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Marketing: Asian Edition Oxford University Press 2013.

All rights reserved


The New Generation Marketing Text!

Marketing: Asian Edition Oxford University Press 2013. All rights reserved
The New Generation Marketing Text!

Define the marketing concept.
Explain how marketing has developed over the twentieth century.
Describe the three major contexts of marketing application, i.e.
consumer goods, business to business and services marketing.
Understand the contribution marketing makes to society.
Assess critically the impact marketing has on society.
Learning Outcomes
Marketing: Asian Edition Oxford University Press 2013. All rights reserved
The New Generation Marketing Text!
Case Insight
Consider an Indian mobile network
operator.

In the highly competitive telecom market,
the actual offering is the value driverpay
less and talk more. The tendency of an
individual customer is to seek maximum
value, and the airtime product helps the
company to build on the same platform
and use it successfully across all market
types and individuals.

When this telecom company plans to roll
out 4G services in a competitive market
like India, how important is it to price the
service at an affordable level to maximize
the subscriber base?
Marketing: Asian Edition Oxford University Press 2013. All rights reserved
The New Generation Marketing Text!
Definitions of Marketing
The management process of anticipating, identifying and satisfying
customer requirements profitably (CIM, 2001).

Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large (AMA, 2007).

Marketing is the endeavour of adapting organisations to their
competitive markets in order to influence, in their favour, the behaviour
of their publics, with an offer whose perceived value is durably superior
to that of the competition (French trans.: Lendrevie, Lvy and Lindon,
2006).

The value-based definition of marketing describes Marketing as a
process of sensing, designing, and delivering customer value for
fulfillment of desired organizational objectives (an Indian perspective).
Marketing: Asian Edition Oxford University Press 2013. All rights reserved
The New Generation Marketing Text!
The Three Components of
Market Orientation
Marketing: Asian Edition Oxford University Press 2013. All rights reserved
The New Generation Marketing Text!
The Development of Marketing
Production period, 1890s-1920s characterized by a focus on
physical production and supply, where demand exceeded supply.
This phase took place after the industrial revolution.

Sales period, 1920s-1950s characterized by a focus on personal
selling supported by market research and advertising. This phase
took place after the First World War.

Marketing period, 1950s 1980s characterized by a more
advanced focus on the customers needs. This phase took place
after the Second World War.

Societal marketing period, 1980s to present characterized by a
stronger focus on social and ethical concerns in marketing. This
phase is taking place during the information revolution of the
late twentieth century.
Marketing: Asian Edition Oxford University Press 2013. All rights reserved
The New Generation Marketing Text!
Marketing and Sales Compared

Marketing

Sales

Tends towards long-term satisfaction of
customer needs

Tends towards short-term satisfaction of
customer needs; part of the value delivery
process as opposed to designing and
development of customer value processes

Tends to greater input into customer design
of offering (co-creation)

Tends to lesser input into customer design of
offering (co-creation)


Tends to high focus on stimulation of demand

Tends to low focus on stimulation of demand,
more focused on meeting existing demand

Marketing: Asian Edition Oxford University Press 2013. All rights reserved
The New Generation Marketing Text!
Source: The Marketing and Sales Standards Setting Body (2010)
A Functional Map for Marketing
Marketing: Asian Edition Oxford University Press 2013. All rights reserved
The New Generation Marketing Text!
The Marketing Mix
The Original developed by Borden
in his teaching but not written up
until 1964:

Product planning
Pricing
Branding
Channels of distribution
Personal selling
Advertising
Promotions
Packaging
Display
Servicing
Physical handling
Fact finding and analysis
(Borden, 1964).

The Shortened simplified version
by Eugene McCarthy and now
more commonly used:

Product
Place (distribution)
Price and
Promotion (McCarthy, 1960).

Marketing: Asian Edition Oxford University Press 2013. All rights reserved
The New Generation Marketing Text!
The 4Ps of the Marketing Mix
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The New Generation Marketing Text!
Extensi on from 4- 7 Ps for Servi ces
Physical evidence to emphasize that the tangible components of
services were strategically important since customers used these to
infer what the quality of society might be.

Process because service delivery is inseparable from the
customer consumption process, we include process because of the
need to manage customer expectations and satisfaction which
becomes strategically important in this context. Where processes
are standardized, it is easier to manage customer expectations.

People included to emphasize that services are delivered by
customer service personnel, sometimes experts and often
professionals who interact with the customer sometimes in an
intimate manner.
Marketing: Asian Edition Oxford University Press 2013. All rights reserved
The New Generation Marketing Text!
Si mple Marketi ng Exchange
Processes
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The New Generation Marketing Text!
Marketi ng Exchange: I ndi an
Travel I ndustry
The Indian Railway Catering and Tourism Corporation (IRCTC) has
been issuing both e-tickets and i-tickets to passengers in bulk
everyday across India, reducing the role of middlemen to a
minimum.

MakeMyTrip.com is a successful online travel company offering
comprehensive services for the global traveller, including air
tickets, hotel reservations, car bookings, and budget travel
packages in India.

redBus, an online bus ticket booking service, has moved beyond
providing value over the internet by reaching out to customers
using all media that provide them conveniencebe it the phone,
home delivery, physical outlets or even sms.
Marketing: Asian Edition Oxford University Press 2013. All rights reserved
The New Generation Marketing Text!
The Marketi ng Mi x: The Ai rli ne
I ndustry
Table 1.3
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The New Generation Marketing Text!
The Relationship Pyramid


Marketing: Asian Edition Oxford University Press 2013. All rights reserved
The New Generation Marketing Text!
Characteri sti cs of Servi ce Products



Marketing: Asian Edition Oxford University Press 2013. All rights reserved
The New Generation Marketing Text!
Some Modern Consumer Products and
Thei r Dates of I nventi on
Consumer
product
Product Attribute Consumer Need Inventors/ Pioneers* Yr. of
invention
Ketchup
(from the
Chinese
word
Ketsiap)
A food condiment, derived from the Chinese fish-
based sauce, Ketsiap, but adapted for western
taste, using tomatoes
Designed to improve the consumers
enjoyment of their food by improving
the taste, and reducing the dryness
of some foodstuffs.
F. & J. Heinz Co., USA 1876
Television Transmission of moving images Information, entertainment and
education
Baird Television
Development Company,
UK/Telefunken, Germany
1929/1932
Artificial
sweeteners
Xylitol, as the sweetener is known, is used to
sweeten food products such as sugar-free chewing
gum and toothpastes
It sweetens food products without
damaging teeth
Culter, Finland 1969
Karaoke
sing-along
system

A TV system linked to music player, with words of
music tracks displayed on screen, allows a person
with a microphone to sing to a tracks musical
background
Designed to entertain small groups in
house parties and large groups of
individuals at venues who typically
enjoy singing themselves and
listening to others, or laughing at
their friends efforts
Roberto del
Rosario/Trebel Music
Corporation, the
Phillipines
1975
Mobile
phone
A hand held device for making telephone calls
while in motion
The ability to stay in telephone
contact with others regardless of
ones location
NTT, Japan 1979
iPAD A tablet consumer
A platform to access audio and
visual media such as books,
periodicals, movies, music, and
games, as well as web content
Apple, Inc. 2004
Marketing: Asian Edition Oxford University Press 2013. All rights reserved
The New Generation Marketing Text!
The Aggregate Marketi ng System
The aggregate marketing system impedes products because they dont meet
consumer needs. So, it serves a number of benefits to society including the
following:
the promotion and delivery of desired products and services;
the provision of a forum for market learning (we can see what does and what
doesnt get through the system;
the stimulation of market demand;
the offering of a wide scope for choice of products and services by offering a close/
customized fi t with consumer needs;
facilitates purchases (or acquisitions generally, e.g. if no payment is made directly as
in the case of public services);
saves times and promotes efficiency in customer requirement matching;
brings new products and services, and improvements, to market to meet latent and
unserved needs and;
seeks customer satisfaction for repeat purchases (Wilkie and Moore, 1999).
Marketing: Asian Edition Oxford University Press 2013. All rights reserved
The New Generation Marketing Text!
Controversies in Marketing
Consider the following questions?

What is a fair price for companies and organizations in wealthier countries to pay
suppliers in poorer countries (see Market Insight 1.5)?
Where is the line between persuading customers and manipulating customers to
purchase products, services, and ideas? Is some marketing promotion really
corporate propaganda?
To what extent should the goods, services, and ideas of one country be marketed
over the goods, services, and ideas of another country? What are the cultural
implications?
How much should we consume of any one particular good, service, or idea? When
should governments step in to limit consumption?
Are some groups more susceptible than others to certain types of marketing
promotion? If they are, at what point and how should they be protected?
Are some producers or buyer groups more powerful than others, and what impact,
if any, does this have upon society?
Does the aggregate marketing system itself advantage some groups over others and
what are the implications for society?

Marketing: Asian Edition Oxford University Press 2013. All rights reserved
The New Generation Marketing Text!
Summary
Defined the marketing concept.
Explained how marketing has developed over the twentieth
century.
Described the three major contexts of marketing
application, i.e. consumer goods, business-to-business and
services marketing.
Understood the contribution marketing makes to society.
Assessed critically the impact marketing has on society.