1、1. Marketing & Marketing Concept1.1 Definitions of MarketingThere are many definitions of marketing. The better definitions are focused upon customer orientation and satisfaction of customer needs. Kotler: Marketing is the social process by which individuals and groups obtain what they need and want

2、 through creating and exchanging products and value with others.The Chartered Institute of Marketing: Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably. The CIM definition (in common with Barwells definition of the marketing concept) look

3、s not only at identifying customer needs, but also satisfying them (short-term) and anticipating them in the future (long-term retention). Adcock et al: The right product, in the right place, at the right time, at the right price. This is a snappy and realistic definition that uses McCarthys Four Ps

4、. Palmer: Marketing is essentially about marshaling the resources of an organization so that they meet the changing needs of the customer on whom the organization depends.This is a more recent and very realistic definition that looks at matching capabilities with needs. Bartles: Marketing is the pro

5、cess whereby society, to supply its consumption needs, evolves distributive systems composed of participants, who, interacting under constraints technical (economic) and ethical (social) create the transactions or flows, which resolve market separations and result in exchange and consumption.This de

6、finition considers the economic and social aspects of marketing. 1.2 The Philosophy Marketing and the Marketing Concept. The marketing concept is a philosophy. It makes the customer, and the satisfaction of his or her needs, the focal point of all business activities. It is driven by senior managers

7、, passionate about delighting their customers. Drucker: Marketing is not only much broader than selling, it is not a specialized activity at all It encompasses the entire business. It is the whole business seen from the point of view of the final result, that is, from the customers point of view. Co

8、ncern and responsibility for marketing must therefore permeate all areas of the enterprise.Barwell: This customer-focused philosophy is known as the marketing concept. The marketing concept is a philosophy, not a system of marketing or an organizational structure. It is founded on the belief that pr

9、ofitable sales and satisfactory returns on investment can only be achieved by identifying, anticipating and satisfying customer needs and desires. Cohen: The achievement of corporate goals through meeting and exceeding customer needs better than the competition. Jobber. Implementation of the marketi

10、ng concept in the 1990s requires attention to three basic elements of the marketing concept. These are: Customer orientation; an organization to implement a customer orientation; Long-range customer and societal welfare. 2. Environment2.1 The Marketing EnvironmentThe marketing environment surrounds

11、and impacts upon the organization. There are three key perspectives on the marketing environment, namely the macro-environment, the micro-environment and the internal environment. 2.1.1 the macro-environmentThis includes all factors that can influence an organization, but that are out of their direc

12、t control. A company does not generally influence any laws (although it is accepted that they could lobby or be part of a trade organization). It is continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization means

13、that there is always the threat of substitute products and new entrants. The wider environment is also ever changing, and the marketer needs to compensate for changes in culture, politics, economics and technology.2.1.2 the micro-environmentThis environment influences the organization directly. It i

14、ncludes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship between firms and the driving forces that control this relationship. It is a more loc

15、al relationship, and the firm may exercise a degree of influence.2.1.3 the internal environmentAll factors that are internal to the organization are known as the internal environment. They are generally audited by applying the Five Ms, which are Men, Money, Machinery, Materials and Markets. The inte

16、rnal environment is as important for managing change as the external. As marketers we call the process of managing internal change internal marketing. Essentially we use marketing approaches to aid communication and change management.The external environment can be audited in more detail using other

17、 approaches such as SWOT Analysis, Michael Porters Five Forces Analysis or PEST Analysis.2.2 SWOT AnalysisSWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues.Once key issues have been identified, they

18、feed into marketing objectives. It can be used in conjunction with other tools for audit and analysis, such as PEST analysis and Porters Five-Forces analysis. It is a very popular tool with marketing students because it is quick and easy to learn. SWOT stands for strengths, weaknesses, opportunities

19、, and threats. Strengths and weaknesses are internal factors. For example, strength could be your specialist marketing expertise. A weakness could be the lack of a new product. Opportunities and threats are external factors. For example, an opportunity could be a developing market such as the Intern

20、et. A threat could be a new competitor in your home market. During the SWOT exercise, list factors in the relevant boxes. Its that simple. A word of caution, SWOT analysis can be very subjective. Do not rely on it too much. Two people rarely come-up with the same final version of SWOT. TOWS analysis

21、 is extremely similar. It simply looks at the negative factors first in order to turn them into positive factors. So use it as guide and not a prescription. Adding and weighting criteria to each factor increase validity, but thats another lesson! SWOT Analysis - Exercise: Highly Brill Leisure Center

22、. Perform SWOT analysis based upon the following points:1. The Center is located within a two-minute walk of the main bus station, and is a fifteen-minute ride away from the local railway station. 2. There is a competition standard swimming pool; although it has no wave machines or whirlpool equipme

23、nt as do competing local facilities. 3. It is located next to one of the largest shopping centers in Britain.4. It is one of the oldest centers in the area and needs some cosmetic attention.5. Due to an increase in disposable income over the last six years, local residents have more money to spend o

24、n leisure activities. 6. There has been a substantial decrease in the birth rate over the last ten years. 7. In general people are living longer and there are more local residents aged over fifty-five now than ever before. 8. After a heated argument with the manager of a competing leisure center, th

25、e leader of a respected local scuba club is looking for a new venue. 9. The local authority is considering privatizing all local leisure centers by the year 2000. 2.3 Five Forces Analysis Five forces analysis helps the marketer to contrast a competitive environment. It has similarities with other to

26、ols for environmental audit, such as PEST analysis, but tends to focus on the single, stand alone, business or SBU (Strategic Business Unit) rather than a single product or range of products. For example, Dell would analyze the market for Business Computers i.e. one of its SBUs. Five forces looks at

27、 five key areas namely the threat of entry, the power of buyers, the power of suppliers, the threat of substitutes, and competitive rivalry. 2.3.1 the threat of entry Economies of scale e.g. the benefits associated with bulk purchasing. The high or low cost of entry e.g. how much will it cost for th

28、e latest technology? Ease of access to distribution channels e.g. Do our competitors have the distribution channels sewn up? Cost advantages not related to the size of the company e.g. personal contacts or knowledge that larger companies do not own or learning curve effects. Will competitors retalia

29、te? Government action e.g. will new laws be introduced that will weaken our competitive position? How important is differentiation? e.g. The Champagne brand cannot be copied. This desensitizes the influence of the environment.2.3.2 the power of buyers This is high where there a few, large players in

30、 a market e.g. the large grocery chains. If there are a large number of undifferentiated, small suppliers e.g. small farming businesses supplying the large grocery chains. The cost of switching between suppliers is low e.g. from one fleet supplier of trucks to another. 2.3.3 the power of suppliers T

31、he power of suppliers tends to be a reversal of the power of buyers. Where the switching costs are high e.g. switching from one software supplier to another. Power is high where the brand is powerful e.g. Cadillac, Pizza Hut, Microsoft. There is a possibility of the supplier integrating forward e.g.

32、 Brewers buying bars. Customers are fragmented (not in clusters) so that they have little bargaining power e.g. Gas/Petrol stations in remote places.2.3.4 the threat of substitutes Where there is product-for-product substitution e.g. email for fax where there is substitution of need e.g. better toot

33、hpaste reduces the need for dentists. Where there is generic substitution (competing for the currency in your pocket) e.g. Video suppliers compete with travel companies. We could always do without e.g. cigarettes. 2.3.5 competitive rivalry This is most likely to be high where entry is likely; there

34、is the threat of substitute products, and suppliers and buyers in the market attempt to control. This is why it is always seen in the center of the diagram. Exercise: The market for on-line education Place the following eight points onto the five forces model 1. Start up costs is very low 2. Student

35、s have access to books, videos, and paper-based distance learning packs 3. Companies, governments, and self-funding students invest huge amounts in their education 4. There are very few high quality web sites available. 5. Traditional colleges and universities are adapting their products for on-line

36、 learning. 6. Government legislation in the US and Europe encourages on-line learning. 7. The more innovative learning sites give lesson for free just for the love of it. 8. More people with access to the web every second. 2.4 PEST AnalysisIt is very important that an organization considers its envi

37、ronment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning. The organizations marketing environment is made up from: 1. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc. 2

38、. The microenvironment e.g. our external customers, agents and distributors, suppliers, our competitors, etc. 3. The macro-environment e.g. Political (and legal) forces, Economic forces, Socio-cultural forces, and Technological forces. These are known as PEST factors. 2.4.1 political factorsThe poli

39、tical arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. You must consider issues such as: 1.How stable is the political environment? 2.Will government policy influence laws that regulate or tax your business?3.What is the governme

40、nts position on marketing ethics? 4. What is the governments policy on the economy? 5. Does the government have a view on culture and religion? 6. Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others?2.4.2 economic factorsMarketers need to consider the state of a trad

41、ing economy in the short and long-terms. This is especially true when planning for international marketing. You need to look at:1. Interest rates 2. The level of inflation Employment level per capita 3. Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and so on2.4.3 socio

42、-cultural factors The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include: 1.What is the dominant religion? 2.What are attitudes to foreign products and services? 3.Does language impact upon the diffusion of

43、products onto markets? 4.How much time do consumers have for leisure? 5.What are the roles of men and women within society? 6.How long are the population living? Are the older generations wealthy? 7.Do the population have a strong/weak opinion on green issues? 2.4.4 technological factorsTechnology i

44、s vital for competitive advantage, and is a major driver of globalization. Consider the following points: 1. Does technology allow for products and services to be made more cheaply and to a better standard of quality? 2.Do the technologies offer consumers and businesses more innovative products and

45、services such as Internet banking, new generation mobile telephones, etc?3.How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc? 4.Does technology offer companies a new way to communicate with consumers e.g. banners, Customer Relationship Managem

46、ent (CRM), etc? Malaysia - Exercise PEST AnalysisSource: / October 2000Consider the following ODCI information and conduct a PEST analysis.Government type: constitutional monarchy note: Malaya (what is now Peninsular Malaysia) formed 31 August 1957; Federation of Malaysia (Malaya, Sabah, Sar

47、awak, and Singapore) formed 9 July 1963 (Singapore left the federation on 9 August 1965); nominally headed by the paramount ruler and a bicameral Parliament consisting of a nonelected upper house and an elected lower house; Peninsular Malaysian states - hereditary rulers in all but Melaka, Penang, S

48、abah, and Sarawak, where governors are appointed by the Malaysian Government; powers of state governments are limited by the federal constitution; under terms of the federation, Sabah and Sarawak retain certain constitutional prerogatives (e.g., the right to maintain their own immigration controls);

49、 Sabah - holds 20 seats in House of Representatives, with foreign affairs, defense, internal security, and other powers delegated to federal government; Sarawak - holds 28 seats in House of Representatives, with foreign affairs, defense, internal security, and other powers delegated to federal gover

50、nment Economy - overview: Malaysia made a quick economic recovery in 1999 from its worst recession since independence in 1957. GDP grew 5%, responding to a dynamic export sector, which grew over 10% and fiscal stimulus from higher government spending. The large export surplus has enabled the country

51、 to build up its already substantial financial reserves, to $31 billion at yearend 1999. This stable macroeconomic environment, in which both inflation and unemployment stand at 3% or less, has made possible the relaxation of most of the capital controls imposed by the government in 1998 to counter

52、the impact of the Asian financial crisis. Government and private forecasters expect Malaysia to continue this trend in 2000, predicting GDP to grow another 5% to 6%. While Malaysias immediate economic horizon looks bright, its long-term prospects are clouded by the lack of reforms in the corporate s

53、ector, particularly those dealing with competitiveness and high corporate debt. Ethnic groups: Malay and other indigenous 58%, Chinese 26%, Indian 7%, others 9% Religions: Islam, Buddhism, Daoism, Hinduism, Christianity, Sikhism; note - in addition, Shamanism is practiced in East Malaysia Languages:

54、 Bahasa Melayu (official), English, Chinese dialects (Cantonese, Mandarin, Hokkien, Hakka, Hainan, Foochow), Tamil, Telugu, Malayalam, Panjabi, Thai; note - in addition, in East Malaysia several indigenous languages are spoken, the largest of which are Iban and Kadazan Literacy: definition: age 15 a

55、nd over can read and write total population: 83.5% male: 89.1% female: 78.1% (1995 est.) Telephones: main lines in use: 4.4 million (1998) Telephones - mobile cellular: 2.17 million (1998) Telephone system: international service good domestic: good intercity service provided on Peninsular Malaysia m

56、ainly by microwave radio relay; adequate intercity microwave radio relay network between Sabah and Sarawak via Brunei; domestic satellite system with 2 earth stations international: submarine cables to India, Hong Kong, and Singapore; satellite earth stations - 2 Intelsat (1 Indian Ocean and 1 Pacif

57、ic Ocean) Radio broadcast stations: AM 56, FM 31 (plus 13 repeater stations), shortwave 5 (1999) Radios: 9.1 million (1997) Television broadcast stations: 27 (plus 15 high-power repeaters) (1999) Televisions: 3.6 million (1997) Internet Service Providers (ISPs): 8 (1999) Merchant marine: total: 361

58、ships (1,000 GRT or over) totaling 5,000,706 GRT/7,393,915 DWT ships by type: bulk 61, cargo 119, chemical tanker 34, container 55, liquified gas 19, livestock carrier 1, passenger 2, petroleum tanker 57, refrigerated cargo 1, roll-on/roll-off 6, specialized tanker 1, vehicle carrier 5 (1999 est.) Airports: 115 (1999 est.) Airports - with paved runways: total: 32 over 3,047 m: 5 2,438 to 3,047 m: 4 1,524 to 2,437 m: 11 914 to 1,523 m: 6 under 914 m: 6 (1999 est.) 2.5 Marketing Research Market research and marketing