MKTG101 Marketing Fundamentals

ASSOCIATE PROFESSOR ROSS GORDON

Lecture 1 - Tuesday 31st July 2018
Your Lecturer for MKTG101
• Associate Professor Ross Gordon
• From the wonderful country of Scotland

2
-Home of the 2014 Commonwealth games

3
-2 x time Wimbledon Champion Andy Murray
-James Bond (Sean Connery)

5
 -Whisky
-Kilts

-Golf

-…and the Loch Ness Monster!

-Beautiful Countryside

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 Associate Professor Ross Gordon

Associate Professor in Marketing at Macquarie – joined in 2014.

Used to work at University of Wollongong, London School of Economics, The Open University (UK), University of Stirling
(UK).

Teach Marketing Fundamentals, Consumer Behaviour, Social Marketing.

Specialise in Social Marketing

President of the Australian Association of Social Marketing

Very active social marketing researcher – projects DOING social marketing

Current work on sustainability (energy efficiency), gambling, alcohol

What’s been planned for today?

• Brief overview of the MKTG101 and

Assessment Components

• Session 1: Introduction to Marketing

 Brief Overview: Learning Outcomes

• Develop an informed understanding of marketing theory and practice.

• Review the external factors influencing an organisation's marketing strategies.
• Explain and analyse key marketing objectives and strategies.
• Identify the role of marketing as an organisation-wide philosophy.
• Recognise marketing's role in business and in society
 Unit Information & Assessment tasks

MKTG101 iLearn site:

http://ilearn.mq.edu.au/course/view.php?id=32684

MKTG101 Assessment Guide:

http://ilearn.mq.edu.au/pluginfile.php/5278828/mod_resource/content/8/MKTG
101%20-%20S2%202018%20-%20Assessment%20Guidelines%20-%20Final.pdf
Brief Overview: Key Resources

Unit Guide
Assessments
Teaching Team’s Contact Details
Announcements
Online Quiz
Course materials
Discussion Forums
… more
What is expected of the students?

• Read the textbook (and understand) - including the ‘detail’

• Prepare for, attend and participate in tutorials
• Submit written answers as part of Marketing Portfolio assessment
• Complete the Mid-session Quiz
• Attend lectures and tutorials – participate/engage/reflect
• Contribute to the unit (in tutorials, discussion board)
• Prepare thoroughly for the final exam
• Be aware of business issues in the press, especially those with a marketing
context
• Work hard, enjoy and succeed!
Session 1: Introduction to marketing

Learning objectives:
•provide a marketing overview
•recognise marketing involves a mutually beneficial
exchange
•discuss the importance of ethics and corporate social
responsibility
•explain the elements of the marketing mix
•discuss how marketing improves business
performance, quality of life and benefits society.
Definition of marketing

“… the activity, set of institutions, and processes

for creating, communicating, delivering and
exchanging offerings that have value for
customers, clients, partners and society at
large.”
(American Marketing Association)

https://www.ama.org/AboutAMA/Pages/Definition-of-Marketing.aspx
Definition of marketing

Figure 1.1
The Marketing Concept:

A customer orientation, backed

up by integrated marketing
activities aimed at generating
customer satisfaction as the key
to satisfying organisational goals.
Components of the Marketing Concept

1 CUSTOMER Market
ORIENTATION Information
2 Rest of the
INTEGRATED Organisation
TARGET CUSTOMER MARKETING
MARKET NEEDS EFFORTS
Marketing Challenge:
Offering “Marketing is
everybody’s
business
Challenge: Financial Measures
Mass market,
segment or “one to
3
one”?
PROFITABILITY Return on
Investment
( ROI )
Challenge:
Measuring
Profitability
of marketing
programs
 The marketing evolution

Over the past 100 years marketing has evolved through the following
stages:

• Trade (product orientation)

• Production orientation
• Sales orientation
• Marketing orientation
• Societal marketing orientation
• Marketing and Society? – Ethics, critical marketing, social marketing
 A marketing orientation is necessary:

A Production Orientation holds that:

the major task of an organisation is to pursue efficiency in production and
distribution.

A Sales Orientation holds that:

the main task of the organisation is to stimulate the interests of potential
clients in the organisation's existing offerings.

A Marketing Orientation holds that:

the main task of the organisation is to determine the needs and wants of
target markets and to satisfy them through the design,
communication, pricing and delivery of appropriate and competitively
viable offerings.
 Contrasting management philosophies

Production Produce
it CONSUMERS
Orientation Sell Practically
it sells itself

Sales Produce
it CONSUMERS
Orientation Sell Aggressively
it sells it

Learn what Produce

they want it
Marketing CONSUMERS (market research)
Orientation Market it
(product
development)
Sell them what
they want
The societal marketing concept

The societal marketing concept holds that the organisation’s

task is to determine the needs, wants and interests of
target markets and to deliver the desired satisfactions more
effectively and efficiently than competitors in a way that
preserves or enhances the consumer’s and the society’s
well-being.
 Marketing Societal
Concept Marketing
Concept

Customer Focus Individual Societal

Wants Benefits

Corporate Focus Corporate Corporate

Opportunities Responsibility

Time Horizon Short-term Long-term

Market Focus Customers Stakeholders

 Marketing and society…?

Marketing is often used as a pejorative..(David Jobber)

Marketing has been attacked for:

- promoting overconsumption
- Too focused on shareholder value
- being unethical
- promoting harmful products (e.g. tobacco)
- treating us as consumers of things rather than as people/human beings
- fostering inequality
- harming the environment.

Marketing ethics, critical marketing, and social marketing seek to address some
of these problems and criticisms.
Stakeholders

Individuals, organisations and other groups that have a rightful interest in the
activities of a business, including:

• Owners (business must be profitable and sustainable)

• Employees (wealth is shared among members of society with creation of
jobs, reasonable working conditions)
• Customers (and clients) (business must attract and retain customers by
offering products of value)
• Partners (all objectives met through CSR)
• Government (business must abide by laws and regulations)
 Marketing – a way of doing business

Marketing is used by:

• Small businesses and large multinational corporations
• Businesses selling goods and businesses selling services
• For-profit and not-for-profit organisations
• Private and public organisations, including governments.

Marketing is a philosophy or way of doing business that puts

the customer, client, partner and society at the heart of all
business decisions.
 Marketing – a science and an art

• Marketers need to learn what customers, clients, partners

and society want
• This is ongoing - customer preferences continually evolve
[influenced by product experience, promotional messages –
magazines, t.v. , WOM]
• Marketers use information to maintain their understanding
• Marketers are creative to develop new ideas
• The best marketers offer something that is unique or special
to consumers [markets are cluttered]
 The marketing process

Understanding the market to create, communicate and deliver an offering for

Figure 1.3
Marketing exchange

Exchange: the mutually beneficial transfer of offerings of value

between the buyer and seller.
[this can occur for all different types of organisations]
A successful marketing exchange involves:
two or more parties, each with something of value desired by the
other party
all parties must benefit from the transaction
the exchange must meet both parties’ expectations (e.g. quality,
price).
Value – a perception

A customer’s assessment of the utility of an offering based on

perceptions of what is received and what is given.
Value = Quality / Price
= Benefits expected / Benefits received
Value refers to the ‘total offering’. [Includes reputation of the
organisation, how employees act, product features, after sales
service in addition to the quality and price]
Value means different things to different people.
The market

•A market is a group of customers with heterogeneous (different)

needs and wants.
Examples include:
•Geographic markets (e.g. Singapore market)
•Product markets (e.g. Smartphone market)
•Demographic markets (e.g. seniors)
•B2C; B2B; social marketing
The market

Customers purchase goods and services for their own or other

people’s use.
Consumers use the good or service.
Clients are ‘customers’ of the products of not-for-profit
organisations (e.g. Centrelink, Medicare).
Partners are all organisations or individuals who are involved in the
activities of the exchange process including suppliers and retailers).
Society is a body of individuals living as members of a community.
Different players have varying levels of power and control over their
place in the market (e.g. wealth, education, social networks, political
power)
Corporate social responsibility

Businesses have an obligation to act in the interests of the

societies that sustain them.

For example, the use of the earth’s resources, in particular

the natural environment, has emerged as a major
consideration for businesses trying to meet corporate social
responsibility requirements.

Is CSR a marketing tool or a genuine interest in societal

outcomes?
Video: “Every cigarette is doing you
damage”, National Tobacco Campaign

https://www.youtube.com/watch?v=kUTHrZnsCME
Ethics

A set of moral principles that guide attitudes and behaviour.

Responsible companies implement their own codes of conduct.
Laws and regulatory bodies govern the conduct of individuals and
organisational behaviour, ensuring actions are beneficial or at least
acceptable to society.
Sustainability

Sustainable Development – meeting the needs of today without

compromising tomorrow (sustainable fishing; sustainable forestry,
etc.).
Sustainable Marketing – combining economic and ecological
elements in business practices (recycling; paper instead of plastic,
etc.).
The triple bottom line

Figure 1.5
The marketing mix

A set of variables that a marketer can exercise control over in

creating an offering for exchange.
Traditionally known as the 4 Ps:
• Product
• Price
• Promotion
• Place (distribution)
Also: people, process, physical evidence (services marketing –
7 Ps)
Product

• Product – A good, service or idea offered for exchange.

(Bundle of attributes)
• Brand – A collection of symbols creating a differentiated
image in the customer’s mind (ipad).
• Good – a physical (tangible) offering capable of being
delivered to a customer.
• Service – an intangible offering that does not involve
ownership.
Price

• Price – the amount of money a business demands in exchange for its

offerings.

• Willingness to pay – what customers are prepared to give in return for

what they get.

• Pricing decisions must also consider:

- Production, communication and distribution costs
- Required profitability
- Partners’ requirements
- Competitors’ prices.
- Marketers need to understand what customers would like to get and
what they are prepared to give in return.
Promotion

The marketing activities that make potential customers,

partners and society aware of and attracted to the
business’s offering.

Products may be already established, modified, new, or a

form of information or education (social marketing –
drink drive, slip slop, smoking, etc.).

Examples of promotion include: advertising, loyalty

schemes, sales promotions, product trials, public
relations campaigns, and personal selling efforts.
Distribution - Place

The means of making the offering available to the customer at

the right time and place (while managing the costs of making
the products available – inventory, storage and transport).

Logistics
That part of the marketing process concerned with supply and
transport. (Right place and right quantity)

Supply chain
The parties involved in providing all of the raw materials and
services that go into getting a product to the market.
People and Physical evidence

People
Anyone coming into contact with customers who can affect
value for customers. This includes employees and other
customers. (Highly motivated staff important as they are
inseparable from the total service)
Airline staff; hotel staff; utility companies; banks; credit card
companies; internet service providers; education

Physical evidence
Tangible cues that can be used as a means to evaluate service
quality prior to purchase.
Process

The systems used to create, communicate, deliver and

exchange the offering.

Everything from the way a product is conceived and

designed to the way it is delivered including post-sales
services.
 Wrap Up

http://www.youtube.com/watch?v=i1xz5Kv-7VY
Summary

• Provide a marketing overview

• Recognise marketing involves a mutually beneficial
exchange
• Discuss the importance of ethics and corporate social
responsibility
• Explain the elements of the marketing mix
• Discuss how marketing improves business performance,
quality of life and benefits society.
 Questions?
Associate Professor Ross Gordon
Email: [email protected]
Tel: 02 9850 8559
http://www.businessandeconomics.mq.edu.au/contact_the_faculty/all_fbe_staff/ross_gordon

Australian Association of Social Marketing – President

http://au.linkedin.com/pub/dr-ross-gordon/4a/25b/38a

http://scholar.google.co.uk/citations?user=npZ4I3gAAAAJ&hl=en