pob stage 2 lecture 1 v2 students(1)

Principles of Business

Purpose of Business – Stage 2 Marketing

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OverviewMarketing plays a fundamentally important role within the organisation, helping to understand consumers better, develop products that meet their needs and communicate to them. It also helps formulate an organisation’s mission, vision and strategy for the future.

In this introductory lecture, we will explore the role of marketing within an organisation and society at large. We will also determine the marketing approach to understanding a target audience’s needs and thereafter build a strategy through the marketing mix.

Finally, we will look at the different types of marketing approaches and gain an understanding of the planning process.

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Learning Outcomes

• Define marketing and explain its role in society

• Be able to articulate the marketing concept

• Describe the main components of the marketing mix

• Be able to describe the different types of marketing

• Critically evaluate and communicate the marketing planning process

What is marketing?

The aim of marketing is to know and understand the

customer so well the product or service fits him and sells

itself.

Peter Drucker

Marketing is a contest for people’s attention.

Seth Godin

Marketing is making pretty pictures and adverts?

In marketing…

It’s a science of…

Consider your journey from bed to class…

Consider the different products you used.

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Your decision to use a brand will fall into these 7 areas…

Source: www.professionalacademy.com

On your way here… how many adverts did you see?

Yet most of them you never even notice…

Source: Guardian

Market Orientation: Start with the customer

Source: Bovee, et al (2013)

Different Orientations Explained

View video: http://education-portal.com/academy/lesson/marketing-production-sales-societal-marketing-orientation.html#lesson

So what is the marketing process?

Understanding what your customers needs and

wants.

Giving it to them in a way they want it.

Telling them in a way and

place that they will listen and

act.

Understanding your customers needs, wants and desires

Needs Differences between a person’s actual state and his or her ideal state; they provide the basic motivation to make a purchase.

Wants Specific goods, services, experiences, or other entities that are desirable in light of a person’s experiences, culture, and personality.

Putting yourself in the customers shoes

However…

Give them what they want, where and when they want it.

Telling them all about it

Strategic Marketing Process

Source: Bovee, et al (2013)

Pursuing Market Opportunities

Source: Bovee, et al (2013)

What is the role of marketing in society?

View video: https://www.youtube.com/watch?v=ZobiigxgCzg

Foster the Exchange Process & Utility

Exchange Process The act of obtaining a desired object or service from another party by offering something of

value in return.

Transaction An exchange of value between

parties.

Source: Bovee, et al (2013)

But it has a wider societal responsibility:Highlight Social Issues

Analyse these adverts and their call to action.

Provide solutions that add value

Consider how this adds value to a customer.

Innovation and Pioneer

View video: https://www.youtube.com/watch?v=BJSjbttGaVM

Types of Marketing

B to C

C to CB to B

Business to ConsumerBusiness or transactions conducted directly between a

company and consumers who are the end-users of its products or services.

Source: Bovee, et al (2013)

Business to Consumer: Advertising Spend

Source: Marketing Magazine

Business to Business

A type of commerce transaction that exists between businesses, such as those involving a manufacturer and wholesaler, or a wholesaler and a retailer. Business to business refers to business that is conducted between

companies, rather than between a company and individual consumers.

Consider:

Source: Wikipedia

Consumer to Consumer

Consumer-to-consumer (C2C) marketing is the creation of a product or service with the specific promotional strategy being for consumers to share that product or service with

others as brand advocates based on the value of the product.

Source: Wikipedia

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Essential work for next week

• Please consult the OLE for details of:– Essential readings*– Seminar/workshop preparation work*– Recommended further readings– Any additional learning

* Essential readings and preparation work must always be completed in time for the next session.

Appendix – Sources for illustrations

Slide 4:www.wikipedia.org

Slide 5:www.absolut.com

Slide 6:www.theunlost.com

Slide 7:www.pininterest.com

Slide 8Nescafe, L’Oreal and Boss websites

Slide 10:www.wikipedia.org

Slide 14: www.youtube.com

Slide 15:www.celebquote.com

Slide 16:www.apple.com

Slide 17:www.sweetiq.com

Slide 23Post Office website

Slide 25:www.uhv.edu

End of presentation

© Pearson College 2013