Marketing

CL4 Language and CL4 Language and Culture for BusinessCulture for Business

Prof. Peter CullenProf. Peter CullenModuel V B2Moduel V B2

MarketingMarketing

www.cl4englishlistening.wordpress.comwww.cl4englishlistening.wordpress.com

The Object and Evolution of The Object and Evolution of Marketing StudiesMarketing Studies

Marketing: indicates a philosophy of management as well as a Marketing: indicates a philosophy of management as well as a specific business function.specific business function.

ValuesValues

Models of decision-makingModels of decision-making

BehaviourBehaviour

that influences the direction and management of a company that influences the direction and management of a company for the purpose of developng successful competetive for the purpose of developng successful competetive strategies.strategies.

This philosophy is called the This philosophy is called the Marketing ConceptMarketing Concept, and suggests , and suggests that elevated mid-term profits require a company to be that elevated mid-term profits require a company to be market orientedmarket oriented or or market drivenmarket driven


Market oriented philosophy differs from:Market oriented philosophy differs from:

Production oriented philosophy Production oriented philosophy (dominant when new (dominant when new technologies/processes are first introduced)technologies/processes are first introduced)

Product oriented philosophy Product oriented philosophy (Dominant where technology (Dominant where technology inherent in the product creates specific product inherent in the product creates specific product differentiation based on the characteristics of the product)differentiation based on the characteristics of the product)

Sales oriented philosophy Sales oriented philosophy (Dominant when supply exceeds (Dominant when supply exceeds demand, i.e. Italy in the 1950’s)demand, i.e. Italy in the 1950’s)


These three management orientations all hold that These three management orientations all hold that management and product choice must be based on management and product choice must be based on internal factors – what the company WANTS to do internal factors – what the company WANTS to do and what the company KNOWS HOW to do. They all and what the company KNOWS HOW to do. They all favour production and R&D.favour production and R&D.

The marketing concept begins with an analysis of The marketing concept begins with an analysis of what the company CAN do (given careful market what the company CAN do (given careful market analysis) and what the company MUST do (given analysis) and what the company MUST do (given market externalities) in order to decide the best market externalities) in order to decide the best strategy for taking advantage of the strategy for taking advantage of the distinct distinct abilitiesabilities of the company with respect to the of the company with respect to the relationship of its relationship of its business culturebusiness culture and the and the expectations of the expectations of the stakeholdersstakeholders..


Marketing management analysis “took off” in the US in Marketing management analysis “took off” in the US in the 1960’s, specifically among large companies that the 1960’s, specifically among large companies that produced consumer goods.produced consumer goods.

This was the beginning of an understanding of the This was the beginning of an understanding of the power of the consumer.power of the consumer.

BUT consumer interests ≠ the interests of the producer BUT consumer interests ≠ the interests of the producer at all timesat all times

SO, marketing concepts evolved in the 1980’s and SO, marketing concepts evolved in the 1980’s and 1990’s 1990’s


The process of decision making in market oriented The process of decision making in market oriented companies today:companies today:

1) 1) Identify and examine consumer needs and the Identify and examine consumer needs and the market environment in relation to the company’s market environment in relation to the company’s abilities and potential. SWOTabilities and potential. SWOT

2)2) Make contextually informed decisions about:Make contextually informed decisions about:market segmentmarket segmentbenefits offered based on out-putbenefits offered based on out-putdefendable competetive advantagedefendable competetive advantage

3)3) Organise decisions, resources, and capabilities into Organise decisions, resources, and capabilities into integrated processes to maximise competitivenessintegrated processes to maximise competitiveness

44 Evaluate effectiveness of activities according to Evaluate effectiveness of activities according to customer satisfaction and economic resultscustomer satisfaction and economic results


This requires not only an ability to maximise This requires not only an ability to maximise communication, but also analysis, in order to make communication, but also analysis, in order to make strategy effective.strategy effective.

SWOT – in detail, and functional to strategy.SWOT – in detail, and functional to strategy.

- The company must work according to its vision The company must work according to its vision and strategy, which are defined with respect to and strategy, which are defined with respect to the client and competitorsthe client and competitors

- This must include analysis of the internal This must include analysis of the internal environmentenvironment

- This must be updated continuously in order to This must be updated continuously in order to beat the competition in understanding market beat the competition in understanding market shifts and changesshifts and changes


Elements of Marketing:Elements of Marketing:

Target group – who is your consumer? (consumers form Target group – who is your consumer? (consumers form heterogeneous groups)heterogeneous groups)

Market segment – heterogenous groups buy on a Market segment – heterogenous groups buy on a price/quality scaleprice/quality scale

BUT – companies may micro-split the segment to BUT – companies may micro-split the segment to become become customer centriccustomer centric (think of anything (think of anything “custom”)“custom”)

Elements of Marketing:Elements of Marketing:

Aims – a company must orient market research to plan, Aims – a company must orient market research to plan, communicate and deliver a product system that communicate and deliver a product system that guarantees a high degree of customer satisfaction.guarantees a high degree of customer satisfaction.

Cozzi and Ferrero state: “customer satisfaction is a Cozzi and Ferrero state: “customer satisfaction is a necessary and sufficient condition for obtaining high necessary and sufficient condition for obtaining high levels of return in the levels of return in the mid-termmid-term. ... it must, therfore, . ... it must, therfore, be the primary aim of the company.”be the primary aim of the company.”

In the long term, this will help ensure a surplus that In the long term, this will help ensure a surplus that will allow the company to reach its long term goal, will allow the company to reach its long term goal, economic returns congruent to its activityeconomic returns congruent to its activity



Elements of marketing:Elements of marketing:

The acquisition of competetive advantages:The acquisition of competetive advantages:

Only since the 1980’s have marketing researches paid Only since the 1980’s have marketing researches paid close attention to this.close attention to this.

High perceived value to the consumer of any product High perceived value to the consumer of any product can only be maintained if a company maintains its can only be maintained if a company maintains its competetive advantage over time.competetive advantage over time.

Competetive advantage can be kept/increased both Competetive advantage can be kept/increased both internally and externally – keeping in mind the body internally and externally – keeping in mind the body of stakeholders.of stakeholders.


The business formula should harmonise:The business formula should harmonise: the values and abilites of the company with ties and the values and abilites of the company with ties and

expectations of environmental forces;expectations of environmental forces;

Competetive strategy wirh social strategy directed to Competetive strategy wirh social strategy directed to the stakeholders.the stakeholders.

This must be pro-active.This must be pro-active.This contributes to:This contributes to:

The policies of the marketing mix so that needs The policies of the marketing mix so that needs become wants and decisions to purchase, relational become wants and decisions to purchase, relational marketing strategiesmarketing strategiesRelational marketingRelational marketingSupply chain managementSupply chain management


Elements of marketing:Elements of marketing:

A company’s business processes must be coordinated A company’s business processes must be coordinated and aligned in fuction to the objectives laid out in and aligned in fuction to the objectives laid out in relation to the market environment.relation to the market environment.

The market must guide all business processes. The market must guide all business processes. Marketing performance also depends on Marketing performance also depends on performance in other business processes performance in other business processes (purchasing, production, quality control, finance, (purchasing, production, quality control, finance, etc.)etc.)


What conditions must be present for a company to What conditions must be present for a company to apply market oriented vision/policy?apply market oriented vision/policy?

1)1) Conviction and dedicated energy of CEO’s and Conviction and dedicated energy of CEO’s and directors.directors.

2)2) Business culture (values and convictions) and the Business culture (values and convictions) and the organisational climate (transmission of values organisational climate (transmission of values internally) that favour coordination. REWARD and internally) that favour coordination. REWARD and HR are important, as well as internal HR are important, as well as internal communication.communication.

3)3) Adequate dedicated resources.Adequate dedicated resources.

Market oriented companies must be Market oriented companies must be learning learning organisationsorganisations


The 6 C’sThe 6 C’s

ChangeChange

ClientClient

ConsensusConsensus

CapacityCapacity

CommitmentCommitment

CompetitionCompetition


Is marketing managment effective?Is marketing managment effective?Does benefit outweigh cost?Does benefit outweigh cost?

Historically, company orientation has moved from Historically, company orientation has moved from production orientation toproduction orientation tosales orientation tosales orientation tomarketing orientationmarketing orientation

Is the 3° element really a “key to success”? It leads to Is the 3° element really a “key to success”? It leads to the problem of “conceptual domination”.the problem of “conceptual domination”.

Some criticism:Some criticism:marketing success depends on contextmarketing success depends on context

What is the contextual “cost/benefit” over time? This What is the contextual “cost/benefit” over time? This depends on how and when you measure return!depends on how and when you measure return!


Marketing is a “frontier” and “interface” activity.Marketing is a “frontier” and “interface” activity.

Like HR, it acts to manage relationships between Like HR, it acts to manage relationships between internal and external factors.internal and external factors.

Frontier activities have a Frontier activities have a selectiveselective function (acting as function (acting as filters) and a function of filters) and a function of activationactivation (connection). (connection).

Selection aims at ordering in-put and out-put; i.e. Selection aims at ordering in-put and out-put; i.e. information passed on to superiors according to information passed on to superiors according to relevance (executive summaries).relevance (executive summaries).

Activation activities are complimentary. They help Activation activities are complimentary. They help place the company within the broader context of the place the company within the broader context of the market environment.market environment.

Marketing

Economy & Finance

Transcript of Marketing