Principles of Marketing: w2

Principles of Marketing

W3 - Basic Concepts of Marketing

Marketing Environment

  • Presentation by Prof. Dr. Aybegüm Güngördü Belbağ

Scope of Marketing

  • To jointly engage and bring more value to customers, working closely with others inside and outside of the company.

  • Every functional area in an organization can interact with customers.

  • In today’s more connected world, understanding marketing and being customer-focused is essential.

  • No matter the position within the company, every role contributes to creating customer value.

  • Partner Relationship Management is crucial for linking all departments in this endeavor.

Impact of Digital Technology

  • The explosive growth in digital technology has fundamentally transformed daily life:

    • Communication methods and channels have changed.

    • The way people share information, access entertainment, and shop has evolved significantly.

  • Statistics:

    • 71% of Americans keep their mobile phone next to them when they sleep, and 3% sleep with their phone in hand.

    • Average daily time spent with digital media: 5.25 hours, which surpasses time spent viewing traditional television.

Online, Mobile, and Social Media Marketing

  • Digital and social media marketing involves using tools such as:

    • Websites

    • Social Media

    • Mobile Ads and Apps

    • Online Video

    • Email

    • Blogs

  • Goal: Engage consumers anywhere and anytime via their digital devices.

  • Companies create websites to provide information and promote their products.

Social Media Marketing

  • Many brands engage customers via social media platforms including:

    • Facebook

    • Instagram

    • Twitter

    • Google+

    • YouTube

    • Snapchat

    • Pinterest

    • LinkedIn

  • Social media presents opportunities for customer engagement and promoting brand discussions.

Real-Time Marketing

  • Online and social media allow marketers to link brands to important trending topics and events.

  • Engage consumers in the moment, utilizing their connection to significant personal occasions or real-world events.

Mobile Marketing

  • Described as the fastest-growing digital marketing platform:

    • Smartphones are always on, finely targeted, and personal, which is ideal for engaging customers.

  • Example: Starbucks customers utilize mobile devices to:

    • Find nearby stores

    • Learn about product offerings

    • Place and pay for orders

  • Statistics on Mobile Usage:

    • 80% of smartphone users shop using their phones for various tasks:

    • Browsing product information

    • Making in-store comparisons

    • Reading reviews

    • Finding and redeeming coupons

    • 30% of online purchases made via mobile devices, with mobile sales growing at a rate 2.6 times faster than total online sales.

Challenges in Marketing

  • Many marketers are still learning effective utilization of online, social media, and mobile marketing.

    • The key challenge is blending new digital approaches with traditional marketing methods to create a smoothly integrated marketing strategy.

Not-for-Profit Marketing

  • Example Organization: World Wildlife Fund (WWF)

    • Mission: Conserving nature and protecting wildlife.

    • Operates in 100 countries, funded by government grants, corporations, and individual donations.

    • Membership: 1.2 million in the U.S., nearly 5 million globally.

    • Uses sophisticated marketing strategies for resource mobilization.

Sustainable Marketing

  • Shift towards sustainable marketing practices due to global consumerism and environmentalism.

  • Corporate ethics and social responsibility are prominent topics in business today.

Corporate Responsibilities

  • Some companies resist adopting socially responsible practices until prompted by legislation or public pressure.

  • Progressive companies view sustainable marketing as beneficial, recognizing the opportunity in practicing corporate responsibility.

  • Case Study: Ben & Jerry's mission includes:

    • Making excellent ice cream (product mission).

    • Managing for sustainable financial success (economic mission).

    • Improving the world through innovative practices (social mission).

Marketing Environment Dynamics

  • The marketing environment consists of external actors and forces affecting marketing management's ability to build customer relationships.

  • Companies must continually monitor and adjust to environmental changes.

  • Marketing management should act as environmental trend trackers and opportunity seekers.

Microenvironment Overview

  • Definition: The microenvironment includes actors close to the company that impact its ability to serve customers.

  • Key Actors in the Microenvironment:

    • The Company

    • Suppliers

    • Marketing Intermediaries

    • Customer Markets

    • Competitors

    • Publics

The Company's Role

  • Marketing management must build value and satisfaction through collaboration with various departments:

    • Top management

    • Finance

    • Research and Development (R&D)

    • Purchasing

    • Operations

    • Human Resources

    • Accounting

Suppliers’ Influence

  • Suppliers are critical to the value delivery network, providing necessary resources for goods and services.

  • Marketing managers must monitor supply availability and costs effectively.

  • Problems can lead to sales losses and customer dissatisfaction.

Marketing Intermediaries

  • Help the company promote, sell, and distribute products.

  • Types include:

    • Resellers: Distribution firms that find customers (wholesalers and retailers).

    • Physical Distribution Firms: Stock and move goods to destinations.

    • Marketing Services Agencies: Assist in research and promotions.

    • Financial Intermediaries: Banks, credit firms, and insurers facilitating financial transactions.

Competitors’ Impact

  • To succeed, companies must provide greater value and satisfaction than competitors.

  • Companies must actively position their offerings relative to competitors.

Understanding Publics

  • Definition: Publics refer to groups that have an interest in or impact on a company's objectives.

  • Seven key types of publics include:

    1. Financial Publics: Influence fundraising capabilities (banks and investors).

    2. Media Publics: Distribute news content (media firms, blogs).

    3. Government Publics: Influence regulations affecting marketing decisions.

    4. Citizen-action Publics: Respond to marketing (consumer organizations, advocacy groups).

    5. Internal Publics: Include employees and board members.

    6. General Public: Overall public perception of the company.

    7. Local Publics: Community members and organizations.

Customer Importance

  • Customers are the most crucial actors within the microenvironment.

  • Marketing aims to engage target markets and build strong relationships.

  • Types of Customer Markets:

    1. Consumer Markets: Individuals buying for personal consumption.

    2. Business Markets: Purchase for production or processing.

    3. Reseller Markets: Buy to sell at a profit.

    4. Government Markets: Buy to produce public services.

    5. International Markets: Buyers outside the U.S., including consumers and producers.

The Macroenvironment

  • Definition: Encompasses larger societal forces (demographic, economic, natural, technological, political, cultural) impacting the microenvironment.

  • Companies function within a broader macroenvironment that shapes opportunities and threats.

Changes in the Macroenvironment

  • The macroenvironment includes forces that are sometimes uncontrollable and others that can be skillfully managed.

  • Firms that adapt effectively flourish; those that do not face challenges.

Major Forces Shaping the Macroenvironment

  • Demographic Factors: Influence markets and strategies; example: changing age structure led Netflix to create a children’s portal.

  • Economic Forces: Affect consumer purchasing power and spending patterns.

  • Natural Forces: Contexts environmental concern and opportunities.

  • Technological Forces: Drive innovations and changes in consumer behavior.

  • Political Forces: Involve laws and regulations affecting marketing.

  • Cultural Forces: Shape perceptions and attitudes in markets.

The Demographic Environment

  • Definition: The study of human populations regarding key statistics (size, density, location, age, gender, etc.).

  • Changes in demographics can significantly impact business strategies.

Age Structure Implications

  • Population Age Groups:

    1. Baby Boomers: 78 million born 1946-1964, influential in shaping markets.

    2. Generation X: 49 million born 1965-1976, focusing on quality and experience over quantity.

    3. Millennials (Generation Y): 83 million born 1977-2000, digital natives with experience in advanced technology.

    4. Generation Z: Born after 2000, very comfortable with digital technology, impacting shopping behaviors and company marketing strategies.

Conclusion

  • The understanding of marketing principles, the surrounding environment, and targeted customer engagement will enhance success in marketing practices.