THE MARKETING CONCEPT Changes in commercial function Definitions of the concept and key principles...

THE MARKETING CONCEPTChanges in commercial functionDefinitions of the concept and key principlesDynamics of the marketing approachEthics of the concept

The birth of commercial function (late 19th century - 1914)

•Large companies cross a threshold

•The growth of commercial function comes up against two hurdles

Laurence ChérelCatherine MadridBORDEAUX IUT MARKETING TECHNIQUES

According to Meuleau M. (1988), “The introduction of marketing in France: 1880 –1973” Revue French Management Review, September – October


General management

ProductionAccounting

ManufacturingPurchasing Sales

The conditions for the advent of marketing coincide (1918-1939)

•The roaring twenties: the start of mass consumption

•The crisis of 1929: a trigger



Generalmanagement

ProductionAccounting

ManufacturingPurchasingSales

preparation

Sales & mktg

Sales

Marketing is established in France (1950 -1970)

•A very different economic setting

•From the client to the anonymous consumer



Generalmanagement

Production

Finances

Research Humanresources

Marketing

Sales & Mktg

ONE OF THE DEFINITIONS OF MARKETINGin the context of companies

• ALL COMPANY ACTIVITIES FOR CREATING, PROMOTING AND DISTRIBUTING PRODUCTS AND SERVICES IN A COST-EFFECTIVE WAY WITH A VIEW TO MEETING THE PRESENT OR FUTURE DEMANDS OF CONSUMERS.


A MORE GENERAL DEFINITION:

The management of commercial exchange in a competitive environment


A set of vendors A set of buyers

Information

Commercial activity

Money

Goods/services

According to Marion,2005

The supply/demand system

Gathering and analysing the informationDescribing current and potential customers as well as the competition

Developing an appropriate offerEstablishing a marketing approach

THE KEY PRINCIPLES for managing the supply system:

• A rationale for analysing the environment• demand: a central concept

• A rationale for strategic action: forewarning rather than suffering the consequences.• avoid "marketing myopia"• create and maintain a differential advantage• spread the marketing mindset throughout the company.


THE DYNAMICS OF THE MARKETING APPROACH

• l


Overall design of supply:product,

price,Choice of

distribution chainscommunication:

publicity, sponsorship

Overall design of supply:product,

price,Choice of

distribution chainscommunication:

publicity, sponsorship

Incorporation of decisions into the companyIncorporation of decisions into the company

Knowledge of the environment: gathering of information

Understanding of the environment:Analysis of the information

Marketing strategy:Choice of supply/market duoCompetitive positioning

Commercial activity:product,price,distribution (point-of-sale management)promotion, POP, fairs,Direct marketing

Operational marketing

Marketing and competitive strategy

Marketing and analysis of theenvironment

1

2

3

4

5

6

OUTSIDE THE CONTEXT OF THE COMPANYMarketing can also be applied


Laurence Chérel- Catherine MadridMARKETING TECHNIQUES Bordeaux

The three-way EVOLUTION OF MARKETING

ToTo SettingSetting

GoalGoal

Consumerseconomic environment

Product

ServicesAssociationsCultural projectsHumanitarian projectsPolitical projectsPublic services

High tech,Fashion,Luxury

Professionals Children

A more general definition can be applied to all of the areas of application: generic marketing

• The process by which the stakeholders - those who supply and those who demand - get what they want

through an act of exchange where a value is expressed• This is not necessarily a monetary value• The concept of exchange is central to this definition

• For further details, refer to the bibliography, or contact your tutorial leader when considering your career project,

Laurence Chérel- Catherine Madrid MARKETING TECHNIQUES Bordeaux

Limitations to the traditional definition of marketing

• The constraint of the customer as king,• The need/product relationship may be interactive• Requirements expressed in anticipation of latent needs

• The question of innovations


Ethical limitations

• In the implementation of the marketing strategy

• For example, the abuse of documents

• In the design of the product offer• Inducement toward impulse buying• Positioning on suggestive topics• “Opportunistic” product without added quality


For example…• products presented in a circular at an attractive price for

a period of a week, which rapidly become unavailable for sale;

• an offer of free credit whereas the consumer is locked into revolving credit;


The rental company UCAR chose to be provocative in leading the charge to make the government institute a scrapping incentive to promote the replacement of old cars. May 2008

http://auto.rtl.fr/article/une-publicite-tres-provocatrice-autour-de-la-voiture-propre-106544

http://auto.rtl.fr/article/une-publicite-tres-provocatrice-autour-de-la-voiture-propre-106544

What arbiter(s) should one use?

•The consumer,•The marketing manager

•Value creation,


The value associated with the offer:• From marketing focused on the consumer and on

personal satisfaction• To marketing aiming simultaneously to provide personal

satisfaction by way of an appropriate solution for the entire company

• The mission of the brand: to chart the way


Marketing 3.0 Philip Kotler, Ed de Boeck 2012

Publication may be included as reading matter

http://www.altereco.com/

Is the company I am analysing pursuing a marketing strategy?


Is there a marketing

department?

yes

no

Existence of a

marketing strategy

Does the company stay up-to-date on customer

expectations

Does the company stay up-to-date on the competition

Is the company designing products

suited to the markets

YES

THE MARKETING CONCEPT Changes in commercial function Definitions of the concept and key principles...

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