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MARKETING –

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

Where business prevails by an


This requires aggressive selling
efficient sales force who
and promotion efforts.
persuade buyers to purchase.

The purpose of marketing is to


(Sergio Zyman, former Coca
sell more stuff to more people
Cola Vice president of
more often for more money in
marketing)
order to make more profit
PRODUCT CONCEPT
Where business prevails on the belief in
 product quality,
 product oriented features and
 performance of the product.

The product sells itself!

Managers focus on making superior products and improving them.


PRODUCTION 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

Seller Concept Marketing Concept


 focuses on the needs of the seller  Focuses on the idea of satisfying the needs of
the customer by means of the product and the
 preoccupied with the seller’s need to convert
whole cluster of things associated with
his product into cash, creating delivering and finally consuming it.
The essence of the marketing concept is the deep
THE belief that profit will be derived from 3 factors:-
ADOPTION  The recognition and anticipation of demand
 The stimulation of that demand
OF THE  Demand satisfaction
MARKETING
CONCEPT This process therefore starts with the customer and
ends with the customer.
The fundamental driver for the adoption of the marketing
concept is the knowledge that the customer today ‘has a
choice’.

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

EMPLOYEE because of the tangible aspects of service and production


that they provide, but also because of the intangible
aspects, such as attitude and the way in which the service
AS AN is provided: ‘How much do they really care?’

INTERNAL https://www.youtube.com/watch?v=ke9mQWaW5a4

CUSTOMER Delivering Internal Customer Service is Crucial for


Workplace Culture
CHANGING ROLE OF
EMPLOYEES
 The role of the employee has been changing. Once they could be just part of the company,
but this role has been extended so that they are now recognised as, and need to adopt the role
of, brand ambassadors (Freeman and Liedtka, 1997; Hemsley, 1998).
 This is particularly important in service environments where employees represent the
interface between an organisation’s internal and external environments and where their
actions can have a powerful effect in creating images among customers (Schneider and
Bowen, 1985; Balmer and Wilkinson, 1991).
SKEWED CORPORATE VIEW
OF THE WORLD –
EGOCENTRIC

ORGANISATIONS
Discrete entities faced with the problem of surviving against the vagaries of the outside
world, which is often constructed as a domain of threat and opportunity.
 They are characterised by a fixed notion of who they are or what they can be, and are
determined to impose or sustain that identity at all times.
 This can lead to an overplay of their own importance and an underplay of the
significance of the wider system of relationships of which they are a part.
 Eg typewriter manufacturers who failed to see technological developments leading to
electronic typewriters and then word processors
EXAMPLES OF COMPANIES
THAT DID NOT KEEP UP WITH
TECHNOLOGY
 Blockbuster (1985 – 2010)
 Polaroid (1937 – 2001)
 Toys R Us (1948 – 2017)
 Pan Am (1927 – 1991)
 Pets.com (1998 - 2000)

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.

EMPLOYEE  If there is a set of shared values, then internal


communications is said to blend and balance the

S AS external communications.
 Employees are encouraged to communicate with non-

BRAND members so that organisations ensure that project the


‘living the brand’ concept.

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).

IDENTITY  Organisational identity also refers to the degree to


which feelings and thoughts about the distinctive
characteristics are shared among the members (Dutton
and Dukerich, 1991).
The role of employees within the strategic branding process is understood by some organisations. However,
there is a big difference between understanding the issue and implementing a cohesive strategy designed to
integrate the workforce. One company to have successfully implemented a strategic approach is EasyJet.
Several directors visited Southwest Airlines and returned with fresh insight into how service can be used as a
key point of differentiation. In what is referred to as the ‘low cost’ airline market, price is normally the
discriminating attribute.
Low costs are traditionally achieved by providing few elements of service. Indeed, EasyJet helped pioneer the
use of the web, to drive bookings and in doing so, stripped out a high level of service costs. EasyJet
reformulated their proposition to ‘Low cost, with care and convenience’. This delivered messages about price,
care and destination: i.e. they fly to recognised and accessible airports, at a low price but provide customers
with a high level of care.
In order to provide customer care with credibility, the company sought to establish linkages through each point
of customer interaction. However, early research found staff unhappy about the colour of the uniforms (bright
orange) and structure of the shift rosters. The uniforms were redesigned with the help of staff and the shift
system changed. The brand repositioning was explained in the staff magazine and discussed at internal
workshops. This was supplemented with a revised incentive scheme designed to promote exceptional customer
service. The net result was that profits rose 56 per cent. Source: Edwards (2008).
Task Consider a flight you have taken and make a list of the customer/airline points of interaction. How would
you have changed this.
INTERNAL COMMUNICATIONS:
INTERNAL BRANDING
INTERNAL MARKETING
1. Introduce the concept of internal marketing – Why?
Employees constitute a major stakeholder group, and an internal market based on the exchange
of wages for labour. However, they have many other roles of varying complexity and they make
a major contribution to the success and performance of the organisation.
Their role in providing service and support for a brand has become increasingly recognised.
The boundaries that exist between members and non-members of an organisation are becoming
increasingly indistinct as a new, more flexible workforce emerges.
INTERNAL MARKETING
CONT…..
2. Consider the purpose of internal marketing and communication – How?
Internal communication can be considered in terms of four dimensions:
a. internal line management communication;
b. internal peer communication;
c. internal project communication; and
d. internal corporate communication.
The values transmitted to customers, suppliers and distributors through external communications need to
be reinforced by the values expressed by employees, especially those who interact with these external
groups.
Internal marketing communications are necessary in order that internal members are motivated and
involved with the brand such that they are able to present a consistent and uniform message to non-
members
INTERNAL MARKETING
CONT…
3. Explore issues associated with organisational identity – When?
Organisational identity is concerned with what individual members think and feel about the
organisation to which they belong. When their perception of an organisation’s characteristics
accords with that of an employee, the strength of organisational identity will be strong.
Organisational identity also refers to the degree to which feelings and thoughts about the
distinctive characteristics are shared among the members. There are, therefore, both individual
and collective aspects to organisational identity.
The employees are a central part of aligning the vision culture and
image of the organisation.
Employees’ norms beliefs and attitudes form the corporate culture

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.’

Milton Friedman – Capitalism and Freedom 1962

  “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

 Legal – obeying the law

 Ethical – fair and just and avoiding


harm
 Philanthropic – acts to improve the
quality of life
These responsibilities can be seen as a
pyramid (Carroll 1991)
Image source: Ibewuike (2018)
How Business takes account of its economic,
DEFINING social and environmental impacts in the way it
CORPORATE operates.
RESPONSIBIL  Relates to ethical and moral behaviour
 It questions who should benefit from business
ITY (Brammer 2011)
3 PS

 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)

 It takes 20 years to build a reputation and 5 minutes to ruin it.


(Warren Buffett, Financial times, 2011)

 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

COLA CSR Coca Cola CSR Film

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.“

COMMUN  Community involvement


 Helping of underserved factions of society

ITY  Sponsorships

FOCUSED
https://www.youtube.com/watch?v=gt-ga9hdZ0w

Samsung CSR: Bringing Light to Ethiopia


Improves Life for Youth

https://www.youtube.com/watch?v=NAvjWVj12AU

1 Pack of Pampers = 1 Vaccine Commercial


http://www.airmalta.com/information/about/corporat
e-social-responsibility
https://www.fimbank.com/en/corporate_social_respo
nsibility
CSR https://www.nh-hotels.com/corporate/responsible-an
d-sustainable-company/csr-annual-reports
REPORTS https://www.coca-colacompany.com/sustainable-busi
ness
https://www.apple.com/supplier-responsibility/
https://purpose.nike.com/reports

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