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MARKETING MANAGEMENT
An Introduction to Marketing Pt 2
Operationalisation
MARKETING
What has marketing been in the past? What is marketing today – new lamps for old? What is marketing for? What is marketing trying to achieve?
Who markets? What is a marketer trying to
achieve?
WHO?
COMMENTS ON MARKETING
“Marketing is too important to be left to the marketing department”
David Packard, Hewlett-Packard
“Marketing takes a day to learn. Unfortunately it takes a lifetime to master.” Phil Kotler
WHAT DO MARKETERS DO?
And who does/should/shouldn’t do it?
DEFINITION OF A MARKETER (OED)
1 A person who buys or sells in a market.
2 A person who promotes and distributes a product for sale.
AN INTRODUCTION TO THE PRACTICE OF MARKETING
Theodore Levitt (1960) Marketing Myopia‘Management must think of itself not as producing products but as providing customer-creating value satisfactions. It must push the idea … into every nook and cranny of the organisation, It has to do this continuously and with the kind of flair that excites and stimulates people.
EARLY MARKETING THINKING
“Marketing is not only much broader than selling; it is not a specialized activity at all. It encompasses the entire business. It is the whole business seen from the point of view of the final result, that is, from the customer’s point of view. Concern and responsibility for marketing must therefore permeate all areas of the enterprise.” – Peter Drucker
EARLY MARKETING THINKING
(the marketer should)……regard with desire every profit that goes into the pocket of anyone who stands between him and the consumer
Ralph Starr Butler “Marketing Methods” 1914
Definitions of Marketing
Marketing is the management process for identifying, anticipating and satisfying
customer requirements profitably. CIM Old
A marketer is a manager who…………...
Definitions of Marketing
A marketer is a manager who initiates, coordinates and brings to conclusion a
process which identifies, anticipates and satisfies customer requirements
profitably.
The basic marketing mix (4Ps)
Figure1.4
4 ‘P’s
2 ‘P’s
The extended marketing mix (7Ps)• Price.
• Product.
• Place.
• Promotion.
• People.
• Processes.
• Physical evidence.
• Parkinsonian ‘P’ Inflation
Consumer Research
Market Analysis
Packaging
Finance &Accounting
BRAND
IT Professional Relations
Human Resources
Advertising Production
Legal Manufacturing/Operations
AdvertisingMedia
Specialist
AdvertisingCreativeSpecialist
Sales/Key Accounts
Public Relations
BRAND MARKETING INTERFACES
ProductDesign inc
R&D
Logistics/Distribution
Competition
Merchandising/Point of Sale
AN INTRODUCTION TO THE PRACTICE OF MARKETING
If you could visit a cell, you wouldn’t like it. Blown up to a scale at which atoms were about the size of peas, a cell itself would be a
sphere roughly half a mile across…... Within it, millions upon millions of objects – some the size of basketballs, others the size of cars – would whiz about like bullets. There wouldn’t be a place you
could stand without being pummelled and ripped thousands of times every second from every direction. …….
Bill Bryson A brief history of almost everything
AN INTRODUCTION TO THE PRACTICE OF MARKETING
Very much like being a Marketer Or any manager for that matter
AN INTRODUCTION TO THE PRACTICE OF MARKETING
If you cant stand the heat get out the kitchen
Harry Truman
AN INTRODUCTION TO THE PRACTICE OF MARKETING
“The buck stops here” Same guy
WHAT SHOULD MARKETERS NOT DO?
“Marketing is too important to be left to the marketing department”
David Packard Then who does the marketing? And who should?
MARKETING FUNCTIONS
STRATEGIC/CORE/LINE – BRAND MANAGEMENT
SUPPORT/STAFF/SPECIALIST
MARKETING STAFF
Research – Market and Consumer Advertising Content – Ad. Agencies Staff Advertising Media Package Design PR Consultancy
Definitions of Marketing
A marketer is a manager who initiates, coordinates and brings to conclusion a
process which identifies, anticipates and satisfies customer requirements
profitably.
Consumer Research
Market Analysis
Packaging
Finance &Accounting
MARKETER
IT Professional Relations
Human Resources
Legal
Operations
AdvertisingSpecialists
Sales/Key Accounts
Public Relations
R&D
Logistics
Competition
Partnership
CONSUMER
The Boss
Ethics
Greenery
Global Marketing
Value ChainConnectivity
The Board Shareholder
The Internet
Supply Chain
Politics
Trade Marketing
Gurus
PEST
SWOT
DAGMARRelationshipManagement
Marcomms Theory
‘P’Inflation
Time Management
Team Building
CIM
Societal Marketing
IDEAS
Manufacturing
Family &Friends
Networks
BrandEquity
REPRESENTATION OF CHAOS
MARKETER CONSUMER
MARKETING FOCUS
Research
Market Analysis
Packaging
Finance &Accounting
MARKETER
ITProfessional
Relations
Human Resources
Legal
Operations
AdvertisingSpecialists Sales/
Key Accounts
PR
Tormentors can be turned into resources
R&D
Logistics
Competition
PartnershipsCONSUMER
Boss
Ethics
GreeneryGlobal
Marketing
Value Chain
Connectivity
The BoardShareholder
The Internet
Supply Chain
Politics
Trade Marketing
Gurus
PEST
SWOT
DAGMAR
RelationshipManagement
Marcomms Theory
‘P’Inflation
Time Management
Team Building
CIM
Societal Marketing
Manufacturing
Family &Friends
Networks
BrandEquity
Research
Market Analysis
Packaging
Finance &Accounting
MARKETER
ITProfessional
Relations
Human Resources
Legal
Operations
AdvertisingSpecialists Sales/
Key Accounts
PR
Tormentors can be turned into resources
R&D
Logistics
Competition
PartnershipsCONSUMER
Boss
Ethics
Greenery
Global Marketing
Value Chain
Connectivity
The BoardShareholder
The Internet
Supply Chain
Politics
Trade Marketing
Gurus
PEST
SWOT
DAGMAR
RelationshipManagement
Marcomms Theory
‘P’Inflation
Time Management
Team Building
CIM
Societal Marketing
Manufacturing
Family &Friends
Networks
BrandEquity
MARKETER
Research
Market Analysis
Packaging
Finance &Accounting
BRANDCHIEF
EXECUTIVE
ITProfessional
Relations
Human Resources
Legal
Operations
AdvertisingSpecialists Sales/
Key Accounts
PR
And leaders do that
R&D
Logistics
Competition
PartnershipsCONSUMER
Boss
Ethics
GreeneryGlobal
Marketing
Value Chain
Connectivity
The BoardShareholder
The Internet
Supply Chain
Politics
Trade Marketing
Gurus
PEST
SWOT
DAGMAR
RelationshipManagement
Marcomms Theory
‘P’Inflation
Time Management
Team Building
CIM
Societal Marketing
Manufacturing
Family &Friends
Networks
BrandEquity
One answer
Appoint 100’s of Chief Executives as centres of excellence
And call them Brand Managers? Or champions? Sales Director? CEO? Whatever….
MARKETERS’ CORE STRATEGY
The marketer initiates the process of identifying potential customer wants and needs as they pertain to an actual or potential offering of his organisation.
The marketer ensures that his or her offering is
perceived by the target as fulfilling those wants or needs better than any competing offer, and thereby secures a voluntary exchange of values to the mutual benefit of the target and offerer.
The marketer’s primary function is to secure an exchange – in the case of Commerce a Sale (more than facilitate).
WHAT ARE MARKETERS DOING?
“Marketing practice developed to serve a growing majority of younger consumers during a demographic anomaly. Given the relatively unformed views and resulting malleability of the young the objective of marketing activity became to gain the most easily switched customers, rather than to retain loyal customers. Consequently, marketing activity and expenditure became focussed on advertising and other promotional activity, and in the minds of many senior managers, marketing became synonymous with advertising, and the task of marketing departments often limited to promotional activity”. (Thompson and Thompson 2007 p 9)
MARKETINGTheory
Operationalisation through Brand Management
Practice by people
A PROBLEM?
“The mere formulation of a problem is far more essential than its solution” – Einstein (scientist)
“Recognizing a problem is the first step to solving it....”Sonya Friedman – (Chat Show hostess)
“If knowledge can create problems, it is not through ignorance that we can solve them”.
Isaac Asimov
THE PROBLEM
THE PROBLEM
While “one to one” marketing works well……
INSTITUTIONAL MARKETING DOESNT WORK
Inadequateley practiced Poorly understood Incompletely taught
STRATEGIC MARKETING/BRAND
MANAGEMENT
MARKETER CONTEXT ORGANISATIONAL
MARKETER CONTEXT ORGANISATIONAL
WHITHER MARKETING?
“marketing is too important to be left (solely) to the marketing department”
David Packard
Definitions for Marketers?
“A leader has to have a vision of grandeur, a vision that can produce eager followers in vast numbers. In business the followers are the customers.
“In order to produce these customers the entire corporation must be viewed as a customer creating and customer satisfying organism. Management must think of itself is not as producing products but as providing customer creating
value satisfactions. It must push this idea and everything it means and requires into every nook and cranny of the organisation. It has to do this continuously and with the kind of flair that excites and stimulates the people in it. Otherwise the company will be merely a series of pigeonholed parts with no consolidating sense of purpose and direction
In short the organisation must learn to think of itself not as producing goods or services but as buying customers, as doing the things that will make people want to do business with it”
Levitt – Marketing Myopia 1960
Who is going to do it?
The Board? The Boss? Or……
The Boss
When you are up to you’re a…. in alligators it’s difficult to remember that you came here to drain the swamp
Be Bold
AN INTRODUCTION TO THE PRACTICE OF MARKETING
You have the powerThe only power that matters
The power to persuade
Some key questions
Who initiates/coordinates all aspects of the process of: Identifying what the customer wants Ensuring that the organisation “has it” – and
that it satisfies the customers needs/wants better than the competition – always!
Ensuring that the customer knows it Ensuring that the customer always buys it in
preference to a competitors offer And ensuring that this process is profitable (or
achieves its non commercial objectives) for the organisation
Some key questions
If all this comes together at CEO level (the Boss) The alligators win The swamp will stay very very wet
So who should do it in your organisation (don’t worry about practicalities – stick to ideals – for now!!)?
In groups – play God
1) for each of your firms/institutions explain to your colleagues for each product/service/brand Who are your customers/consumers What do you offer them – goods, services etc Who are the competitors What evidence do you have that your “product”
satisfies better than the competition What evidence do you have that the
customer/consumers know it 2) agree among yourselves what steps you should
take to bring into one pair of hands marketing responsibility and accountability for initiation/coordination/completion (and PROFIT!)