The Market Environment Scott Jones

Session aims and objectives Define the term ‘marketing’ Discuss key marketing myths Analyse what relationship marketing is Examine the marketing mix and apply the marketing mix to Ryan Air

What is marketing? A term given to those activities that that are carried out at the interface between the organisation and it’s customers. Marketing is concerned with meeting business objectives by providing customer satisfaction. Marketing is the management process which identifies, anticipates and supplies customers requirements efficiently and profitably (CIM) Kotler – Evolution of Marketing

Development of a Marketing Orientation Production Orientation – People will buy anything as long as it’s cheap enough. The prevailing attitude is that getting production right is all that matters. Product Orientation – Produce an ideal product that all customers want and add ‘better’ features in an attempt to please the mass market. Sales Orientation – The view that customers will not ordinarily buy enough of the firm’s products to meet the firm’s needs, and therefore will be persuaded to buy more – through sales techniques Sell what you make

Development of a Marketing Orientation Customer/Market Orientation - The entire company should be aware of customer needs and wants and should be organised and integrated to ensure that customer requirements are met. Times have changed and marketers take the view customers are intelligent enough to buy what they need, can recognise value for money when they see it and will not buy again from an organisation if they do not get value for money. This is the basis of the marketing concept. The marketing concept affects all areas of the business – very difficult to implement Make what you sell

Prepare notes for a discussion Think about what the following organisations deliver and their values. Have you seen any evidence they understand their customers needs and wants as indicated through their marketing approach?

Relationship Marketing

Marketing Myths Satisfied customer is a loyal customer Strong brand is invincible A big name brand can sustain a higher price Members of distribution channels do not influence marketing Advertising always affects sales Cheap price – is what customers want and equates to sales

Development of a Marketing Orientation Societal Marketing – Marketers should take some responsibility for the needs of society at large, and for the sustainability of their production activities. Marketing is shifting towards the long term effects on society. Body Shop was thinking like this over 20 years ago. This is the new marketers field.

The Service Mix

In summary, the Service Mix is all about… What makes a customer want a certain type of service? What makes them choose a certain service provider? What makes people come back time and time again? The Service Mix is 100% service driven. The 3 P’s are inserted along side the main body of the 4 P’s Marketing Mix. The People are the basic foundation to delivering customer quality and satisfaction. The Process is how we deliver what we promise. The Physical Evidence is surrounded by the whole experience our customers receive. The Service Mix

Marketing mix in action The model was developed by Borden (1964). The use of the words mix and combination are important here, because successful marketing relies on interaction and synergy between the marketing mix elements. Haagen Dazs ice cream – perfectly good, quality product, high price to reflect this and sold in prestigious glass cabinets in cinemas and supermarkets. It’s phenomenal success only came after an innovative and daring advertising campaign that emphasised certain adult orientation product benefits