Marketing -introduction Alena Klapalov [email protected] Information about the course 4 teachers: Klapalov, Doleal, kapa, Jaterkov 13 lectures:The foundations of marketing, Marketing environment, Marketing planning and forecasting, Marketing research, Buying behaviour, Market segmentation, Analysis of competition, Product, Price, Place, Promotion, Marketing of services/or ???. Exam test (20 closed question) 11 points is the minimum level of total 20 points team (4 students maximally) seminar work: minimum 6 - 10 points - any topic concerning the course Power Point
Presentation (presentation for cca 15 minutes during the course plus 2 points to the total sum of points) PPT presentation must be put into the Information system! Any questions? Foundations of marketing what do we learn today? What is marketing History of marketing and marketing theory School of thoughts and types of marketing What is marketing ONCE MORE Definitions of marketing Basic concepts of marketing Marketing management Ps of marketing management What is marketing?
Selling? Promotion (advertising)? Marketing vs selling marketing selling Marketing vs promotion promotion Wikipedia and history of marketing
1450: Gutenberg's metal movable type, leading eventually to massproduction of flyers and brochures 1730s: emergence of magazines (a future vector of niche marketing) 1836: first paid advertising in a newspaper (in France) 1864: earliest recorded use of the telegraph for mass unsolicited spam 1867: earliest recorded billboard rentals 1880s: early examples of trademarks as branding 1905: the University of Pennsylvania offered a course in "The Marketing of Products" 1908: Harvard Business School opens 1922: radio advertising commences 1941: first recorded use of television advertising
1950s: systematization of telemarketing 1970s: E-commerce invented 1980s: emergence of relationship marketing 1980s: emergence of computer-oriented spam 1984: introduction of guerilla marketing 1996: identification of viral marketing http://en.wikipedia.org/wiki/History_of_marketing#cite_note-5 Robert Bartels History of marketing thoughts (1976) http://www.faculty.missouristate.edu/c/ChuckHermans/Bartels.htm
Early courses at the Ohio state University:
1905 Distribution of Products. 1909-1910 Commercial Credit. 1916-1917 Salesmanship 1905 University of Pennsylvania offered a course entitled The Marketing of Products. 1910 University of Wisconsin offered a course entitled Marketing Methods 1921 The curriculum consisted of the following courses: Business communications Marketing Marketing Problems Wholesaling Retailing Credits and collections Salesmanship Advertising Advertising Practice Exporting and Importing
Research in Marketing. 1925 Sales Management was combined with Salesmanship. 1927 Marketing Problems was omitted. 1940 Business Research and Market Research became two courses. Recognition that the subject marketing became accepted in both course and book titles, as indicated by the following. Bartels developmental stages
1900-1910 Period of Discovery. Initial teachers of marketing sought facts about the distributive trades. Theory was borrowed form economics relating to distribution, world trade, and commodity markets. The conception of marketing occurred and a name was given to it. 1910-1920 Period of Conceptualization. Many marketing concepts were initially developed. Concepts were classified, and terms were defined. Period of Integration. Principles of marketing were postulated, and the general body of thought was integrated for the first time. 1930-1940 Period of Development. Specialized areas of marketing continued to be developed, hypothetical assumptions were verified and quantified, and some new approaches to the explanation of marketing w3ere undertaken. 1940-1950 Period of Reappraisal. The concept and traditional explanation of marketing was re-appraised in terms of new needs for marketing knowledge. The scientific aspects of the
subject were considered. 1950-1960 Period of Reconception. Traditional approaches to the study of marketing were supplemented by increasing emphasis upon managerial decision making, the societal aspects of marketing, and quantitative marketing analysis. Many new concepts, some borrowed from the field of management and from other social sciences, were introduced into marketing. 1960-1970 Period of Differentiation. As marketing thought became expanded, new concepts took on substantial identity as significant components of the total structure of thought. Among them were such elements as managerialism, holism, environmentalism, systems, and internationalism. 1970 Period of Socialization. Social issues and marketing became much more important, as the influence not of society upon marketing, but of marketing upon society became a focus of interest. Paradigm and power shift in marketing 1945 - 1980 www.hearing-aid-marketing-secrets.com/History...
How was it in the beginning?... Jagdish N. Sheth, David M. Gardner: History of Marketing Thought: an Update, 1982 Traditional marketing 2 axioms: Marketing is an economic activity and is a subset discipline of economics = MKT concepts (institutions, functions, products, managerial and environmental perspectives) are restricted to economic behaviour of people no marketing of places, no marketing of ideas, no marketing of celebrities The initiator of marketing activities and programs is the marketer and not customer = marketer can influence, manipulate and control market behaviour through marketing skills and organization http://www.jagsheth.net/docs/History%20of%20Marketing%20Thought-An%20Update.pdf School of thoughts which has
influenced marketing: Exchange of value instead pure economic exchange (VALUE IS MORE THAN A GOODS) Behavioral perspective instead economic perspective (VOICE OR POWER OF CUSTOMER, BLACK BOX) MACROMARKETING macro and/or societal perspective + short term vs long term profit CONSUMERISM developing and protecting the rights of consumer (deceptive advertising, high pressure sales tactics) consumer satisfaction. SYSTEMS APPROACH integration of supply and demand factors into holistic theory NETWORK BUYER BEHAVIOUR behavioral theory of buying BEHAVIOURAL ORGANIZATION behavioral aspects of channel members power, conflict, commitment RELATIONSHIP MARKETING STRATEGIC PLANNING balance of power issues between external and internal environment factors (BCG matrix, GE matrix)
Marketing school of thoughts MANAGERIAL SCHOOL or MARKETING MANAGEMENT how to manage??? 4 or 5 or 7 Ps (Philip Kotler as a guru) from the late fifties CONSUMER/BUYER BEHAVIOUR SCHOOL SOCIAL EXCHANGE SCHOOL (focuses on exchange as the fundamental concept of marketing) Emerson and Cook (1970) davedouglas.blogspot.com/2007/10/social-excha... Philip Kotlers buyer behaviour Some remarks on marketing Marketing impacts the economy: Marketing (broadly conceptualized) is about 50% of retail sales expenses The goal of marketing is to facilitate exchanges
Marketing is very much about adding value through a broadly-defined value proposition Value may be created by marketers in many different ways: value is not only about price The goal of marketing is to facilitate exchanges Requirements for exchange: Two or more parties (voluntary involved) Parties have unsatisfied wants/needs Parties have something of value to exchange Each party has something other party wants Means of Communication & delivery (marketing!) Requirements for Market Exchange
A marketplace A medium of exchange Specialization of labour Marketing management/coordination What is Market-Oriented? Marketingis the whole business seen from the point of view of its final result, that is, from the customers point of view. --Peter Drucker + other exchange partnersview Marketing is Research Identifying a real need and offering a product or service (VALUE) to address that need Knowing everything about your
customers(PARNTERS) Communicating Assessing yourselves and your competition Building relationships Gaining profit.. Some definitions of marketing the task of creating, promoting, and delivering goods and services to consumers and businesses. Marketing 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. American Marketing Association 2004 Other definitions Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably
The Chartered Institute of Marketing Marketing is the human activity directed at satisfying human needs and wants through an exchange process (Kotler 1980
Other definitions Marketing is a social and managerial process by which individuals and groups obtain what they want and need through creating, offering and exchanging products of value with others Kotler 1991 Marketing is the process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives American Marketing Association Scope of marketing Places Properties Organizations Information Ideas Goods Services Experiences
Events Persons Figure 1-1: A Simple Marketing System This Is a Need Needs - state of felt deprivation including physical, social, and individual needs. Maslows Hierarchy of Needs This Is a Want Wants - form
that a human need takes, as shaped by culture and individual personality. Need / Want Fulfillment Needs and Wants are fulfilled through a Marketing Offer Some combination of products, services, information, or experiences offered to a market to satisfy a need or want. Marketing
Myopia Sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products. They focus on the wants and lose sight of the needs. What is a Market? The set of actual and potential buyers of a product. These people share a need or want that can be satisfied
through exchange relationships. Generation & Supply Wholesalers Exporters Input suppliers Agro processors Transmission & Distribution Customer This Is Demand Wants
Buying Power Demand The Marketing Mix The conventional view of the marketing mix consisted of four components: product, price, distribution and promotion. Generally acknowledged that this is too narrow today; now includes service, processes, technology Marketers today are focused on virtually all aspects of the firms operations that have the potential to affect the relationship with customers. The Marketing Mix 1953 Neil Borden President of AMA concept recipe
4 traditional Ps: E. Jerome McCarthy, Product 1960, book Basic Price Marketing Promotion Place (Distribution) More Ps: Preparedness Personnel Packaging
People 4 Cs: customer solution, customer costs, customer convenience, communication with customer (Kotler) http://en.wikipedia.org/wiki/Marketing_mix Other Marketing concepts Production Concept Efficiency issues Mass production
narrow product-line(s) pricing based on the costs of production and distribution research limited to technical product-research packaging designed primarily to protect the product minimal promotion and advertising, limited to raising awareness of the existence of the product consumers more interested in simply obtaining the product, and less in its quality Product concept Assumption : consumers will
buy it if its cheap Makes sense when little differentiation is demanded Makes sense for price sensitive segments the main focus of the company is on the products being like improving it, adding features to it, making the product superior each time assuming that customers will buy the products because they have greater quality. the first thing that is considered is the function that the product is going to serve. It is also reviewed as to how many models or sizes or variants the product is going to have. This product can be a physical good or a service. After the product has been
Selling concept Company relies on sales talent May result in high pressure sales tactics Makes more sense when new products benefits are hard to understood Businesses concentrates on ways of
selling theproducts. Numerous sales techniques such as closing, probing, and qualifing are used and the sales department has an exalted position in a company's organizational structure. Other promotional techniques like advertising, and sales promotions are taken intensively. Packaging and labeling is used for promotional purposes more than protective purposes. Pricing is usually based on comparisons with competitors (called competitor indexing). Marketing concept
late 1960s and early 1970s Extensive use of marketing research Broad product lines Emphasis on a product's benefits to customers rather than on product attributes Use of product innovation techniques The offering of ancillary services like credit availability, delivery, installation, and warranty
REVIEW LEARNING OUTCOME Orientation Focus Production Production How Howcan canwe wemake makeititcheaper?
cheaper? Sales Sales How Howcan canwe wesell sellmore moreaggressively? aggressively? Marketing Marketing What Whatdo docustomers
customers want wantand andneed? need? Societal Societal What Whatdo docustomers customerswant wantand andneed, need, and andhow howcan
canwe webenefit benefitsociety? society? Other concepts Relationship marketing Network marketing Social marketing Eco-marketing Social Marketing Defined A process for influencing human behavior on a large scale, using marketing principles for the purpose of societal benefit rather than commercial profit. (W. Smith, Academy for Educational Development) The New View of Marketing
The marketing emphasis today is on keeping existing customers as well as getting new ones Four principles guide marketing: retention: keeping them coming back referrals: encourage them to recommend us relationships: build an emotional connection recovery: solve problems as they arise Sources: Dr. Mary Wolfinbarger: Marketing principles Andrew Ching: Principles of Marketing Louise Hitchings: Principles of Marketing
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