the Role of Marketing

Chapter Goals you will understand … Marketing & how it relates to other business functions Marketing of goods vs. marketing of services Market orientation v. product orientation Commercial marketing, social marketing, social media marketing Elements that characterize a market Market share; Market leadership Marketing objectives profit v. non-profits How marketing strategies evolve How innovation, ethics & culture influence marketing practices and strategies

Definitions Essential to the success of any business. Quotes – page 247 Kotler (1994) “Marketing is meeting the needs of your customer at a profit” Getting the right product to the right customers at the right price at the right time

Marketing impacts... All marketing decisions are affected by other business functions: Finance and marketing – marketing costs $$ HR – good marketing can increase demand; may result in extra staff needed Operations – production & marketing work together

Marketing goods v. services GoodsServices Are tangibleAre intangible Can be returnedCan’t be returned – e.g. a bad haircut Can be stored and consumed laterCannot be stored; need to be consumed immediately There is ownership of productNo ownership of product Easier to compare because of similar nature of products More difficult to compare because of different experiences When selling goods, businesses focus on specific features. When marketing a service, focus on customer service

Marketing Mix for Goods Product Price Place Promotion 3 additional aspects discussed later People; Processes; Physical Evidence

Product- v. Market-Oriented Product-oriented Inward-looking; focus on making the product 1 st, then trying to sell Product-led; assumes supply creates its own demand. Produce innovative products; tempt customers to buy Market-oriented approach Outward-looking – carrying out market research 1 st ; making products that can sell Market-led; focused on establishing consumer demand to supply products to meet consumer needs & wants

Product v. Market Oriented Product-oriented approach Microsoft, Ferrari, Dyson, Apple Market-oriented approach Ford, Sony, Samsung, Nokia Look at benefits and limitations, page 250

Commercial Marketing Creating, developing and exchanging goods or services that customers need and want Market research conducted to establish consumer demand, and businesses supply what is demanded. Commercial marketing is value-free and doesn’t involve moral judgments Strategies used are tailored to product being sold Strategies include traditional or online focus Also, mass marketing or targeted marketing

Social Marketing “Use of commercial marketing concepts & tools.. designed to influence individuals’ behavior to improve their well-being and that of society” Wide concept involving many stakeholders Focus on society’s long-term interests and welfare. Examples – public health campaigns Anti-smoking, drug & alcohol dangers; healthy eating

Social Media Marketing A marketing approach that uses social networking sites to market products Benefits: Enables a firm to get direct feedback from customers Low-cost way to reach a large target audience Can enhance a firm’s brand Most businesses use it as a supplement to other marketing methods and not as a replacement

Characteristics of the Market Market – an arrangement where buyers & sellers exchange goods & services – Measurements: Market Size By volume By value Market Growth Percent change in the market size over a period of time Market Share Percent of one firm’s share of total market sales Market Leader – has many benefits

Marketing in Non-Profits Different from marketing in a profit organization NPOs engage in marketing more for social marketing reasons Increasingly, NPOs are using more complex marketing strategies to achieve their aims Use marketing to inform and influence behavior change Major drawback of most NPOs – limited financing

Marketing Strategies Evolve as a response to changes in customer preferences Marketing strategies must adapt to remain relevant

Innovation, Ethics, Cultural Differences Specific companies highlighted Innovation Apple; Nokia Ethics Exxon, BP Cultural Differences Rolls Royce, Aston martin, McDonalds, KFC