Business / Marketing Minor

1
Business / Marketing Minor

• Marketing Fundamentals
• M21439
• Session 1
• Marketing Planning The Broader Environment

2
Key Concepts

• Definition of marketing
• Difference between needs, wants and demands
• Marketing management philosophies
• Role of marketing planning
• Marketing environment
• Marketing in international markets

3
Definition of Marketing

• A social and managerial process whereby
  individuals and groups obtain what they need and
  want through creating and exchanging products and
  value with others.

Source Kotler,P Armstrong,G (2001) Principles
of Marketing 9th ed, Prentice Hall, p6
4
Definitions of Marketing

• Marketing is the management process which
  identifies, anticipates and supplies customer
  requirements efficiently and profitably.
• Chartered Institute of Marketing
• 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 objectives.
• American Marketing Association,1985

Source Brassington,F. Pettit,S.(2000)
Principles of Marketing 2nd ed, UKFT/Prentice
Hall
5
Definition of Marketing

• Marketing is a pervasive societal activity that
  goes considerably beyond the selling of
  toothpaste, soap and steel. Political contests
  remind us that candidates are marketed as well
  soap student recruitment in colleges reminds us
  that higher education is marketed and
  fundraising reminds us that causes are
  marketedYet no attempt is made to examine
  whether the principles of good marketing in
  traditional product areas are transferable to the
  marketing of services, persons and ideas.

Source Andreasen,A.R. Belk,R.W. (1980)
Predictors of Attendance at the Performing Arts
Journal of Consumer Research Sept, pp.112-120
6
Core Marketing Concepts
Needs, wants and demands
Products and services
Markets
Value, satisfaction and quality
Exchange, transaction and relationships
Source Kotler,P Armstrong,G (2000) Principles
of Marketing 9th ed, USAPrentice Hall
7
Need, Want, Demand

• Need A state of felt deprivation
• Want The form taken by a human need as
  shaped by culture and individual personality
• Demands Human wants that are backed by
  buying power

Source Kotler,P Armstrong,G (2001) Principles
of Marketing 9th ed, Prentice Hall, p7
8
QuestionWhen does a want become a need?For
example, why do people say I need to have the
latest DVD/clothing/gossip ?
9
Values

• All customers have values made up of attitudes
  and beliefs that affect their perceptions and
  buying behaviour. Beliefs can also be thought of
  as knowledge, opinion or faith depending whether
  they can be verified by personal experience or
  research.

Source Bickerton,P, Bickerton,M Pardesi,U
(2000) Cybermarketing 2nd ed, Butterworth
Heinemann, p7
10
Supply Demand

• Supply
• The amount of a product producers are willing to
  provide at a particular price.
• Demand
• The amount of a product customers are willing to
  purchase at a particular price.

Source Keegan,W.J., Moriarty,S.E. Duncan,T.R.
(1995) Marketing 2nd ed, Prentice Hall, p11
11
Product

• Anything that can be offered to a market for
  attention, acquisition, use, or consumption that
  might satisfy a want or need. It includes
  physical objects, services, persons, places,
  organisations and ideas.

Source Kotler,P Armstrong,G (2001) Principles
of Marketing 9th ed, Prentice Hall, p7
12
Definition of Service

• Time and expertise provided or activities
  performed in the customers behalf by an
  individual or firm.

Source Keegan,W.J., Moriarty,S.E. Duncan,T.R.
(1995) Marketing 2nd ed, Prentice Hall, p10
13
E.g. of Goods/Services Spectrum
PURCHASE A CAR
FAST FOOD OUTLET
TELEVISION RENTAL
GOURMET RESTAU RANT
HAIRCUT
LEGAL ADVICE
GOODS
SERVICES
14
QuestionWhy dont people consider going to
McDonalds for a romantic meal?
15
Definition of Profit

• The return that a company receives on a
  transaction after costs have been subtracted.

Source Keegan,W.J., Moriarty,S.E. Duncan,T.R.
(1995) Marketing 2nd ed, Prentice Hall, p10
16
Definition of Publics

• Publics are any organisations or individuals
  that have actual or potential influence on the
  marketing organisation(these can) include
  government departments, competitors, outside
  pressure groups, employees, the local community
  and so forth.

Source Blythe,J (2001) Essentials of Marketing
2nd ed, Prentice Hall, p9
17
Definition of Markets

• Markets are all the actual and potential buyers
  of the firms products.

Source Blythe,J (2001) Essentials of Marketing
2nd ed, Prentice Hall, p9
18
Marketing Management Philosophies

• There are 5 alternative concepts under which
  organisations conduct their marketing activities
• 1. Production
• 2. Product
• 3. Selling
• 4. Marketing
• 5. Societal Marketing

Source Kotler,P. Armstrong,G.(2001) Principles
of Marketing 9th ed,USAPrentice Hall
19
Management Philosophies
Source Brassington,F. Pettit,S.(2000)
Principles of Marketing 2nd ed, UKFT/Prentice
Hall
20
Management Philosophies
Source Brassington,F. Pettit,S.(2000)
Principles of Marketing 2nd ed, UKFT/Prentice
Hall
21
QuestionNow you understand the basic marketing
concepts do you think that organisations need to
plan their marketing activities?
22
Marketings Role in Strategic Planning

• Marketing plays a key role in an organisations
  strategic planning process
• 1. Provides a guiding philosophy the
  marketing concept that suggests that
  organisation strategy should resolve around
  serving the needs of important consumer groups

Source Kotler,P. Armstrong,G.(2001) Principles
of Marketing 9th ed,USAPrentice Hall
23
Marketings Role in Strategic Planning

• 2. Marketing provides inputs to strategic
  planners by helping to identify attractive
  market opportunities and by assessing the
  firms potential to take advantage of them.
• 3. Within business units, marketing designs
  strategies for reaching the units objectives.
  Once the objectives are set, marketings task is
  to carry them out profitably.

Source Kotler,P. Armstrong,G.(2001) Principles
of Marketing 9th ed,USAPrentice Hall
24
UK consumer expenditure
Source Marketing Pocket Book, 1999 Reprinted by
permission of NTC Publications, Ltd.
Source Dibb,S, Simkin, Pride, Ferrell (2001)
Marketing Concepts Strategies 4th ed,
USAHoughton Mifflin
25
The forces of the marketing environment macro
and micro
Source Dibb,S, Simkin, Pride, Ferrell (2001)
Marketing Concepts Strategies 4th ed,
USAHoughton Mifflin
26
Levels of involvement in international marketing
Source Dibb,S, Simkin, Pride, Ferrell (2001)
Marketing Concepts Strategies 4th ed,
USAHoughton Mifflin