Marketing for all

Managers
Dr Pravin Balaraman
pravin.balaraman@uws.ac.uk
Assessment
 Coursework - Group presentation: 40%
 Individual report: 60%
Textbook
 Jobber, D & Chadwick, F (2020), Principles
and Practice of Marketing, Mc Graw-Hill
Education, Ninth Edition.
 Read chapters in advance
Learning Intentions
 Provide you with a definition of marketing
 Explain what the Production Concept is
 Explain what the Sales Concept is
 Explain what the Marketing Concept is
 Understand what marketing is and why is it
important to firms
Marketing Definition
 Marketing is the management process
responsible for identifying, anticipating and
satisfying customer requirements profitably
 Chartered Institute of Marketing
 Alternatively.....marketing is making
what sells, not selling what we make
Marketing
 Offers & exchanges ideas, goods &
services
 Involves pricing, promotion & distribution
of ideas, goods & services
 Involves developing relationships, ie
Relationship Marketing
Concepts
 3 main ‘concepts’ or stages that
business firms have gone through:
 Production Concept
 Sales Concept
 Marketing Concept
Production Concept
 Approx 1800s – 1930s
 Emphasis was on the product – production,
supplies, labour, quality
 Assumed that people would always buy the
best product on offer
 Customer requirements were secondary to
production decisions
Production Concept
If customers were not buying the product
then there were only two reasons:
 The sales force were inefficient (or the)

 Customers were stupid

 Levitt coined the term ‘marketing myopia’

in reference to the American railroad
owners
Production Concept
 Can this type of thinking be found today?
 Companies soon began to realise that
something else was needed to sell their
product.
 Next phase referred to as the Sales
Concept
Sales Concept
 1930s – 1960s (approx)
 When supply exceeded demand then products
had to be ‘sold’ via advertising, personal
selling, sales promotions
 Believed that consumers could always be
persuaded to buy a product
 The emphasis was upon the immediate sale,
not customer satisfaction
Sales Concept
 Selling was seen as marketing
 Took a short-term view of customer
satisfaction
 Taken to extremes by timeshare, double-
glazing, used-car firms (in certain cases)
 Still utilised by many firms today – see
Craftmatic example
Marketing Concept
 The sales concept focuses on the needs
of the seller, the marketing concept
focuses upon the needs of the buyer
 It takes a long-term approach
 Customer satisfaction and customer
relationships are critical to success
Marketing Concept
 Selling concept has been described as
looking into a mirror, the marketing
concept is like looking out of a window
 Reasons for development of this way of
thinking:
 Greater customer affluence
 Affluence brings choice
Marketing Concept
 Better consumer legislation
 Better communication
 Increased globalisation
 Desire for products, services,
experiences
Marketing Concept
 Kotler states 4 key features of marketing
concept:
 Identify the Target Market – know who your
customers are
 Understand the real needs of your customers
 Integrate all of your marketing activities – 4 Ps
 Make a profit
Marketing Concept
 Peter Drucker:
 There will always be the need for some selling
but the aim of marketing is to make selling
superfluous. It is to know and understand the
customer so well that the product fits him and
sells itself.
 Adapted from Kotler, Marketing Management,
11th edition, Prentice Hall
Marketing Concept
 Most companies do not embrace the marketing
concept until driven to it by various
developments:
 Falling sales
 Increased competition
 Losses
 The adoption of the marketing concept, and the
techniques associated with it, are now firmly
established in the areas of:
Marketing Concept
 Having a marketing department does not
mean you have adopted the marketing
concept
 Marketing is too important to be left to the
marketing dept, it is the responsibility of
everyone in the organisation
 Think Marketing, Think Customer
2. THE PRODUCT CONCEPT
 PRODUCT CONCEPT holds that consumers will
favor those products that offer the most quality,
performance, or innovative features.
 Managers in product oriented organizations focus
their energy on making superior products and
improving them over time.
 Managers assume that buyers admire "well-made
products and can appraise product qualify and
performance.
 Managers are sometimes caught up in a love affair
with their product and do not realize that the market
may be less "turned on."
 Marketing management becomes a victim of the
"better-mousetrap" fallacy, believing that a better
mousetrap will lead people to beat a path to its door.
5. THE SOCIETAL MARKETING CONCEPT
 Believed that marketing concept inappropriate
philosophy in an age of environmental
deterioration, resource shortages, explosive
population growth, world hunger and poverty,
and neglected social services.
 Holds that the organization's task is to determine
the needs, wants, and interests of target markets
and to deliver the desired satisfactions more
effectively and efficiently than competitors in a
way that preserves or enhances the
consumer's and the society's well-being.
What is Marketing?
 Market Segmentation
 Marketing Research
 Consumer Buying Behaviour
 Communication
 Branding
 Pricing
 Distribution
 Planning and Control
Marketing Myths
 A satisfied customer is a loyal customer
 A strong brand is invincible
 A big-name brand can sustain a higher
price
 Members of distribution channels do not
influence marketing
 Advertising always affects sales
The External Environment
 The Boiling Frog
The External Environment
 The frog is capable of recognising dramatic
differences between cold water and boiling
water
 It is not capable of differentiating between
small and gradual change
 This failure to notice gradual and
incremental change results in its death
The External Environment
 Sometimes change is dramatic and its
impact is immediate – 9/11
 Other times it can go ‘under the radar’
 Key point is that firms must anticipate and
adapt to external change
The External Environment
 It often goes under various acronyms –
 PEST
 SLEPT
 PESTEL
 However, it is best thought of as all of the
factors can impact upon an organisation but
which are outwith their control
Social
 This change tends to take place over a long
period of time
 Adapting to a complex and changing society
can be a problem for many individuals and
organisations
 For example, the role of women in society has
changed dramatically over the last 50 years
Society - Women
 Traditional role of women – leave school,
obtain a job as a domestic servant or in a
factory
 Get married, have children, bring up
children.
 Possibly return to work when children are
older.
 Divorce not an option
Social Issues
 Ethnic Mix
 Religion
 Obesity
 Ageing population – the ‘grey pound’
 Debt levels
 Rising crime
 Animal welfare
 Increased car ownership
Social Issues
 Attitudes to drugs
 Attitudes to gays and civil partnerships
 Leisure patterns
 Work patterns
 Social networking
Social Issues
 Key question is in what way has society
changed that has affected the
organisation / industry?
 How might it change in future?
Political
 Political decisions take place at various
levels:
 Local councils
 Scottish Parliament
 UK Parliament
 EU - free movement of foreign workers
 Pressure groups – Greenpeace
Legal
 Linked to political section
 Local, national and international level
 Health and Safety
 Employment laws
 Human Rights
 Data Protection
 Child Protection
 Competition Laws
Economic
 Recession
 Cost of borrowing – interest rates
 Global trends
 Inflation
 Unemployment
 Economic Growth
 Exchange Rates
 Disposable Income
Technological
 What technological developments are impacting
upon the firm and consumers?
 Internet
 Social networking
 Databases
 Smartphones
Environmental
 May not be relevant to all firms but is
growing in importance
 Carbon footprints
 Recycling
 Energy saving devices
 Pollution
 Greenhouse gases
Competitors
 In what way might your competitors impact
upon your plans?
 Competitors may be direct
 Competitors may be indirect – cinema v
theatre, pubs, bowling etc
 Impact of mergers, acquisitions, market
failure.
 WATCH THE VIDEO AND DISCUSS:
Indian farmers, coca-cola vie for scare water supply
 1. Coca-Cola has been accused on depleting the water
supply in the Indian state of Rajasthan. However, Coca-
Cola has not actually violated any laws on water usage. In
your opinion, is Coca-Cola doing anything wrong? Is the
company acting ethically? What does Coca-Cola’s
outright rejection of the recommendation of the
independent assessment imply about the company’s
values?
 2. Some critics have suggested that India’s government
moved too quickly to bring Coca-Cola into the country, and
failed to properly consider the consequences of the
investment. Do you agree? What benefits does Coca-
Cola bring to India?
 3. One activist has suggested that Coco-Cola is
being arrogant – that because the company has
money, it can do as it wishes. Reflect on this
perspective. Do you agree? Does the fact that
Coca-Cola is a well-recognized symbol of the United
States have any effect on how the company’s
actions are perceived?
 4. Atul Singh, president of Coca-Cola’s operations in
India has suggested that corporate social
responsibility has shifted from a largely
philanthropic role to one in which the company helps
build community sustainability. Do you agree?
What role do you see for companies in the future?