Marketing

Management BM2257
Introduction

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 Geoff Parkes
 Room Nelson Building NB224
 E-mail parkesgs@[Link]

 Tutorials Thursdays 2.00 –3.30pm,

5.00-6.00pm
 Book appointments (10 min slots):
 [Link]

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 Lecture Format
 4-5pm Great Hall
 Exception of......

 Lecture 2: Week 15 (next week)

Video Lecture available via
Blackboard
 Feedback Required

– Does it assist understanding with option

of multiple viewing?

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 Important Information
Course Text:

Kotler, P., G. Armstrong, J. Saunders

and V. Wong (2001), Principles of
Marketing, 4th European Edition,
Prentice Hall Europe or latest
available

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 Important Information
 Assessment:
– Formal closed book examination –3
from 8 questions 70%
– Team assignment (see Module Outline)
30%
 Assignment deadline
– Friday, Week 23, before 12 noon
– Deadline is FINAL and non negotiable.

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 Assignment Details
 To be undertaken in teams
 Organise yourselves by end of week 15

 Involves the analysis of “Abacus Day

Nursery”
 You are to prepare a Marketing Plan
and include the issues outlined in the
Assignment Brief (see Module Outline
on Blackboard)

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 Final Details
 Examine the course outline on
Blackboard.
 The lecture schedules, expected
readings, and learning times, plus
information on additional readings
are all outlined.
 Lectures will be posted on
Blackboard.

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 Lecture One:

Introduction to marketing and

marketing management

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 Marketing management –
5 key objectives
1. Introduce the theoretical concepts
associated with marketing.
2. Explain the basics of contemporary theory
and practice of marketing.
3. Consider the application of these concepts
in various organisational contexts.
4. Provide a foundation for the study of
marketing on future courses.
5. Provide insights into the marketing
profession, and the wide range of career
opportunities.
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 After the course you should be
able to:
1. Identify the main theoretical concepts
about marketing and examine their
application in organisations.
2. Develop an understanding of the process of
marketing management and its potential
benefits to organisations.
3. Consider these insights within various
business situations.
4. Analyse market information.
5. Develop the capacity to work as part of a
‘marketing team’, and exhibit
organisational skills.
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 What is marketing?
 Satisfying customer needs – not just selling
and advertising
 Marketing starts before there is product

– Assess needs, measure extent of need, profitable

opportunity exists?
– Continues through product’s life –
improvements, new customers, learning from
sales, managing repeat purchase
 Aim of marketing is to ‘know the customer’-
identify needs, match needs, superior
product value

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 What is marketing?
Marketing is:

A social and managerial process by

which individuals and groups
obtain what they need and want
through creating and exchanging
products and value with others

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Core marketing concepts
Needs,
Needs, wants,
wants, &
& demands
demands

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Core marketing concepts
Needs,
Needs, wants,
wants, &
& demands
demands

Products
Products and
and services
services

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Core marketing concepts
Needs,
Needs, wants,
wants, &
& demands
demands

Products
Products and
and services
services

Values,
Values, satisfaction,
satisfaction, &
& quality
quality

15
 Core marketing concepts
Needs,
Needs, wants,
wants, &
& demands
demands

Products
Products and
and services
services

Values,
Values, satisfaction,
satisfaction, &
& quality
quality

Exchange,
Exchange, transactions,
transactions, &
& relationships
relationships

16
 Core marketing concepts
Needs,
Needs, wants,
wants, &
& demands
demands

Products
Products and
and services
services

Values,
Values, satisfaction,
satisfaction, &
& quality
quality

Exchange,
Exchange, transactions,
transactions, &
& relationships
relationships

Markets
Markets
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 Needs, wants, demands
 Needs – states of felt deprivation
– Physical
– Social
– Individual
 Wants– needs shaped by culture
and personality
– Impact of resources!
 Demands – human wants which
are backed by buying power
(ability to pay)
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 Products and services
 Product– anything that can be offered
to a market to satisfy a need or a want
– Tangible or intangible
 Services – activities or benefits which
are offered for sale
 Customers seek solutions to their needs
rather than specific products, so focus
on benefit rather than product
 Marketing myopia (focus on products
rather than solutions)
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 Value, satisfaction and quality
 Several
products or services may satisfy
your needs.
– How to choose?
– value that the products/services deliver

 Customer value is based on cost/value/

benefit analysis
– Not necessarily price driven

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 Value, satisfaction and quality
 Customer satisfaction
– differences between Expectation and
Experience of Product or Service

 Quality –linked to customer satisfaction

– ‘free from defects’
– ‘suitability for purpose’
– ‘exceed expectations’

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 Exchange, transactions, relationships
 Marketing occurs when people decide to
satisfy wants or needs through exchange
 Exchange =the act of obtaining a desired
object from someone by offering something
in return
– At least two parties must participate with
something of value to offer to one another
– Each party must want to deal with one
another
– Must be free to accept or reject the offer
– Must be able to communicate and deliver
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 Exchange, transactions, relationships
 Transaction
– the trading of value between two parties

 Relationship marketing
– beyond one off transactions
– Repeat customers better for the organisation

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 Markets
 The concept of exchange and relationships
lead to the concept of a market
 A market is the set of actual and potential
buyers of a product
 These buyers share a particular need or
want that can be satisfied through
exchanges and relationships
 Size of market depends on:

– number of people who exhibit the need

– have resources to engage in exchange
– are willing to offer these resources in exchange
for what they want
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 A simple marketing system

Industry
Industry Market
Market
(a
(acollection
collectionof
of (a
(acollection
collectionof
of
sellers)
sellers) buyers)
buyers)

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 A simple marketing system

Products/services
Industry
Industry Market
Market
(a
(acollection
collectionof
of (a
(acollection
collectionof
of
sellers)
sellers) buyers)
buyers)

26
 A simple marketing system

Products/services
Industry
Industry Market
Market
(a
(acollection
collectionof
of (a
(acollection
collectionof
of
sellers)
sellers) buyers)
buyers)
money

27
 A simple marketing system

Products/services
Industry
Industry Market
Market
(a
(acollection
collectionof
of (a
(acollection
collectionof
of
sellers)
sellers) buyers)
buyers)
money

information
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 A simple marketing system
communication

Products/services
Industry
Industry Market
Market
(a
(acollection
collectionof
of (a
(acollection
collectionof
of
sellers)
sellers) buyers)
buyers)
money

information
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 Marketing
• Managing markets to bring about
exchanges and relationships for the
purpose of creating value and
satisfying needs and wants
 Core Marketing Activities include:

– Product development
– Research
– Communication
– Distribution
– Pricing
– Service
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 Summary
Needs,
Needs,wants,
wants,&&demands
demands

Products
Productsand
andservices
services

Values,
Values,satisfaction,
satisfaction,&&quality
quality

Transactions,
Transactions,&&relationships
relationships

Markets
Markets

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 Summary
Needs,
Needs,wants,
wants,&&demands
demands communication

Products
Productsand
andservices
services
Products/services
Values, Industry Market
Values,satisfaction,
satisfaction,&&quality
quality Industry
(a(acollection
Market
collectionofof (a(acollection
collectionofof
sellers)
sellers) buyers)
buyers)
Transactions,
Transactions,&&relationships
relationships money

Markets
Markets

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 Summary
Needs,
Needs,wants,
wants,&&demands
demands communication

Products
Productsand
andservices
services
Products/services
Values, Industry Market
Values,satisfaction,
satisfaction,&&quality
quality Industry
(a(acollection
Market
collectionofof (a(acollection
collectionofof
sellers)
sellers) buyers)
buyers)
Transactions,
Transactions,&&relationships
relationships money

Markets
Markets

Reading
 For this week, read Ch 1 & 2
 For next week, read Ch 3
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Abacus Day Nursery
Introduction to the Case

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 Steps involved in producing a
“good” plan
 What does the market want –
research the market – Opportunities
and Threats
 What can the organisation do –
Resources, Strengths and
Weaknesses
 Take a realistic assessment of the
situation
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From Situation Analysis to Plan
 What could the organisation do?
 What Should the organisation do?

 What Strategy to adopt – the shape

and direction of the organisation in
the future.
 Set realistic goals

 Decide how to apply resources to

achieve goals.
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 The Final Stage
 Make a realistic plan.
 Things to do for next week:

– Research the UK Childcare Market

– Start to consider potential opportunities
– Locate your group members.

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Contents of a Marketing Plan
(Table 2.2)

Executive Summary
Current Marketing Situation
Threats and Opportunity Analysis
Objectives and Issues
Marketing Strategy
Action Programs
Budgets
Controls
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