Marketing: Asian Edition Oxford University Press 2013.
All rights reserved
The New Generation Marketing Text!
Marketing: Asian Edition Oxford University Press 2013. All rights reserved The New Generation Marketing Text!
Define the marketing concept. Explain how marketing has developed over the twentieth century. Describe the three major contexts of marketing application, i.e. consumer goods, business to business and services marketing. Understand the contribution marketing makes to society. Assess critically the impact marketing has on society. Learning Outcomes Marketing: Asian Edition Oxford University Press 2013. All rights reserved The New Generation Marketing Text! Case Insight Consider an Indian mobile network operator.
In the highly competitive telecom market, the actual offering is the value driverpay less and talk more. The tendency of an individual customer is to seek maximum value, and the airtime product helps the company to build on the same platform and use it successfully across all market types and individuals.
When this telecom company plans to roll out 4G services in a competitive market like India, how important is it to price the service at an affordable level to maximize the subscriber base? Marketing: Asian Edition Oxford University Press 2013. All rights reserved The New Generation Marketing Text! Definitions of Marketing The management process of anticipating, identifying and satisfying customer requirements profitably (CIM, 2001).
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, 2007).
Marketing is the endeavour of adapting organisations to their competitive markets in order to influence, in their favour, the behaviour of their publics, with an offer whose perceived value is durably superior to that of the competition (French trans.: Lendrevie, Lvy and Lindon, 2006).
The value-based definition of marketing describes Marketing as a process of sensing, designing, and delivering customer value for fulfillment of desired organizational objectives (an Indian perspective). Marketing: Asian Edition Oxford University Press 2013. All rights reserved The New Generation Marketing Text! The Three Components of Market Orientation Marketing: Asian Edition Oxford University Press 2013. All rights reserved The New Generation Marketing Text! The Development of Marketing Production period, 1890s-1920s characterized by a focus on physical production and supply, where demand exceeded supply. This phase took place after the industrial revolution.
Sales period, 1920s-1950s characterized by a focus on personal selling supported by market research and advertising. This phase took place after the First World War.
Marketing period, 1950s 1980s characterized by a more advanced focus on the customers needs. This phase took place after the Second World War.
Societal marketing period, 1980s to present characterized by a stronger focus on social and ethical concerns in marketing. This phase is taking place during the information revolution of the late twentieth century. Marketing: Asian Edition Oxford University Press 2013. All rights reserved The New Generation Marketing Text! Marketing and Sales Compared
Marketing
Sales
Tends towards long-term satisfaction of customer needs
Tends towards short-term satisfaction of customer needs; part of the value delivery process as opposed to designing and development of customer value processes
Tends to greater input into customer design of offering (co-creation)
Tends to lesser input into customer design of offering (co-creation)
Tends to high focus on stimulation of demand
Tends to low focus on stimulation of demand, more focused on meeting existing demand
Marketing: Asian Edition Oxford University Press 2013. All rights reserved The New Generation Marketing Text! Source: The Marketing and Sales Standards Setting Body (2010) A Functional Map for Marketing Marketing: Asian Edition Oxford University Press 2013. All rights reserved The New Generation Marketing Text! The Marketing Mix The Original developed by Borden in his teaching but not written up until 1964:
Product planning Pricing Branding Channels of distribution Personal selling Advertising Promotions Packaging Display Servicing Physical handling Fact finding and analysis (Borden, 1964).
The Shortened simplified version by Eugene McCarthy and now more commonly used:
Product Place (distribution) Price and Promotion (McCarthy, 1960).
Marketing: Asian Edition Oxford University Press 2013. All rights reserved The New Generation Marketing Text! The 4Ps of the Marketing Mix Marketing: Asian Edition Oxford University Press 2013. All rights reserved The New Generation Marketing Text! Extensi on from 4- 7 Ps for Servi ces Physical evidence to emphasize that the tangible components of services were strategically important since customers used these to infer what the quality of society might be.
Process because service delivery is inseparable from the customer consumption process, we include process because of the need to manage customer expectations and satisfaction which becomes strategically important in this context. Where processes are standardized, it is easier to manage customer expectations.
People included to emphasize that services are delivered by customer service personnel, sometimes experts and often professionals who interact with the customer sometimes in an intimate manner. Marketing: Asian Edition Oxford University Press 2013. All rights reserved The New Generation Marketing Text! Si mple Marketi ng Exchange Processes Marketing: Asian Edition Oxford University Press 2013. All rights reserved The New Generation Marketing Text! Marketi ng Exchange: I ndi an Travel I ndustry The Indian Railway Catering and Tourism Corporation (IRCTC) has been issuing both e-tickets and i-tickets to passengers in bulk everyday across India, reducing the role of middlemen to a minimum.
MakeMyTrip.com is a successful online travel company offering comprehensive services for the global traveller, including air tickets, hotel reservations, car bookings, and budget travel packages in India.
redBus, an online bus ticket booking service, has moved beyond providing value over the internet by reaching out to customers using all media that provide them conveniencebe it the phone, home delivery, physical outlets or even sms. Marketing: Asian Edition Oxford University Press 2013. All rights reserved The New Generation Marketing Text! The Marketi ng Mi x: The Ai rli ne I ndustry Table 1.3 Marketing: Asian Edition Oxford University Press 2013. All rights reserved The New Generation Marketing Text! The Relationship Pyramid
Marketing: Asian Edition Oxford University Press 2013. All rights reserved The New Generation Marketing Text! Characteri sti cs of Servi ce Products
Marketing: Asian Edition Oxford University Press 2013. All rights reserved The New Generation Marketing Text! Some Modern Consumer Products and Thei r Dates of I nventi on Consumer product Product Attribute Consumer Need Inventors/ Pioneers* Yr. of invention Ketchup (from the Chinese word Ketsiap) A food condiment, derived from the Chinese fish- based sauce, Ketsiap, but adapted for western taste, using tomatoes Designed to improve the consumers enjoyment of their food by improving the taste, and reducing the dryness of some foodstuffs. F. & J. Heinz Co., USA 1876 Television Transmission of moving images Information, entertainment and education Baird Television Development Company, UK/Telefunken, Germany 1929/1932 Artificial sweeteners Xylitol, as the sweetener is known, is used to sweeten food products such as sugar-free chewing gum and toothpastes It sweetens food products without damaging teeth Culter, Finland 1969 Karaoke sing-along system
A TV system linked to music player, with words of music tracks displayed on screen, allows a person with a microphone to sing to a tracks musical background Designed to entertain small groups in house parties and large groups of individuals at venues who typically enjoy singing themselves and listening to others, or laughing at their friends efforts Roberto del Rosario/Trebel Music Corporation, the Phillipines 1975 Mobile phone A hand held device for making telephone calls while in motion The ability to stay in telephone contact with others regardless of ones location NTT, Japan 1979 iPAD A tablet consumer A platform to access audio and visual media such as books, periodicals, movies, music, and games, as well as web content Apple, Inc. 2004 Marketing: Asian Edition Oxford University Press 2013. All rights reserved The New Generation Marketing Text! The Aggregate Marketi ng System The aggregate marketing system impedes products because they dont meet consumer needs. So, it serves a number of benefits to society including the following: the promotion and delivery of desired products and services; the provision of a forum for market learning (we can see what does and what doesnt get through the system; the stimulation of market demand; the offering of a wide scope for choice of products and services by offering a close/ customized fi t with consumer needs; facilitates purchases (or acquisitions generally, e.g. if no payment is made directly as in the case of public services); saves times and promotes efficiency in customer requirement matching; brings new products and services, and improvements, to market to meet latent and unserved needs and; seeks customer satisfaction for repeat purchases (Wilkie and Moore, 1999). Marketing: Asian Edition Oxford University Press 2013. All rights reserved The New Generation Marketing Text! Controversies in Marketing Consider the following questions?
What is a fair price for companies and organizations in wealthier countries to pay suppliers in poorer countries (see Market Insight 1.5)? Where is the line between persuading customers and manipulating customers to purchase products, services, and ideas? Is some marketing promotion really corporate propaganda? To what extent should the goods, services, and ideas of one country be marketed over the goods, services, and ideas of another country? What are the cultural implications? How much should we consume of any one particular good, service, or idea? When should governments step in to limit consumption? Are some groups more susceptible than others to certain types of marketing promotion? If they are, at what point and how should they be protected? Are some producers or buyer groups more powerful than others, and what impact, if any, does this have upon society? Does the aggregate marketing system itself advantage some groups over others and what are the implications for society?
Marketing: Asian Edition Oxford University Press 2013. All rights reserved The New Generation Marketing Text! Summary Defined the marketing concept. Explained how marketing has developed over the twentieth century. Described the three major contexts of marketing application, i.e. consumer goods, business-to-business and services marketing. Understood the contribution marketing makes to society. Assessed critically the impact marketing has on society.