Intro to Marketing -Concepts and Trends

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ENT 4310

Business Economics and Management

Marketing – Concepts and Trends

Arild Aspelund

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Outline

• What is Marketing and what are its primary activities?

• How can we establish a common discussion?

– central concepts of marketing

• Where is the field of marketing going?

– Recent trends in marketing

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Marketing

• What is Marketing ?

– Some say it’s is about needs…

• Marketing deals with identifying and meeting human and social needs

• “Meeting needs profitably” (Kotler and Keller, 2006)

– And some say its about value…

• “Marketing is about communicating values to potential and existing customers” (Lodish et al., 2001)

• “Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stake holders”

(AMA)

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…, but there is a clear distinction to selling…

• Selling simply refers to pushing an transaction

• In its most ambitious sense, marketing should render selling unnecessary. “ … The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself.

Ideally, marketing should result in a customer who is ready to buy ”

(Peter Drucker, 1973)

• Example:

Fujitsu Siemens Pocket LOOX

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… and there is also a clear distinction to advertising…

• Advertising is only one of many means by which you can communicate with existing and potential customers

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What is marketing?

• Marketing deals with the two fundamental question of:

– “What am I selling?”

– “To whom am I selling it?”

• The marketing literature seek to answer these questions through five fundamental concepts

– Value

– Segmentation

– Positioning

– Targeting

– Buying behavior

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Marketing – A Textbook Example…

How to trade water for

~ 100 NOK per liter…

- Imsdal for Kids

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Imsdal for Kids -

Segmentation:

- Parents of small kids (1 year to pre-school)

Value proposition:

- Thirst quencher

- Clear conscience

- Tranquililty

- Enjoyment

- And everything on the go…

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Ex: Imsdal for Kids

Positioning:

- An healthy alternative

- Manageable even for small kids

Targeting:

- No advertising

- Promotion through product placing!

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Imsdal for Kids

- Positioning and targeting through product placing

Product not placed here… But here…

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Buying behavior - Reitanruta, Trondheim

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Or how about 420 NOK ~ Do You Bling?

• «It's not for everyone, just those that Bling.

So the question is: Do

You Bling?»

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Marketing Management

• What is Market Management?

• “Marketing Management is the art and science of choosing target markets and getting, keeping, and growing customers through creating delivering, and communicating customer value” (Kotler and Keller,

2006)

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What are the tasks of market management?

• Capturing marketing insight

• Shaping the market offering

• Developing marketing strategies and plans

• Connecting with customers

• Communicating value

• Building brands and market recognition

• Creating long-term growth

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Marketing

• Marketing’s markets

– There can be made a variety of distinctions between types of markets; goods, services, events, experiences, persons, places, properties, organizations, information, and ideas

• Most commonly distinctions of

– Consumer markets

– Business markets

– Global markets

– Non-profit and governmental markets

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Marketing trends

Different marketing trends for bringing value to customers

• The product concept

– “consumers will prefer products with the most quality, performance and innovative features”

• The selling concept

– The market does not consume sufficiently if let alone. Aggressive selling and promotion is needed in order to boost revenues

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Marketing trends

Different marketing trends for bringing value to customers

• The marketing concept

– “the quest is not to identify the right customers for our products, but the right products for our customers”

– “selling focuses on the needs of the seller, marketing focuses on the needs of the customer”

• The holistic marketing concept

– “everything matters”

– Consists of:

• Relationship marketing

• Integrated marketing

• Internal marketing

• Social responsibility marketing

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Trends

• From the marketing division to the marketing organization

• From product units to market segments

• Outsourcing and inter-organizational market integration

• Globalization

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Summary and continuation…

• To sum it all up:

– The two fundamental questions of marketing are ”what am I selling?” and

”who am I selling it to?”

– Marketeers seek to answer these questions through defining five concepts

• Value

• Segmentation

• Targeting

• Positioning

• Customer and buying behavior

• Next we will look into:

– An introduction to the strategic marketing process

– How to make good market plans

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