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WELCOME TO REGENESYS! Thank you for choosing us as your partner in education.

Your educational progress is our top priority, so please share your thoughts and experiences with us via feedback@regenesys.co.za.

And please remember to order your meal before class if you’d like to eat during the break!

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Ms Patience Nyoni July 2017

BACHELOR OF BUSINESS ADMINISTRATION

MARKETING MANAGEMENT II

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WHAT ANCHORS MARKETING? Marketing is anchored on the marketing mix, normally named the 4Ps. At higher levels you will study the extended marketing mix or additional 3Ps. 4Ps are:

• Product (most crucial P)
• Price
• Place (distribution channels)
• Promotion (marketing communications)

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SECTION 1 The Scope and nature of marketing

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THE SCOPE AND NATURE OF MARKETING

• In year one we focused on the consumer

market

• The focus of year 2 is the business market

(also known as the industrial market) – where companies buy and sell products and services directly from and to each other

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MARKETING IS BOTH A SCIENCE AND AN ART

• As a science, marketing has

amassed a huge body of (academic and practical ) knowledge over many years based on scientific research

• As an art, marketing managers also

need intuition, or “gut feel”, which

• n l y c o m e s f r o m y e a r s o f

experience – especially of trial and error – in the market. The ability to think creatively, innovatively

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GROUP ACTIVITY: EVOLUTION OF MARKETING

Aim:

• To understand the evolution of marketing.

Time:

• 5 minutes: watch Kotler’s video on evolution of marketing
• 5 minutes: group feedback
• 5 minutes: Facilitator’s feedback and closure

Task:

• Watch a video on Kotler’s interview on evolution of marketing and

answer given question.

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DISCUSSION QUESTIONS

1.Briefly explain how marketing has evolved from the early days of product marketing?

• 2. What is “experience marketing”? Give an example

for this.

• 3. How many editions of Kotler’s textbooks on

marketing have been published (at the time of the video clip) since his first edition in 1967?

• 4. Why would we say that Kotler (and every other

marketing writer) has to update his book regularly through new editions?

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VIDEO: EVOLUTION OF MARKETING

Kotler, P. 2015, ‘The evolution of marketing’

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WHAT DO COMPANIES MARKET?

• Goods: cars, fridges, TV set
• Services: airlines, hotels, car rental firms, banker
• Events: trade show, theatre performances
• Experiences eg Walt Disney’s Magic kingdom
• People: celebrity marketing
• Places: cities, provinces.
• Properties
• Organisations
• Information
• Ideas

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THE VALUE OF MARKETING

• Three central themes in definitions for

marketing throughout the module:

• Creating value for customers
• Building strong relationships with

customers

• Capturing value from customers

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MARKETING AS A PROCESS

The basic marketing process:

1.

Understand the market place, customer needs and wants.

2.

Design a market driven marketing strategy.

3.

Construct an integrated marketing program that delivers superior value.

4.

Build profitable relationships and create customer delight.

5.

Capture value from customers to create profits and customer equity (Kotler and Armstrong, 2014:27).

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UNDERSTANDING CUSTOMER NEEDS, WANTS AND DEMAND

• A need is a “state of felt deprivation of some

basic satisfaction” (Kotler and Armstrong, 2014:28)

• Wants are the form (human and business)

needs take as they are shaped by culture (human or corporate and personality”.(ibid)

• Demands are “wants for specific products

backed up by the ability and willingness to buy them” (ibid).

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MARKET OFFERINGS: BUNDLES OF BENEFITS

• A market offering is the bundle of benefits

for fulfilling a customer’s needs and wants.

• Market offerings are not only products but

also services.

• Services are “activities or benefits offered

for sale that are essentially intangible and do not result in the ownership of anything”

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CUSTOMER VALUE AND SATISFACTION

• “Customer value and customer satisfaction

are key building blocks for developing and managing customer relationships” (Kotler and Armstrong, 2016:32).

• Customer value is based on the customer’s

expectation of a product or service’s capacity to satisfy his or her needs, usually weighed against the cost.

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MARKETING AND MARKETS A market is made up of actual and potential buyers of a product or service. Markets include means for:

• Determining a price of the traded item
• Communicating the price information
• Facilitating deals and transactions
• Effecting distribution

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MARKETING AND SOCIAL EFFECTS

• Social benefits are business activities that

have a beneficial or favourable impact on society and the environment as a whole.

• Businesses have to be conscious of their

environment and observe green marketing issues (environmental friendliness)

• Giving back to the society is called

Corporate Social Responsibility (CSR) or Corporate Social Investment (CSI)

• CSI helps in free advertisement

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MARKETING ACCOUNTABILITY

• “Marketing accountability is a term that

signifies management with data that is understandable to the management of the enterprise.” (CTI reviews, 2016).

• “Metrics are standards of measurements by

which efficiency, performance, progress, or quality of plan, process or product can be assessed” BusinessDictionary.com, 2016)

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MARKETING AND INFORMATION

Marketers need to collect quality information about their customers so that they have deeper customer insights, which help them to address their target market with the appropriate marketing mix. This helps in organisations gaining a competitive advantage. “Customer insights are fresh understandings of customers and the market place, derived from marketing information that became the bases for creating customer value and relationships” (Kotler and Armstrong, 2015, 101).

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SOURCES OF INFORMATION FOR MARKETERS

• Marketing information system (MIS)
• Internal (company) data
• Marketing intelligence or environmental

scanning

• Marketing research

Study the MIS model (Figure 2) in your study guide, page 28

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MARKETING INFORMATION SYSTEM

• It “consists of people and procedures

dedicated to assessing information needs, developing the needed information and helping decision makers use the information to generate and validate actionable customer and market insights” Kotler and Armstrong, 2016:132).

• Study fig 2 in study guide (pp: 28)

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ACTIVITY: GROUP WORK

Aim:

• To identify information that organisations gather internally and

externally for marketing purposes.

Time:

• 5 minutes: discussion in groups of 5
• 3 minutes: feedback
• 2 minutes: Facilitator feedback and closure

Task:

Identify 5 internal (microenvironment) and 5 external (macro environment) information important to marketers.

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MARKETING RESEARCH PROCESS

• Who conducts the marketing research?
• The marketing research process
• Step 1: Define the problem and set

research objectives

• Step 2: Develop the research plan
• Step 3: Implement the research plan
• Step 4: Interpret and report the

findings

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MARKETING RESEARCH PROCESS Step 1: Define the research problem and set research objectives

• The first step in the research process is the

identification and formulation of the problem to be researched

• It is important to draw up a problem

statement

• Setting research objectives (exploratory

research, descriptive, causal)

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HIERARCHY OF QUESTIONS

• Management questions: Are there changes

in customer buying behaviour?

• Research questions: What are the reasons

for changes in buying behaviour?

• Investigative questions: Can changes in

income patterns cause a change in buying behaviour?

• Measurement questions: What is your

income? What is your occupation?

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MARKETING RESEARCH PROCESS Setting objectives:

• The objectives should be aligned with the

corporate objectives.

• Objectives should be SMART
• SMART: Specific, Measurable, Attainable,

Realistic and Time bound.

• Research objectives may address:
• Exploratory research
• Descriptive research
• Causal research

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MARKETING RESEARCH PROCESS

Step 2: Develop the research plan

• Once researchers have defined the research

problem and objectives, they must determine the exact information needed, develop a plan for gathering it efficiently, and present the plan to management

• This is also known as the research plan
• Type of data and information needed (primary

versus secondary)

• Research approaches
• Contact methods
• Sampling plan
• Data collection

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MARKETING RESEARCH PROCESS Step 3: Implement the research plan

• This involves collecting, processing, and

analysing data and information

Step 4: Interpret and report the findings

• The final step in the marketing research

process involves the interpretation of the research project’s findings, drawing conclusions, and reporting these to marketing decision-makers