MARKETING MANAGEMENTRevision Session

WHAT IS MARKETING?

Marketing is not only much broader than selling, it is not a specialized activity at all Itencompasses the entire business. It is the wholebusiness seen from the point of view of the finalresult, that is, from the customer's point of view.Concern and responsibility for marketing musttherefore permeate all areas of the enterprise.

(Drucker)

MARKETING… …is a management process …is about giving customers what they want …identifies and anticipates customer

requirements …fulfils customer requirements profitably

(but not always!) …offers and exchanges ideas, goods and

services

BUSINESS ORIENTATIONS

What are the different business orientations?

Explain using examples...

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Production Orientation

Product Orientation

Sales Orientation

Marketing Orientation

Societal Marketing Concept

•Consumers favour products that are available and highly affordable.•Improve production and distribution.

Consumers favour products that offer the most quality, performance, and innovative features.

•Consumers will buy products only if the company promotes/ sells these products.

Focuses on needs/ wants of target markets & delivering satisfaction better than competitors.

•Focuses on needs/ wants of target markets & delivering superior value.

MARKETING MANAGEMENT PHILOSOPHIES

PepsiCo

Public library

Political party

Private hospital

University

Non-profit youth group

Individual

Patient

Student

Reader

Voter

Volunteer

Cash

Slake thirst

Insurance premiums

Medical treatment

Fees

Education

Time

Sense of community service

Vote

Sense of economic/social progress

Taxes

A good read

IMPORTANCE OF RESEARCH

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STAGE 4: RESEARCHING CUSTOMERS METHODOLOGIES

ResearchProcess

Secondary

Internal Sources

External Sources

Primary Range of Methods

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PRIMARY RESEARCH METHODOLOGIES

Qualitative ObservationQuantitative

Info on AttitudesInfo on Attitudes

In-depth InterviewsIn-depth Interviews

Focus GroupsFocus Groups

Info on NumbersInfo on Numbers

QuestionnairesQuestionnaires

Categories:Categories:

Secretive (CCTV)Secretive (CCTV)

ParticipatoryParticipatory

Mystery ShoppersMystery Shoppers

STAGES OF BUYING DECISIONS

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THE ORGANISATION’S MARKETING ENVIRONMENT

Theorganisation

The economy

Socialfactors

Culturalforces

Technology

Political structures

Legalstructures

Demography

Suppliers

Distributors & dealersThe

public

CompetitorsCustomers

MACRO

MICRO

INTERNAL

What tools can you use to analuyse these environments?

STP

Segmentation – dividing the market into distinctive groups

Targeting – selecting a segment to target

Positioning – developing a marketing strategy which positions the product in relation to rivals in order to appeal to target segments

SEGMENTATION

The segment must be: Relatively homogeneous group Distinctive and identifiable Accessible Actionable Measureable Sufficiently large to be profitable

Behavioural

Psychographic

Profile

Consumersegmentation

Purchase behaviour

Purchase behaviour

Benefits sought

Usage

Perceptions & beliefs

Lifestyle

Personality

Demographic

Geographic

Socio-economic

Segmenting consumer markets

Variable Examples

Behavioural

Benefits sought Convenience, status/image, performance

Purchase occasion Emergency purchase, gift purchase, regular purchase

Purchase behaviour Innovators, solus buyers (usually brand loyal), brand switchers

Usage Heavy / light / or non users of a product / service

Perceptions, beliefs Views of women towards beauty market

Psychographic

Lifestyle Trendsetters, conservatives, sophisticates

Personality Extrovert consumers vs. introverts

Profile

Age Under 12s, 12-18, 65+, teenagers, 30 somethings

Gender Female, male

Life cycle Young single, young couples, young parents, empty nesters, retired

Social class Upper / professional, middle, skilled working, unskilled, unemployed

Final education age 16, 18 or 21 years

Income Income breakdown according to segmentation objectives

Geographic North vs. south, urban vs. rural, region or country

Consumer segmentation methods

EXAMPLE QUESTIONS

“Customers are at the centre of everything the company does, with marketing acting as the mediating function between customers and other functions.” Critically examine this statement and support your answer with examples from your own working environment and also more generally.

SOLUTION

Introduction Definition of marketing Role of marketing management

Demonstrate how all parts / functions of the organisation are linked to and work together within this marketing orientation to understand, create, communicate and deliver customer value and satisfaction.

Application – use examples of companies to answer the questions.

EXAMPLE QUESTION

“Branding means more than just the labelling of products to distinguish one from another. Successful branding has other aspects that make it one of the most powerful tools of modern marketing.” Critically examine this statement, using examples to support your answer.

TYPICAL ANSWER Requires you to consider the role and value of

branding in today’s competitive markets.

Start by defining what a ‘brand’ is, considering the core and augmented product, then to discuss the importance of branding for organisations.

What about the value of brand positioning and brand equity, importance of brand names, and creation of brand awareness – using relevant examples to illustrate points.

Better answers will also evaluate in the context of global markets, again using relevant examples.

EXAMPLE QUESTION

You work as Head of Marketing Research for a manufacturer of laundry detergent who distributes its brand internationally. Critically examine how marketing research can help this company to make effective business decisions.

TYPICAL ANSWER The question requires you to answer within the specific

context of the laundry detergent market.

You would be expected to define what marketing research is and discuss the role / value of such activity for this organisation, in terms of helping the company make effective marketing decisions in highly competitive markets – considering issues such as: language, culture, consumption behaviour / patterns,

You should also refer to the need for relevant, accurate, reliable, valid and current information; the use of primary and secondary data; issues / complexities of conducting consumer and competitor research; etc.

USEFUL RESOURCES

http://www.marketingweek.co.uk/

http://www.cim.co.uk/home.aspx

http://www.marketingmagazine.co.uk/

http://www.economist.com/

http://www.asa.org.uk/

EXAM TECHNIQUE

Don’t be tired Natural to feel nervous

Get there early Come equipped Bring water

Read the question! Don’t forget to apply to example

organisations Plan your answer

Plan time in relation to mark allocation Write neatly Don’t get stuck...move on!

Good luck!