Marketing Management Marketing Management create exchan es that - PDF document

5/3/2010 The nature of marketing Marketing is the process of planning and executing the conception , pricing , marketing communication and distribution of ideas, products, and services to Marketing Management Marketing Management create exchan es that satisfy individual create exchanges that satisfy individual and organisational goals . MNM202-Y dtoitm3@unisa.ac.za Marketing is about satisfying needs The marketing “gaps” Important concepts Gaps that exist between production and consumption that are bridged by marketing: • Needs and wants and demands • Products • Space gap • Value • Time gap g p • Satisfaction • Information gap • Market • Ownership gap • Intermediaries • Value Orientation towards markets The marketing concept - NB Satisfy the needs of the consumer and society as a whole, profitably, while working together as an organisation Production orientation • What can we do best? 2 Profitability 1 Sales orientation Consumer satisfaction • Sell - no matter what Marketing orientation • S ti f Satisfy the consumer th Organisational integration profitably by working together Social responsibility 4 3 Societal orientation • Do what we do without harming society 1

5/3/2010 The marketing process (Fig 1.3) What is Marketing environment? Chapter 3 • Context in which factors and forces that Chapter 6 influence marketing activities of the organisation take place • These factors can: Chapter 4 p – Be both controllable and uncontrollable & 5 – Shape the manner in which the business functions Chapter 2 – Hence, they need to be carefully MONITORED MICRO ENVIRONMENT Consist of controllable variables, which exist MARKETING inside the organisation. Examples of internal ENVIRONMENT variables are: top management, marketing (COMPONENTS) management and financial management. MICRO MARKET MACRO ENVIRONMENT ENVIRONMENT ENVIRONMENT TOP MANAGEMENT OTHER DEPARTMENTS – Responsible for strategic decision of the organisation, mission and long term planning • Marketing management and organisational culture. • Financial management • Every business requires a mission statement as guiding principle to define its reason for being a • Human resources management business. • Production • Production • Examples: – SABC – “ to be a people centred, content driven, technology enabled, strategically focused and sustainable public service broadcaster...” – SAB – “ to own and nurture local and international brands which are the consumer’s first choice”. 2

5/3/2010 THE MARKET ENVIRONMENT CONSUMER • This refers to the the environment mostly closely • Consumer: Organisations survive on the basis linked to the organisations strategy. of meeting the needs, wants and providing • It can be seen as the centre around which all benefits for their customers. decisions in organisation takes place • Failure to do so will result in a failed business • The company has no control over the above- Th h t l th b strategy. mentioned variables in the market environment. • Company needs to study five types of customer • Marketing management can only react or influence market( consumer market, industrial market, to changes taking place in the market environment resale market, government market and • The main variables which function in the market international market) environment are: SUPPLIERS INTERMEDIARIES • Suppliers : a product which has not been made, can not be sold. • Intermediaries: helps the company to promote, • Therefore the suppliers of products and services are of sell, and distribute its products to final buyers( great importance for the continued existence of reduce the number of transactions between the marketing directed organisation. consumer and producer. • All companies, despite the product or service which they offer, are dependent upon the constant delivery from ff d d h d li f • They contribute to a larger extent to the suppliers in one way or another. marketing activities that takes place in the • These are persons or organisations who offer stock in marketing channel) terms of products, services, advertising assistance, • E.G Makro, Pick ‘n Pay, Morkels financing(sometimes) and advice to the organisation. E.g raw materials COMPETITORS MACRO ENVIRONMENT – Competitors: the marketing concept states • Are the forces and factors that the organisation that to be successful, a company must has no control over them. provide greater customer value and e.g. Volkswagen South Africa and Toyota South satisfaction than its competitor’s do . Africa can do nothing against the lot of new motor vehicle manufactures presently entering the South – Marketers must do more than simply adapt p y p African market. They have no power to control the to the needs of target consumers. competition in the vehicle market. – Must gain strategic advantage by positioning their offerings strongly against - The following factors and variables in the external competitors ‘ offering in the minds of environment can be of importance to marketing consumers. management: 3

5/3/2010 SOCIAL INTERNATIONAL • Marketers has to make decisions according to what happened in the past and also by using the • International environment: companies that present situation in the market. operate internationally find themselves in a far • The changing role of families and working more complex business environment because women(dual income families) every country has its own unique environmental • Culture: different cultural groups have different Culture: different cultural groups have different factors, with its technology, culture and laws. consumption patterns • HIV/AIDS • Developing countries depend on technology • Marketers must understand the people’s views, imported from developed countries for their self must market products that correspond to society’s development. core and address the needs of different sub cultures in a society. PHYSICAL / NATURAL TECHNOLOGY • Technological environment: is perhaps the most • Physical/Natural environment: can be seen as dramatic force now shaping our destiny. the environment from which the organisation • New technology create new markets and gets its limited resources. opportunities. However every new technology • Marketers need to be aware of the threats and replaces an old technology e.g. CD vs. Records, p gy g , opportunities associated with trends in the DVD vs. Video cassettes; open-heart surgery, natural environment: the shortage of raw hydrogen bomb and the submachine guns. materials, especially water; increase cost of • The marketer should monitor the following energy(oil and electricity) and increased trends in technology: the pace of change, and pollution levels(chemicals) the opportunities for innovation. ECONOMIC POLITICAL and LEGISLATIVE • Marketing decisions are strongly affected by • Economic environment : The economic variables development in the political and legal environment. in a country can have great influence on the Government is seen as a creator of order in the market of the organisation. sense that laws and regulations are created and enforced by them. • Three variables can influence the economic environment, they are the income of the • Sometimes these laws also create new opportunities consumer, inflation and recession. for business.(rating agencies for BEE Score Card) • This laws and regulations of the country are represented in the constitution. • E.g trade polices, tax, consumer rights, BBBEE and labour laws 4