 forces, market trends, forecasts, competitors, customers SWOTStrategy DevelopmentWhere do we want to be and how do we get there ?Marketing Objectives Marketing Strategy STPMarketing Mix (4ps, 7ps)Product, Price, Place, PromotionPeople, Processes & Physical EvidenceImplementationHow do we implement the strategy ?Marketing schedules/Action PlansControl & EvaluationAre we on track ?Budget and Monitoring

Everything in an organisations environment that impacts on the way it operates (direct/indirect)

Broken into key areasExternal environmentInternal environment

In response to all factors the organisation has to adapt its marketing.

What is the Marketing Environment

Why conduct an external analysis?Identify key possible opportunities and threatsRespond to dynamic external factorsLevitt, T. (1960), Marketing Myopia, Harvard Business Review, July August, 45-46

Starbucks example

External EnvironmentKotler, Armstrong, Saunders & Wong, (2008)PESTLEIf this is new Read Chp 2

SWOT AnalysisConversionConversionMatchingInternal to the organisationExternal existing independently of the organisation*

StrengthsWeaknessesOpportunitiesThreats

SWOT Analysis

StrengthsStrong Brand nameA new, innovative product or service. Location of your business. Quality processes and procedures.Loyal Customer base WeaknessesLack of Brand awarenessLocation of your business. Poor quality goods or services. Damaged reputation.

OpportunitiesA developing market such as the Internet. Mergers or joint ventures Moving into new market segments A new international market. ThreatsA new competitor in your home market. Price wars with competitors. A competitor has a new, innovative product or service. Competitors have superior access to channels of distribution.

Drivers of Consumer ChangeChanging demographicsCash rich/time poor segments24 hr societySearch for greater valueEthical consumerismHealth and healthy lifestylesCIM, The MarketingPlanning Process, 2009

Drivers of organisational changeGlobalisationDisintermediationMass CustomistionMedia FragmentationEnvironmental concerns (shortage raw materials, energy costs, pollution etc)So what ???Marketers need to develop new strategies to copewith new circumstances

Marketing Mix4 PsJerome McCarthy, 1960Product focus7 PsBooms & Bitner, 1981Service focus

Marketing Mix

Biscuits .

Marketing Mix ParadigmIn marketing, a paradigm is a framework or a foundation for a certain kind of marketing thinking

Is the Marketing Mix paradigm still relevant ?

Where is Marketing Today ?The Marketing ConceptSustainability - CSRThe BrandNew Markets BRICRelationshipsTechnology

SummaryWhat is Marketing about ?What are the positive and negative aspects of Marketing ?Discuss the Marketing Mix and criticisms.What are the recent developments in Marketing ?

To do ....Go to Surreylearn, familiarise yourself with the layoutDownload the Teaching PlanRead Chapter 1, 2 and 3.Next week: STP Chapter 8, 19 and 20

Get other books you feel are appropriateDont forget Seminars are next week ! Make sure you know your seminar group

Start thinking of getting into groups (4-5).

References Levitt, T. (1960), Marketing Myopia, Harvard Business Review, July August, 45-46

Kotler, K., Armstrong G.,Saunders, J. and Wong, V.,(1996), Principles of Marketing: the European Edition, Prentice Hall, New Jersey

Solomon, Marshall, Stuart, Barnes & Mitchell (2009), Marketing:Real People, Real Decisions, 1st European Edition, Prentice Hall

*Full reading list in Module Descriptor Found on Ulearn Copies available from the library & bookshop Use a range of sources

Many definitionsMarketing is the management process responsible for identifying anticipating and satisfying customer requirements profitably (2001) Marketing consists of individual and organisational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion and pricing of goods, services and ideas Dibb, Simkin, et.al

*Many different types of plans, Strategic, functional, operational.Strategic:A plan that describes how a firm will adapt to take advantage of opportunities in its constantly changing environment, Thereby maintaining a strategic fit between the firms goals and capabilities and its changing market opportunitiesContribute to the creation of a competitive strategyOperational: Day to Day planningFunctional: What different depts in an organisation might be responsible for.***Everything in an organisations environment that impacts on the way it operatesSome factors have a direct impactSome factors can have an indirect impactSome factors have an impact and the organisation cannot control themAnd some factors will have an impact but the organisation may have some influence over them

Marketing Myopia famous celebrated article in marketing, central thesis of article true to day as in the 1960s, is that companies must monitor change in the external environment and keep abreast of their customer needs or they risk decline.**Marketing PlanningCambridge Professional Academywww.profacademy.com33Internal Micro directly affecting organisationMacro Indirectly affecting organsiation

Political: Taxation,Foreign trade regs.,Employment law, Government stabilityEconomic: Business cycles, GNP trends, Money supply, Inflation, UnemploymentSocial-Cultural:Demographics,Income distribution, Lifestyle changes, Consumerism, Levels of educationTechnological: New discoveries, Rates of obsolescence, Speed of tech. transferEnvironmental: Social pressure, Legal influencesLegal: Legislation

**Shows where business should focus attentionCan be subjective, use with cautionConcentrate on critical success factorsKeep SWOT short and simpleA word of caution, SWOT analysis can be very subjective. Do not rely on SWOT too much. Two people rarely come-up with the same final version of SWOT. TOWS analysis is extremely similar. It simply looks at the negative factors first in order to turn them into positive factors. So use SWOT as guide and not a prescription.Simple rules for successful SWOT analysis.Be realistic about the strengths and weaknesses of your organization when conducting SWOT analysis. SWOT analysis should distinguish between where your organization is today, and where it could be in the future. SWOT should always be specific. Avoid grey areas. Always apply SWOT in relation to your competition i.e. better than or worse than your competition. Keep your SWOT short and simple. Avoid complexity and over analysis SWOT is subjective.

**General SWOT analysis types of info included.First do Strengths & weaknesses and then opp and threatsThe term marketing mix refers to a unique blend of product, price, place and promotion strategies, designed to produce mutually satisfying exchanges with a target market. The marketing manager can control each component of the marketing mix, but the strategies for all 4 components must be blended to achieve optimal results. By mainupulating elements of the marketing mix marketing managers can fine tune the customer offering and achieve competitive success.

The Marketing Mix consists of the key elements that need to be considered to bring products and services to the market that will offer value to consumers and satisfy their demands.Set of controllable tactical tools that the firm blends to produce required response in the target market

Used to implement marketing strategy. Can vary elements in the mix to implement strategyMarketing Mix one of dominant ideas in Modern Marketing. Jerome McCarthy (1960s)Criticism focuses on push marketing not pull (as online is)Consists of everything the firm can do to influence demand for its product (service).Many possibilities gather into 4 groups of variables product, price, place promotion.Once company has decided on strategy can plan details of the marketing mix for implementation4ps concentrate on sellers view, other way to look is as 4 Cs from customers point of view. Product Customer Needs & wantsPrice - Cost to CustomersPromotion CommunicationPlace ConvenienceDeveloped by Jerome in 1960s aimed at manufactured products.New wave of marketing relationship marketing

The Marketing Mix is most commonly known as the 4Ps (concept first developed by Borden in 1950s whilst the 4Ps was first used by McCarthy in 1960)

**Looking at Product & Price today.Product really large area, so only focussing on a few areas.NPD, Branding, PLC, BCG Matrix.*