Introductions

Who you are What you do and where Your expectations here Two things you like Two things you dislike

Setting classroom norms

Mobile phones Hot drinks Moving in and out during lectures Time keeping Contributing during lectures Mutual respect Questions Any other.

Learning outcomes
1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) Definitions of marketing The marketing concept The marketing process Cost & benefits of marketing orientation. Macro & Micro environment Segmentation, Targeting & positioning Consumer buying behaviour The Tools of marketing(the 7 Ps) Consumer markets and organizational markets Service marketing International marketing

Assignment
Having covered the above learning outcomes, apply the knowledge gained onto your assignment. If in doubt, ask your Lecturer The sooner you start working on your assignment the better chances you have of passing. Do not wait till the last few days to start your assignment .

Marketing at work
Samsung Galaxy 3 versus I phone

 The Samsung Galaxy SIII was unveiled last week (04/05/2012) at Earls Court, London

http://www.vodafone.co.uk/galaxys3 (watch video clip on you tube)

 The Samsung Galaxy S III is the most advanced smartphone on the planet. From the super smooth body that's designed to fit naturally in your palm, to the powerful quad core processor at its core, it's state of the art. There's next generation voice recognition, and, unbelievably, on screen multitasking watch HD videos in a small window while surfing the web.
(Carphone warehouse)

What its got: Eye movement recognition On-screen multitasking Voice recognition Ice Cream Sandwich MicroSD Quad core processor 4.8" screen

I Phone 4S

I phone 4S features
your voice to use your iPhone Dual-core A5 chip. The most powerful iPhone processor ever.(Before Galaxy s3) Clear HD video & photo capability Very advanced operating system FaceTime which lets you hear a voice and see the face that goes with it iPhone to iPhone, iPad 2, iPod touch or Mac over Wi-Fi. etc

 According to ABC news(www.abcnews.go.com) ,rumours are going round that Apple is already working on I phone 5

SO;-

What role would you say marketing will be playing in the business arena between the two companies (Samsung and Apple) ?

Marketing Defined
Many academics have tried to define the concept of marketing for a long time:-

Felton, (1959), proposed that marketing is: a corporate state of mind that exists on the integration and coordination of all the marketing functions which in turn are melded with all other corporate functions, for the basic objective of producing longrange profits

Kotler et al (1996) have suggested that the defining characteristic is that: the marketing concepts holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors do

A.M.A reviewed more than 25 definitions in 1985 to arrive at: Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives

Webster (1997), points out that; Of all the management functions, marketing has the most difficulty in defining its position in the organization, because it is simultaneously culture, strategy and tactics. Websters argument is that marketing involves the following:-

1) Organisational culture: Marketing may be expressed as the marketing concept, i.e. a set of values and benefits that drive the organization through commitment to serving customers needs as the path to sustained profitability

2) Strategy: As a strategy, marketing seeks to develop effective responses to changing marketing environments by defining market segments, and developing and positioning product offerings for those target markets

3) Tactics: Concerned with day to day activities of product management, pricing, distribution and marketing communications NB// Thus, the challenge of building a customer orientation is culture, strategy and tactics.

 In the 1990s, the Marketing Science Institute attempted to identify the specific activities that translate the philosophy of marketing into reality i.e. market orientation. Kohli and Jaworski (1990), defined market orientation in the following terms:-

1} one or more departments engaging in activities geared toward developing an understanding of customers current and future needs and factors affecting them 2)Sharing of these understanding across departments 3) The various departments engaging in activities designed to meet selected customer needs.

In parallel studies, Narver & Slater (1990) defined market orientation as: the organisational culture that most effectively and efficiently creates the necessary behaviours for the creation of superior value for buyers and , thus continuous superior performance for the business From this work; a number of components and the context of marketing are proposed:-

1) Customer orientation 2) Competitor orientation 3) Inter-functional co ordinnation 4) Organisational culture 5)Long-term profit focus

 Webster (1994), suggest a new way of looking at the marketing concept which can cater for problems of market-orientation implementation: according to Webster, the fabric of the new marketing concept comprise of:1) Create customer focus throughout the business 2) Listen to the customers

3) Define the nature of organisations core competencies 4) Define marketing as market intelligence 5) Target customers precisely 6) Manage for profitability and not sales volume 7) Make customer value the guiding star 8) Let the customer define loyalty 9) Measure and manage customer expectations

10) Build customer relationships and loyalty 11) Define the business as a service business 12) Commit to continuous improvement and innovation 13) Manage culture along with strategy and structure 14) Grow with partners and alliances 15) Destroy marketing bureaucracy

Piercy et al (2001); Market led strategic change;

Defines market orientation as an organisational culture where beating competition through the creation of superior customer value is the paramount objective throughout the business Graham Hooley, John Saunders and Nigel Piercy (2004); Marketing strategy and Competitive Positioning identifies the following components of a Market-Orientation:-(1) Customers (2)competition (3)inter-functional collaboration(4) culture(5) long term profit focus

Assumptions of market-led strategic management, Piercy(2001);1) Organisations must follow what is happening in the market closely in order to survive 2) By being market-led, (and not marketing-led department), and having a customer focus, organisations can become more effective 3) Barriers to being market-led comes from the way organisations are run 4) Becoming market-led may require an upheaval e.g robust strategy 5) Becoming market-led requires serious and committed strategic change.

Challenges of market-led organisation, Piercy (2001):1) New customers with rising and ever changing expectations, sophisticated needs, cynicism towards markets 2) New competitors; e.g. Due to globalisation, ICT such as internet and websites, direct marketing companies etc 3) New types of organisations, e.g. outsourcing and collaboration arrangements, alliances, growing stakeholder influences such as pressure groups and consumer watchdogs 4) New ways of doing business e.g. Database marketing, direct marketing etc

Group activity:
Discuss the role of marketing in strategic management

Role of Marketing:
1) Identify customer requirements 2) Determine competitive positioning 3) Implement strategy to deliver satisfaction. Internal marketing could enhance this. NB// Ohmae, suggested the strategic triangle to deal with marketing orientation. This triagle has customer needs, competitors & company.

customer needs
Aim to satisfy customer needs interfere with competitors efforts

Company

competitors
have competitor focus as an organisation

CIM Definition of Marketing: The management process responsible for identifying, anticipating and satisfying customer requirements profitably. {C.I.M}. The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. {A.M.A}.

The development of the Marketing orientation.

1900-1930:- Production orientation. 1930-1960:- Selling orientation. 1960-Present:- Marketing orientation.

Other business orientations:

Product orientation Customer orientation Societal marketing

 Can you identify key differences between a marketing orientation and sales orientation? Can you think of examples of each orientation?

Marketing orientation Vs Sales orientation

Marketing-orientation
Products for customer needs R & D very important to keep ahead of rivals Continuous customer research inform decision makers Effective Marcomms pursued Long term relationships sort

Sales -orientation Focus on making what can inexpensively be made quickly Production capabilities emphasized Sometimes , could reduce cash flow problems

Limitations of marketing & sales orientation:Marketing orientation Extensive research needed Expensive & time consuming Threat from imitators and me too products Consumer behaviour could change unexpectedly Constantly changing business environment Sales orientation No product innovation- you sell what you can produce A lot of sales promotion support required to sell Very transactional in nature so less likely-hood of long term relationships Limited loyalty due to lack of customer focus.

Relationship Marketing VS Transactional marketing

Relationship Marketing Customer retention focus Focus on product benefits Long term focus Customer service high Customer contact high Quality the concern of all in the organization Transactional Marketing Single sale focus Emphasis on product features Short term focus Not much customer focus Not much customer contact Product quality is the concern of the production department.

The Marketing Process

Questions to ask in marketing process:1) Where are we now? (marketing audit) 2) Where do we want to go? (vision, mission, objectives & targets) 3) How do we get there? (Strategies) 4) Getting there (Implementation, tactics) 5) How do we ensure arrival? (monitoring) 6) Did we get there? (evaluation)

Marketing Process(Source: Tutor 2 u)

Where are we now?

1) 2) 3) 4) Macro-analysis:- P.E.S.T.E.L Micro-analysis:- S.P.I.C.C Internal analysis:- Mckinsey 7 Ss, etc S.W.O.T

Where do we want to go?

1) Vision 2) Mission 3) S.M.A.R.T Objectives (Corporate, Functional, operational)

How do we get there?

1) Strategies;- corporate 2) Strategies;- functional 3) Strategies;- operational

Getting there;- Tactics

1) 2) 3) 4) 5) 6) 7) Product Price Promotion Place Process People Physical evidence

How do we ensure arrival?

Monitoring and control

Did we get there?

Evaluation and continuous research. The cycle begins again.

References
1) BPP Learning Media, Business Essentials, Supporting HNC/HND and Foundation degrees, Marketing and Promotion Course Book, (July 2010) 2) Marketing Research; An Integrated Approach, 2nd edition, (2006), by Alan Wilson, Published by Prentice Hall ISBN:9780273694748.

3) BPP Learning media, Business Essentials, Supporting HNC/HND and Foundation degrees, Marketing Principles Course Book, (July 2010) 4) Consumer Behaviour; A European Perspective, 4TH edition by Michael R. Solomon, Gary Bamossy, Soren Askegaard and Margaret K. Hogg, (Published by Prentice Hall) ISBN: 9780273717263 5) Strategic Marketing Planning, 2nd edition, (2009) by Colin Gilligan and Richard M.S Wilson, published by Butterworth-Heinemann, ISBN: 9781856176170