ENT 4320
Marketing Management
Marketing – Concepts and Trends
Arild Aspelund
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
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)
…, 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:
IPhone
… 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
•
http://www.na24.no/propaganda/
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
Marketing – A Textbook
Example…
How to trade water for
~ 100 NOK per liter…
- Imsdal for Kids
Imsdal for Kids Segmentation:
- Parents of small kids (1 year to pre-school)
Value:
- Thirst quencher
- Clear conscience
- Tranquililty
- Enjoyment
- And everything on the go…
Ex: Imsdal for Kids
Positioning:
- An healthy alternative
- Manageable even for small kids
Targeting:
- No advertising
- Promotion through product placing!
Imsdal for Kids
- Positioning and targeting through product
placing
Product not placed here…
But here…
Buying behavior - Reitanruta,
Trondheim
Or how about 420 NOK ~ Do You
Bling?
«It's not for everyone, just those that
Bling.
So the question is: Do You Bling?»
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)
What are the tasks of market
management?
•
Capturing marketing insight
•
Communicating value
•
Shaping the market offering
•
Building brands and market
recognition
•
Developing marketing
strategies and plans
•
Creating long-term growth
•
Connecting with customers
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
Marketing trends
Different marketing trends for bringing value to customers
• The production concept
“Customers will prefer products that are widely available and
inexpensive”
• 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
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
Marketing Trends
• From the marketing division to the marketing organization
• From product units to market segments
• Outsourcing and inter-organizational market integration
• Globalization
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