marketing

what it means

a definition of marketing

the idea of the marketing concept

the relationship betweenplanningimplementation andcontrol

the marketing mix: what you control theoretically

environmental factors: what you don’t control

(theoretically)

the American Marketing Association.....

marketing is,

“the performance of business activities that direct the flow of goods and services from producer to consumer or user”

makes marketing sound distributionoriented

and,

does not explain what products should be

provided

another definition.....

“marketing is getting the right goods and services to the right people at the right place, at the right time, at the right price, with the right communication and promotion”

this is getting closer to marketing realities

but,

it is rather business-oriented

and

it may leave out some social areas,

eg,

TAC/Workcare advertising

Christian Television Association advertising

AIDS advertising

Peter Drucker

the “father of marketing”

“marketing is so basic that it cannot be considered

a separate function.....it is the whole business seen

from the point of view of its final result, that is,from the customer’s point of view”

this is a reasonably workable definition;

it shows the two sides of marketing;1. the marketer and,2. the customer

where was selling in that definition?

why was it not there?

because selling is considered to be a sub-set of the

marketing function

people often think that ‘selling’ is the same as

‘marketing’

why?

probably because selling is often the tip of the

iceberg they see, as customers

ie., as customers, often we only see the selling side

of marketing : cars

: electrical goods

: home renovations

the all-important distinction between marketing and selling;

selling

is getting rid of what you have

marketing

is about what to produce in the first place

resourcesandcapabilities of the

consumerorganisation the wants product

.....based ie,

on goals that are realistic

customerand

demandachievable

this matching process may also be seen as

‘the marketing concept’

so far.....

customer/consumer demand

a most misunderstood area of marketing practice

today

‘advertising’

often seen as manipulative and often is

new products

very high failure rates; perhaps 70%

rough rules

people choose products that offer the greatest

benefit at whatever price they are prepared to pay

people’s ideas of benefit/price ratios vary

eg. Bic and Waterman pens

if you do not offer what the people want, you will

not get sales

customers are considered to occupy sub-sets of

markets

these are commonly termed ‘target markets’

the process of locating such target markets which

an organisation can profitably* serve is the role of

marketing management

*or cost-effectively

look for the use and function that lies behind the

buyer’s decision to obtain the product

that is;

do not let your product look for a market

rather,

look at the market and find the product it wants

invention/marketing

looking beyond the product to the idea of wants and needs

needs we need food shelter

self-actualisation (growth area?)

needs are basic and mostly unmarketable

wants

how we express our basic needs, given our individual traits and cultural, social and political

backgrounds

we wantMacdonald’s food

Ikea furniture computer skills

.....this is where marketing is supposed to come in

the importance of customers

the person who foots the bill, pays all the salaries

and obtains the product

what marketing should be about:

matching the organisations capabilities with

customer demand

in order to achieve the goals of your organisation

marketing claims that it is not about:

selling alone

exploitation

a working definition of marketing

recognising opportunities and taking advantage of

them

usually in a competitive environment

profitably or cost-effectively

through planning rather than by chance

by concentrating on the needs of customers

by appropriate use of the elements ofproductpriceplacepromotion

within the resource constraints and goals of the

organisation

within the opportunities and threats imposed by outside forces, ie., the marketing environment

the marketing concept

more than just ‘thinking marketing’

it also means

‘thinking ahead in marketing terms’ too

to manage the marketing process requires

planning in the first place

sales market sales research

information promotion and

development

accounting personnel

warehousing

export purchasing production

sales

advertising marketing

sales

accounting

market info the

marketing sales prom’n production customer

r &d

warehousing

personnel, etc

marketing

marketing management

a way of thinking that presumes no marketing

activity is worth udertaking unless:

it has been planned in the first place

the execution of that activity can be readily

monitored, controlled and, if necessary,changed

marketing management

means an understanding of your organisation’s

missions and goals

whether new products are needed

how much to spend on promotion

what price or fee to set (or how to justify the cost of your operation)

the parameters of these issues should be setthrough a planning process

the planning process

the establishment of long-, medium- and

short-term goals by senior management

the goals are best:

if they are understandable

and achievable, especially to middle management

the goals are at their best when they constitute

as close a match as possible between,

what you believe the market wantsandwhat your organisation can do

another way of looking at the process.....

marketing planning

the process of

establishing marketing goals

and the

design of marketing programmes (or plans)

that are

to be carried out in the future

a challenge arises.....

planning:

desk-orientedcosy, fireside stuffa look into the future from the comfort ofthe board room

marketing management:

working to the goals of the planin an environment of:

• change• competition• time constraints

there are two fundamental types of planning

that an organisation may undertake

1. the ‘corporate’ or ‘business’ plan

tells us what industry or industries we should

be in

(many organisations do not know)

2. the ‘marketing’ plan

tells us what segments or bits of that

industry we should be in

there may be a third level, called ‘product’ plans

so.....

carrying out marketing plans may be divided up

into a series of product plans

these product plans involve such activities as;

setting the price

devising advertising campaigns

developing distribution

personal representation to key accounts

obtaining marketing research

if planning is presumed to be vital, then

planning is useless unless programmes are carried out

carrying out such programmes is useless without

control

feedback &

adjustment

how planning and marketing are supposed to be integrated

corporate goals

process

marketing planning

process

should we

change

plans?

execution of plans

control

1. was the execution

carried through?

should we

2. evaluation; did change

performance meet execution?

goals?

yes no

the marketing management process

a means of saying;

we are going to find target markets - not fall into

them

we are going to plan our future activities with

customer needs as a basis for a profitableachievement of our organisation’s goals

we are going to manage our markets using people

who know how to use the marketing mix in a way

that achieves our goals

we are going to build on success, admit failure and

are able to modify both, because we planned in the

first place and we know we can measure theresults of our activities

the essence of marketing is not to have a planning

hierarchy alone, but ‘doers’ as well

their tools are the four elements of

the marketing mix

• P

• P

• P

• p

product goods services people ideas

price

place distribution

promotion marketing communication

introducing the marketing mix into the planning process

write: corporate plans

thatgenerate: marketing plans

that in turngenerateproducts 1 2 3

each with a separate identity ie, the result of a separate marketing mix

for each separate target market

execution of plans via product launches and maintenance

evaluation

the marketer’s operating framework

the marketer:

should know the consumer

should understand the organisation’s corporate and marketing goals

should be able to identify markets and so-called target markets

should have the greatest possible control over the marketing mix

should be conversant with the uncontrollable

the two sides of marketing

science art

reasoning intuition

analysis creativity

planned common sense

the development of marketing

production era

1900s to 1930sproduction concept, demand in excess of supply

sales era

1930s to 1950s, demand fallsstronger sales effort required

marketing era

demand returns, but more competitionmore consumer choiceneed for responsiveness to the consumer

societal marketing.....1980s........

the idea of the marketing concept is at the core of marketing philosophy

three elements

1. to be oriented toward the consumer

2. to emphasise long-term organisational survival rather than short-term profit

3. to coordinate all organisational activities through the marketing function

problems ; concept,function and philosophy ; give up short-term profit ; marketing as the focus