lec 1 slides mm
TRANSCRIPT
-
8/7/2019 Lec 1 slides MM
1/154
REVISITING CORE
MARKETING CONCEPTS
THE BUILDING BLOCKS
OF MARKETING
STRATEGY
REVISITING CORE
MARKETING CONCEPTS
THE BUILDING BLOCKS
OF MARKETING
STRATEGY
-
8/7/2019 Lec 1 slides MM
2/154
Needs Necessities
Need is a state of felt deprivation
Basic & common for all human beings
Physical needs, safety needs, social needs,individual needs
Wants
Preferences
Human needs shaped by culture & personality
Needs are generic, wants vary
Demand
AWantbacked by Purchasing Power
NEEDS, WANTS, & DEMANDSNEEDS, WANTS, & DEMANDS
-
8/7/2019 Lec 1 slides MM
3/154
Combinations of products, services, information, &/ or experiences offered to a market to satisfyneeds & wants
Goods
Goods along with services
Services
Information
Ideas
Experiences
MARKET OFFERINGSMARKET OFFERINGS
-
8/7/2019 Lec 1 slides MM
4/154
Exchange A transaction where both parties agree to give the
other party something of value
Conditions Involvement of more than one party
Willing parties
Each party having something to offer
Parties must communicate
EXCHANGES & RELATIONSHIPSEXCHANGES & RELATIONSHIPS
-
8/7/2019 Lec 1 slides MM
5/154
Relationships Goes beyond attracting the customer
Goes beyond transactions
Through marketing activities, marketers wish todevelop relationships with customers
Consistently deliver value & satisfaction
Value & satisfaction are building blocks of developing& retaining customer relationships
EXCHANGES & RELATIONSHIPSEXCHANGES & RELATIONSHIPS
-
8/7/2019 Lec 1 slides MM
6/154
A set of all actual & potential buyers for a marketoffering
Actual & potential buyers for a market offering
have common needs or wants that can be satisfiedthrough the exchange relationship
MARKETSMARKETS
-
8/7/2019 Lec 1 slides MM
7/154
Marketing is a social & managerial process bywhich individuals & organizations obtain
what they need & want through creating &exchanging value with others
Marketing is the set of activities undertaken tofacilitate and generate an exchange processthat satisfies human or organizational needs
and wants
MARKETINGMARKETING
-
8/7/2019 Lec 1 slides MM
8/154
According to the AMA
Marketing is the total system of businessactivities designed to plan, price, promoteand distribute want-satisfying products to
target markets in order to achieveorganizational objectives
Both parties have to gain customers & the
organization
Organization wants long-term profitability
MARKETINGMARKETING
-
8/7/2019 Lec 1 slides MM
9/154
Hence Marketing is the management of markets tobring about profitable customer relationships
Marketing is profitably managing customerrelationships
MARKETINGMARKETING
-
8/7/2019 Lec 1 slides MM
10/154
COMPANY ORIENTATIONSTOWARDS THE MARKETPLACE
COMPANY ORIENTATIONSTOWARDS THE MARKETPLACE
-
8/7/2019 Lec 1 slides MM
11/154
We often confuse Marketing with Selling
As a function, Selling is part ofMarketing
In broad terms
Focus ofMarketing is the customer
Focus ofSelling is the product
COMPANY ORIENTATIONS TOWARDSTHE MARKETPLACE
COMPANY ORIENTATIONS TOWARDSTHE MARKETPLACE
-
8/7/2019 Lec 1 slides MM
12/154
PRESENT-DAY COMPANYORIENTATIONS TOWARD THE
MARKETPLACE
PRESENT-DAY COMPANYORIENTATIONS TOWARD THE
MARKETPLACEProduction
Concept
Marketing
Concept
Product
Concept
Selling /
Sales
Concept
-
8/7/2019 Lec 1 slides MM
13/154
Production Concept
Producing, & producing at a low cost, is important
To keep production costs low, standardization isimportant Mass Production
Variety is not desirable as it raises production cost
Production managers love standardization, opposeproduct assortment
Their aim is production efficiency
Myopic short-term view
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
-
8/7/2019 Lec 1 slides MM
14/154
-
8/7/2019 Lec 1 slides MM
15/154
Production Concept
May lead to Marketing Myopia - the mistake ofpaying more attention to products than to benefits &experiences these products bring to customers
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
-
8/7/2019 Lec 1 slides MM
16/154
Product Concept
People will buy products that have quality,performance, & innovation
Differs from Production Concept
Production-oriented managers do not favor muchproduct-related innovation
Product innovation means increase in production cost
Product-oriented managers focus on bringingcontinuous product improvement
May also lead to Marketing Myopia
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
-
8/7/2019 Lec 1 slides MM
17/154
Selling Concept
Focuses on selling & sales targets
Too much focus on selling False claims, deception
Sales targets become more important than customersatisfaction & customer retention
Sales approach focuses not on customer, but onproduct make, then sell
Did you check if this is what the consumer wants?
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
-
8/7/2019 Lec 1 slides MM
18/154
Selling Concept
Does not recognize that if companies determinewhat consumers want before going into production
They will make what sells
Rather than putting effort & money into selling whathas been made
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
-
8/7/2019 Lec 1 slides MM
19/154
Selling Concept
This approach believes that people will buy productsonly if products are aggressively sold / promoted
Does work for some products
Customers do not think of buying unless exposed toadvertising & aggressive selling
Insurance
But as a company approach, the Selling Conceptmakes marketers / sales managers myopic, short-term, & deceptive
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
-
8/7/2019 Lec 1 slides MM
20/154
Marketing Concept
Achieving organizational objectives depends ondetermining needs & wants of target markets
Determining needs & wants of target markets
Responding to those needs & wants
Delivering satisfaction better than competition
Make a product that sells
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
-
8/7/2019 Lec 1 slides MM
21/154
Most Pakistani companies have a production, atbest a sales orientation towards the marketplace
They believe the customers are there to buy theirproducts
Most common in monopolistic industries
Telecom was monopolistic when only PTCL was there
Power sector is still monopolistic
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
-
8/7/2019 Lec 1 slides MM
22/154
Change has come due to multinationals in Pakistan
Consumer orientation
Need recognition
Research and analysis
Handout # 1 15 Points Marketing Managers MustRemember to Ensure TheyAre Adhering to theMarketing Concept
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
-
8/7/2019 Lec 1 slides MM
23/154
Service sector companies follow the MarketingConceptas well
Banking
Round-the-clock banking
Internet banking
ATMs
Cellular service providers
Value added services Bill payment options
Airline, tourism, hotel industries
Superior services
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
-
8/7/2019 Lec 1 slides MM
24/154
Handout # 2 Adopters of The MarketingConcept Versus Production- or Sales-OrientedManagers
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
COMPANY ORIENTATIONS TOWARDTHE MARKETPLACE
-
8/7/2019 Lec 1 slides MM
25/154
Equally important for non-profit sector
Colleges, hospitals, societies, religiousorganizations
Face competition for support from donors
Examples
Handout # 3 SHAUKATKHANUMMEMORIALCANCER HOSPITAL & RESEARCHCENTER
(SKMC&RC)
THE MARKETING CONCEPT & NOT-FOR-PROFIT ORGANIZATIONS
THE MARKETING CONCEPT & NOT-FOR-PROFIT ORGANIZATIONS
-
8/7/2019 Lec 1 slides MM
26/154
Examples WORLD WIDE FUND FOR NATURE (WWF) formerly
known as the WORLD WILDLIFE FUND
Conservation & restoration of the environment
Works in > 90 countries
Has > 5 million supporters worldwide
Supports 1300 environment conservation &restoration projects worldwide
THE MARKETING CONCEPT & NOT-FOR-PROFIT ORGANIZATIONS
THE MARKETING CONCEPT & NOT-FOR-PROFIT ORGANIZATIONS
-
8/7/2019 Lec 1 slides MM
27/154
HOLISTIC MARKETING
CONCEPT
HOLISTIC MARKETING
CONCEPT
-
8/7/2019 Lec 1 slides MM
28/154
Handout # 4 Marketing Right andWrong
The HolisticMarketing Concept recognizes theimportance of a broad, integrated perspective
towards Marketing everything matters!! Itrecognizes that the development, design, andimplementation of marketing programs,
processes, and activities are allinterdependent
HOLISTIC MARKETINGHOLISTIC MARKETING
-
8/7/2019 Lec 1 slides MM
29/154
4 broad concepts Relationship Marketing
Integrated Marketing
Internal Marketing
Performance Marketing
HOLISTIC MARKETINGHOLISTIC MARKETING
-
8/7/2019 Lec 1 slides MM
30/154
HOLISTICMARKETINGHOLISTIC
MARKETING
INTERNAL
MARKETING
Marketing
Department
Senior
Management
Other
departments
PERFORMANCE
MARKETING
Ethics Brand &
Customer
Equity
Sales
revenue
Community
Environment
Legal
RELATIONSHIP
MARKETING
Customers Channels Partners
INTEGRATED
MARKETING
Communications
Products &
Services Channels
Prices
-
8/7/2019 Lec 1 slides MM
31/154
HOLISTIC MARKETING
CONCEPT
RELATIONSHIP MARKETING
HOLISTIC MARKETING
CONCEPT
RELATIONSHIP MARKETING
-
8/7/2019 Lec 1 slides MM
32/154
Aims to build long-term and mutually satisfyingrelationships with key constituents
Constituents
Customers
Marketing partners suppliers, distributors
Employees
Members of financial community
Investors
Lenders
Shareholders
RELATIONSHIP MARKETINGRELATIONSHIP MARKETING
-
8/7/2019 Lec 1 slides MM
33/154
Outcome ofRelationship Marketing is aMarketing Network
A company asset
Consists of company & its stakeholders
Customers
Employees
Suppliers
Distributors
Advertising agencies
Supporting Academia Investors
Others with whom company builds profitable businessrelations
RELATIONSHIP MARKETINGRELATIONSHIP MARKETING
-
8/7/2019 Lec 1 slides MM
34/154
The 1st
constituent the Customer CustomerRelationship Marketing
Companies today customize their marketing offers
to suit the wants of different target markets Based on information about past transactions,demographics, media & distribution preferences
RELATIONSHIP MARKETINGRELATIONSHIP MARKETING
-
8/7/2019 Lec 1 slides MM
35/154
CustomerRelationship Marketing (CRM) aims tobuild long-term and mutually satisfyingrelationships with customers
CustomerRelationship Management (CRM) is theoverall process of building and maintainingprofitable customer relationships bydelivering superior customer value &
satisfaction
RELATIONSHIP MARKETINGRELATIONSHIP MARKETING
-
8/7/2019 Lec 1 slides MM
36/154
Keys to building long-term relationship withcustomers
Value: consistently creating & delivering superiorcustomer value
Customer satisfaction
RELATIONSHIP MARKETINGRELATIONSHIP MARKETING
-
8/7/2019 Lec 1 slides MM
37/154
Value customer must perceive the product /brand to give value as compared to the rest
In a market with several brands, the consumerchooses the brand that he thinks gives him the mostvalue
Value is perceived in terms of
What benefits the brand gives the consumers
How much better they are than the benefits offered bycompetitors
; Walking shoes comfort, durability
; Electronic appliances performance consistency,reliability, safety
CUSTOMER RELATIONSHIP MARKETINGCUSTOMER RELATIONSHIP MARKETING
-
8/7/2019 Lec 1 slides MM
38/154
Value Value is also perceived in terms of
How much more, in quantity, a brand gives him ascompared to the competing brand
Customer PerceivedValue (CPV)
The customers evaluation of the differencebetween all the benefits and all the costs of
a marketing offer relative to those ofcompeting offers
Consumers evaluation of brand value is based onperception rather than on objectivity
CUSTOMER RELATIONSHIP MARKETINGCUSTOMER RELATIONSHIP MARKETING
-
8/7/2019 Lec 1 slides MM
39/154
Customer Satisfaction
The extent to which a products perceivedperformance matches a buyers expectations
Product performance < customer expectations
DISSATISFACTION
Product performance = customer expectations
SATISFACTION
Product performance > customer expectations
DELIGHT
CUSTOMER RELATIONSHIP MARKETINGCUSTOMER RELATIONSHIP MARKETING
-
8/7/2019 Lec 1 slides MM
40/154
Customer Satisfaction Aim is to delight the customer
Examples of companies striving to create high levelsof customer satisfaction
FrequencyMarketing Programs programsdesigned to generate brand loyalty & cultivate a long-lasting relationship with customers
; Rewards ongoing purchase
; Airlines: frequent flyer programs
; Hotels: frequent guests
CUSTOMER RELATIONSHIP MARKETINGCUSTOMER RELATIONSHIP MARKETING
-
8/7/2019 Lec 1 slides MM
41/154
Customer Satisfaction Examples of companies striving to create high levels
of customer satisfaction
Club Marketing Programs special privileges aregiven to customers; member communities are created
; MOBILINKS CLUB INDIGO dedicated CorporateAccount Managers, exclusive event invitations
Delightedcustomers become BrandLoyalCustomers
ConsumerLoyaltyis the ultimate aim of marketers
CUSTOMER RELATIONSHIP MARKETINGCUSTOMER RELATIONSHIP MARKETING
-
8/7/2019 Lec 1 slides MM
42/154
Customer Satisfaction Loyal customers
Patronize the company permanently
Become brand ambassadors
Spread positive WOM
Consumer-GeneratedMarketing
Includes marketing messages, ads, & other brand
exchanges created by consumers themselves bothinvited & uninvited
CUSTOMER RELATIONSHIP MARKETINGCUSTOMER RELATIONSHIP MARKETING
-
8/7/2019 Lec 1 slides MM
43/154
Customer Satisfaction Consumer-GeneratedMarketing
Consumers share information about brands via blogs,social networks, audio, video, & web sites
DIET COKE & MENTOS Video Links 1 & 2
Companies want consumers to play active role inshaping brand messages & ads
Companies like COCA-COLA take consumer-generatedcontent from YouTube & make it a part of theiradvertisements
CUSTOMER RELATIONSHIP MARKETINGCUSTOMER RELATIONSHIP MARKETING
-
8/7/2019 Lec 1 slides MM
44/154
CustomerRelationship Management (CRM) Deals with all aspects of acquiring, retaining, &
growing customers
Marketers work hard to retain their customers
Research shows it costs 5 times as much to get anew customer than to retain an existing one
Retention of customers as well as profitability Organizational objectives have to be met
Marketing aims to generate CustomerValue
profitably
CUSTOMER RELATIONSHIP MARKETINGCUSTOMER RELATIONSHIP MARKETING
-
8/7/2019 Lec 1 slides MM
45/154
Build long-term profitable relationships withmarketing partners
PartnerRelationship Marketing (PRM)will bediscussed later
PARTNER RELATIONSHIP MARKETINGPARTNER RELATIONSHIP MARKETING
-
8/7/2019 Lec 1 slides MM
46/154
HOLISTIC MARKETING
CONCEPT
INTEGRATED MARKETING
HOLISTIC MARKETING
CONCEPT
INTEGRATED MARKETING
-
8/7/2019 Lec 1 slides MM
47/154
Marketers job is to Create value
Communicate value
Deliver value
Marketing activities are divided into 4 Ps identified by McCarthy
Product
Price
Place
Promotion
Known as the Marketing Mix
INTEGRATED MARKETINGINTEGRATED MARKETING
-
8/7/2019 Lec 1 slides MM
48/154
Product defines the characteristics of the goods/ services that will satisfy the customers needs
INTEGRATED MARKETINGINTEGRATED MARKETING
Quality
Features
Packaging
Services
Returns
Product variety
Design
Brand name
Sizes
Warranties
-
8/7/2019 Lec 1 slides MM
49/154
Price amount a company charges for the goods /services
INTEGRATED MARKETINGINTEGRATED MARKETING
Discounts
Payment methods
List price
Allowances
Payment periods
-
8/7/2019 Lec 1 slides MM
50/154
Place the route or channel of distribution.Includes all the firms / individuals that participatein the process of getting the market offerings fromthe producer to the consumer
INTEGRATED MARKETINGINTEGRATED MARKETING
Coverage
Locations
Transport
Channels
Assortments
Inventory
Logistics
-
8/7/2019 Lec 1 slides MM
51/154
Promotion the means of communicating withthe target market
INTEGRATED MARKETINGINTEGRATED MARKETING
Sales Promotion
Personal Selling
Advertising
PR & Publicity
Direct Marketing
-
8/7/2019 Lec 1 slides MM
52/154
INTEGRATED MARKETINGINTEGRATED MARKETING
Some people believe Marketing has
7Ps
People
Process
Physical Evidence
Marketers
Customize their offerings for groups of targetcustomers
Inform customers about offerings
Set prices that will give value to customers
Choose places where the offerings will be available
-
8/7/2019 Lec 1 slides MM
53/154
INTEGRATED MARKETINGINTEGRATED MARKETING
The
4Cs of Marketing
4 Ps is the companys view of marketing toolsavailable for influencing customers
Look at it from customers point of view
Each marketing tool is designed to give some benefit tocustomer
The 4 Cs model is based on the 4 Ps model but
looks at marketing tools from the customers angle
-
8/7/2019 Lec 1 slides MM
54/154
INTEGRATED MARKETINGINTEGRATED MARKETING
Different definitions of the 4 Cs
Customer
Cost
Communication
Competition
Customer Solution
Customer Cost
Convenience
Communication Source
Product = Customer Solution
Price = Customer Cost
Place = Convenience Promotion = Communication
Some experts add a 5th C - Customer
-
8/7/2019 Lec 1 slides MM
55/154
-
8/7/2019 Lec 1 slides MM
56/154
INTEGRATED MARKETINGINTEGRATED MARKETING
Marketing has to create, communicate, & delivervalue
IntegratedMarketing has 2 underlying themes
Many different marketing activities communicate &deliver value
When coordinated, marketing activities maximizetheir joint effect / impact
When the 4 Ps are coordinated, they complementeach other
Their combined impact is what creates,communicates, and delivers value in the best waypossible
-
8/7/2019 Lec 1 slides MM
57/154
-
8/7/2019 Lec 1 slides MM
58/154
INTERNAL MARKETINGINTERNAL MARKETING
Often, departments in an organization work inisolation divergent goals
Production managers focus on production efficiency
Marketing managers desire product variety,innovation
Finance managers want maximum ROI
HR managers are concerned with HR budgets, headcounts
HolisticMarketing opposes isolated thinking itdemands InternalMarketing
Departments work in coordination
Customer satisfaction becomes the driving force for
everyone
-
8/7/2019 Lec 1 slides MM
59/154
INTERNAL MARKETINGINTERNAL MARKETING
Coordination No room for isolated goals
Synergy can only be created if all sub-systems of aSystem work together the Systems Theory
Views an organization as a System
Each department or functional area as a component /sub-system
All components of a System are linked together, & tothe environment
All components have to work in coordination
The whole is greater than the sum of the parts =Synergy
-
8/7/2019 Lec 1 slides MM
60/154
INTERNAL MARKETINGINTERNAL MARKETING
Everyonethinks customer
Customer satisfaction should be the goal of everydepartment
Marketing is no longer only the job of the Marketingdepartment
This thinking has to start from top management Integrated goals
All departmental goals guided by customer value &satisfaction
No isolated goals no clash of interests
The company then becomes a Marketing Company
-
8/7/2019 Lec 1 slides MM
61/154
INTERNAL MARKETINGINTERNAL MARKETING
InternalMarketing requires Vertical alignment with top management
Horizontal alignment with other departments
Handout # 5 AMarketing Company
-
8/7/2019 Lec 1 slides MM
62/154
HOLISTIC MARKETING
CONCEPT
PERFORMANCE MARKETING
HOLISTIC MARKETING
CONCEPT
PERFORMANCE MARKETING
-
8/7/2019 Lec 1 slides MM
63/154
PERFORMANCE MARKETINGPERFORMANCE MARKETING
HolisticMarketing recognizes Not only financial returns to company from
marketing activities
But also importance of broader legal, ethical, social,& environmental effects
In addition to financial accountability, marketershave to justify impacts of their activities on society& environment
Concept ofSocietalMarketing
-
8/7/2019 Lec 1 slides MM
64/154
SOCIETAL MARKETINGSOCIETAL MARKETING
SocietalMarketing has happened in response totwo major forces
Consumerism
Environmentalism
CONSUMERISMCONSUMERISM
-
8/7/2019 Lec 1 slides MM
65/154
CONSUMERISMCONSUMERISM
Industrialization gave rise to several workforce-related problems & thus criticism
Low minimum wages
Unsafe / unhealthy working conditions
Child labor
Criticism also included marketing & productionactivities
Automobile manufacturers (environment)
Oil exploration & marketing (health &
environment) Sugar mills (waste disposal issues)
Cigarette industry (health)
Plastic industry (health & environment)
CONSUMERISMCONSUMERISM
-
8/7/2019 Lec 1 slides MM
66/154
CONSUMERISMCONSUMERISM
Criticism also included marketing & productionactivities
Planned Obsolescence firms deliberately makeproducts that do not last long
Burden on natural resources
Financial burden on consumer
Examples: disposable razors, disposable lighters Proponents ofPlanned Obsolescence argue that
it gives consumers flexibility, convenience, &savings
CONSUMERISMCONSUMERISM
-
8/7/2019 Lec 1 slides MM
67/154
CONSUMERISMCONSUMERISM
Criticism affected company image & ultimatelysales
Todays public is conscious & aware rebelsagainst firms that
Make unsafe, polluting, or hazardous products
Purposefully mislead consumers
Offer restricted choice of alternatives
CONSUMERISMCONSUMERISM
-
8/7/2019 Lec 1 slides MM
68/154
CONSUMERISMCONSUMERISM
The force of the Consumer - Consumerism
The set of activities undertaken by individuals,independent organizations, government
agencies and business organizationsdesigned to protect the consumer from
unethical marketing practices andconditions
CONSUMERISMCONSUMERISM
-
8/7/2019 Lec 1 slides MM
69/154
CONSUMERISMCONSUMERISM
Purpose ofConsumerism is to ensure consumerrights in the process of exchange
The right to be informed
The right to be told the truth
The right to be given sufficient number ofalternatives
The right to be assured of safety in the process of
consumption
CONSUMERISMCONSUMERISM
-
8/7/2019 Lec 1 slides MM
70/154
CONSUMERISMCONSUMERISM
Three types of organizations make up theconsumer movement
Consumer action groups
Concerned with increasing consumer awareness
Making them more informed
Giving them the option to act better
CONSUMERISMCONSUMERISM
-
8/7/2019 Lec 1 slides MM
71/154
CONSUMERISMCONSUMERISM
Three types of organizations make up theconsumer movement
Government agencies protecting consumer rightsthrough laws & legislation Handout #6
Deceptive advertising FederalTradeCommission (FTC)
Advertising to children Federal CommunicationsCommission (FCC)
Product safety standards to protect consumers from
risk or injury Consumer Product SafetyCommission (CPSC)
Warning labels on hazardous products / packaging
CONSUMERISMCONSUMERISM
-
8/7/2019 Lec 1 slides MM
72/154
CONSUMERISMCONSUMERISM
Three types of organizations make up theconsumer movement
Government agencies
Ingredients / nutritional information on foodproducts Food & Drug Administration (FDA)
Monopolistic practices - FTC
Environmental protection EPA
CONSUMERISMCONSUMERISM
-
8/7/2019 Lec 1 slides MM
73/154
CONSUMERISMCONSUMERISM
Three types of organizations make up theconsumer movement
Business organizations reactive or proactive
Reactive companies change practices to conform tothe law & imposed regulation
Proactive approach: self-regulation as a matter ofethics
Most companies act proactively only because theyknow this will become regulation soon enough, due
to Consumerism
ENVIRONMENTALISMENVIRONMENTALISM
-
8/7/2019 Lec 1 slides MM
74/154
ENVIRONMENTALISMENVIRONMENTALISM
Strives to ensure that company operations do notharm the environment
Environmentalism is an organized movement ofconcerned citizens, businesses, andgovernment agencies to protect and
improve peoples current and future livingenvironment
Environmentalists want companies to care for the
environment while going about their business
Today companies follow a policy ofEnvironmental Sustainability
ENVIRONMENTALISMENVIRONMENTALISM
-
8/7/2019 Lec 1 slides MM
75/154
ENVIRONMENTALISMENVIRONMENTALISM
Environmental Sustainability is a managementapproach that involves developing
strategies that both sustain theenvironment & produce profits for the
company
Policies ofEnvironmental Sustainability&Social Sustainabilitymake business sense
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
-
8/7/2019 Lec 1 slides MM
76/154
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
In response to Consumerism &
Environmentalism, companies have adoptedthe SocietalMarketing Concept
ConsumersWant Satisfaction
THE SOCIETAL
MARKETING
CONCEPT
CompanyProfits / Revenue
SocietyHuman Welfare
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
-
8/7/2019 Lec 1 slides MM
77/154
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
Who all are included in Society??
Consumers Buyers and / or users of companys products
Community
Everyone affected by companys operations
Everyone that is affected, is a customer, & thecompany is responsible to them
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
-
8/7/2019 Lec 1 slides MM
78/154
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
Several products / industries that negativelyaffect environment & human health
Cigarette manufacturing companies
Waste disposal of several production processes
Manufacturing of paper products
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
-
8/7/2019 Lec 1 slides MM
79/154
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
Two important concepts
Companies must think of everyone affected bythem as their customers suppliers, distributors,
creditors, community members, etc.
Companies must focus on long-term interests
rather than short-term interests of customers
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
-
8/7/2019 Lec 1 slides MM
80/154
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
Levels of Social Responsibility
Economic responsibility
Legal responsibility
Ethicalresponsibility
Discretionary
responsibility
Total Corporate SocialResponsibility
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
-
8/7/2019 Lec 1 slides MM
81/154
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
Levels of Social Responsibility
Economic Responsibility Company should sell products at profit for company
owners
Organizations should not undertake economically
unfeasible social actions
ProfitMaximizing View Maximizing profits is acompanys only social responsibility
; Non-economic activities take funds away from
company owners & stockholders; Also distract managers from their primary duty
This concept is not acceptable to society any more
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
-
8/7/2019 Lec 1 slides MM
82/154
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
Levels of Social Responsibility
Legal Responsibility Company should stay within the boundaries of the
law
Economic activities must be undertaken lawfully
Ethical Responsibility
Managers often have to choose between alternatives
; None of them are illegal
; But not all of them are ethical
What is right?in contrast to what is legal?
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
-
8/7/2019 Lec 1 slides MM
83/154
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
Levels of Social Responsibility
Discretionary Responsibility Voluntary
Companys own discretion
Companies may want to make social contributionsover & above what is required by law & what isethical
; Donations to hospitals
; Building schools for the orphans
Such behavior is demanded by society today Corporate SocialResponsibility (CSR) is a mustfor companies to win goodwill
-
8/7/2019 Lec 1 slides MM
84/154
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
-
8/7/2019 Lec 1 slides MM
85/154
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
Examples
PROCTER & GAMBLE&UNILEVER opening schools,providing safe drinking water
JOHNSON& JOHNSON shifting from plastic bottlesto safe non-polycarbonate containers
Handout # 7 Socially Responsible MarketingPractices Toward Various Sections of Society
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
-
8/7/2019 Lec 1 slides MM
86/154
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
Why the SocietalMarketing Conceptmakes
business sense Until 1960s, natural resources were seen as
abundant
Companies realize that resources are depleting
According to B
US
INESS
WEEK
Out of the worlds natural resources that arebeing used annually, 70% are being used by25% of the people in industrialized nations
Serving people beyond the definition of actualconsumers does bring monetary & intangiblebenefits to companies
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
-
8/7/2019 Lec 1 slides MM
87/154
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
Methods of institutionalizing social responsibility
Advocacy
Philanthropy
Cause-RelatedMarketing
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
-
8/7/2019 Lec 1 slides MM
88/154
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
Advocacy
When an organization adopts a cause tosupport and throws its financial, material,
and managerial resources behind the cause
Support of an organization to cultural activities,like a cultural festival
Support of an organization to an activity likeThe WorldHandwashing Day
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
-
8/7/2019 Lec 1 slides MM
89/154
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
Philanthropy
The donation of money, time, goods, or servicesto charitable, humanitarian, or educational
institutions
Corporate sector engages in corporatephilanthropy
Donations to schools, hospitals, NGOs
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
-
8/7/2019 Lec 1 slides MM
90/154
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
Cause-RelatedMarketing (CRM) or Cause
Marketing
An activity in which the company contributes aspecified amount to a designated cause
when customers buy the companysproducts
CRM refers to the cooperative efforts of a for-
profit business and a non-profitorganization for mutual benefit
-
8/7/2019 Lec 1 slides MM
91/154
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
-
8/7/2019 Lec 1 slides MM
92/154
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
Cause Marketing
Part ofCorporate SocialMarketing
Corporate SocialMarketing (CSM) refers tomarketing efforts that have at least one non-
economic objective related to social welfare& use the resources of the company & / or of
its partners
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
-
8/7/2019 Lec 1 slides MM
93/154
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
Cause Marketing
Khwabon Se Aageycampaign by PROCTER &GAMBLEin partnership with PAKISTANMEDICALASSOCIATION
Aimed to save lives of new-born babies
Provided life-saving equipment to hospitals acrossPakistan
Ran from Dec 2007 Mar 2008
Portion ofP&G sales proceeds was donated toprovide life-saving equipment
Training programs for doctors & hospital staff
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
-
8/7/2019 Lec 1 slides MM
94/154
THE SOCIETAL MARKETING CONCEPTTHE SOCIETAL MARKETING CONCEPT
Cause Marketing
A successful CRM program can
Improve social welfare
Create a differentiated positioning for the brand /company
Build a favorable public image
Enhance company image with govt. & decision-
making, grant-giving agencies
Boost employee morale
Drive sales in the long run improve market value
-
8/7/2019 Lec 1 slides MM
95/154
ETHICS IN MARKETINGETHICS IN MARKETING
-
8/7/2019 Lec 1 slides MM
96/154
ETHICSETHICS
-
8/7/2019 Lec 1 slides MM
97/154
ETHICSETHICS
Ethics is the code of moral principles and values
that governs the behaviors of a person orgroup with respect to what is right or wrong
ManagerialEthics is the practice of decision
making in an organization in the context ofrules of conduct or moral standards
Ethical Behavior refers to individual conduct
that is consideredright orwrong in thecontext of a governing moral code
ETHICSETHICS
-
8/7/2019 Lec 1 slides MM
98/154
ETHICSETHICS
Ethical behavior conforms to the law
Also conforms to a broader set of moral principlesexpected by all or some segments of society
Managers are often faced with EthicalDilemmas
An EthicalDilemma is an issue that has two
conflicting but arguably valid sides
ETHICSETHICS
-
8/7/2019 Lec 1 slides MM
99/154
ETHICSETHICS
EthicalDilemmas
Should tobacco companies be allowed to advertise,or at all be in business?
Companies can do business more effectively if they
collect information about customers / clients Companies have the right to conduct business
Consumers have the right to privacy
If companies pursue consumers for information,consumers privacy might be invaded
Whose rights are more important?
ETHICSETHICS
-
8/7/2019 Lec 1 slides MM
100/154
ETHICSETHICS
EthicalDilemmas
Is it right for companies to get information aboutcompetitors?
Salesmen must sell the products they are given to
sell Should they tell customers about any harmful
effects or defects?
Or should they aim to just sell?
ETHICSETHICS
-
8/7/2019 Lec 1 slides MM
101/154
ETHICSETHICS
EthicalDilemmas
Drugs / products whose sale is disallowed in onecountry
Should they be sold in other countries where thereis no law against their use?
Every individual has the right to keep himself & hisfamily safe
Should individuals be allowed to keep weapons withthem?
ETHICSETHICS
-
8/7/2019 Lec 1 slides MM
102/154
ETHICSETHICS
Unethical behavior allegations on Marketing
Misleading advertising
Products wear out quickly PlannedObsolescence
Materialism Marketing encourages people to bematerialistic, even compulsive
Advertising forms unrealistic expectations
Encourages managers to be unethical
ETHICSETHICS
-
8/7/2019 Lec 1 slides MM
103/154
ETHICSETHICS
Unethical behavior allegations on Marketing
Lures in customers manipulative techniques
Pollution of environment
Depletion of natural resources
-
8/7/2019 Lec 1 slides MM
104/154
ETHICSETHICS
-
8/7/2019 Lec 1 slides MM
105/154
ETHICSETHICS
Unethical behavior allegations on Marketing
Promotes Injurious Consumption
Unhealthy foods & drinks are marketed as trendy,fun, cool consumables
Cigarettes & alcohol
Gambling Las Vegas is the city of gambling
Every year 10 million Americans suffer financiallosses from their addiction to gambling There are
currently 10 million alcoholics & 80 millioncigarette smokers in the US Every year 25,000people die as a result of alcohol related trafficaccidents All of these behaviors result from
consumption gone wrong
CODE OF ETHICSCODE OF ETHICS
-
8/7/2019 Lec 1 slides MM
106/154
CODE OF ETHICSCODE OF ETHICS
Companies strive to instill ethical conduct among
employees - create an organizational culture thatvalues ethics
Approaches
Commitment from the top management
Standards &Codes of Ethics
Ethical Standards are the guidelines of moralconduct in a given profession or group
Code ofEthics a formal statement of theorganizations values, ethical principles, &
specific ethical rules
CODE OF ETHICSCODE OF ETHICS
-
8/7/2019 Lec 1 slides MM
107/154
CODE OF ETHICSCODE OF ETHICS
Approaches
Standards &Codes of Ethics Handout 8 Code of Ethics of TOYOTA
Training
During orientation of new employees
In-depth training on ethical decision-making forsenior executives
Ombudsmanship
An informal review process that provides anindirect, non-threatening means of obtaininga response from senior management about
an ethical conflict
CODE OF ETHICSCODE OF ETHICS
-
8/7/2019 Lec 1 slides MM
108/154
CO O CSCO O CS
Approaches
Ombudsmanship
An Ethical Ombudsman is an official of theorganization given the responsibility to act as
the corporate conscience. He hears andinvestigates ethics complaints and points outpotential ethical failures by top management
Trusted intermediary between organization & some
constituency
Appointed by the organization or constituency
May investigate complaints, recommend solutions,
point out potential ethical dilemmas
CODE OF ETHICSCODE OF ETHICS
-
8/7/2019 Lec 1 slides MM
109/154
Approaches
Ethics committees & ethical audits
Ethics Committees are standing committees ofthe board of directors assigned the job of
overseeing the ethical aspects of thecompanys policies & practices
-
8/7/2019 Lec 1 slides MM
110/154
SOCIAL MARKETINGSOCIAL MARKETING
SOCIAL MARKETINGSOCIAL MARKETING
-
8/7/2019 Lec 1 slides MM
111/154
Term used for marketing efforts employed to
further a cause
The application of marketing tools & techniquesto achieve specific behavioral goals for a
social good
Applied to promote products good for society
Convincing people to wear seatbelts while traveling
Follow speed limits
Applied to discourage use of products bad forsociety
Asking people not to smoke in public areas
SOCIAL MARKETINGSOCIAL MARKETING
-
8/7/2019 Lec 1 slides MM
112/154
SocietalMarketing
A commercial company earns profits while showingconcern for society & environment
Looks after long-term interests of consumers
Cause Marketing A commercial company supports a good, social
cause
SocialMarketing
Marketing of a good cause by NGOs, the Govt,societies, associations, etc.
Primary aim is social good as opposed tocommercial marketing whose aim is mainly
financial
SOCIAL MARKETINGSOCIAL MARKETING
-
8/7/2019 Lec 1 slides MM
113/154
Is described as having two parents
A social parent: social sciences & social policy A commercial parent: commercial & public sector
marketing approaches
Was born as a discipline in the 1970s Philip Kotler&Gerald Zaltman* realized that
marketing principles used to sell products toconsumers can be used to sell ideas, attitudes &behaviors
* Zaltman: a professor of Business Administration at theHARVARD BUSINESS SCHOOL
SOCIAL MARKETINGSOCIAL MARKETING
-
8/7/2019 Lec 1 slides MM
114/154
Defined by Kotler&Alan R. Andreasen*
SocialMarketing differs from other areas ofmarketing only with respect to the
objectives of the marketer & his
organization. SocialMarketing seeks toinfluence social behaviors not to benefit themarketer, but to benefit the target audience
& the general society
* Professor of Marketing at the MCDONOUGH SCHOOL OFBUSINESSofGEORGETOWNUNIVERSITYand ExecutiveDirector of the SOCIALMARKETING INSTITUTE
SOCIAL MARKETINGSOCIAL MARKETING
-
8/7/2019 Lec 1 slides MM
115/154
Used extensively in international health programs
Drug abuse Heart diseases
AIDS
Pakistan MINISTRYOFHEALTH campaigns Expanded Program on Immunization (EPI)
National Aids Control Program
National Tuberculosis Control Program
National Program for Prevention &Control ofHepatitis
National Program for Family Planning & PrimaryHealth Care
SOCIAL MARKETINGSOCIAL MARKETING
-
8/7/2019 Lec 1 slides MM
116/154
In-depth research & constant re-evaluation of
every aspect of the program form thecornerstone of a SocialMarketing program
Drug abuse
Heart diseases
AIDS
The Ps ofSocialMarketing
Product
Price Place
Promotion
Publics
Partnership Policy
Purse Strings
-
8/7/2019 Lec 1 slides MM
117/154
SOCIAL MARKETINGSOCIAL MARKETING
-
8/7/2019 Lec 1 slides MM
118/154
Price: refers to what the consumer must do in
order to obtain the product Cost may be monetary
Or might require the consumer to
Give time & effort Risk embarrassment or disapproval from different
quarters
If costs outweigh benefits, CPV of the offering will
be low; it will not be adopted
-
8/7/2019 Lec 1 slides MM
119/154
SOCIAL MARKETINGSOCIAL MARKETING
-
8/7/2019 Lec 1 slides MM
120/154
Price
Role of research Determine consumer perceptions of cost & benefits
Use information to position the offering
-
8/7/2019 Lec 1 slides MM
121/154
SOCIAL MARKETINGSOCIAL MARKETING
-
8/7/2019 Lec 1 slides MM
122/154
Promotion
Integrated use of advertising, PR, promotions,media advocacy, personal selling, & entertainmentvehicles
Focus is on creating & sustaining demand for theproduct
Methods of promotion include
Public service announcements
Paid ads Coupons
Media events
Editorials In-store displays
SOCIAL MARKETINGSOCIAL MARKETING
-
8/7/2019 Lec 1 slides MM
123/154
Promotion
Role of research Determine most effective & efficient vehicles to
reach target audience & to increase demand
Publics Social Marketing programs have to addressdifferent audiences
External publics
Target audience
Secondary audiences
Policy makers
Gatekeepers
SOCIAL MARKETINGSOCIAL MARKETING
-
8/7/2019 Lec 1 slides MM
124/154
Publics
Internal publics People involved with approval or implementation of
the program
Partnerships Organizations in the community have to team upto make a SocialMarketing program effective
Figure out which organizations have similar goals asthe firm carrying out the program not necessarily
the same goals Identify how they can work together
SOCIAL MARKETINGSOCIAL MARKETING
-
8/7/2019 Lec 1 slides MM
125/154
Policy
Individual behavior can easily be motivatedthrough such programs
But such programs need support from theirenvironment in order to be sustainable
Policy change is often needed
SOCIAL MARKETINGSOCIAL MARKETING
-
8/7/2019 Lec 1 slides MM
126/154
Purse Strings
Funds from government & foundations are needed
Where to get the money to create the program?
Example: a Marketing Mix strategy for a cancerscreening campaign for older men & women
Product: could be
Getting annual tests & checkups
Following a self-examination routine
Following a dietary routine
SOCIAL MARKETINGSOCIAL MARKETING
-
8/7/2019 Lec 1 slides MM
127/154
Example: a Marketing Mix strategy for a cancer
screening campaign for older men & women Price of engaging in these could include
Monetary costs of tests
Potential discomfort, inconvenience, orembarrassment
Time
Finding out one has the disease
Place where these services are offered could
include A mobile van
Hospitals
Clinics
Worksites
SOCIAL MARKETINGSOCIAL MARKETING
-
8/7/2019 Lec 1 slides MM
128/154
Example: a Marketing Mix strategy for a cancer
screening campaign for older men & women Promotion could be done through
Public service announcements
Billboards
Mass mailings
Media events
Community outreach
Publics that need to be addressed
Target audience low income men & women aged50 yrs & above
Influencers spouses, physicians
Policy makers
Company BOD & office staff
SOCIAL MARKETINGSOCIAL MARKETING
-
8/7/2019 Lec 1 slides MM
129/154
Example: a Marketing Mix strategy for a cancer
screening campaign for older men & women Partnerships could be established with
Local / national groups of people of that age-group
Corporate sponsors
Medical organizations
Media outlets
Policycould focus on
Increasing access to testing & examination by
offering them at lower costs Requiring insurance coverage of tests
Increasing federal funding for cancer research
-
8/7/2019 Lec 1 slides MM
130/154
-
8/7/2019 Lec 1 slides MM
131/154
MACRO & MICRO MARKETINGMACRO & MICRO MARKETING
MACRO MARKETINGMACRO MARKETING
-
8/7/2019 Lec 1 slides MM
132/154
A company and its products are part of a muchbigger Macro-Marketing System
An economy needs thousands of products, services& companies to satisfy people
Food products
Housing/construction
Home appliances
Automobiles
Electronics
Insurance
Banking
Airline
Defense products, and so on
MACRO MARKETINGMACRO MARKETING
-
8/7/2019 Lec 1 slides MM
133/154
Macro-Marketing System is part of an overallEconomic System
An Economic System is one in which goods andservices are produced & distributed for
consumption of people, in order to satisfy the
needs of the society
Types ofEconomic Systems
PlannedEconomies
Market-Driven Economies
MACRO MARKETINGMACRO MARKETING
l d i
-
8/7/2019 Lec 1 slides MM
134/154
PlannedEconomic Systems
The Government decides:
What will be produced, & in what quantity
Who will distribute it, & where
Govt sets production quotas for industries
Govt sets prices of products
Its most extensive form is called a Command
Economy, or Centrally PlannedEconomy, orCommand & ControlEconomy
The state controls all major sectors of the economy
Makes decisions about their use
Makes decisions about income distribution
MACRO MARKETINGMACRO MARKETING
Pl d i S
-
8/7/2019 Lec 1 slides MM
135/154
PlannedEconomic Systems
Consist of:
State-owned enterprises
Private enterprises directed by the state
Or both
According to some experts An economy in which the means of production are
totally publicly owned is a CommandEconomy
An economy which also has private enterprises & he
govt regulates production, distribution, prices, etc. is aPlannedEconomy
So a CommandEconomyis a PlannedEconomy,but not necessarily the reverse
MACRO MARKETINGMACRO MARKETING
Pl d E i S t
-
8/7/2019 Lec 1 slides MM
136/154
PlannedEconomic Systems
Other experts argue that both terms mean the samething
A Planned Economic System usually works duringwar, drought, floods, political instability
Does not work long-term
Planned Economic Systems of the past
Soviet Union for a time it was the 2nd largesteconomy in the world
China
India prior to economic reforms of 1991
Afghanistan under Soviet occupation & under Taliban
Iraq under Saddam Hussein (1979-2003)
-
8/7/2019 Lec 1 slides MM
137/154
MACRO MARKETINGMACRO MARKETING
M k t D i F E i S t
-
8/7/2019 Lec 1 slides MM
138/154
Market-Driven or Free Economic Systems
Economic decisions & pricing of goods & servicesare guided solely by the aggregate
interactions of a countrys citizens &businesses, & there is little government
intervention or central planning
Work on the assumption that market forces likesupply / demand are best determinants of what
should sell
MACRO MARKETINGMACRO MARKETING
M k t D i F E i S t
-
8/7/2019 Lec 1 slides MM
139/154
Market-Driven or Free Economic Systems
Private owners ofFactors of Production makedecisions about production, pricing, distribution, &investment
Factors of Production are the inputs / resources
used to produce goods & services
Factors of Production include:
Raw material
Land
Labor
Capital
MACRO MARKETINGMACRO MARKETING
M k t D i F E i S t
-
8/7/2019 Lec 1 slides MM
140/154
Market-Driven or Free Economic System
Forces of supply & demand determine
Goods & services to be produced
Quantity to be produced
Customers have freedom of choice
Downside
Many harmful products are produced
MACRO MARKETINGMACRO MARKETING
Mix of Controlled & Market Driven Economic
-
8/7/2019 Lec 1 slides MM
141/154
Mix ofControlled&Market-Driven EconomicSystems
Most economies are a mix of the two
Or less extensive forms of planned economy usingIndicative Planning
Government uses influence, subsidies, grants, & taxes But does not compel
Role ofGovernment
Facilitate free market practices
Check monopolistic practices
Encourage foreign investment
Lay down regulation to protect consumers as well asproducers
-
8/7/2019 Lec 1 slides MM
142/154
ADVANTAGES OF MACRO MARKETINGADVANTAGES OF MACRO MARKETING
Essential for the operation of an Economic System
-
8/7/2019 Lec 1 slides MM
143/154
Essential for the operation of an Economic System
Important for economic development
Greater realization & better implementation of theMarketing Concept leads to more economicdevelopment, e.g.
Better availability of newer products Imported products
Better services
Standard of living is enhanced
ADVANTAGES OF MACRO MARKETINGADVANTAGES OF MACRO MARKETING
Gives consumers in a given market the freedom of
-
8/7/2019 Lec 1 slides MM
144/154
Gives consumers in a given market the freedom ofchoice
Encourages healthy competition more choices better prices better quality
Encourages new ideas & innovation
Establishes a macro-system
Mass production - economies of scale
Mass communication
Mass transportation
Cross-country & cross-continental networks
International trade is enhanced - globalization
ADVANTAGES OF MICRO-MARKETINGADVANTAGES OF MICRO-MARKETING
Revenues & profits from companies
-
8/7/2019 Lec 1 slides MM
145/154
Revenues & profits from companies
Marketing is the only activity generating revenuedirectly
Links producers with consumers
Gets products to consumers at the right time, right
place, right price
Applicable to all types of companies
-
8/7/2019 Lec 1 slides MM
146/154
-
8/7/2019 Lec 1 slides MM
147/154
ADVANTAGES OF MICRO-MARKETINGADVANTAGES OF MICRO-MARKETING
Types of Utility
-
8/7/2019 Lec 1 slides MM
148/154
Types ofUtility
Ownership Utility: Created when the customerowns the product
Which comes first??
Possession Utilitymay be created before
Ownership Utility; Car financing
Ownership Utilitymay be created beforePossession Utility
; Making full advance payment for a product beforegetting possession
Possession Utilitymay be created but noOwnership Utility
;Renting a car
ADVANTAGES OF MICRO-MARKETINGADVANTAGES OF MICRO-MARKETING
Advantages to a person
-
8/7/2019 Lec 1 slides MM
149/154
Advantages to a person
Information & awareness
Choices
More responsible consumers
Career options
-
8/7/2019 Lec 1 slides MM
150/154
THE OVERALL PROCESS
PUTTING THE PIECESTOGETHER
THE OVERALL PROCESS
PUTTING THE PIECESTOGETHER
THE OVERALL PROCESSTHE OVERALL PROCESS
-
8/7/2019 Lec 1 slides MM
151/154
Marketing is the process by which companiescreate value for customers and build strongcustomer relationships in order to capture
value from customers in return
-
8/7/2019 Lec 1 slides MM
152/154
Understand themarketplace &customer needs &wants
Design a customer-driven marketingstrategy
Construct anintegrated marketingprogram thatdelivers superiorvalue
Build profitable
relationships &create customerdelight
Capture value from
customers to createprofits & customerequity
THE OVERALL PROCESSTHE OVERALL PROCESS
Handout # 10 An Expanded View of the
-
8/7/2019 Lec 1 slides MM
153/154
Handout # 10 An Expanded View of theMarketing Process
Market Segmentation & Targeting
Identify target segment(s)
Decide on target market approach(es)
Market
Analysis
-
8/7/2019 Lec 1 slides MM
154/154
Product Positioning
Key product differentiation
variables
Position relative to competition
Developing Marketing Mix
Product features
Price level
y Promotional appeal
y Place (distribution)
Consumer Decision Process
Problem recognition
Information searchy Alternative evaluation
y Outlet selection & Purchase
y Post-purchase processes
EXTERNAL
INFLUENCES
INTERNAL
INFLUENCES
SITUTATIONAL
INFLUENCES
Preparing the
Marketing Plan
Take Marketing Mix
to the Consumers