MARKETING MANAGEMENT

MARKETING MANAGEMENT

PETER YOUNG MA Law Oxford University (1963) MFA Drama Stanford CA (1965) “Working” life

27 Years Marketing Brand Management (1966-93) UK Spain Sweden Finland Switzerland Chile Argentina Australia

Portugal P&G 1966-1982 Others 1982-1993

H&R Johnson Tiles Group (Marketing Director) Silentnight Holdings PLC (Group Marketing Director) Cinzano (IDV Diageo) Marketing Director BP Spain Consumer Goods (Sales and Marketing Director)

19 years McDonald’s Franchisee and Marketing Coop V-P Spain

MA Marketing & Innovation ARU LAIBS 2011 PhD Research Project Marketing & Brand Management

ARU LAIBS Cambridge (2012) – objective - “Doc” Pete 2015

MARKETING MANAGEMENT INTRODUCTION

Day 1 – Marketing Introduction What is marketing? What is it for? Who does

it? Who does it sell to? Day 2 – Brand Management I - Portfolio

Getting the products “right” for the right people

Day 3 – Brand Management II - Brand Getting the sale right for the right people –

what do we say to whom and how do we say it?

MARKETING MANAGEMENT INTRODUCTION

A REFRAINAN IRISH JOKEAN ANECDOTE

THE NIH FACTOR

MARKETING MANAGEMENT

A REFRAIN

MARKETING MANAGEMENT

BUILD A BETTER MOUSETRAPAND THE WORLD WILL BEAT A PATH TO YOUR

DOOR

DISCUSS

MARKETING MANAGEMENT

AN IRISH JOKE

If I were going to Dublin, I wouldnt sart from here

AN ANECDOTE Boots for the natives

THE NIH FACTOR

NOTINVENTED

HERE

MARKETING MANAGEMENT

An Introduction to Marketing Pt 1 History

Straw Men Ashcans

Definitions 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?

What is Marketing?

What is Marketing? http://www.youtube.com/watch?v=VX5au

0LOJp8

Dove sketcheshttp://www.youtube.com/watch?v=XpaOjMXyJGk&feature=youtu.be

Marketing’s face http://www.youtube.com/watch?v=2XXsk

ACWhm8&list=PL451D9B062269A056

WHAT IS MARKETING TO YOU & ME?

WHAT IS MARKETING TO YOU & ME?

Practice

MARKETING – AN ABSTRACT

MARKETING – AN ABSTRACT

“And as imagination bodies forth  The forms of things unknown, the poet's pen

 Turns them to shapes and gives to airy nothing  A local habitation and a name”.

Shakespeare A Midsummer Nights Dream “The Lunatic, the lover and the poet”

MARKETING

Has many poets! Now including the MBA Class of ‘13/’14

MARKETING

A name, a label, a word …. much used/abused and little understood

THINK “MATRIX”

MARKETING- A WORD

Neo “I just have never... Rama-Kandra ….heard a program speak of

love? Neo It's a... human emotion. R-K No, it is a word. What matters is the

connection the word implies.”

The Matrix Revolutions – Wachowski Brothers

MARKETING

What connections does the word “Marketing” imply?

WHAT IS MARKETING?

Philip Kotler ……“the link between society’s needs and its pattern of industrial response”

MARKETING - history “If you would understand anything,

observe its beginning and its development”.

Aristotle

HISTORY OF MARKETING the discipline of marketing (marketing

thought) is defined by each generation in light of the contemporary environment…...but..

….marketing objectives have not altered much over the ages.

Holden and Holden Psychology & Marketing 1998

HISTORY OF MARKETING the discipline of marketing (marketing

thought) is defined by each generation in light of the contemporary environment

“IN THE 20th C. MARKETING WAS BORN”

Source: Several 20th C Academics

They (incidentally?) made reputations and quite a lot of money out of discovering it

“MARKETING IS DEAD”

“OLD MARKETING IS DEAD”LONG LIVE NEW MARKETING

Nigel Piercy (Sage and teacher of “New Marketing”) – 2007 …

Kevin Roberts (Guru and peddler of “New Marketing” – Saatchi & Saatchi Worlwide CEO) – 2012….

MARKETING HISTORY

THE 20th C. BIRTH & DEATH OF MARKETING

HISTORY OF MARKETING

THE (alleged) BIRTH & DEATH OF 20th C. MARKETING

Do not believe anything anyone tells you

HISTORY OF MODERN MARKETING

1945 World War II ends

HISTORY OF MARKETING

1945-1960 Everything in short supply

HISTORY OF MARKETING

1960 -1975 Supply exceeds demand

Competition revives

Marketing thrives

HISTORY OF MARKETING

1970-1975 Opec, Vietnam and Inflation

HISTORY OF MARKETING

1975-2008 The beancounters rule

Marketing “dies”….. (with a whimper)

2008 Lehman Bros + Chaos (death of the Beancounters??)2013 Marketing is (widely pronounced) Dead

Universal sameness and parity

Universal sameness and parity

Selling by yelling

Universal sameness and parity Selling by yelling

Paralysis by analysis, the dreaded research vampires

Universal sameness and parity Selling by yellingParalysis by analysis, the dreaded research vampires

Meaningless innovation

Universal sameness and parity Selling by yellingParalysis by analysis, the dreaded research vampiresMeaningless innovation

A command and control mentality

“AS OF 2013 MARKETING IS DEAD”

Kevin Roberts Actually earlier if you believe Piercy

MARKETING WAS SHORTLIVED

1900s: discovery of basic concepts and their exploration 1910s: conceptualisation, classification and definition of terms 1920s: integration on the basis of principles 1930s: development of specialisation and variation in theory 1940s: reappraisal in the light of new demands and a more

scientific approach 1950s: reconceptualisation in the light of managerialism, social

development and quantitative approaches 1960s: differentiation on bases such as managerialism, holism,

environmentalism, systems, and internationalism 1970s: socialisation; the adaptation of marketing to social

change

Robert Bartels A History of Marketing Thought 1976

CONTEMPORARY ENVIRONMENT

Marketing – the 100 year’s concept?

20th C. MARKETING .. was above all (in chronological order) :

Procter & Gamble Ralph Starr Butler Levitt Drucker Kotler THE CUSTOMER/CONSUMER

20th C. MARKETING 20th C. Marketing was above all (in

chronological order) : Procter & Gamble

The Procter & Gamble Company

Marketing Practice at P&G 1870 – 2013 P&G has practiced “core” marketing for over 130 years 1875 P&G launches Ivory soap (still around today – with the same

Advertising Agency – today called Saatchi & Saatchi -since 1920) 1914 a recent ex-employee of P&G - Butler - was the first to use the

word “Marketing” in a modern context and wrote “Marketing Methods”. 1924 P&G (Paul ‘Doc’ Smelser) formed the first market and consumer

research department 1930 P&G formalised Brand Management with appointment of the

world’s 1st Brand Manager (Neil McElroy) 2013 P&G today markets over 300 brands globally– each brand a

discrete business with its own dedicated “Brand Manager” 1930 – 2013 All Chief Executives (10) are ex-Brand Managers. 1999 P&G receives“Marketer of the Century” award from Advertising

Age 1837 – 2013 175 years of marketing best practice, competing

aggressively and with obsessive secrecy

20th C. MARKETING 20th C. Marketing was above all (in

chronological order) : Procter & Gamble Ralph Starr Butler

20th C. MARKETING

Ralph Starr Butler

P&G 1907-1910 University of Wisconsin 1911-1916

“Marketing Methods” 1914

20th C. MARKETING 20th C. Marketing was above all (in

chronological order) : Procter & Gamble Ralph Starr Butler Drucker

20th C. MARKETING Peter Drucker (1953) ‘The business enterprise has two

and only two basic functions—Marketing and Innovation. Marketing and innovation produce results: all else is cost

20th C. MARKETING 20th C. Marketing was above all (in

chronological order) : Procter & Gamble Ralph Starr Butler Drucker Levitt

20TH C. MARKETING

Theodore 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.

20th C. MARKETING 20th C. Marketing was above all (in

chronological order) : Procter & Gamble Ralph Starr Butler Drucker Levitt Kotler

20th C. MARKETING PHILIP KOTLER “.. done more than any other writer or scholar to promote

the importance of marketing, transforming it from a peripheral activity, bolted on to the more "important" work of production.

….shifting emphasis away from price and distribution to a greater focus on meeting customers' needs and on the benefits received from a product or service.

…broadened the concept of marketing from mere selling to a more general process of communication and exchange, and has shown how marketing can be extended and applied to charities, political parties and many other non-commercial situations.”

(FT 2003) .. held that marketing can be applied not only to products,

services, and experiences, but also to causes, ideas, places and persons.

(Wikipedia)

20th C. MARKETING 20th C. Marketing was above all (in

chronological order) : Procter & Gamble Ralph Starr Butler Levitt Drucker Kotler THE CUSTOMER/CONSUMER

HISTORY OF MARKETING

….marketing objectives have not altered much over the ages.

Holden and Holden Psychology & Marketing 1998

So just how old is Marketing?

HISTORY OF MARKETING When was marketing born? 1900? Academic hubris – “Nothing exists until it

is worthy of scholarly study” But Brands have been around a long,

long time

BRANDS Brand is the "name, term, design,

symbol, or any other feature that identifies one seller's product as distinct from those of other sellers“

“People buy products. But they choose Brands”

As soon as you get competition you get brands

Products have been distinguished from others sellers, people have been choosing and competition has been around for a while – a long while

HISTORY OF MARKETING Commercial brands began some 5,000 years ago in

Mesopotamia when traders needed some assurance of the value and origins of oils, wines and other products, an anthropologist believes.

While many scholars trace the beginning of branding to the Western Industrial Revolution, David Wengrow, an anthropologist at University College of London, presents evidence that labels and stoppers on ancient containers actually functioned as brand identifications that told a purchaser important information about contents

An examination of the material and cognitive properties of sealing practices and the changing functions of seals in their transition from personal amulets to a means of labeling mass‐produced goods helps to unpack the interlocking (pre)histories of quality control, authenticity, and ownership that make up the modern brand.

(Current Anthropology 2008)

HISTORY OF MARKETING Without “Brands” there is no marketing OK But “Without Marketing there are no

brands”???????

Early ‘non -Marketing’ Some old brands

Chyawanprash (1100-500 BC) Schloss Johannisberg (1100 AD) Chateau de Goulaine (1000) The Bingley Arms (953) Antinori (1385) Cambridge University Press (1534) Mulliner (1599) Hoares Bank (1672) Ede and Ravenscroft (1689)

18th – 19th Century ‘non - Marketing’

Wedgewood Coca Cola Uncle Bens Rice Kellogg Del Monte Sunlight Pears Ivory Lyle’s Golden Syrup

18th – 19th Century ‘non - Marketing’

What did these survivors have in common?

A Brand Something that (lots of) people

(buyers/customers/consumers) wanted Value? (more anon) They were ready to exchange money for the

brand (an exchange of values) Year after year after year after year….

Did they perceive value without any stimulus? Did they dig into their piggies without a sale

being made? Did noone sell to them? Was all this spontaneous? Did noone take the

initiative? Did noone “market”?

DEFINITIONS OF MARKETING EARLY THINKING

Implicit in the commercial definitions are the origins of “marketing” in all organic transactions

Marketing goes back a long way

Actor procures an exchange of values (Kotler)

WE ARE ALL “MARKETERS”

A “marketer” as initiator tailors an offer to meet or anticipate the needs or desires of another person and stimulates an acceptance action which delivers benefit to both actors – offerer and accepter

WE ARE ALL MARKETERS

Promote an exchange of values for mutual benefit

We market pretty well as cells

We “market” pretty well as flora

MARKETING – INDIVIDUAL AND PERSONAL

We do it pretty well as fauna

MARKETING – INDIVIDUAL AND PERSONAL

We do it pretty well as individuals

We “market” pretty well in commerce too - as individuals

MARKETING – INSTITUTIONAL ESPECIALLY COMMERCIAL

We do it quite badly in organisations

ORGANISATION MARKETING SCORECARD

“..the Marketing Society was founded in 1959. The whole thing has been a huge success.” 

“The UK’s marketing achievement over these 30 years is rather less impressive. In fact, it has been the worst period of decline in our share of market since the Industrial Revolution…”

“In 1950 the UK had a 26% share of world exports of manufactured goods. By 1979 it was down to 9½%”.

“on the whole you could say that our espousal of marketing has come at the very time that our marketing performance has been most dismal” King 1985

CHALLENGE OF DEFINITION “In the literature there are a great many definitions of

marketing, most of them rather abstract. They tend to strain hard to be comprehensive and cover all eventualities. As a result, however well thought out they may be, they usually do not trip very readily off the tongue, and are received by practical marketing men with a surge of apathy.

The approach among the practitioners is very different. They tend not to define anything at all. They act first and give it a name afterwards. As a result, there is a wide spread of activities which are called marketing, and many of them seem to have failed.”

King 1985

KING’S FOUR “FALSE MARKETING”s

(1) Thrust Marketing (2) Marketing Department Marketing (3) Accountant’s Marketing (4) Formula Marketing

King 1985

KING’S FOUR “FALSE MARKETING”sRevisited 2001

King identifies four routes to failed marketing including : Thrust marketing which is essentially selling with a

target of getting a cheap product on shelf. Marketing departments marketing is bedeviled by

endless and expensive studies of consumer wants commissioned by teams who lack the authority to make any changes to the offer.

Accountants marketing is driven by those who lack of experience of customers and markets and overemphasise short term financial goals.

Finally Formula marketing makes excessive use of checklists and rulebooks which engender a homogeneous mediocrity of ideas. Professor Caroline Tynan 2001

KING’S FOUR “FALSE MARKETING”sRevisited 2001

We may wish to update the names of these failed approaches but I’m sure that we all recognise the same sorry mistakes in the

practice of marketing management today.

Professor Caroline Tynan 2001

KING’S MARKETING WINNERS

Putting the customer first – not the distribution system.

Giving satisfaction over time – not just profits this month.

Using all the company resources – not just one department’s.

Innovating – not just stick to formulae.

21st C MARKETING Dead? Old? New? Failed? Never tried? Dispersed? Thriving?

(est. 630.000 managers in marketing/sales in USA alone in 2012)

MARKETER CONSUMER

MARKETER THEORETICAL INTERFACE WITH CONSUMERS

IT OUGHT TO BE EASY

SIMPLES

SIMPLES

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

MAYBE NOT SO SIMPLES IN PRACTICE

BACK TO BASICS Who are we after?

The customer/consumer

BACK TO BASICS Who are we after?

The Customer/Consumer What are we trying to do to/with

him/her/them? ??????

LET’S DEFINE MARKETING

DEFINITIONS OF MARKETING

This is not the first time - others have been here before

In 1993 Henley Management College researchers studied 100 separate definitions of Marketing concluding “significant evolution in the concept of marketing since

its earliest definition” “greatest change in the ‘nature of relationship” theme

(i.e. between provider and user) Broadening and softening of the original concept and its

transfer into other domains – services, not for profit etc. Marketing….adaptable, flexible, international and open.

‘this latitude has allowed ambiguity to creep into its definition and cause confusion. Definitional clarity is essential in future’ Baker 1999

DEFINITIONS OF MARKETING

1 a : the act or process of selling or purchasing in a market

1 b : the process or technique of promoting, selling, and distributing a product or service

2 an aggregate of functions involved in moving goods from producer to consumer

Merriam Webster

DEFINITIONS OF MARKETING

The action of “market” - verb; an instance of this.

Spec. The action, business, or process of promoting and selling a product etc., including market research, choice of product, advertising, and distribution. (OED)

DEFINITIONS OF MARKETING

“The management process responsible for identifying, anticipating and satisfying customer requirements profitably”

CIM (Chartered Institute of Marketing)

PRE 2007

Definitions of Marketing

“The strategic business function thatcreates value by stimulating, facilitating

and fulfilling customer demand.It does this by building brands, nurturing innovation,

developing relationships, creating good customerservice and communicating benefits.

With a customer-centric view, marketing bringspositive return on investment, satisfies shareholdersand stakeholders from business and the community,and contributes to positive behavioural change and a

sustainable business future.”

CIM Post 2007 indulging in a bout of definition inflation (see Parkinson’s Law)

Parkinson’s Law Work expands so as to fill the time

available for its completion

Marketing defined

Marketing is to establish, maintain and enhance relationships with customers and other partners, at a profit, so that the objectives of the parties involved are met. This is achieved by mutual exchange and fulfilment of promises.

Grönroos 1997

Definitions of Marketing

Marketing is the activity, set of institutions, and processes for creating,

communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society

at large.

(AMA Approved October 2007)

Definitions of Marketing

Marketing is the management process for identifying, anticipating and satisfying

customer requirements profitably.

CIM Pre 2007

Source: Webster, F. E. 1992 p14

Marketing is .. the management function responsible for making sure that every aspect of the business is focused on delivering superior value to customers in the competitive marketplace.

DEFINITIONS OF MARKETING

Peter Drucker (1953) ‘The business enterprise has two

and only two basic functions—Marketing and Innovation. Marketing and innovation produce results: all else is cost

Marketing defined

Marketing is the management process responsible for identifying, anticipating, and satisfying customer requirements profitably. (CIM, 2001)

Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange and satisfy individual and organisational objectives. (AMA, 1985)

Marketing defined

Marketing is to establish, maintain and enhance relationships with customers and other partners, at a profit, so that the objectives of the parties involved are met. This is achieved by mutual exchange and fulfilment of promises.

Grönroos 1997

DEFINITIONS OF MARKETING

“Marketing is everything.” — Regis McKenna 

IN GROUPS Write your own definition of Marketing What is it trying to achieve? How does it seek to achieve it? How does it contribute to delivering the

mission/objectives – long and short term – of commercial organisations? Or of a non-commercial organisations (e.g. a charity, political party? Or both.)