Marketing

Addresses people’s needs and wants and influences target consumers to buy a specific product instead of other competing products

A management process involved in identifying, anticipating, and satisfying consumer requirements profitably

It is about satisfying consumer needs and wants through exchange

It is a research based process of getting customers interested in a product through the management of the 4 (or 7) P’s

Marketing goods/products versus services

Goods/Products: 4Ps

Product

Place

Price

Promotion

Services: 7Ps

4Ps

People (frontline staff appearance, skill, charm, helpfulness)

Processes (time, ease, accessibility, payment, aftersales)

Physical evidence (facilities, cleanliness, design, atmosphere, peripheral products)

Has a product oriented approach

Product oriented vs. market oriented marketing

Product Oriented Marketing

Business develops products based on what it is good at making

Mainly for products that are high tech, high quality, and high differentiation

Market Oriented Marketing

Business develops products based on the market

Geared to mass consumer markets using expensive market research, but is more flexible and less risky

Flexible: Adapts more easily as this approach is sensitive to market trends, such as habits, needs, lifestyle, and taste

Less Risky: More assurance of success since the product meets customer requirements

Social vs. commercial marketing

Social marketing

Seeks to influence behavior to benefit society as a whole by selling a desired behavior, thus satisfying societal needs

Using social marketing (i.e. commercials, etc.) to bring about social change

Celebrity endorser

Media coverage

Giving out cards

Workshops/modules

Movies

Signature campaign – Pledge board

Slogans

Dropboxes

Email/hotline/customer service

Commercial marketing

Seeks to satisfy customers by selling a particular needed product or service, thus satisfying individual needs

Delivering what people already want instead of changing what people want

Market

A place or process which allows suppliers and customers to exchange physical goods, services, information, etc..

Exists to help facilitate trade where there is demand for a particular product, and businesses willing to satisfy such demands

Kinds of Markets

Consumer – General public

Industrial/Commercial – Businesses and governments

Markets size

Can be measured through the number of potential customers, the total volume of sales achieved by the numerous businesses active in the market, or the value of said sales

Helps businesses assess whether a particular market is worth participating in due its number of potential customers and the barriers to entry

Market growth

Rate the size of a market increases/decreases over a period of time

Measured by an increase in the total value or volume of sales in a market

Helps businesses assess whether a particular market is worth entering due to its rate of growth or contraction

Market share

The percentage of all the sales in a particular market that are held by a business, and can be measured by the volume or value of the sales

• Importance

Helps measure a firm’s performance and market position against other competitors

Might indicate that a business is a market leader

Can influence its competitors to follow the leader’s model

Can influence the leader to continually enact strategies in order to maintain its position

Can indicate the degree of success or failure of a business’ current strategies

Can lower prices or maintain higher profit margins as compared to competitors due to better economies of scale

• Ways to increase market share

Brand promotion

Improved customer service

Copyright and patent filing

Product development

• Limitations

May be difficult to identify the most important market share value for products that cross into several markets

Cannot be used as an absolute measure of a firm’s success or performance

Firms can be intentionally lowering their market share as a result of its more stringent client selection

A decline in a firm’s market share can be a result of a new entrant and not necessarily as a result of lowered sales

Should mainly be compared against the most similar and closest of competitors, and not necessarily the market as a whole

Marketing objectives

• Common targets that marketing activities will achieve

Market share/leadership

Acquiring a greater/bigger market share and volume by improving sales/revenues (e.g. expansion, globalization, franchising, aggressive advertising, further market penetration, etc.)

Customer service

Providing loyalty programs, after sales services/policies through quality staff training

Brand building

Improving the image of the company through CSR, sponsorships, publicity, packaging, etc.

Growth strategies

Innovation

Launching a totally original or new product into the market (attain the first-mover advantage)

 Positioning

Involves expanding or modifying product line/mix to enhance or change image.

• Successful marketing objectives are

Aligned with business’ overall main vision-mission-goals (or VMGs)

Appropriate to organization’s size, financial capacity and production efficiency

Mindful of competition, external (PEST) factors and social issues

Ethics of marketing

Ethics are the moral principles that guide business behavior

Ethical marketing issues are increasingly significant in a period of rapid globalization

What may be acceptable marketing practice in one place may not be in another

Is it ethical?

• Pricing

Sell a computer printer cheaply and then tie in customers to buy expensive refill cartridges?

Offer low airfares on the internet and then add taxes on after a purchase has been made?

• Promotion

Advertise toys on TV to young children who may not be able to distinguish between program and advertising?

Use sexual images to sell products in countries with deeply held religious views?

• Place

Sell products that are sexually suggestive or offensive to the culture of the country/place these are sold in?

• Product

Buy cheap and potentially dangerous supplies in order to cut prices?

Design clothes for young children that are sexually provocative?

Ethical Issues:

Bait and Switch

Misrepresentation

Over-promise or Fraud

Unsubstantiated Claims

Fear Tactics

Pester Power

Socio-Cultural