BSP420: MARKETING MANAGEMENT

1. BSP420: MARKETING MANAGEMENT • hanaka Jayawardhena • Room. BE 2.19 •  (01509 22) 8831 • C.Jayawardhena@lboro.ac.uk • Session structure • A lecture (up to an hour) • Followed by a break (10-15 minutes) • A case study/video presentation scenario discussion/ presentation in small groups (up to an hour) • A concluding discussion (up to 45 minutes)

2. What is marketing? • To attract and retain customers at a profit (Drucker, 1999) • To establish, develop and commercialise long-term customer relationships so that the objectives of the parties involved are met (Gronroos, 1989)

3. Efficiency and Effectiveness Ineffective Effective Goes out of business quickly Survives Inefficient Dies Slowly Does well Thrives Efficient 5

4. Marketing concept The achievement of corporate goals through meeting and exceeding customer needs better than the competition Goal achievement The belief that corporate goals can be achieved through customer satisfaction Integrated effort All staff accept the responsibility for creating customer satisfaction Customer orientation Corporate activities are focused upon providing customer satisfaction The Marketing Concept Marketing Concept The achievement of corporate goals through meeting and exceeding customer needs better than the competition Customer orientation Corporate activities are focused upon providing customer satisfaction Integrated effort All staff accept the responsibility for creating customer satisfaction Goal achievement The belief that corporate goals can be achieved through customer satisfaction 2

5. Customers Production Orientation Production capabilities Manufacture product Aggressive sales effort 3

6. Customer needs Customers Marketing Orientation Potential market opportunities Marketing products and services 4

7. Marketing Orientation Long run profits through customer satisfaction Integrated customer focus Sales Orientation Push! Push! Sell! Sell! by promotion Short term gains in profit via sales increases Production Orientation Production & assembly line refinement Profits through production controls Evolution of theMarketing Concept 6

8. Market intelligence Skills in understanding and responding to customers Shared values and beliefs • customer first Market-led strategy Implementation • Linking distinctive competencies to market opportunities • Competitive advantage the driving force • people • incentives • communications • persuasion Structure and systems • structure based on strategy • team work Market-driven Management Shared values and beliefs Market intelligence Customer focus Market-led strategy Implementation Structure and systems 7

9. Product benefits Service benefits Relational benefits Image benefits Monetary costs Time costs Energy costs Psychological costs Customer value Perceived benefits Perceived sacrifice Creating Customer Value Negative Positive 8

10. Absent Fulfilled Creating Customer Satisfaction Delight ‘Delighters’ ‘More is better’ Neutral Customer satisfaction ‘Must be’ Dissatisfaction Presence of the characteristic 9

11. Brittany Ferries Brittany Ferries promote the benefit of relaxation 10

12. An Effective Marketing Mix Matches customer needs Effective marketing mix Creates a competitive advantage Well balanced Matches corporate resources 11

13. Marketing Mix and Customer Needs Key customer requirements Customer needs Competitive advantage Marketing mix 12

14. Marketing Mix and Customer Needs Customer needs Economic Psychological • Performance • Availability • Reliability • Durability • Productivity • Self-image • Quiet life • Pleasure • Convenience • Risk reduction Key customer requirements Customer needs Competitive advantage Marketing mix 13

15. Marketing Mix and Customer Needs Marketing mix Key customer requirements Customer needs Competitive advantage Marketing mix • Product • Price • Promotion • Place 14

16. Ericsson Style is an important choice criterion for brands that are conspicuous in use 15