MARKETING CONCEPTS........

198019701950s–1960s 1990 2000

Re-emergence ofcompetition

Re-emergence ofcompetition

GlobalizationGlobalization

Rise of qualityRise of quality

Price competitionPrice competition

Cost-cuttingre-engineeringCost-cutting

re-engineering

Logistics/digitalization

Logistics/digitalization

Transition of information technology

Transition of information technology

21st-centurymarketplace21st-centurymarketplaceMarketplace transition

from the 1950s

Rediscovery of the marketing concept

Growing emphasis towards competitiveness– emergence of strategic marketing concept

Market orientation

Holistic Marketing Dimensions

• Holistic marketing includes these dimensions:– Internal marketing(Eg. Xerox)– Socially responsible marketing(Eg.Avon)– Relationship marketing(BMW)– Integrated marketing

Avon Why do companies engage in cause marketing?

The Four PsThe Four Ps

MarketingMix

Product

Price Promotion

Place

The Four CsThe Four Cs

CustomerSolution

CustomerCost

Communication

Convenience

Customers

Front-line people

Middle Management

TopManagement

Traditional Organization Chart

Customer-Oriented Organization Chart

Customers

Front-line people

Middle management

Topmanage-

ment

Customers Cus

tom

ers

Evolving Views of Marketing’s Role

a. Marketing as anequal function

FinanceProduction

Marketing Humanresources

b. Marketing as a moreimportant function

Finance

Humanresources

Marketing

Production

Evolving Views of Marketing’s Role

c. Marketing as themajor function

Marketing

Finance

Hum

an

resources

Production

d. The customer as thecontrolling factor

Customer

Human

reso

urces

FinanceProductio

n

Marketing

Evolving Views of Marketing’s Role

e. The customer as the controllingfunction and marketing as the

integrative function

Customer

Marketing

Production

Hum

an

resources

Finance

MARKETERS ARE RESPONSIBLE FOR DEMAND MANAGEMENT

Negative demandNonexistent demand

Latent demandDeclining demandIrregular demand

Full demandOverfull demand

Unwholesome demand

• “Our plan is to lead the public with new products rather than ask them what kind of products they want. The public does not know what is possible, but we do. So instead of doing a lot of market research, we …try to create a market for a product by educating [the public about what the product can do for them]. ”

(Akio Morita, CEO of Sony)

• A Marketing Program for Rollerblade– Expanding the Market for Rollerblade Skates– Exploiting Strengths in Technology

THE MARKETING PROGRAM: HOW CUSTOMER RELATIONSHIPS ARE BUILT

DISNEY • “We run theme parks” “• We provide fantasies”

Task for today………

• Name two service firms that, in your opinion, do a good marketing job. Explain your reason