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Technopreneurship II
Marketing
Lecture 1
Summary Technopreneurship 2 Course Outline
• Introduction to marketing
• The marketing environment
• Strategic marketing planning
• Segmentation, targeting and
positioning
• Competitive strategies
• Consumer and organisational
buying behaviour
• Marketing research
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• The marketing mix
- Product and Branding
strategies
- New product development
and intrapreneurship
- Services marketing
- Price, Promotion, Place
• International marketing
• Recommended textbook:
Kotler & Keller (2009)
Marketing Management, 13th
Edn, Prentice Hall.
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1. Introduction to Marketing

•Marketing is everywhere...

•What do you think about this statement?

•I should wrap up explaining what I think it

means and why.

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Definitions of Marketing
• There are over 100 definitions of marketing (Varey, 2014) and as much
confusion about what marketing is (Mcdonald, 2002). Below are some
definitions:
• Marketing is the management process of identifying, anticipating and
satisfying customer needs and wants profitably (CIM). (CIM now
have a new definition.)

• Marketing management is the process of planning and executing the

conception, pricing, promotion and distribution of ideas, goods,
services to create exchanges that satisfy individual and organisational
goals. (Old definition, AMA)
(More definitions next slide)

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Definitions of Marketing (cont’d)

• Marketing is an organisational function and set of processes for creating,

communicating, and delivering value to customers and for managing
customer relationships in ways that benefit the organisation and its
stakeholders. (new definition, AMA)

• Marketing is a process with a set of underlying tools and techniques for

understanding markets and for quantifying the present and future value
required by the different groups of customers within these markets or
segments (McDonald et al, 2002:37).

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Perceived challenges in the CIM definition

• Emphasis on profit.

• Some say inclusion of word profit excludes the non-profit sector e.g. public
sector and NGOs (e.g. see Smith and Taylor, 2004).

• What do you think about Smith and Taylor’s (2004) view?

• AMA and McDonald’s definitions of marketing avoid word profit.

• What do the key words in CIM and AMA definitions mean to marketers
• Customers, needs, wants, profit, products, services, pricing, promotion, distribution,
value, stakeholders, markets, and segments.

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Marketing as a process and as a philosophy

• The marketing process concerns marketing operations i.e. how

organisations market, all things they do in their marketing

• Marketing philosophy deals with culture or the business model

followed by an organisation in its marketing operations.

• The philosophy shapes the marketing process.

• “…marketing is an attitude of mind not a functional discipline. It is

the way the company does business” (Dianne Thompon cited in
Mazur, 2001; Doyle, 2002; McDonald, 2002).

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Marketing management philosophies &

their principles
• Production concept – mass production, low costs, low
prices, wide distribution

• Product concept – high quality and continuous product

improvement (defined internally!)

• Selling concept – large-scale selling and promotion

• Finance concept – Asset management (which tends to

exclude human capital)

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Marketing management philosophies & their

principles
• Marketing concept – customer focus, profitability,
integrated marketing, target marketing

• Societal marketing concept – tenets of the marketing

concept plus social responsibility and ethical marketing

• Holistic marketing concepts – in addition to tenets of

the societal marketing concept, this concept includes
performance marketing, relationship marketing,
internal marketing

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Application of marketing
• Marketing is applied in almost all situations – anything and
everything is marketable:
• Marketing of tangible products e.g. sugar, biscuits,
furniture, etc.

• Marketing of services e.g. tourism, insurance, health,

banking, accounting, management consulting, etc.

• Marketing of places e.g. countries, places within

countries, cities, etc.

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Application of marketing

• Marketing of causes e.g. anti-pollution, Anti-smoking, conservation,

women’s human rights, illegal migration, etc

• Marketing of individuals e.g. celebrities, public office bearers i.e.

members of parliament, prime ministers (these are brands, we are all
brands; some person brands have high value than others)

• Marketing of organisations; marketing of events; marketing of

experiences.

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MARKETING PLAN OUTLINE

Assignment – Team Assignment
• Title page,
• Executive summary &
• contents page
• Current marketing situation
• Summary key issue(s)
• Summary SWOT
• Vision & mission statements [existing or recommended if necessary]
• Objectives [should focus on Ansoff, balanced score card issues]
• Corporate objectives
• Marketing objectives
• Marketing strategy
• Identify and describe target market [this can come before vision & mission]
• State generic strategy + Ansoff matrix options
• Design marketing mix strategy
• Implementation plan
• Activity schedule/Gantt chart
• Proposed new organisational structure [highlight corporate politics]
• Profit and loss statement or budget
• Controls [within context of balanced scorecard perspectives focus on:]
• Targets or goals [variances]
• Budget [variances]
• Activity schedule [variances]

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Chapter Thermometer

• Explain the role of marketing making inferences to components of at

least one good definition of marketing.
• Marketing is an attitude of the mind not a science. Discuss.
• Evaluate the contention that “the marketing concept is unpractical and
useless.”

• Answer all

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2. The Marketing Environment

o The marketing environment is a combination of external and internal

factors influencing corporate marketing operations. It offers SWOT.

o The environment is dynamic – i.e. stable and predictable in other

countries and unstable and unpredictable in others.

o Marketers must measure the impact of the marketing environment on

corporate marketing operations using the marketing audit technique.

o Unfortunately many companies carry out or commission marketing

audits when things have gone wrong.

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Broad elements of the marketing environment

Macro Environment Internal Environment
Political-legal Vision
Economic Mission
Social-cultural Organisational structure
Technological Organisational culture
Physical/natural Objectives
International Strategies
Budgets
Micro/Task Marketing mix decisions
Environment - Products
Customers - Price
Competitors - Promotion
Suppliers - Place
Distributors - Physical evidence
Government - Processes
Labour - People
Media
General Public
Other publics
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Sub factors of macro environment

Political-legal factors Social-cultural factors

• Laws and regulations
• Political stability/instability
• Political party in power
• Democracy or democrazy!
• Taxation
Economic factors
• Inflation
• Interest rates
• Availability and price of foreign
currency
• Income distribution and spending
patterns
• Gross domestic product, etc
 Population size, age, sex
distribution and growth
patterns
 Education and learning
 Ethnicity
 Social class, perception,
attitudes, personality
 Language, culture, religion,
etc
Technological factors
 Country’s ability to adapt to
technological changes
 National investment in R&D
 National competitiveness

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Macro environment cont’d

Physical/natural factors
• Natural disasters – floods, droughts, famine, earthquake
• Weather and climate
• Seasonality
• Landscape/typography
• Natural resources

• International factors
• How country is affected by macro and micro factors in other countries
• How country is perceived in other countries
• Country of origin effect (i.e. on exports)

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Sub factors of micro environment

Customers Distributors
• Customer segmentation
 Power of suppliers
• Market life cycles stages
 Threat of backward/forward
• Diffusion of innovations
integration
Competitors
• Existing competition Government
• Threat of new entrants and horizontal  Government policy
integration  Threat of nationalisation
• Possibilities for coopetition
Labour
Suppliers
 Trade unionism and power of
• Power of suppliers
trade unions
• Threat of backward/forward
integration Other publics - media, general
public, etc.
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Sub factors of internal marketing environment

Vision
Organisational structure
• Desired future state; qualitative
 Shows reporting
• Must be suitable, acceptable and feasible (SAF)
relationships
 Types of structures –
Mission functional, customer,
• Is purpose; qualitative in nature geographical, and matrix
• Should be SAF
Objectives
Organisational culture
 Goals, targets, or
• The way we do things around here outcomes
• Manifests in dress, behaviour, stories, routines, etc
 Should be SMART C
Budget
• Financial plan is part of strategy Strategies
• Budgeting systems - bottom-up, top-down or both  Means of achieving
• Corporate politics affect budgeting objectives
• How are budgets calculated?  Should be SMART C/SAF

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Sub factors of internal marketing environment, cont’d: the

marketing mix summarised

Products Physical evidence

• Features, quality, brand, product life  Tangible aspects of the
cycle stages, product portfolio, organisation and the
product lines, product line length, image(s) they conjure up
product depth, etc e.g. long queues at a bank,
store environment, state of
company vehicles, furniture,
Price state of offices, etc.
• Pricing strategies – new and existing
products; value-based, market-based, Processes
cost-based pricing
 Value chain turn around time

Promotion People
• The promotion mix  Human relations in the
organisation
 Leadership styles
Place
• Distribution strategy – mass, selective
and exclusive
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