MBA

Marketing Management
MKT 600
Understanding Mktg & Mktg Mngnt
Achieving Corporate Success
 The today's business environment
Technological
development
Worldwide competitive Mergers & acquisitions
environment between companies

Demanding Product life cycle

customers shortening

Employees new New Legal

profiles environment
 .......we all believe that by globalization
and in an environment with no trade
barriers, the world will became a single
united market. Whoever reaches it first
will become the best.

Donald Shinkel, Vice President

Wall-Mart Stores
Few successful examples from the
Geek market
Marketing Management

Lecture Overview
 What is Marketing?
 Marketing as an organisation and management function
 Marketing as a concept and philosophy
i
 Evolution of Marketing concept
 Core concept of marketing
 Marketing orientations
 The competitive environment
 Marketing mix
WHAT IS MARKETING?
Marketing is everyone’s business. Every person working for an
organisation should understand the importance of marketing.

 Definitions:
“ Marketing is the management process responsible for identifying,
anticipating and satisfying consumer requirements profitably”
– CIM

“Marketing is the process of planning and executing the conception,

pricing, promotion and distribution of ideas, goods and services
to create exchange and satisfy individual and organisational needs.”
 AMA
Why It’s Important

Effective marketing puts the

products in the hands of its
targeted customers.
 Basics of Marketing

A market is a group of customers

who share common wants and
needs, and who have the ability to
purchase a particular product.
 Basics of Marketing

Marketing is the process of

creating, promoting, and presenting
a product to meet the wants and
needs of consumers.
One fundamental question: Is Marketing creating
or satisfying needs?
 Key Words

market
marketing
marketing concept
target marketing
relationship marketing
marketing mix
break-even point
 Key Words

market research
demographics
channel of distribution
direct distribution
indirect distribution
wholesaler
retailer
 MARKETING IS AN ORGANISATIONAL
FUNCTION
The diagram below shows the many functions that can be carried out in organisations
which, dependant on the organisation, can be classified as operational functions
of marketing.

CRM Sales Promotion Advertising P.R.

Selling
Display

Financing
Stockholding
The operational
functions of marketing Buying
Servicing
Forecasting

Risk Taking
Pricing

Transporting Market Research Merchandising Publicity

 MARKETING AS A MANAGEMENT
FUNCTION
Here the role of marketing is ensuring that the operational activities of the
organisation (not just marketing) are clearly directed towards the principal
objective of meeting the needs of the customers effectively. It involves
analysing customers and anticipating their needs, planning, resource
allocations, control and investment in terms of money, appropriate skilled
people and physical resources to ensure both customer and organisational
needs are met to each’s satisfaction.

 Marketing as a Business Concept – in this regard marketing is the study

of exchange processes especially those associated with the provision of
goods and services. It takes its lead from the social sciences in that, the
basic tenant of society is that we all need each other. The idea here is, if I’ve
got something you want and you’ve got something I want, then we do a deal
(which is the exchange process)
MARKETING AS A BUSINESS CONCEPT

The Exchange Process

Something of value

Goods, services, benefits

Supplier Customer

Money, exchange of goods

Something of value
EXCHANGE TRANSACTIONS
Consumers Costs & Benefits Organisations

Cash

Quench
thirst
Customer Pepsi

Insurance
premiums
Medical
treatment
Patient Private Hospital

Fees

Education
Student University
EXCHANGE TRANSACTIONS
Consumers Costs & Benefits Organisations

Time

Sense of
community
Volunteer service Non-profit youth group

Vote

Sense of economic/social
progress continued
Voter employment etc Politic Party

Taxes

Reader
Lone parent Public Library, Benefit agency
 MARKETING AS A BUSINESS
PHILOSOPHY

Simply a way (i.e. orientation) towards how the business will

behave.
As a philosophy it recognises the importance of the customer
and that all business exists to serve customers rather than
manufacturing products.

To quote Adam Smith C A in his famous text ‘ The wealth of

“Consumption is the sole purpose of production and the interests

of the product ought to be attended o only so far as it may be
necessary for promoting those of the customer”
CORE CONCEPTS OF MARKETING

Needs Products/ Value

Wants Services &
Demand Satisfaction

Exchange
Process
Markets Marketing

Exchange
Transactions
Relationships
 EVOLUTION OF MARKETING CONCEPT AND
MARKETING ORIENTATION
 Self-sufficiency
 Simple
 Local markets
 Money economy
 Industrial revolution
 Production orientation
 Soles orientation
 Product orientation
 Marketing orientation
– No exchange process
– Start of exchange process
– Economic specialisations
– Medium of exchange
– Rapid growth in world population leading to increased demand.
Problem – How to supply?
– More efficient production eventually led to oversupply. Problem
changed to – How to dispose?
– Economic theory states: when supply exceeds demand, reduce
price and use other techniques to stimulate demand.
– Demand. Problem – how to keep customers? Companies sought
to keep customers by increasing emphasis on product design,
Problem – competition quickly copied and the design didn’t suit
everyone. Too many products than they demand for them.
– Production based on customer needs and wants. Specific
markets identified and matched their requirements to the
capabilities of the company to ensure both parties needs were
satisfied.
BUSINESS ORIENTATION
Orientation Profit Driver Approximate Characteristics
Time Frame
Production Production Methods Up to 1940’s Improvement of production and in order
to achieve a reduction of costs and
improved efficiency.
Product Quality of Product Until 1960’s The quality of the product is paramount.
Focus on product not customer needs.

Selling Selling Methods 1950-1970’s Effective selling and promotion are the
new drivers to success.

Marketing Needs and wants of 1970 to date Focus on providing the goods and
customers services that satisfy the needs and wants
of consumers.
Further approaches to marketing
Relationship Building and keeping 1990’s to date Emphasis placed on keeping as well as
Marketing good customer winning customer strategies.
relations
Societal Benefit the society 1990’s to date Similar to marking orientation but also
Marketing concerned with the long term impact of
organisational activities on the
environment (society)
 Marketing Mix: The 4 Ps

Place

Promotion The Marketing Mix Product

Price
 Importance of 4Ps by Industry –
examples of promotions
Consumer Goods Industrial Goods
High
Advertising Personal Selling

Sales Promotion Sales Promotion

Importance

Personal Selling Advertising

PR PR
Low
 Push versus Pull
Demand Demand

Push Strategy Manufacturer Intermediary End User

e.g Lever Brothers

Demand Demand

Pull Strategy Manufacturer Intermediary End User

e.g. P & G
 Η εξέλιξη της φιλοσοφίας του Marketing
1. Η φιλοσοφία της παραγωγής
 Η ποιό παλαιά
 Προσπάθεια παραγωγής
πολλών προϊόντων
 Σε χαμηλές τιμές
 Βελτίωση παραγωγής
 Ικανοποιητική διανομή
Προϊόν
2. Φιλοσοφία Προϊόντος
 Βελτίωση ποιότητας
 Best value for money
 Ο κατ/τής επιθυμεί τα προϊόντα Πωλήσεις
που του προσφέρουν την
μεγαλύτερη ικανοποίηση
5. Φιλοσοφία Κοινωνικού Marketing
• ερωτηματικό εάν το 4 αποτελεί
ευχολόγιο ή είναι ο νέος προσανατολισμός
Των ενεργειών του Marketing
Παραγωγή
4. Φιλοσοφία του Marketing
 Κύριο έργο ο καθορισμό
αναγκών & επιθυμιών
 Targeted Marketing
Marketing  Προσαρμογή στην
παραγωγή & διανομή
αυτών των προϊόντων
3. Φιλοσοφία Πωλήσεων
 Τα προϊόντα πωλούνται δεν
αγοράζονται
 Η ενέργεια της αγοράς είναι η
απάντηση στο ερέθισμα των
πωλήσεων & όχι στις ανάγκες
του καταναλωτή
 Push vs pull strategy
Marketing Management – Athens Metropolitan College – Κώστας Γεωργικόπουλος
 Η ανάπτυξη της σπουδαιότητας του
Marketing
Αρχική οικονομία της παραγωγής
• Παράγω μόνο για εμένα & την οικογένεια, κυρίως
πρωτογενής τομέας)
Δημιουργία πλεονάσματος (surplus)
• (simple trade era)
Έναρξη δραστηριότητας ανταλλαγών
Αρχή της οικονομίας της αγοράς & της παραγωγής
• Βιομηχανική επανάσταση, 18ος αιώνας)
Έναρξη της οικονομίας των υπηρεσιών

Marketing Management – Athens Metropolitan College – Κώστας Γεωργικόπουλος