Introduction to Marketing Management.ppt

Marketing Management

1. WHAT IS MARKETING?
Marketingiseveryone’sbusiness.Everypersonworkingforan
organisationshouldunderstandtheimportanceofmarketing.
Definitions:
“ Marketing is the management process responsible for identifying,
anticipating and satisfying consumer requirements profitably”
–CIM
“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 needs.”
AMA

2. WhyIt’sImportant
Effectivemarketingputsthe
productsinthehandsof its
targetedcustomers.

3. Basicsof Marketing
A marketisa groupof customers
whosharecommonwantsand
needs, andwhohavetheabilityto
purchasea particularproduct.

4. Basicsof Marketing
Marketingistheprocessof
creating, promoting, andpresenting
a producttomeetthewantsand
needsof consumers.

5. One fundamental question: Is Marketing creating
or satisfying needs?

6. KeyWords
market
marketing
marketingconcept
targetmarketing
relationshipmarketing
marketingmix
break-evenpoint

7. KeyWords
marketresearch
demographics
channelof distribution
directdistribution
indirectdistribution
wholesaler
retailer

8. MARKETING IS AN ORGANISATIONAL
FUNCTION
The diagram below shows the many functions that can be carried out in organisations
which, dependant on the organisation, can be classified as operational functions
of marketing.
The operational
functions of marketing
Advertising P.R.
Selling
Financing
Buying
Forecasting
Pricing
PublicityMerchandisingMarket ResearchTransporting
Risk Taking
Servicing
Stockholding
Display
CRM Sales Promotion

9. MARKETING AS A MANAGEMENT
FUNCTION
Heretheroleofmarketingisensuringthattheoperationalactivitiesofthe
organisation(notjustmarketing)areclearlydirectedtowardstheprincipal
objectiveofmeetingtheneedsofthecustomerseffectively.Itinvolves
analysingcustomersandanticipatingtheirneeds,planning,resource
allocations,controlandinvestmentintermsofmoney,appropriateskilled
peopleandphysicalresourcestoensurebothcustomerandorganisational
needsaremettoeach’ssatisfaction.
MarketingasaBusinessConcept–inthisregardmarketingisthestudy
ofexchangeprocessesespeciallythoseassociatedwiththeprovisionof
goodsandservices.Ittakesitsleadfromthesocialsciencesinthat,the
basictenantofsocietyisthatweallneedeachother.Theideahereis,ifI’ve
gotsomethingyouwantandyou’vegotsomethingIwant,thenwedoadeal
(whichistheexchangeprocess)

10. MARKETING AS A BUSINESS CONCEPT
CustomerSupplier
Something of value
Goods, services, benefits
Something of value
Money, exchange of goods
The Exchange Process

11. EXCHANGE TRANSACTIONS
Consumers Costs & Benefits Organisations
Customer
Cash
Quench
thirst
Pepsi
Patient
Insurance
premiums
Medical
treatment
Private Hospital
Student
Fees
Education
University

12. EXCHANGE TRANSACTIONS
Consumers Costs & Benefits Organisations
Volunteer
Time
Sense of
community
service Non-profit youth group
Voter
Vote
Sense of economic/social
progress continued
employment etc
Politic Party
Reader
Lone parent
Taxes
Public Library, Benefit agency

13. MARKETING AS A BUSINESS
PHILOSOPHY
Simply a way (i.e. orientation) towards how the business will
behave.
As a philosophy it recognises the importance of the customer
and that all business exists to serve customers rather than
manufacturing products.
To quote Adam Smith C A in his famous text ‘ The wealth of
“Consumption is the sole purpose of production and the interests
of the product ought to be attended o only so far as it may be
necessary for promoting those of the customer”

14. CORE CONCEPTS OF MARKETING
Needs
Wants
Demand
Products/
Services
Value
&
Satisfaction
Exchange
Process
Exchange
Transactions
Relationships
Markets Marketing

15. EVOLUTION OF MARKETING CONCEPT AND
MARKETING ORIENTATION
Self-sufficiency –No exchange process
Simple –Start of exchange process
Local markets –Economic specialisations
Money economy –Medium of exchange
Industrial revolution –Rapid growth in world population leading to increased demand.
Problem–How to supply?
Production orientation –More efficient production eventually led to oversupply. Problem
changed to –How to dispose?
Soles orientation –Economic theory states: when supply exceeds demand, reduce
price and use other techniques to stimulate demand.
Product orientation –Demand. Problem–how to keep customers? Companies sought
to keep customers by increasing emphasis on product design,
Problem –competition quickly copied and the design didn’t suit
everyone. Too many products than they demand for them.
Marketing orientation –Production based on customer needs and wants. Specific
markets identified and matched their requirements to the
capabilities of the company to ensure both parties needs were
satisfied.

16. BUSINESS ORIENTATION
OrientationProfit Driver Approximate
Time Frame
Characteristics
Production Production MethodsUp to 1940’s Improvement of production and in order
to achieve a reduction of costs and
improved efficiency.
Product Quality of ProductUntil 1960’s The quality of the product is paramount.
Focus on product not customer needs.
Selling Selling Methods 1950-1970’s Effective selling and promotion are the
new drivers to success.
Marketing Needs and wants of
customers
1970 to date Focus on providing the goods and
services that satisfy the needs and wants
of consumers.
Further approaches to marketing
Relationship
Marketing
Building and keeping
good customer
relations
1990’s to dateEmphasis placed on keeping as well as
winning customer strategies.
Societal
Marketing
Benefit the society1990’s to dateSimilar to marking orientation but also
concerned with the long term impact of
organisational activities on the
environment (society)

17. Marketing Mix: The 4 Ps
Place
Promotion Product
Price
The Marketing Mix

18. Importance of 4Ps by Industry –
examples of promotions
Advertising
Sales Promotion
Personal Selling
PR
Advertising
Sales Promotion
Personal Selling
PR
Consumer Goods Industrial Goods
Importance
High
Low

19. Push versus Pull
Push Strategy Manufacturer Intermediary End User
e.g Lever Brothers
Pull Strategy Manufacturer Intermediary End User
e.g. P & G
Demand Demand
Demand
Demand

20. Παραγωγή
MarketingΠροϊόν
Πωλήσεις
1. Η φιλοσοφία της παραγωγής
nΗ ποιό παλαιά
nΠροσπάθεια παραγωγής
πολλών προϊόντων
nΣε χαμηλές τιμές
nΒελτίωση παραγωγής
nΙκανοποιητική διανομή
2. Φιλοσοφία Προϊόντος
nΒελτίωση ποιότητας
nBest value for money
nΟ κατ/τής επιθυμεί τα προϊόντα
που του προσφέρουν την
μεγαλύτερη ικανοποίηση
3. Φιλοσοφία Πωλήσεων
nΤα προϊόντα πωλούνται δεν
αγοράζονται
nΗ ενέργεια της αγοράς είναι η
απάντηση στο ερέθισμα των
πωλήσεων & όχι στις ανάγκες
του καταναλωτή
nPush vs pull strategy
4. Φιλοσοφία τουMarketing
nΚύριο έργο ο καθορισμό
αναγκών & επιθυμιών
nTargeted Marketing
nΠροσαρμογή στην
παραγωγή & διανομή
αυτών των προϊόντων
Η εξέλιξη της φιλοσοφίας του Marketing
5. Φιλοσοφία Κοινωνικού Marketing
•ερωτηματικό εάν το 4 αποτελεί
ευχολόγιο ή είναι ο νέος προσανατολισμός
Των ενεργειών του Marketing
Marketing Management –Athens Metropolitan College–Κώστας Γεωργικόπουλος

21. Η ανάπτυξη της σπουδαιότητας του
Marketing
Αρχική οικονομία της παραγωγής
•Παράγω μόνο για εμένα & την οικογένεια, κυρίως
πρωτογενής τομέας)
Δημιουργία πλεονάσματος (surplus)
•(simple trade era)
Έναρξη δραστηριότητας ανταλλαγών
Αρχή της οικονομίας της αγοράς & της παραγωγής
•Βιομηχανική επανάσταση, 18ος αιώνας)
Έναρξη της οικονομίας των υπηρεσιών
Marketing Management –Athens Metropolitan College–Κώστας Γεωργικόπουλος