Marketing dynamics

1. Marketing dynamics

2. Marketing defined Marketing is the management process responsible for identifying, anticipating, and satisfying customer requirements profitably. (CIM, 2001) Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange and satisfy individual and organisational objectives. (AMA, 1985)

3. Marketing - points of agreement • (CIB & AMA) • Management process. • Giving customers what they want. • Identifies and anticipates customer requirements. • Fulfils customers requirements profitably.

4. Marketing - the Americans go further • Offers and exchanges ideas, goods and services. • Assumption that both parties value what the other has to offer (mutual value). • Proactive selling and willing buyers.

5. Value of the CIM and AMA • Popular definitions. • Do they reflect the role and reality of marketing in the 21st Century?

6. Marketing defined Marketing is to establish, maintain and enhance relationships with customers and other partners, at a profit, so that the objectives of the parties involved are met. This is achieved by mutual exchange and fulfilment of promises. Grönroos 1997

7. Marketing outputs • Products/services that meet consumers’ needs. • Advertising. • News reports and information about companies and its successes/failures. • Attractive retail outlets. • Attractive prices.

8. Marketing activities/tasks • Identifying customer needs and motives - bringing you products/services you want now and in the future. • Offering products at prices you can afford. • Providing information to make informed choices. • Satisfying consumer choices and giving value.

9. Business orientations • Production. • Product. • Selling. • Marketing.

10. Production and Product orientation Table 1.1

11. Selling and Marketing orientation Table 1.1 cont.

12. Corporate and social responsibility (CSR) - • Societal and ethical marketing • An emergent and growing marketing philosophy. • As companies continually strive to find effective ways to attract and retain customers. • Importance of handling marketing responsibly in a way that contributes to the well being of society. • Links between good ethics, market share and profitability. • Companies not only consider its customers and its profitability but also the good of the wider community (local and globally).

13. UK report ‘Who are the Ethical consumers?’ (Roger Cowe and Co-operative Bank’s head of corporate affairs) as quoted by Mason, 2000 The potential for ethical products and services in the UK could be as high as 30% of consumer markets. 52% of consumers had recommended companies because of the companies’ responsible reputation. 44% of consumers had avoided a product or service because of a company’s behaviour.

14. CSR and its impact on the marketing process • Internalisation of costs (making the polluters pay). • Green taxes. • Legislation. • Support for cleaner technology. • Redesigned products for recycling. • Reverse distribution channels to receive products for recycling. • Consumer education on sustainability.

15. Sustainable marketing The establishment, maintenance and enhancement of customer relationships so that the objectives of the parties involved are met without compromising the ability of future generations to achieve their own objectives. Brassington & Pettitt, 2002

16. The external organisational environment Figure 1.3

17. Marketing as an interface Figure 1.4

18. The basic marketing mix (4Ps) Figure1.5

19. The extended marketing mix (7Ps) • Price. • Product. • Place. • Promotion. • People. • Processes. • Physical evidence.