MBA
Marketing Management
MKT 600
Understanding Mktg & Mktg Mngnt
Achieving Corporate Success
The today's business environment
Technological
development
Worldwide competitive
environment
Demanding
customers
Mergers & acquisitions
between companies
Product life cycle
shortening
Employees new
profiles
New Legal
environment
.......we all believe that by globalization
and in an environment with no trade
barriers, the world will became a single
united market. Whoever reaches it first
will become the best.
Donald Shinkel, Vice President
Wall-Mart Stores
Few successful examples from the
Geek market
Marketing Management
Lecture Overview
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What is Marketing?
Marketing as an organisation and management function
Marketing as a concept and philosophy
i
Evolution of Marketing concept
Core concept of marketing
Marketing orientations
The competitive environment
Marketing mix
WHAT IS MARKETING?
Marketing is everyone’s business. Every person working for an
organisation should understand the importance of marketing.
 Definitions:
“ Marketing is the management process responsible for identifying,
anticipating and satisfying consumer requirements profitably”
– CIM
“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 needs.”
 AMA
Why It’s Important
Effective marketing puts the
products in the hands of its
targeted customers.
Basics of Marketing
A market is a group of customers
who share common wants and
needs, and who have the ability to
purchase a particular product.
Basics of Marketing
Marketing is the process of
creating, promoting, and presenting
a product to meet the wants and
needs of consumers.
One fundamental question: Is Marketing creating
or satisfying needs?
Key Words
market
marketing
marketing concept
target marketing
relationship marketing
marketing mix
break-even point
Key Words
market research
demographics
channel of distribution
direct distribution
indirect distribution
wholesaler
retailer
MARKETING IS AN ORGANISATIONAL
FUNCTION
The diagram below shows the many functions that can be carried out in organisations
which, dependant on the organisation, can be classified as operational functions
of marketing.
CRM
Sales Promotion
Advertising
P.R.
Selling
Display
Financing
Stockholding
The operational
functions of marketing
Buying
Servicing
Forecasting
Risk Taking
Transporting
Pricing
Market Research
Merchandising
Publicity
MARKETING AS A MANAGEMENT
FUNCTION
Here the role of marketing is ensuring that the operational activities of the
organisation (not just marketing) are clearly directed towards the principal
objective of meeting the needs of the customers effectively. It involves
analysing customers and anticipating their needs, planning, resource
allocations, control and investment in terms of money, appropriate skilled
people and physical resources to ensure both customer and organisational
needs are met to each’s satisfaction.
 Marketing as a Business Concept – in this regard marketing is the study
of exchange processes especially those associated with the provision of
goods and services. It takes its lead from the social sciences in that, the
basic tenant of society is that we all need each other. The idea here is, if I’ve
got something you want and you’ve got something I want, then we do a deal
(which is the exchange process)
MARKETING AS A BUSINESS CONCEPT
The Exchange Process
Something of value
Goods, services, benefits
Supplier
Customer
Money, exchange of goods
Something of value
EXCHANGE TRANSACTIONS
Consumers
Costs & Benefits
Organisations
Cash
Quench
thirst
Customer
Pepsi
Insurance
premiums
Patient
Medical
treatment
Private Hospital
Fees
Education
Student
University
EXCHANGE TRANSACTIONS
Consumers
Costs & Benefits
Organisations
Time
Volunteer
Sense of
community
service
Non-profit youth group
Vote
Voter
Sense of economic/social
progress continued
employment etc
Politic Party
Taxes
Reader
Lone parent
Public Library, Benefit agency
MARKETING AS A BUSINESS
PHILOSOPHY
Simply a way (i.e. orientation) towards how the business will
behave.
As a philosophy it recognises the importance of the customer
and that all business exists to serve customers rather than
manufacturing products.
To quote Adam Smith C A in his famous text ‘ The wealth of
“Consumption is the sole purpose of production and the interests
of the product ought to be attended o only so far as it may be
necessary for promoting those of the customer”
CORE CONCEPTS OF MARKETING
Needs
Products/
Value
Wants
Services
&
Demand
Exchange
Process
Exchange
Transactions
Relationships
Satisfaction
Markets
Marketing
EVOLUTION OF MARKETING CONCEPT AND
MARKETING ORIENTATION
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Self-sufficiency
Simple
Local markets
Money economy
Industrial revolution
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Production orientation
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Soles orientation
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Product orientation
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Marketing orientation
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– No exchange process
– Start of exchange process
– Economic specialisations
– Medium of exchange
– Rapid growth in world population leading to increased demand.
Problem – How to supply?
– More efficient production eventually led to oversupply. Problem
changed to – How to dispose?
– Economic theory states: when supply exceeds demand, reduce
price and use other techniques to stimulate demand.
– Demand. Problem – how to keep customers? Companies sought
to keep customers by increasing emphasis on product design,
Problem – competition quickly copied and the design didn’t suit
everyone. Too many products than they demand for them.
– Production based on customer needs and wants. Specific
markets identified and matched their requirements to the
capabilities of the company to ensure both parties needs were
satisfied.
BUSINESS ORIENTATION
Orientation
Profit Driver
Approximate
Time Frame
Characteristics
Production
Production Methods
Up to 1940’s
Improvement of production and in order
to achieve a reduction of costs and
improved efficiency.
Product
Quality of Product
Until 1960’s
The quality of the product is paramount.
Focus on product not customer needs.
Selling
Selling Methods
1950-1970’s
Effective selling and promotion are the
new drivers to success.
Marketing
Needs and wants of
customers
1970 to date
Focus on providing the goods and
services that satisfy the needs and wants
of consumers.
Further approaches to marketing
Relationship
Marketing
Building and keeping
good customer
relations
1990’s to date
Emphasis placed on keeping as well as
winning customer strategies.
Societal
Marketing
Benefit the society
1990’s to date
Similar to marking orientation but also
concerned with the long term impact of
organisational activities on the
environment (society)
Marketing Mix: The 4 Ps
Place
Promotion
The Marketing Mix
Price
Product
Importance of 4Ps by Industry –
examples of promotions
Consumer Goods
Industrial Goods
High
Advertising
Personal Selling
Sales Promotion
Sales Promotion
Personal Selling
Advertising
PR
PR
Importance
Low
Push versus Pull
Demand
Push Strategy
Manufacturer
Demand
Intermediary
End User
e.g Lever Brothers
Demand
Pull Strategy
Manufacturer
Demand
Intermediary
End User
e.g. P & G
Η εξέλιξη της φιλοσοφίας του Marketing
1. Η φιλοσοφία της παραγωγής
 Η ποιό παλαιά
 Προσπάθεια παραγωγής
πολλών προϊόντων
 Σε χαμηλές τιμές
 Βελτίωση παραγωγής
 Ικανοποιητική διανομή
5. Φιλοσοφία Κοινωνικού Marketing
• ερωτηματικό εάν το 4 αποτελεί
ευχολόγιο ή είναι ο νέος προσανατολισμός
Των ενεργειών του Marketing
Παραγωγή
Προϊόν
2. Φιλοσοφία Προϊόντος
 Βελτίωση ποιότητας
 Best value for money
 Ο κατ/τής επιθυμεί τα προϊόντα Πωλήσεις
που του προσφέρουν την
μεγαλύτερη ικανοποίηση
4. Φιλοσοφία του Marketing
 Κύριο έργο ο καθορισμό
αναγκών & επιθυμιών
 Targeted Marketing
Marketing  Προσαρμογή στην
παραγωγή & διανομή
αυτών των προϊόντων
3. Φιλοσοφία Πωλήσεων
 Τα προϊόντα πωλούνται δεν
αγοράζονται
 Η ενέργεια της αγοράς είναι η
απάντηση στο ερέθισμα των
πωλήσεων & όχι στις ανάγκες
του καταναλωτή
 Push vs pull strategy
Marketing Management – Athens Metropolitan College – Κώστας Γεωργικόπουλος
Η ανάπτυξη της σπουδαιότητας του
Marketing
Αρχική οικονομία της παραγωγής
• Παράγω μόνο για εμένα & την οικογένεια, κυρίως
πρωτογενής τομέας)
Δημιουργία πλεονάσματος (surplus)
• (simple trade era)
Έναρξη δραστηριότητας ανταλλαγών
Αρχή της οικονομίας της αγοράς & της παραγωγής
• Βιομηχανική επανάσταση, 18ος αιώνας)
Έναρξη της οικονομίας των υπηρεσιών
Marketing Management – Athens Metropolitan College – Κώστας Γεωργικόπουλος