Statements• Marketing is simply another word for advertising.• The main goal of marketing is to maximize the number of customers, all other goals

are not as important.• People who are successful in marketing are really creative and outgoing – but are

not that good with numbers and statistics.• Marketers do not usually end up as CEO’s. Most CEO’s have a finance,

engineering, or legal background.• People in marketing roles tend to have little interaction with staff from other

departments (functions) within a firm.• Marketers tend to be seen as wishy-washy, because they are constantly changing

their minds.• Marketing is all about making people buy products who don’t really want them.• Marketing is a highly regarded profession throughout the business community.• Many key marketing decisions within a firm are so important that the CEO (or the

senior executive team) often undertakes them (rather than the marketing department).

• Marketing tasks are fairly simple, particularly compared to complex and serious roles/functions like finance and engineering.

Marketing vs Sales

Marketing – Introduction

Marketing

• Dettol

• Savlon

• Why do you think the market did not accept Savlon’s soothing product?

• Should Savlon be re-introduced as a product with attributes similar to Dettol?

• Is there any particular market segment that Savlon should try to appeal to? Give Reasons for your answers.

What is Marketing??

• Good Marketing is no Accident

• Helps introduce and gain acceptance of new products that have eased and benefitted people

• Identifying and meeting human needs profitably

American Marketing Association

• Marketing is the activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large

Marketing Management

• The art and science of choosing target markets and getting, keeping, growing customers through creating, delivering and communicating customer value.

What is Marketed?

Who Markets?

• Demands– Negative Demand– Non-Existent Demand– Latent Demand– Declining Demand– Irregular Demand– Full Demand– Over Full Demand– Unwholesome Demand

Market

• Key Customer Markets– Consumer Market– Business Market– Global Market– Non – Profit & Government Markets

• Market Places• Market Spaces• Meta Markets– Automobile Meta market

Core Marketing Concepts

• Needs– Stated– Real– Unstated– Delight– Secret

• Target Markets, Positioning and Segmentation• Offerings and Brand• Value and Satisfaction

Core Marketing Concepts

• Marketing Channels– Communication Channels– Distribution Channels– Service Channels

• Supply Chain• Competition• Marketing Environment– Task Environment– Broad Environment

Functions of Marketing

Components of Marketing

• Product• Price• Place • Promotion• People• Process• Physical Environment

Concepts of Marketing

• Production Concept• Product Oriented Concept• Selling Concept• Marketing Concept

Concepts of Marketing

• Holistic Marketing Concepts– Relationship Marketing (Customers, Employees,

Marketing Partners, Financial Community)– Integrated Marketing– Internal Marketing– Performance Marketing

Marketing Environments

• Micro Environment– Publics

• Financial Publics• Media Publics• Government Publics• Citizen Action Publics – Mining etc.• Local Publics

– Intermediaries– Customers – Competitors – Facebook vs Orkut– Company– Suppliers

Marketing Environments

• Macro Environment– Demographic– Economic– Cultural– Political / Legal– Technological– Natural

Techniques used in Environment Analysis

• Environmental Scanning• SWOT Analysis• PEST Analysis• Porter’s Five Force Model– Threat of New Entrants– Competition– Bargaining Power of Consumers– Bargaining Power of Suppliers– Threat of Substitutes

The book publishing industry in Australia•  20% of books are sold via independent retailers that tend to

specialize in a particular genre or prefer unusual (not mainstream) books

• 70% of books are sold via large retail chains that only deal in mainstream books published by large or long-established publishers who also provide promotional dollars to support their books

• 10% of books are sold via the internet (e.g. Amazon) and this is expected to dramatically increase as they increasingly capture the time-poor or budget-conscious market segments

• Book sales have been fairly stable in this mature industry, however they are expected to decline in the future as internet and cable-TV usage increases

• Australia has one of the highest per capita magazine sales in the world

• There has been a dramatic increase in self-publishing over the past 10 years, however these books are typically not accepted by retailers and tend to have print runs of less than 1,000

• E-books would be in the early growth phase of their product life cycle. They currently have relatively low sales but are expected to steadily increase over time

• There is an increased number of authors in the marketplace, appearing to be driven by easy access to research material (via the internet) and by the increasing popularity of blogs

• Despite more authors available, there is only a small number of “brand” authors (such as Bryce Courtney) who can attract significant book sales on their name alone

• Excluding self-published books, there are around 500 new books available in the Australian market each month (including books published internationally)

• There is an increasing number of large book publishers, as the larger ones battle for market share by acquiring smaller publishing houses

Questions

• Assess the book publishing industry using Porter’s Five-forces model.

• What key insights have you gained by assessing this industry using this structured model?

• Therefore, what is your overall assessment of the attractiveness of the industry?

• How could a firm use Porter’s Five-forces model in their strategy and planning activities?

Marketing to the 21st Century Customer

• Network Information Technology• Globalization• Deregulation• Heightened Competition• Industry Convergence• Retail Transformation• Disintermediation• Consumer Buying Power• Consumer Information• Consumer Participation• Consumer Resistance

Merci…..

Au Revoir…..