MARKETING MANAGEMENT

MARKETING MANAGEMENT

An Introduction to Marketing Pt 2

Operationalisation

MARKETING What has marketing been in the past? What is marketing today – new lamps for old? What is marketing for? What is marketing trying to achieve? Who markets? What is a marketer trying to

achieve?

WHO?

COMMENTS ON MARKETING

“Marketing is too important to be left to the marketing department”

David Packard, Hewlett-Packard

“Marketing takes a day to learn. Unfortunately it takes a lifetime to master.” Phil Kotler

WHAT DO MARKETERS DO?

And who does/should/shouldn’t do it?

DEFINITION OF A MARKETER (OED)

1 A person who buys or sells in a market.

2 A person who promotes and distributes a product for sale.

AN INTRODUCTION TO THE PRACTICE OF MARKETINGTheodore Levitt (1960) Marketing Myopia‘Management must think of itself not as producing products but as providing customer-creating value satisfactions. It must push the idea … into every nook and cranny of the organisation, It has to do this continuously and with the kind of flair that excites and stimulates people.

EARLY MARKETING THINKING

“Marketing is not only much broader than selling; it is not a specialized activity at all. It encompasses the entire business. It is the whole business seen from the point of view of the final result, that is, from the customer’s point of view. Concern and responsibility for marketing must therefore permeate all areas of the enterprise.” – Peter Drucker

EARLY MARKETING THINKING

(the marketer should)……regard with desire every profit that goes into the pocket of anyone who stands between him and the consumer

Ralph Starr Butler “Marketing Methods” 1914

Definitions of Marketing

Marketing is the management process for identifying, anticipating and satisfying

customer requirements profitably. CIM Old

A marketer is a manager who…………...


A marketer is a manager who initiates, coordinates and brings to conclusion a

process which identifies, anticipates and satisfies customer requirements

profitably.

The basic marketing mix (4Ps)

Figure1.4

4 ‘P’s

2 ‘P’s

The extended marketing mix (7Ps)• Price.• Product.• Place.• Promotion.• People.• Processes.• Physical evidence.

• Parkinsonian ‘P’ Inflation

Consumer Research

Market Analysis

Packaging

Finance &Accounting

BRAND

IT Professional Relations

Human Resources

Advertising Production

Legal Manufacturing/Operations

AdvertisingMedia

Specialist

AdvertisingCreativeSpecialist

Sales/Key Accounts

Public Relations

BRAND MARKETING INTERFACES

ProductDesign inc

R&D

Logistics/Distribution

Competition

Merchandising/Point of Sale

AN INTRODUCTION TO THE PRACTICE OF MARKETING

If you could visit a cell, you wouldn’t like it. Blown up to a scale at which atoms were about the size of peas, a cell itself would be a

sphere roughly half a mile across…... Within it, millions upon millions of objects – some the size of basketballs, others the size of cars – would whiz about like bullets. There wouldn’t be a place you

could stand without being pummelled and ripped thousands of times every second from every direction. …….

Bill Bryson A brief history of almost everything


Very much like being a Marketer Or any manager for that matter


If you cant stand the heat get out the kitchen

Harry Truman


“The buck stops here” Same guy

WHAT SHOULD MARKETERS NOT DO?

“Marketing is too important to be left to the marketing department”

David Packard Then who does the marketing? And who should?

MARKETING FUNCTIONS

STRATEGIC/CORE/LINE – BRAND MANAGEMENT

SUPPORT/STAFF/SPECIALIST

MARKETING STAFF

Research – Market and Consumer Advertising Content – Ad. Agencies Staff Advertising Media Package Design PR Consultancy


A marketer is a manager who initiates, coordinates and brings to conclusion a

process which identifies, anticipates and satisfies customer requirements

profitably.

Consumer Research

Market Analysis

Packaging

Finance &Accounting

MARKETER

IT Professional Relations

Human Resources

Legal

Operations

AdvertisingSpecialists

Sales/Key Accounts

Public Relations

R&D

Logistics

Competition

Partnership

CONSUMER

The Boss

Ethics

GreeneryGlobal

Marketing

Value ChainConnectivity

The Board Shareholder

The Internet

Supply Chain

Politics

Trade Marketing

Gurus

PEST

SWOT

DAGMARRelationshipManagement

Marcomms Theory

‘P’Inflation

Time Management

Team Building

CIM

Societal Marketing

IDEAS

Manufacturing

Family &Friends

Networks

BrandEquity

REPRESENTATION OF CHAOS

MARKETER CONSUMER

MARKETING FOCUS

ResearchMarket Analysis

Packaging

Finance &Accounting

MARKETER

ITProfessional

Relations

Human Resources

Legal

Operations

AdvertisingSpecialists Sales/

Key Accounts

PR

Tormentors can be turned into resources

R&D

Logistics

Competition

PartnershipsCONSUMER

Boss

EthicsGreenery Global

Marketing



The Internet

Supply Chain

PoliticsTrade

Marketing

Gurus

PEST

SWOT

DAGMAR

RelationshipManagement

Marcomms Theory

‘P’Inflation

Time Management

Team Building

CIM

Societal Marketing

Manufacturing

Family &Friends

Networks

BrandEquity


Packaging

Finance &Accounting

MARKETER

ITProfessional

Relations

Human Resources

Legal

Operations


Key Accounts

PR

Tormentors can be turned into resources

R&D

Logistics

Competition


Boss

Ethics

Greenery

Global Marketing



The Internet

Supply Chain

PoliticsTrade

Marketing

Gurus

PEST

SWOT

DAGMAR


Marcomms Theory

‘P’Inflation

Time Management

Team Building

CIM

Societal Marketing

Manufacturing

Family &Friends

Networks

BrandEquity

MARKETER


Packaging

Finance &Accounting

BRANDCHIEF

EXECUTIVEIT

Professional Relations

Human Resources

Legal

Operations


Key Accounts

PR

And leaders do that

R&D

Logistics

Competition


Boss

EthicsGreenery Global

Marketing



The Internet

Supply Chain

PoliticsTrade

Marketing

Gurus

PEST

SWOT

DAGMAR


Marcomms Theory

‘P’Inflation

Time Management

Team Building

CIM

Societal Marketing

Manufacturing

Family &Friends

Networks

BrandEquity

One answer Appoint 100’s of Chief Executives as

centres of excellence And call them Brand Managers? Or champions? Sales Director? CEO? Whatever….

MARKETERS’ CORE STRATEGY

The marketer initiates the process of identifying potential customer wants and needs as they pertain to an actual or potential offering of his organisation.

The marketer ensures that his or her offering is

perceived by the target as fulfilling those wants or needs better than any competing offer, and thereby secures a voluntary exchange of values to the mutual benefit of the target and offerer.

The marketer’s primary function is to secure an exchange – in the case of Commerce a Sale (more than facilitate).

WHAT ARE MARKETERS DOING?

“Marketing practice developed to serve a growing majority of younger consumers during a demographic anomaly. Given the relatively unformed views and resulting malleability of the young the objective of marketing activity became to gain the most easily switched customers, rather than to retain loyal customers. Consequently, marketing activity and expenditure became focussed on advertising and other promotional activity, and in the minds of many senior managers, marketing became synonymous with advertising, and the task of marketing departments often limited to promotional activity”. (Thompson and Thompson 2007 p 9)

MARKETINGTheory

Operationalisation through Brand Management

Practice by people

A PROBLEM?

“The mere formulation of a problem is far more essential than its solution” – Einstein (scientist)

“Recognizing a problem is the first step to solving it....”Sonya Friedman – (Chat Show hostess)

“If knowledge can create problems, it is not through ignorance that we can solve them”.

Isaac Asimov

THE PROBLEM

THE PROBLEM

While “one to one” marketing works well……

INSTITUTIONAL MARKETING DOESNT WORK

Inadequateley practiced Poorly understood Incompletely taught

STRATEGIC MARKETING/BRAND

MANAGEMENT

MARKETER CONTEXT ORGANISATIONAL

MARKETER CONTEXT ORGANISATIONAL

WHITHER MARKETING?“marketing is too important to be left

(solely) to the marketing department”

David Packard

Definitions for Marketers?

“A leader has to have a vision of grandeur, a vision that can produce eager followers in vast numbers. In business the followers are the customers.

“In order to produce these customers the entire corporation must be viewed as a customer creating and customer satisfying organism. Management must think of itself is not as producing products but as providing customer creating value satisfactions. It must push this idea and everything it means and requires into every nook and cranny of the organisation. It has to do this continuously and with the kind of flair that excites and stimulates the people in it. Otherwise the company will be merely a series of pigeonholed parts with no consolidating sense of purpose and direction

In short the organisation must learn to think of itself not as producing goods or services but as buying customers, as doing the things that will make people want to do business with it”

Levitt – Marketing Myopia 1960

Who is going to do it? The Board? The Boss? Or……

The Boss When you are up to you’re a…. in

alligators it’s difficult to remember that you came here to drain the swamp

Be Bold


You have the powerThe only power that matters

The power to persuade

Some key questions Who initiates/coordinates all aspects of the

process of: Identifying what the customer wants Ensuring that the organisation “has it” – and that

it satisfies the customers needs/wants better than the competition – always!

Ensuring that the customer knows it Ensuring that the customer always buys it in

preference to a competitors offer And ensuring that this process is profitable (or

achieves its non commercial objectives) for the organisation

Some key questions If all this comes together at CEO level

(the Boss) The alligators win The swamp will stay very very wet

So who should do it in your organisation (don’t worry about practicalities – stick to ideals – for now!!)?

In groups – play God 1) for each of your firms/institutions explain to

your colleagues for each product/service/brand Who are your customers/consumers What do you offer them – goods, services etc Who are the competitors What evidence do you have that your “product” satisfies

better than the competition What evidence do you have that the

customer/consumers know it 2) agree among yourselves what steps you should

take to bring into one pair of hands marketing responsibility and accountability for initiation/coordination/completion (and PROFIT!)

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MARKETING MANAGEMENT