The approach to markets evolves Depending on the market and the company’s strategy Manufacturing Orientation Selling Marketing Consumer End of the Sixth Century Market dominated by producers & distributors sell Produce Market dominated by buyers Competition today 3 The manufacturing orientation The oldest Typically T I II used when: The demand exceeds the offer (ex: developing countries) Cost (and prices) should decrease in order to extend the market Consumers will prefer products that are widely available and inexpensive.
Priority is to achieve high production efficiency, low costs and mass distribution Can lead to failures: Cliff For instance, BIG perfumes (incompatibility between the brand image -cheap/low quality- and expectations within the product category). The selling orientation always be need for There will some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service p Priority I P I it given to innovation and quality Ideally, marketing it d fits him and silliest itself.
Consumers, if left alone, won’t buy a customer company’s should result in enough of who is ready products, unless the company undertakes an aggressive selling make the buy. All that should be needed is and promotion effort product Priority is on market expansion or service available’. Peter Trucker Starting point Means Goal Encyclopedias, insurance… Facilities Products Sales and Promotion Benefits according to sold volume US mortgage market (market failure due to overselling) Credit card sales (average credit card debt $7. 000) 4 The marketing orientation Opposite to Sales-oriented.
The profit should result from the customer’s satisfaction A customer-centered orientation: A choice of market/segment: targeting, in order to guide company’s activities. Understanding his point of view, priorities and satisfying his needs (reactive v. Proactive) Profitability: Marketing is not an end in itself, but a mean to achieve the company’s objectives (for a private company: profit; for an association: general interest) Starting point Focus Market desires Coordinated Benefits according to satisfaction Tobacco Industry (satisfying consumer demand leads to illness) O S.
Grangerizes The consumer orientation Focus on customer relationships and consumer well-being department Senior Management Products & Services Distribution Communication network Other departments Internal Integrated Holistic Performance Sales revenue Brand & Customer equity Community Channel Legal Ethics Environment Partners Customers 5 Defining marketing for the 21st century What is Marketing and Marketing Management? Marketing… s the process by which companies create value for customers and build strong customer relationships to capture value from customers in return Marketing Management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. Marketing F M k it Function is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
Objective of marketing in the 21st century What should be the main objective of marketing and marketing management? MM overview Through a win-win relationship For the company, For the customer in a competitive environment to profitably adapt the strategy, in order to influence the customer’s behavior in favor of the company’s offering, thanks to a perceived value being arable higher than the competitors’ one.
Creating value Introducing marketing Capturing marketing insights Connecting with customers Building strong brands Marketing mix Implementing marketing management Managing marketing metrics 6 The evolution of the marketplace The marketplace isn’t what it used to be… Globalization Deregulation Prevarication Convergence Consumer Resistance Disintermediation 7 Consumers are changing… Consumer sophistication Tech as’. N. Y Self-expression Buying power Voice d influence Vi and I FL Co-creation Self-service The modern exchange economy 8 Classifications of marketing practice
Transaction marketing differs from relationship marketing Key differences Time perspective Primary communication Customer feedback mechanism Market size Criterion for success practiced? Why is marketing important and what is the scope of marketing? What is the philosophy of marketing? How do we understand markets and customers? 9 Intro to marketing planning How to survive in a modern economy? Marketing Planning is a systematic, structured process 10 Marketing planning defined The marketing plan is the central instrument for directing and coordinating the marketing effort. Till includes: How can we identify new value
Researching interpenetration? Current situation. Analyzing the Developing and documenting the firm’s objectives, strategies and How can we efficiently create more programs, promising new value offerings? Implementing, evaluating and controlling marketing activities. How can we use capabilities and Contents of The Marketing Plan to deliver the new value infrastructure offerings more efficiently? Executive Summary Current Situation Objectives and Issues Target Market, Customer Analysis and Positioning Marketing Strategy Marketing Programs Financial Plans Implementation and Controls Before we start search and analyze the current situation!
The marketer performs both: External analysis, and Internal analysis External Analysis External analysis involves the understanding of trends that may impact marketing strategy: Demographic, Economic, Technological, Political-Legal, Ecological, Acculturation Internal Analysis Marketers also assess the firm’s capabilities and the strategies of competitors in order to: Build on strengths Exploit competitors’ weaknesses Other Analyses Other areas that are analyzed for their impact on marketing strategy include (customers, suppliers, distributors, partners, and other stakeholders)