Video script 1c

[Unchecked – if you have problems understanding any of this please let me know and I will double-
check]

In this mini lecture, we're going to consider why marketing marketing is important

what it is that marketing brings to an organization to affirm that is really Central

to the operation of that business.

But before I go any further, I want you to stop the video and think about what you

think makes marketing important and make a note of it and keep this in mind and

use it to help you put into contacts the things that we're going to talk about in

this short section of today's topic.

So what does make marketing important? I hope that some of you wrote down that marketers

have an understanding of customers. So the marketers in an organization should be

the people who really really understand what customers want and need and what it

is about the offerings from the organization that keeps those customers engaged

and buying from The Firm they have

The outside facing understanding of what's going on there besides understanding

existing customers. They also understand who potential customers are and what they

might want and bring they also understand how customers make buying decisions. They

know the things that customers trust and distrust and importantly

Lee also marketers are always watching what the competition does and they think

about existing competition and potential new Rivals into the market. So they're

the ones who have the eyes on this and they also understand how to engage with customers

so we can see that marketing is really important because it has an understanding

of customers their needs it also understands. What competitors are.

Living in that house that might impact on us and we'll talk in next week sessions

will also talk about the fact that marketers need to understand what's going on

in The Wider environment in order to put all this in context. So this is what makes

marketing important but on top of this can in any of you remember what Peter Drucker
said in topic 1 B

Seems to be getting a lot of mentions this Peter Drucker chap. But anyway, what

Peter Drucker said was the only marketing and Innovation bring Revenue into the

company. Everything else is a cop and it's something that I always say to colleagues

from other departments where they say. Oh, you know Mark marketing's only a bit

of advertising. It doesn't do anything else. It's actually marketing who helps

I'm in price of whatever is sold. And of course price is the only thing that brings

Revenue into most companies. Okay, there are some exceptions where the might be

little things to do with Investments and things on the site, but on the main the

majority of money that our company gets is through what it sells. So this is also

another reason why marketing's in extremely important.

And thinking about this and we mentioned it very briefly towards the end of topic

want be that we should view marketing as a philosophy. And in reality everybody

in an organization should be a part-time marketer some of you who might have been

studying things like supply chain that sort of area will have heard of the idea

of total quality management.

And some of these practices go go on where you see other departments in the organization

as an internal customer, but this understanding that everybody is part of is a part-time

marketer is really important and can bring a very good mindset to a company and

Peter Drucker again marketing is so basic that it cannot be considered to be a separate

function. It's the

l've isness. It sees everything from the view of the final result. You know, remember

what it is that goes into the marketplace has been crafted from with help from the

marketing department and it's representing the customers point of view and without

customers firms any sorts of businesses lost.

So the other thing or the other way of looking at this is seeing that marketing

is a boundary spanning activity. It looks inwards towards the firm but it also looks
outwards towards customers. We've talked a little bit about customers. We've already

talked a little bit about the competitors, but then there's a new term that I just

brought in here which is channels. So channels are channels of distribution. So

there the mechanisms

Companies use to get their goods to Market so they might be physical retail outlets

increasingly. It might be over the Internet. So this is what we mean by channels

but marketers are the ones who understand these and keep an eye on them and bring

the marketing intelligence into the firm so that the decisions can be made about

what's going to be sold to whom Etc.

And then just thinking about this. We need to think about marketing taking part

in a number of decisions with other areas of the functions in the business. So if

we think about in terms of strategy and how Market marketing and marketers relate

to the decisions around there it's about how much spend should be given to marketing

and secondly, it's about making

Ensure that marketing and sales focus on the right things the right areas of the

market to take their goods and services to an increasingly. We need to think about

the marketing Technologies. So in number three on this circle, we're thinking about

different technologies that we need we can see digital is a major influence now

online.

All these things start to matter. I noticed the other day that Phillips who I would

have always seen as a major consumer company, but who is always distributed through

retailers of other sorts as now got its own like own online shop online, you know,

what sort of unlevel for what sort of analytics do we need to bring in what sort

of marketing metrics should we be measuring you know it

Is it looking at number of clicks or is it looking at number of referrals those

sorts of things, you know marketing's also got to work with senior people and finance

around pricing decisions. So, you know what sort of prices are going to be charged
and finally, how do we look at the financial implications of what we do as marketers?

So these are all decisions that were marketing works.

Jointly with other functions and this is where we can see how its influence is important

throughout the company. So let's think about this marketers also, they're important

because they identify the prospects as well as the existing customers, but they

also need to understand market demand. So there are various sorts of marketing demand.

I'm not going to sit here and read this list to you. But if we look at the list

you can look in the text.

To find out what they are, but I would like you to actually give examples of these

different sorts of demand either in the discussion board in voicethread or go to

Microsoft teams. But if we think about negative demand, that's something that nobody

wants so

What would an example be a black and white television there's almost non-existent

or negative. There's almost a negative amount for that customers don't like the

product. They might even pay to avoid it. Nonexistent. Demand is where we actually

have a product that nobody is aware of so, you know, I might have got in my office

here in amazing invention that does all your homework for you and rights.

Helps you develop beautiful PowerPoints. But if none of you know, it's there the

can't be an exact any demand for it latent demand is where everybody's got a need

for something but there isn't currently anything that can meet those needs. So think

of some examples, you know, these are the things that you would really like but

aren't there at the moment so is it

An amazing timer that can actually warn you four days before your essay is due in

that you're going to have a problem the next day so that you should need you should

use it your time wisely now to do it declining demand when people stop buying something.

So we've seen some interesting examples of things like this in the UK. So people

in the UK used to eat something called Salad cream

In preference to mayonnaise when I was growing up. I never heard of mayonnaise.

It was something that oh you would only ever eat in a very upmarket restaurant and

we always had salad cream with Artie if we had salad and Hines found that there

was less and less and less people buying it so they decided to stop it. And what

was really interesting in that decision because they published it quite widely and

some of us might say they were being a little bit

Over here because as soon as they made that decision everybody started buying it

again and actually demand return to what it was and then thinking about irregular

demand maybe see seasonal Goods, so I was going to say raincoats, but if you're

in the UK, that's not going to be a regular demand. It's going to probably be highly

regular demand. But if you live is somewhere where there's much less rain.

Also parts of Australia, for example, there's going to be very irregular seasonal

demand for something like a rank Code full demand is when the markets capacity to

sell meets the cons customers desire to purchase. So everything's in nice equilibrium

over fall is when there's over capacity and that's always good for consumers because

that is when organizations will start to discount.

And sell things off and hung unwholesome demand is things that we might be attracted

to that really aren't very good for us. So products could have undesirable social

consequences. So maybe things that tend to be banned might fall into this category.

So can you give some examples of these?

About them and add some examples to the discussion areas that will be good and then

just finally as we start drawing to an end just this question does the chief marketing

officer matter the CMO and there's a paper that it's on the is in the reading list

so you can find something through the online reading list. Where is your Mana? Tell

talk about the issue that quite often CMOS. Don't stay in position.

As long as CEOs and CFOs, they are slightly less and I think it's because certainly

sometimes amongst the c-suite of managers that marketing isn't perceived to be the
most effective or actually other things that are outside of marketing's control

might impact on things. So the CMOS move on very quickly, but also in the paper

that I just referenced,

There's some really interesting results of a study that they've done where they've

seen that the companies who do have CMOS. They're considerably better than companies

that don't so actually I would argue that marketing does matter quite a lot.

So now we've been through this short mini lecture. Are you able to explain to one

of your friends one of your colleagues? Why marketing is important?

And can you some summarize or discuss the difficulties around decision making that

relate to marketing?

As always post any questions questions on the appropriate place.

Thank you.