Marketing Concept , a brief introduction
Transcript of Marketing Concept , a brief introduction
Agenda Brief introduction to the background Definition of marketing concept Category of marketing concept with examples
customer-orientation coordinated marketing activities achieving organizational objectives
Is marketing concept necessary ? Recommendation Evaluation Conclusion
Background: Evolution of Marketing
Marketing conceptDefinition: How organizational goals are achieved by
identifying the needs and wants of customers and delivering products that satisfy customers more effectively than competitors could.
Reference: William O’ Bearden, Thomas N. Ingram and Raymond W. Laforge (2007) Marketing principles and perspectives, Boston: McGraw-Hill, PP 6-7
It contains 3 fundamental principle:1.Customer orientated2.Coordinated marketing activities3.Meet organizational objectives
1.Customer orientatedAims: To keep enduring relationship with the
targeted customers Be viewed as partners
Reference: Etzel, M., Walker, B., Stanton, W., Marketing 13Edition,1(14-15), McGraw Hill Company Marketing, 1(14-15)
1.Customer orientated continueMeans:CRM1.Sort and analyze datasupplied by customersgathered from third partiescollected from previous transactionsTo understand them better*The data is shared within the whole
company for coordinated marketing activities. (discuss later)
Reference:Kerin, A., Berkowitz, N., Hartley, W., Rudlius, W. Marketing 7 th Edition , 1(16-18)
1.Customer orientated continue2.Monitor the market place continuouslyTrendsCompetitors’ strategyChanging environmentTo monitor changes of
customers’expectation(value)To develop our own competitive advantages
Reference: Etzel, M., Walker, B., Stanton, W., Marketing 13Edition,1(14-15), McGraw Hill Company Marketing, 1(14-15)
1.Customer orientated continue3.Create value
What is value?
Customers perception of benefits of products
Cost of products
Value
Reference:Kerin, A., Berkowitz, N., Hartley, W., Rudlius, W. Marketing 7 th Edition , 1(17)
1.Customer orientated continueHow to create value?Offer products that performGive more Give professional factsBefore and after sales service+support
Repurchase!Satisfied
Reference: Etzel, M., Walker, B., Stanton, W., Marketing 13Edition,1(14-15), McGraw Hill Company Marketing, 1(14-15)
1.Customer orientated continueTherefore 1.Customers’ preference and needs can be
found out. 2.Identify prospective buyers ( new
needs>>> new products) 3.Build long term relation (up ladder)
Reference: Etzel, M., Walker, B., Stanton, W., Marketing 13Edition,1(14-15), McGraw Hill Company Marketing, 1(14-15)
Up the Loyalty ladder
Suspects
Prospects
First time customers
Clients
Partners
Reference: Randall, G. Principle of marketing, 2 (29-30)
References: http://hk.acnielsen.com/news/20071002.shtml
Why relationship is that important???
Examples1.Sun Hung Kei PropertyResearch datas from customers, prospective
buyers continuously
Better understand their needs Continuously improve service
Reference: http://www.shkpclub.com/en/activities/activities.php
Example continuedThe SHKP Club (forum)
Ken: 請問那裡可以取得住宅的 Floor Plan 呀? 20:48:56 24 January 2007
請問那裡可以取得住宅的 Floor Plan 呀?
新地論壇回應 : 單位平面圖 11:42:50 25 January 2007
有關單位的平面圖已刊載於各物業的售樓書中。
Reference: http://www.shkp.com.hk/zh-hk/scripts/cs/cs_forum.php?page_no=5
Example continued
Lion Brand cooking oil:Identify new market after research: health
conscious group
Reference:http://www.hkbrand.org/5/5_2_1_1.html?id=68
Example continued
Café Pacific: Personalized service
http://www.youtube.com/watch?v=S8hJWY1U7oA
Create value is not just about cheap in price!
Coordinated marketing activities
PriceProductPromotionPlace
Coordinated !
Target Customers
Middle to high income group
Positioning A modern, elegant, Luxury and supreme
property
Prestigious Home for sophisticate
Landmark of the West Kowloon
Reference: http://www.shkp.com.hk/zh-hk/scripts/news/news_press_detail.php?press_id=3489
ProductAfter sales service team Online checking of the defect
progress report 10 days inspection of property2 years maintenance guarantee Senior management visits residents
Reference: http://www.shkp.com.hk/data/publication/quarterly/24/24/24_360.pdf http://www.shkp.com.hk/data/publication/quarterly/24/24/24_362.pdfhttp://www.shkp.com.hk/zh-hk/scripts/news/news_press_detail.php?press_id=3543http://www.shkp.com.hk/zh-hk/pdf/news/corp_brochure/co_brochure_2004.pdf
• Club House facilities
PriceAverage $6,750 to $6,927 per square feet for
typical units Avearge $10,500 to $11,500 per square feet
for special units (e.g. 4 bedrooms) Average $25,000 per square feet for duplex
penthouses
Reference: www.addidea.com/Article/file/pmshow/dcsj/20070122082400.html
http://www.shkp.com/zh-hk/scripts/news/news_press_detail.php?press_id=3493 http://www.irasia.com/listco/hk/shkp/newsflash/cn070329.htm
http://news.sina.com.hk/cgi-bin/news/show_news.cgi?ct=finance&type=headlines&date=2007-09-11&id=2454933
PlaceMidland HoldingsCentaline Property Agency Ltd.Ricacorp Property Ltd.Hong Kong Property
Sales department of the Sun Hung Kai Property Group
Promotion Manhattan Hill TV advertisementhttp://www.shkp.com.hk/zh-hk/scripts/news/video/
covideo_2007c.php
The 'jaguar' theme adopted for the property promotional campaign
Exhibition named “Majic Happens” in the International Finance Centre
Reference: http://www.shkp.com/zhhk/scripts/news/news_press_detail.php?press_id=3493http://www.shkp.com.hk/zh-hk/scripts/news/news_press_detail.php?press_id=3523
3.Achieving organizational objectives
what is a organization’s objective?
Money(profit)
All the organizations want to have a long-term and stable income as much as possible.
Reference: William O’ Bearden, Thomas N. Ingram and Raymond W. Laforge (2007) Marketing principles and perspectives, Boston: McGraw-Hill, P.6
How can firms achieve their goals?
Build a long-term cooperative trading relationships with customers by Brand building
Brand building When you want some coffee and have a leisure time …
When you want some soft drinks …
When you want to go by air…
Brand building Why we will first come up with these companies?
they have build a good brand name by the firm’s
Good quality product Good service to the consumer social responsibility
Win customers’ trust
More sales
More profits
Example1. Sun Hung Kai properties Mission: building home with heart Service provided
1. SHKP club Provide the latest information to members Held various kinds of activities for members Promoting the appreciation of home
Aim: Building long term relationship
Create loyal customers
Build up a positive brand image
Sources: main page of Sun Hung Kai properties http://www.shkp.com/en/scripts/main/main.php.
Example2. Cathay Pacific Objective : Safety FirstMission: Providing Service Straight From the
Heart
Service provided 1. Marco Polo Club 2. Partner Frequent Flyer Programme
Sources: http://www.cathaypacific.com/cpa/en_HK/homepage
Is marketing concept necessary? continue
Depend on the type of business
B to C YES
B to B NOT NECESSARY
Is marketing concept necessary? continue
Marketing concept is less important
1. If the company have natural advantage over competitors, eg patent/monopoly
The sales of the chicken wings is so good that there are news report of it. 「東西燒」 took 37 months to invent the machine.Even a Japanese company is interested to buy its patent…
為港增光東西燒
Reference: http://hk.geocities.com/amylam_star/dinner.ht
m
Is marketing concept necessary? continue
2.If there is excess demand
In the war time, during a crisis……
But this is rarely sustainable in the future.But sometimes, there are substitutes!
Also, people’s preference changes.
Reference: Meldrum, M., McDonald, M.(2007) Marketing in a nut shell, Discipline of marketing
Is marketing concept necessary ?Many successful companies in the world have
adopted the marketing concept. P&G, Wal-Mart, Toyota~~~ some company which do not implement the
marketing concept well, have lost substantial market : such as IBM, Philips, Fiat. Which have failed to adjust their strategies in marketing.
Recommendation to Sun Hung Kai properties: they can develop some new style of
department for display, then collect information from the customer.
To Cathay Pacific: as the increase of the international students,
they can provide some long-term round trip ticket for students.
EvaluationCost of marketing = >50%
Cost of production = 30%
Sometimes cost in marketing cannot be covered.
Difficult to predict outcome
Reference: E tzel, M., Walker, B., Stanton, W., Marketing 13Edition,1(14-15), McGraw Hill Company Marketing, 1(14-15)
Conclusion Marketing concept is not necessary to
all kinds of companies because the cost of it is very high.
So firms need to make choices depending on their affordability and size
Q & A section
The End