Management of the Enterprise
Chapter 14: Marketing: Developing and Implementing Customer-Oriented Marketing Plans
October 22 2011
The Evolution of Marketing
- Involves 4 eras:
The Production Era
- From the time the first European settlers arrived in Canada until the start of the 1900s, the general philosophy
of business was to produce as much as possible.
- Manufacturers focused on production, as most goods were bought as soon as they became available and the
greatest marketing need was for distribution and storage.
The Sales Era
- By the 1920s, businesses had developed mass production techniques and production capacity often exceeded
the immediate market demand.
- Most companies emphasized selling and advertising in an effort to persuade consumers to buy existing
The Marketing Concept Era
- After the Second World War ended in 1945, there was a tremendous demand for goods and services among the
returning soldiers who were starting new careers and beginning families.
- Organizations recognized the need to be responsive to consumers if they wanted to get their business, and a
philosophy called the marketing concept emerged in the 1950s.
- Marketing Concept a three-part business philosophy: (1) A customer orientation, (2) a service orientation
and (3) a profit orientation.
- The three parts to the marketing concept is:
A customer Orientation: Find out what consumers want and provide it for them. (Note the
emphasis on meeting consumer needs rather than on promotion or sales).
A service Organization: Ensure that everyone in the organization has the same objective:
Customer satisfaction. This should be a total and integrated organizational effort. That is,
everyone from the president of the firm to the delivery people should be customer oriented. A profit organization: Focus on those goods and services that will earn the most profit and
enable the organization to survive and expand to serve more customer wants and needs.
The Customer Relationship Era
- Customer Relationship management (CRM) the process of learning as much as possible about customers and
doing everything you can to satisfy them – or even exceed their expectations – with goods and services.
- The ideas are to enhance customer satisfaction and stimulate long-term customer loyalty.
What is Marketing?
- Marketing the process of planning and executing the conception, pricing, promotion, and distribution of
goods and services to facilitate exchanges that satisfy individual and organizational objectives.
- Market is the group of people with unsatisfied needs who have the resources and the willingness to buy
- Green marketing Marketing efforts to produce promote and reclaim environmentally-sensitive products.
Non-Profit Organizations Prosper from Marketing
- Even though marketing concept emphasizes a profit orientation, marketing is a critical part of all organizations,
whether for profit or non-profit.
- It is of paramount importance that non-profit organizations utilize the key brand building and customer
management strategies to break through and succeed.
Applying the Marketing Process
- The four p’s are a convenient way to remember the basics of marketing, but they don’t include everything that
goes into the marketing process. The Marketing Mix
- Managing the controllable parts of the marketing process, then, involves (1) designing a want-satisfying product,
(2) setting a price for the product, (3) putting the product in a place where people will buy it, and (4) promoting
- Marketing Mix the ingredients that go into a marketing program: product, price, place and promotion.
Designing a Product to meet needs
- Product any physical good, service, or idea that satisfies a want or need.
- Concept testing you develop an accurate description of your product and ask people, in person or online,
whether the concept(the idea of the restaurant and the kind of meals you intend to offer) appeals to them.
- Test Marketing the process of testing products among potential users.
- Brand Name any word, device (design, shape, sound, or color), or combination of these used to distinguish a
seller’s goods or services from those of competitors.
Setting an Appropriate Price
- Price the money or other consideration (including other goods and services) exchanged for the ownership or
use of a good or service.
- Depends on a number of factors
Getting the Product to the Right Place
- Such organizations that specialize in distributing food products, called intermediaries, are in the middle of a
series of organizations that distribute goods from producers to consumers.
- Getting the product to consumers when and where they want it is critical to market success.
Developing An effective promotional strategy
- Promotion all of the techniques sellers use to motivate customers to buy their products.
- Includes advertising, personal selling, public relations and various sales promotion efforts, such as coupons and
- This last step in the marketing process often includes relationship building with customers. Includes responding
to suggestions consumers may make to improve the products or their marketing.
- To remain competitive, companies must continually adapt to changes in the market and to changes in consumer
wants and needs. The marketing Research Process
- Has four key steps:
Defining the question (problem or opportunity) and determining the present situation
Analyzing the research data
Choosing the best solution and implementing it
Defining the Question and Determining the Present Situation
- Marketing researchers should be given the freedom to help discover what the present situation is, what the
problems or opportunities are, what the alternatives are, what information is needed, and how to go about
gathering and analyzing data.
- Obtaining usable information is vital to the marketing research process.
- Usually the least expensive method is to gather information that has already been complied by others and
published in journal and books or made available online.
- Secondary Data information that has already been complied by others and published in journals and books or
made available online.
- Often, secondary data doesn’t provide all the information managers need to make important decisions.
- Primary Data data that you gather yourself (not from secondary sources such as books and magazines).
- Observation is one primary technique where trained people observe and record the actions of potential buyers.
- Primary data can also be gathered bby developing a list of questions and conducting a survey (also known as a
- Surveys are best completed by independent third parties so that the information gathered and the results
reported can be as objective as possible.
- Personal interviews face-to-face opportunity to ask consumers prepared questions.
Has the opportunity to observe reactions and to dig a little deeper with the questions if the
respondent wishes to add more information.
- Focus group a small group of people who meet under the direction of a discussion leader to communicate
their opinions about an organization, its products, or other issues.
These questions should be free of bias and participants should be encouraged to answer
questions honestly without being influenced by the response of others in the focus group.
Analyzing the Research Data
- The data collected in the research process must be turned into useful information.
- Example: primary research shows that fresh italy’s pizza taste was superior to larger pizza chains. But their sales
lagged behind based on their secondary research that free delivery was more important to customers than
taste. Choosing the Best Solution and implementing it
- After collecting and analyzing the data, market researchers determine alternative strategies and make
recommendations to which strategy may be best and why.
- This final step in a research effort involves following up on the actions taken to see if the results were as
- In today’s customer-driven market, ethics is important in every aspect of marketing.
Providing Marketers with Information
- Marketing research the analysis of markets to determine opportunities and challenges, and to find the
information needed to make good decisions.
- Helps determine what customers have purchased in the past and what situational changes have occurred to
alter not onl