463 33 Powerpoint-slides Baines2e Ch01 1

5/22/2018 463 33 Powerpoint-slides Baines2e Ch01 1

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Marketing: Asian Edition Oxford University Press 2013. All rights reserved

The New Generation Marketing Text!


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Define the marketing concept.

Explain how marketing has developed over the twentieth century.

Describe the three major contexts of marketing application, i.e.

consumer goods, business to business and services marketing.

Understand the contribution marketing makes to society.

Assess critically the impact marketing has on society.

Learning Outcomes


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Case Insight

Consider an Indian mobile networkoperator.

In the highly competitive telecom market,

the actual offering is the value driverpay

less and talk more. The tendency of an

individual customer is to seek maximumvalue, and the airtime product helps the

company to build on the same platform

and use it successfully across all market

types and individuals.

When this telecom company plans to roll

out 4G services in a competitive market

like India, how important is it to price the

service at an affordable level to maximizethe subscriber base?


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Definitions of Marketing

The management process of anticipating, identifying and satisfying

customer requirements profitably (CIM, 2001).

Marketing is the activity, set of institutions, and processes for creating,communicating, delivering, and exchanging offerings that have value forcustomers, clients, partners, and society at large (AMA, 2007).

Marketing is the endeavour of adapting organisations to theircompetitive markets in order to influence, in their favour, the behaviourof their publics, with an offer whose perceived value is durably superiorto that of the competition (French trans.: Lendrevie, Lvy and Lindon,2006).

The value-based definition of marketing describes Marketing as aprocess of sensing, designing, and delivering customer value forfulfillment of desired organizational objectives (an Indian perspective).


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The Three Components of

Market Orientation


7/21Marketing: Asian Edition Oxford University Press 2013. All rights reserved


The Development of Marketing

Production period, 1890s-1920s characterized by a focus onphysical production and supply, where demand exceeded supply.This phase took place after the industrial revolution.

Sales period, 1920s-1950s characterized by a focus on personal

selling supported by market research and advertising. This phasetook place after the First World War.

Marketing period, 1950s 1980s characterized by a moreadvanced focus on the customers needs. This phase took place

after the Second World War.

Societal marketing period, 1980s to present characterized by astronger focus on social and ethical concerns in marketing. Thisphase is taking place during the information revolution of thelate twentieth century.




Marketing and Sales Compared

Marketing Sales

Tends towards long-term satisfaction of

customer needs

Tends towards short-term satisfaction of

customer needs; part of the value delivery

process as opposed to designing anddevelopment of customer value processes

Tends to greater input into customer design

of offering (co-creation)

Tends to lesser input into customer design of

offering (co-creation)

Tends to high focus on stimulation of demand Tends to low focus on stimulation of demand,

more focused on meeting existing demand




Source: The Marketing and Sales Standards Setting Body (2010)

A Functional Map for Marketing


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The Marketing Mix

The Original developed by Bordenin his teaching but not written upuntil 1964:

Product planning Pricing Branding

Channels of distribution Personal selling Advertising

Promotions Packaging Display Servicing Physical handling Fact finding and analysis

(Borden, 1964).

The Shortened simplified versionby Eugene McCarthy and nowmore commonly used:

Product Place (distribution) Price and

Promotion (McCarthy, 1960).


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The 4Ps of the Marketing Mix


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Extension from 4-7 Ps for Services

Physical evidenceto emphasize that the tangible components ofservices were strategically important since customers used these toinfer what the quality of society might be.

Processbecause service delivery is inseparable from the

customer consumption process, we include process because of theneed to manage customer expectations and satisfaction whichbecomes strategically important in this context. Where processesare standardized, it is easier to manage customer expectations.

People included to emphasize that services are delivered by

customer service personnel, sometimes experts and oftenprofessionals who interact with the customer sometimes in anintimate manner.


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Simple Marketing Exchange

Processes

Th N G i M k i T !


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Marketing Exchange: Indian

Travel Industry

The Indian Railway Catering and Tourism Corporation (IRCTC) has

been issuing both e-tickets and i-tickets to passengers in bulk

everyday across India, reducing the role of middlemen to a

minimum.

MakeMyTrip.com is a successful online travel company offering

comprehensive services for the global traveller, including air

tickets, hotel reservations, car bookings, and budget travel

packages in India.

redBus, an online bus ticket booking service, has moved beyond

providing value over the internet by reaching out to customers

using all media that provide them conveniencebe it the phone,

home delivery, physical outlets or even sms.

Th N G ti M k ti T t!


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The Marketing Mix: The Airline

Industry

Table 1.3

Th N G ti M k ti T t!


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The Relationship Pyramid



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Characteristics of Service Products



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Some Modern Consumer Products and

Their Dates of InventionConsumer

product

Product Attribute Consumer Need Inventors/ Pioneers* Yr. of

invention

Ketchup

(from the

Chinese

word

Ketsiap)

A food condiment, derived from the Chinese fish-

based sauce, Ketsiap, but adapted for western

taste, using tomatoes

Designed to improve the consumers

enjoyment of their food by improving

the taste, and reducing the dryness

of some foodstuffs.

F. & J. Heinz Co., USA 1876

Television Transmission of moving images Information, entertainment and

education

Baird Television

Development Company,

UK/Telefunken, Germany

1929/1932

Artificial

sweeteners

Xylitol, as the sweetener is known, is used to

sweeten food products such as sugar-free chewinggum and toothpastes

It sweetens food products without

damaging teeth

Culter, Finland 1969

Karaokesing-along

system

A TV system linked to musicplayer, with words ofmusic tracks displayed on screen, allows a person

with a microphone to sing to a tracks musicalbackground

Designed to entertain small groups in

house parties and large groups of

individuals at venues who typically

enjoy singing themselves and

listening to others, or laughing at

their friendsefforts

Roberto del

Rosario/Trebel Music

Corporation, the

Phillipines

1975

Mobilephone

A hand held device for making telephone callswhile in motion

The ability to stay in telephonecontact with others regardless of

oneslocation

NTT, Japan 1979

iPAD A tablet consumer A platform to access audio and

visual media such as books,

periodicals, movies, music, and

games, as well as web content

Apple, Inc. 2004



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The Aggregate Marketing System

The aggregate marketing system impedes products because they dont meet

consumer needs. So, it serves a number of benefits to society including thefollowing: the promotion and delivery of desired products and services; the provision of a forum for market learning (we can see what does and what

doesnt get through the system;

the stimulation of market demand; the offering of a wide scope for choice of products and services by offering a close/

customized fi t with consumer needs;

facilitates purchases (or acquisitions generally, e.g. if no payment is made directly asin the case of public services);

saves times and promotes efficiency in customer requirement matching; brings new products and services, and improvements, to market to meet latent andunserved needs and;

seeks customer satisfaction for repeat purchases (Wilkie and Moore, 1999).



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Controversies in Marketing

Consider the following questions?

What is a fair price for companies and organizations in wealthier countries to paysuppliers in poorer countries (see Market Insight 1.5)?

Where is the line between persuading customers and manipulating customers topurchase products, services, and ideas? Is some marketing promotion really

corporate propaganda?

To what extent should the goods, services, and ideas of one country be marketedover the goods, services, and ideas of another country? What are the cultural

implications?

How much should we consume of any one particular good, service, or idea? Whenshould governments step in to limit consumption?

Are some groups more susceptible thanothers to certain types of marketingpromotion? If they are, at what point and how should they be protected?

Are some producers or buyer groups more powerful than others, and what impact,if any, does this have upon society?

Does the aggregate marketing system itself advantage some groups over others andwhat are the implications for society?



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Summary

Defined the marketing concept.

Explained how marketing has developed over the twentieth

century.

Described the three major contexts of marketing

application, i.e. consumer goods, business-to-business and

services marketing.

Understood the contribution marketing makes to society.

Assessed critically the impact marketing has on society.

463 33 Powerpoint-slides Baines2e Ch01 1

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