power point MM

Slide 1 : Marketing Management Unit 1 – Introduction to marketing: A strategic perspective

Marketing : Marketing Marketing is just trying to persuade people to buy things. Firms only do it because otherwise people wouldn’t know about them and they might go to the competitors!!! What is marketing? Why is it important to an organisation? Why is it important to customers?

The role of Marketing : The role of Marketing Marketing is so basic that it cannot be considered a separate function. It is the whole business seen from the point of view of its final result, that is, from the customer’s point of view… Business success is not determined by the producer but by the consumer Peter Drucker (1973) Marketing is the delivery of customer value and satisfaction at a profit. The goal of marketing is to attract new customers by promising superior value, and to keep customers by delivering satisfaction Kotler et al (2001)

The role of Marketing : The role of Marketing Although selling and advertising are highly visible aspects of marketing practice, they are only part of a larger ‘marketing mix’ – a set of marketing tools that work together to affect the marketplace. We define marketing as a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Kotler et al (2001 p.5) ‘the process of creating and delivering value to key stakeholders…..’ The American Marketing Association (2004)

Key concepts from these definitions : Key concepts from these definitions Products and services (the things that are traded) Value (the thing that the product or service adds for the customer and that they exchange with the firm - both parties need to get Value) Value changes over time and is different for different customers

Key definitions in marketing : Key definitions in marketing Needs = felt depravation Wants = specific individual shape of the need Demand - wants backed by purchasing power Products = anything offered to satisfy wants Exchange = value given & received by customer & organisation Results in a transaction Markets = a set of existing and potential buyers for a product.

Creating value through marketing : Creating value through marketing A million head west for holidays 18 January 2005, Travelpress Western Australia attracted one million interstate tourists in a year for the first time in 2004. The WA government said visitor numbers increased by 5.8 percent over the year, resulting in an additional $133 million of tourist expenditure for the state. The result was attributed to increased air access and competitive fares, combined with WA's marketing activities in the eastern states. "The one million interstate visitor milestone is an important one and we plan to build on that number in 2005," WA Tourism Minister Bob Kucera said. Mr Kucera said the state's new $2.75m tourism marketing campaign, ‘The Real Thing”, would target the core interstate markets of Sydney and Melbourne from March, with cinema and subscription television advertising. "This campaign is squarely aimed at building awareness of all the things that make WA special and interstate visitors are an important element of achieving our aim to employ 100,000 people in tourism and related industries over the next five years," he said. The interstate market was WA's biggest inbound market, second only to Western Australians holidaying within their own state.

Creating value through marketing : Creating value through marketing Tourism campaign targets Europeans 8 January 2005, Herbert River Express ORPHEUS Island off the coast of Ingham will be showcased in a high-profile European newspaper today, in a bid to entice international travellers to Queensland. Tourism Minister Margaret Keech said Orpheus Island was among some of the state's finest resorts that will feature in a four-page glamour spread in the European Financial Times newspaper. "Queensland's world-class resorts will be on show in the January issue of the How to Spend It magazine, a monthly supplement in the [UK] Financial Times," she said. ‘How to Spend It’ is considered to be the ultimate magazine for the influential and affluent European who is time and cash rich. The magazine reaches an estimated 500,000 readers across the United Kingdom and Europe each month. In addition, an affiliated online competition offering an eight-night luxury Queensland experience will run on the Financial Times' website and is expected to attract an estimated one million hits. "That's a lot of readers spending their mid-winter weekend tapping into the ultimate dream of a luxury tropical holiday experience in Queensland." Mrs Keech said the Beattie Government was proud to be a partner in the initiative, and to see the campaign come into fruition after months of planning. “The Beattie Government is committed to attracting more international visitors to the state and in particular, maximising the return on our tourism marketing investment by attracting visitors with spending power," she said. "This campaign is one of 22 major initiatives Tourism Queensland is running in the UK, Ireland and Nordic Region in 2004-05. We estimate the How to Spend It campaign will generate more than 10,000 inquiries from luxury travellers in a critically important source market - potentially that means significant dollars for Queensland's tourism industry." Mrs Keech said the United Kingdom consistently ranked as Queensland's highest yielding international market. ABS figures for the year ended September 2004 showed 276,030 British visitors spent more than 5 million nights in Queensland - up on the previous year by 2,722 visitors. "January is the peak holiday booking period for the UK," Mrs Keech said. "The How to spend It campaign strongly re-inforces the mystique and desirability of Queensland as a luxury, world-class tourism destination."

Organisational Orientation : Organisational Orientation Production Orientation = consumers favour products that are affordable and available so improve productive efficiency! Product Orientation = consumers favour products that are high quality, performance and features, so improve the product! Sales Orientation = consumers need to be persuaded to buy, so sell!!! Marketing orientation = understand customer wants and needs and deliver satisfaction better than alternatives!! Societal Orientation = deliver satisfaction and meet wants & needs in a socially responsible and sustainable fashion!

Marketing oriented organisations are : Marketing oriented organisations are Customer centric or strongly customer oriented Involved in continuous customer research and gaining customer insight Integrate all activities with the customer as the focus

The planning hierarchy : The planning hierarchy Corporate strategic plan(s) Business Unit Plans Functional Plans to support these... (eg Marketing, Production, Operations, Finance, IT, HR, etc) Shareholder or stakeholder value

Marketing plans consider : Marketing plans consider The 5 C’s Customers Company Competitors Collaborators Context Context looks at key external environments including: Political Economic Socio-Cultural Technological Legal & regulatory Environmental (nature)

How do marketers create and sustain value? : How do marketers create and sustain value? Segmenting the market (to understand what drives the different customer needs and behaviours) Targeting attractive segments where a competitive advantage exists Positioning an offer through use of the marketing mix

The extended marketing mix for goods (1-4) & services (1-7) : The extended marketing mix for goods (1-4) & services (1-7) Product Price Promotion Place People Process Physical evidence

Instructor’s Name Here : Instructor’s Name Here Who am I? What’s my role? What can you expect from me? What do I expect from you?

Who are you? Send me an email telling me : Who are you? Send me an email telling me Your name? What do you do? (Please explain!!!) Who do you do it for? What’s your experience of marketing? What are you looking for from this subject? What learning strategies work best for you - what things can we do in class that help you to learn?