Professional Documents
Culture Documents
AN OVERVIEW
Maria Jourdan
WHAT IS MARKETING?
Marketing is about producing profit from customer satisfaction. To do this, marketing entails a set of managerial
activities or functions that must be performed throughout an organisation in order to win customers and keep
customers coming back.
‘ The management process that identifies, anticipates and satisfies customer requirements efficiently and profitably ’.
THE CHARTERED INSTITUTE OF MARKETING
Marketing is everywhere. Formally or informally, people and organisations engage in a vast number of activities that
could be called marketing. Good marketing has become an increasingly vital ingredient for everyday business
success. And marketing profoundly affects our day to day lives.
Kotler, Keller (2006)
THE DIFFERENT FACETS OF
MARKETING
Marketing means working with markets to bring about exchanges for the purpose of satisfying
human needs and wants. It is a process by which individuals and groups obtain what they need
and want creating and exchanging products and value with others. (Kotler and Keller, 2009)
Marketing consists of individual and organisational activities that facilitate and expedite
satisfying exchange relationships in a dynamic environment through the creation, distribution,
promotion and pricing of goods, services and ideas. (Dibb et al., 2005)
HOW CAN A PRODUCT BE OBTAINED?
Self produce
Use force
Beg
Exchange
Conditions for exchange
There are at least 2 parties
Each party has something that is of value to the other party
Each party is capable of communication and delivery
Each party believes it is appropriate to deal with the other party.
THE
TRANSACTION
At least two things of value, agreed upon
conditions, a time of agreement and place of
agreement are the ingredients for a transaction
to take place
Both parties have agreed on the terms of the
transaction.
Exchange is a value creating process and
should leave both parties better off.
MARKETERS JOB
Elicit a behavioural response from another party
Business firm wants a purchase
Political candidate wants a vote
Church wants an active member
Charity wants a contribution
Marketers analyse what each party expects from the transaction to try and meet the
expectation.
DIFFERENT TYPES OF
MARKETING PHILOSOPHIES
Selling concept
Product concept
Production concept
Societal Marketing concept
Marketing concept
https://www.youtube.com/watch?v=MLL97XoOpqg
SELLING CONCEPT
Business belief:
Where business prevails
Consumers will prefer
through production
products that are widely
efficiencies and oriented
available and
distribution .
inexpensive.
SOCIETAL
MARKETING
CONCEPT
The belief that business objectives can best be achieved
through a focus on:
customers,
their needs,
wants,
values,
MARKETING
expectations
CONCEPT
in order to achieve customer satisfaction, ideally better than
that delivered by competitors.
Companies that embrace the marketing concept achieve
superior performance.
DIFFERENCE BETWEEN SELLING AND
MARKETING CONCEPT
WHY
MARKETIN
Therefore the organisation that meets customer needs most
effectively will get the business. G
CONCEPT?
Other orientations were right at their point in time, but today
for many industries the adoption of the marketing concepts
helps to ensure the business remains relevant to the
customer.
HOLISTIC
MARKETI
NG
CONCEPT
MARKETING ORIENTATION
Needs to be to the Customer at the centre of everything the business does. It is a company wide
business philosophy, not just an activity located in the marketing department.
Each individual must be attuned to satisfying customer need, beating the competition and creating
superior customer value. Marketing orientation is a philosophy that places customer satisfaction
at the centre of all organizational planning and decision-making (Lancaster & Massingham 2011).
Ultimately, the customer benefits from this process through
more choice,
more information,
more service innovations,
improved levels of service and
need satisfaction.
This however means that the organisation must build and sustain a Marketing Culture.
BUILDING A MARKETING
CULTURE
An organization that meets customer requirements will have a competitive advantage over
those who do not.
Having a single minded purpose which focuses on customers, allows organizational resources
to be co-ordinated to achieve the objective of fulfilling customer needs
https://www.youtube.com/watch?v=y9gSF5WjVx4
Amazon’s Success Secret, Customer-Oriented Decision Making!
BUILDING A MARKETING
CULTURE - HOW?
To achieve this requires a marketing culture to be built within the organisation. This means:-
Marketing oriented attitudes
Thinking customers in all day to day business activities
Involving ‘the customer’ in all decision making, i.e. Customer centred decision-making
Top management commitment to marketing orientation
Manifest behaviour to make marketing orientation visible, felt and believed in Customer based
definitions of the way business is conducted
Using the language of the customer in business communications, rather than the language of the
company
See the business through the eyes of the customer
Hear and act upon the voice of the customer
Implement a customer relationship management system with processes to allow the business as a
whole to benefit from a marketing oriented approach
THE DIFFICULTIES IN ACHIEVING A
MARKETING BASED ORGANISATION
CULTURE
Is top management really committed and actively involved in adopting the marketing concept?
Is there a structure to achieve it?
Are management processes in place to enable it?
Do job descriptions specify customer satisfaction as a requirement?
Is staff training supporting the marketing concept?
Do non-marketing staff meet customers?
Do reward systems in the company recognise customer service?
Does the company mission and values feature the customer experience?
Almost certainly, not all questions will be ‘YES’, which means that there will often be and
almost surely will be opportunities to enhance marketing culture.
MARKETING RESEARCH
A marketing culture means that the organisation must also know its
markets, this means knowledge of : -
WHO the buyers are ; the key accounts held (Pareto Rule)
WHERE the buyers are located
HOW they may be reached
WHAT they really want
What MOTIVES will induce purchase
WHY they buy
WHY they continue to buy
The Profit the Company derives from customers
DIFFERENCE BETWEEN DATA &
INFORMATION
Data Information
A collection of non random facts Data that has been processed so that it is
meaningful
The record of an event or a fact
Data that has been processed for a purpose
A series of non-random symbols,
numbers, values or words Data that has been interpreted and
understood by the recipient
A series of facts obtained by observation
or research and recorded Involves transforming data using a defined
process
Managers have to put in place procedures
and tools to ensure data is recorded Involves placing data in some form of
meaningful context
22
EXAMPLES OF DATA &
INFORMATION
Data Information
Today’s date; Bank statement
Measurements taken on a production line; Sales projections
Records of a business transaction Cash flow forecast
Telephone directory
Graph of trends of viewers to a website
23
The popular view is that employees are a discrete group
of customers with whom management interacts (Piercy
and Morgan, 1991), in order that relational exchanges can
THE
be maintained (developed) with external stakeholders.
Employees are important to external stakeholders not only
INTERNAL https://www.youtube.com/watch?v=ke9mQWaW5a4
Source
: https://www.collectivecampus.io/blog/10-companies-that-were-too-slow-to-respond-to-change
TYPES OF INTERNAL
MARKETING
COMMUNICATION
Research by Foreman and Money (1995) indicates that managers see the main components of
internal marketing as falling into three broad areas,
1.development,
2. reward and
3.vision for employees.
These 3 areas vary in intensity on a situational basis.
WHY? INTERNAL
COMMUNICATIO
N
Internal marketing
communications is
necessary to motivate and
involve employees with
the brand
Internal marketing communications is essential for
employees to be able to present a consistent and
uniform message to non-members/customers.
S AS external communications.
Employees are encouraged to communicate with non-
AMBASSAD
ORS https://www.youtube.com/watch?v=HQ2zuctUscg
Microsoft BA's - Living The Brand
EMPLOYEES AS BRAND
AMBASSADORS
2013 Edelman Trust Barometer
“Employees rank higher in public trust than a firm’s PR department, CEO, or Founder. 41% of
us believe that employees are the most credible source of information regarding their
business.” When a customer interacts with one of your frontline employees, or with the work
produced by your behind-the-scenes employees, everything your PR and marketing
departments have done will be put to the test.
http://www.forbes.com/sites/williamarruda/2013/10/08/three-steps-for-transforming-employee
s-into-brand-ambassadors/
TYPES OF EMPLOYEES
Hiscock (2002) claims that employees He claims that, in the United Kingdom, In many B2B and B2C organisations
can be segmented according to the new products and services are often
degree and type of support they give a developed using project teams.
brand.
30 per cent of employees are brand neutral,
22 per cent are brand saboteurs
48 per cent are brand champions, of whom 33 per
cent would talk about the brand positively if asked,
and 15 per cent spontaneously.
Communication between an organisation’s
INTERNAL strategic managers and its internal stakeholders,
designed to promote commitment to the
CORPORATE organisation, a sense of belonging to it,
COMMUNICA awareness of its changing environment and
understanding of its evolving aims
TIONS
(Welch & Jackson 2007 p186).
Organisational identity is concerned with what
individual members think and feel about the
organisation to which they belong.
ORGANISAT When their perception of the organisation’s
characteristics accords with their own self-concept
IONAL then the strength of organisational identity will be
strong (Dutton et al., 1994).
SUMMAR
on which the identity is based.
It is this identity partly portrayed by employee communication and
behaviour that determines the external stakeholders’ image of the
Y organisation.
Internal communications have a major role to play in building the
culture and evolving the corporate identity
Often marketing plans overlook objectives, strategies and
activities for marketing internally.
GREEN MARKETING & CORPORATE
RESPONSIBILITY
With the increasing concern for the environment, there is more recognition for environmental
and societal marketing to address ethical and social responsibilities. To some extent, the
marketer has been forced to rewind as the world is becoming more ‘green’ in outlook e.g.
alternative energy sources, ‘clean energy’
Lead-free fuel, hybrid cars, anti pollutants, recycling of waste products, biodegradable
packaging, organic foods, salt and sugar content in foods, fair trade products and so on.
Consumer awareness of course has driven demand for green marketing. Moreover it
appears to be here to stay.
CORPORATE SOCIAL
RESPONSIBILITY -
‘A company should have no "social responsibility" to the public or society because
its only concern is to increase profits for itself and for its shareholders and that the shareholders
in their private capacity are the ones with the social responsibility.’
“Leaders in every single institution and in every single sector … have two responsibilities. They
are responsible and accountable for the performance of their institutions, and that requires them
and their institutions to be concentrated, focused, limited. They are responsible also, however, for
the community as a whole.”
Peter Drucker 2010
CORPORATE
RESPONSIBILITIE
S
Economic – to make a profit
Planet (Environmental)
People (Social)
Profit (Business)
Use of water
Sustainable forestry
Animal testing
Alternative energy
Climate change consideration
Environmental Impact of business
PLANET Biodiversity awareness
Chemicals disposal
Waste management
Community involvement, impact and relations
Workplace Diversity
Health and safety
Labour-Management relations
Human rights
PEOPLE Product Integrity Safety
Product quality
Emerging technology issues
Suppliers payment
Executive compensation
Board accountability
Shareholder rights
PROFITS Reporting and disclosure
Responsible loans
PUTTING IT TOGETHER
Corporate responsibility demands that we look beyond simplistic ideas that business is solely
about making profit; that we look beyond the bottom line to take account of a range of
stakeholders and to respond to the economic, political and social environment within which
businesses have to work.
(Aston Centre for Human Resources 2008)
Business decision making linked to ethical values, compliance with legal requirements and
respect for people, communities and the environment. (www.bsr.org)
BUSINESS
RATIONALE FOR CSR
The business case: good relationships built by
CSR bring additional business and good
publicity (and more profit). Customers and
communities feel positively, and employees are
attracted, motivated and retained
Consumer Pressure: knowledgeable and
empowered customers need to be listened and
responded to
BUSINESS
RATIONALE FOR
CSR
The moral case: should we be treating people in this sort
of way?
The licence to operate: if we do not maintain a good
reputation, we go out of business
Regulatory and global pressures: a mixed picture, but
generally there are increasing pressures to address
pollution, human rights, poverty and global warming
https://www.youtube.com/watch?v=kSvT02q4h40 (Apple
case)
https://www.youtube.com/watch?v=E7UaX2HzSGU&t=294
s
(VW case)
https://hbr.org/2020/04/coronavirus-is-putting-corporate-soci
al-responsibility-to-the-test
(Covid-19 and CSR)
In addition to its main purpose of promoting
sustainable business growth:
BENEFITS the creation of a distinct position in the
marketplace
OF CSR
protection of the employer brand
building credibility and trust with both current
and potential customers and employees
STRATEG
enhancing employee engagement, motivation
and retention. (CIPD 2011)
https://www.youtube.com/watch?v=p2iQ_h1mP
Y aY
Why Corporate Social Responsibility Matters
Philanthropy - giving to others in need
Community involvement - creating
partnerships for mutual benefit between a
business and its community/environment
FULFILLING
Corporate citizenship - recognising that a
CSR business, like an individual, has
responsibilities to society to behave in
appropriate ways
Advertising CSR initiatives to greenwash real
COCA
practices
http://www.youtube.com/watch?v=VoOL2KfDu
AA&feature=related
CASE https://www.youtube.com/watch?v=OnowxqVq
STUDY
mF0
India farmers fight against Coca-Cola as
groundwater dries up
A COMMON APPROACH TO
CSR
Four main headings under which initiatives may be grouped:
environment – for instance, using recycled materials in production
processes
marketplace – which takes account of issues such as fair trading
workplace – focusing on areas such as diversity, fairness at work
and employee involvement
community – for example, supporting local community projects
financially or via employee volunteering programmes. (CIPD 2011)
"Corporate Social Responsibility is the
continuing commitment by business to contribute
to economic development while improving the
quality of life of the workforce and their families
as well as of the community and society at large.“
ITY Sponsorships
FOCUSED
https://www.youtube.com/watch?v=gt-ga9hdZ0w
https://www.youtube.com/watch?v=NAvjWVj12AU