Transcript Slide 1

PRINCIPLES MARKETING and
Marketing Process
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Objective of Today’s Lecture are:
1.
Explain the various elements of the marketing
process with application to an organisation.
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Principles of Marketing
Quotation
According to Dooley, D. et al (2007)
Marketing should be at the heart of any
organisation. Modern marketing is about
identifying ever-changing customer needs in
a global market and continually creating
products that satisfy those needs. Many
organisations have adopted this concept as
the philosophy that drives all of their
business functions.
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Overall Concept of the Marketing
Process (Orientations)
1.
2.
3.
4.
5.
Production Orientation
Product Orientation
Sales Orientation
Marketing Orientation
Ethical and Sustainable Marketing
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Overall Concept of the Principles
of Marketing (Orientations)
The differences between the various
orientations are:
1. The Production Concept concentrates
on production and distribution economies.
This in turn is based on the notion that
customers will choose lower priced products
that are readily available.
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Cont
The Selling Concept is based on the notion
that customers need to be persuaded to
buy through aggressive selling and
promotion.
E.g. Electricity and Gas Companies
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Cont
The Product Concept has been adopted by
organisations which believe that their
product is the most innovative in the market,
is of top quality and brimming with special
features.


Electrical Manufacturers
Mobile Phones
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Cont
The Marketing Concept is based on the idea
that organisations can best meet their
objectives by concentrating on customer
needs and satisfying those needs better than
competitors.
E.g. A business might successfully establish itself
through a new invention but over time the appeal of
the product falls and it consequently has to adopt the
Marketing Concept to create and develop other
products with a market appeal.
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Cont
Ethical and Sustainable Marketing
Serving the needs of the buyer with due
respect for the welfare of society and the
environment
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The Selling Concept
Starting
Point
Focus
Factory
Means
Existing
products
Selling
and
promoting
Ends
Profits through
sales volume
The selling concept
Market
Customer
needs
Integrated
marketing
Profits through
customers
satisfaction
The marketing concept
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Marketing history and business orientations
Orientation
1. Production
Focus
Manufacturing
Characteristics and Aim
- increase production
- cost reduction and control
- make a profit through volume
2. Product
Goods
- quality is all that matters
- improve quality levels
- make profit through volume
3. Selling
sells what’s
produced –
seller’s needs
- aggressive sales and promotion
- profit through quick turnover of
high volume
4. Marketing
Doing what customers - integrated marketing
want and buyers needs - defining needs in advance of production
- profit through customer satisfaction and
loyalty
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Marketing history and business orientations (Cont)
Orientation
5. Ethical and
Sustainable
Marketing
Focus
Characteristics and Aim
Serving the
- integrated ethical marketing
needs of the
- defining needs and designing and
buyer with due producing products to minimise
respect for the
harm / damage
welfare of
- profit through customer society
and the
satisfaction and loyalty, and
environment
through societal acceptance
Ref: PEARSON EDUCATION LIMITED (2011)
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Marketing Process
(Q&A by nomination)


How does an organisation identify the
needs of their customers?
- importance of this factor to the
company?
What are the needs of the organisation?
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Needs of the customer
Anticipating future needsCreating a good
(Marketing Research)
perception of the
organisation
Satisfying customer
needs
(Monitoring)
Needs of the
organisation
Income and profit
Marketing
Satisfactory growth
Principles
Planning and co-coordinating marketing
activities
Analyzing the
competition
Using New
Technology
Analyzing change
social, legal,
economic and
political
External Factors
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Needs of the Customer
Market needs and opportunities
This is an important principle relating to
market research. Unless an
organisation understands the needs of
the market place, and individual
consumers, it will not succeed.
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Needs of the Customer
Cont
Establish a Distinctive Identity

A brand can be a name, a symbol or a
design used to identify a product and make
it different from its competitors.
E.g. Apple
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Needs of the Customer
Cont

Other organisations seek to create a
corporate image in the market.
E.g. B&Q supports local community groups by
providing employee action teams to help
renovate and decorate community amenities
to enhance its image of being a caring and
responsible organisation.
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Needs of the Customer
Cont
Satisfying customer’s expectations
An organisation will need to research the
needs of the consumers and to give them
what they consider to be good value.
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Needs of the Organisation
Generating income and profit
This principle states that the need of the organisation
is either:


To be profitable- to generate income for growth
and to satisfy the shareholders
To generate as much income as possible –
E.g. a charity
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Needs of the Organisation
Cont
Utilising New Technology (direct marketing)
This is an area that has been gaining in importance.
The ability to book flight tickets over the Internet
with companies such as EasyJet is changing how
the airline industry works.
The use of technology is now considered by many
marketing managers as a key marketing principle.
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Today;s
Marketing
connections
Connecting Technologies
Computer
Information
Communication
Transportation
•Connections with
Customers
•Connecting more
Selectively
•Connecting for life
•Connecting directly
•Connections with
Marketing Partners
•Connecting with other
company departments
•Connecting with suppliers
and distributors
•Connecting through
Strategic alliance
•Connections with the World
Around Us
•Global connections
•Connections with values
and responsibilities
•Broadened connections
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Needs of the Organisation
Cont
Plan, Coordinate and Either between the: –
Monitor the
 Product
Marketing Mix
 Price
An organisation has to  Promotion
allocate resources
 Place
between the
 People
ingredients of the
Marketing Mix
 Physical Evidence
 Process Management
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External Forces
The organisation will need to:

Keep ahead of Competition
Assess Social, Cultural, Legal, Economical,
Political and Technological
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Group Activity: Discussion
1.
2.
Discuss why you should study marketing.
Refer to your case study assignment –
- Does the marketing efforts of the
organisation seek
to fulfil consumer needs?
- How genuine are the needs targeted by the
company’s marketing efforts?
- Critically evaluate the role that marketing
plays in satisfying human desires.
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Group Activity: Discussion
3.
4.
What is the single biggest difference between the
marketing concept and the production, product and
selling concepts?
- Which concepts are easiest to apply in the
short run?
- Which concept can offer the best long-term
success?
Using practical examples, discuss the key challenges
facing companies in the twenty-first century. What
actions might marketers take to ensure they continue
to survive and thrive in the new connected world of
marketing?
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Marketing Activities
Flow Chart
17 July 2015
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THE MARKETING FUNCTION
17 July 2015
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References
DOOLEY, D. et al (2007) Business. 2nd ed; England: Heinemann.
KOTLER, P. & et al (2001) Principles of Marketing. 3rd European ed; Essex:
Pearson Education Limited.
PEARSON EDUCATION (2011) BTEC Level 4 HNC and level 5 HND in business.
Harlow: Pearson Education Limited.
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