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 Day 1 – Marketing Introduction Day 2 – Brand Management I - Portfolio What is marketing? What is it for? Who does it? Who does it sell to? 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? Boots for the natives NOT INVENTED HERE An Introduction to Marketing Pt 1 History Straw Men Ashcans Definitions Operationalisation 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? Concept History Practice Theory and Study Process Profession and Career Education http://www.youtube.com/watch?v=VX5au0L OJp8 Dove sketches http://www.youtube.com/watch?v=XpaOjM XyJGk&feature=youtu.be http://www.youtube.com/watch?v=2XXskAC Whm8&list=PL451D9B062269A056 Practice Practice “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” Has many poets! Now including the MBA Class of ‘13/’14 A name, a label, a word …. much used/abused and little understood THINK “MATRIX” Neo Rama-Kandra Neo R-K “I just have never... ….heard a program speak of love? It's a... human emotion. No, it is a word. What matters is the connection the word implies.” The Matrix Revolutions – Wachowski Brothers What connections does the word “Marketing” imply? Philip Kotler ……“the link between society’s needs and its pattern of industrial response” “If you would understand anything, observe its beginning and its development”. Aristotle 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 the discipline of marketing (marketing thought) is defined by each generation in light of the contemporary environment Source: Several 20th C Academics They (incidentally?) made reputations and quite a lot of money out of discovering it Nigel Piercy (Sage and teacher of “New Marketing”) – 2007 … Kevin Roberts (Guru and peddler of “New Marketing” – Saatchi & Saatchi Worlwide CEO) – 2012…. THE 20th C. BIRTH & DEATH OF MARKETING THE (alleged) BIRTH & DEATH OF 20th C. MARKETING Do not believe anything anyone tells you 1945 World War II ends 1945-1960 Everything in short supply 1960 -1975 Supply exceeds demand Competition revives Marketing thrives 1970-1975 Opec, Vietnam and Inflation 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 yelling Paralysis by analysis, the dreaded research vampires Meaningless innovation Universal sameness and parity Selling by yelling Paralysis by analysis, the dreaded research vampires Meaningless innovation A command and control mentality Kevin Roberts Actually earlier if you believe Piercy 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 Marketing – the 100 year’s concept? .. was above all (in chronological order) : Procter & Gamble Ralph Starr Butler Levitt Drucker Kotler THE CUSTOMER/CONSUMER 20th C. Marketing was above all (in chronological order) : Procter & Gamble 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 was above all (in chronological order) : Procter & Gamble Ralph Starr Butler Ralph Starr Butler P&G 1907-1910 University of Wisconsin 1911-1916 “Marketing Methods” 1914 20th C. Marketing was above all (in chronological order) : Procter & Gamble Ralph Starr Butler Drucker 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 was above all (in chronological order) : Procter & Gamble Ralph Starr Butler Drucker Levitt 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 was above all (in chronological order) : Procter & Gamble Ralph Starr Butler Drucker Levitt Kotler 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 was above all (in chronological order) : Procter & Gamble Ralph Starr Butler Levitt Drucker Kotler THE CUSTOMER/CONSUMER ….marketing objectives have not altered much over the ages. Holden and Holden Psychology & Marketing 1998 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 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 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) Without “Brands” there is no marketing OK But “Without Marketing there are no brands”??????? 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) Wedgewood Coca Cola Uncle Bens Rice Kellogg Del Monte Sunlight Pears Ivory Lyle’s Golden Syrup 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 Implicit in the commercial definitions are the origins of “marketing” in all organic transactions Actor procures an exchange of values (Kotler) 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 Promote an exchange of values for mutual benefit We do it pretty well as fauna We do it pretty well as individuals We do it quite badly in organisations “..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 “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 (1) Thrust Marketing (2) Marketing Department Marketing (3) Accountant’s Marketing (4) Formula Marketing King 1985 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 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 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. Dead? Old? New? Failed? Never tried? Dispersed? Thriving? (est. 630.000 managers in marketing/sales in USA alone in 2012) MARKETER THEORETICAL INTERFACE WITH CONSUMERS MARKETER CONSUMER Public Relations Professional Relations IT Market Analysis Logistics P CIM E Human Resources Consumer Research Advertising Specialists Gurus Finance & Accounting Operations Legal The Board Manufacturing Family & Friends R&D The Boss Sales/ Key Accounts Shareholder MARKETER P L E CONSUMER Greenery Societal Marketing Relationship Management DAGMAR Global Marketing Supply Chain SWOT Competition Ethics Time Management ‘P’ Inflation Value Chain PEST Connectivity The Internet Partnership Marcomms Theory E A S Trade Marketing Packaging I D Networks Team Building O Politics Brand Equity Who are we after? The customer/consumer Who are we after? The Customer/Consumer What are we trying to do to/with him/her/them? ?????? 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 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 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) “The management process responsible for identifying, anticipating and satisfying customer requirements profitably” CIM (Chartered Institute of Marketing) PRE 2007 “The strategic business function that creates value by stimulating, facilitating and fulfilling customer demand. It does this by building brands, nurturing innovation, developing relationships, creating good customer service and communicating benefits. With a customer-centric view, marketing brings positive return on investment, satisfies shareholders and 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) 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 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) Marketing is the management process for identifying, anticipating and satisfying customer requirements profitably. CIM Pre 2007 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. 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 “Marketing is everything.” — Regis McKenna 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 noncommercial organisations (e.g. a charity, political party? Or both.)