Module 1: Understand the role and functioning of marketing.
Marketing can be described as satisfying customers while driving profits. CIM defines marketing as:
The management process responsible for identifying, anticipating and satisfying customer requirements profitably.
Marketing sits alongside other areas such as production, finance and HR. There are 4 main stages in the marketing management planning process:
- Analysis – where are we now?
- Planning – where do we want to get to and how do we get there?
- Implementation – next steps to make it happen.
- Evaluation and control – how to measure and review.
A marketing process is important because it clarifies aims and objectives, prioritises and schedules actions, and communicates intentions, resources and responsibilities.
There are 4 different organisational orientation to business. They are:
- The production orientation was common in the 19th century. The focus was on low prices, mass production, one size fits all. Often quality suffered.
- The product orientation where the product has different features to be unique. It’s more complex and often higher price.
- The sales orientation is when the customer needs to be persuaded and the focus is more on the seller.
- The marketing orientation has intelligence that customers want value for money and customer service. The business adapts to the needs of the buyers and also gathers data on customers and competitors.
To survive in business, companies must adopt strategies that are company-wide and long term. Drivers of change that require a marketing response can be split into external and internal factors. They must also understand the implications of change which means they need to understand the drivers of change. The drivers of change could be:
- External – political, legislation, competitive actions, customer behaviours.
- Internal – strategic direction and approach to strategy development, leadership/management, implementation of new technology, innovation.
In marketing orientation, the purpose is to deliver value to the customer efficiently, effectively and profitably. Market orientation can be defined as:
- Customer orientation – centred around customer value. Practices market segmentation and targeting.
- Competitor orientation – understands competition and seeks to get a competitive advantage.
- Knowledge and learning – marketing information systems gather info, it’s analysed and distributed to share, learn and build
- Interfunctional coordination – people collaborate on design, production and customer service
- Measurement and feedback – essential and part of being a learning organisation.
Marketing will be deemed a failure if customers’ needs aren’t met and the customer satisfaction should be the top priority.
1.2 & 1.3 Explain the marketers’ role in business.
Explain marketing’s role as the customer interface.
Marketing’s role is to be the voice of the customer and facilitate the customer interface, to use marketing intelligence in order to develop meaningful customer value, coordinate internal activities relating to delivering customer value, to integrate two-way communication to build the brand, engage stakeholders and encourage and act on feedback.
Explain how stakeholder and brand value is created and managed.
Relationship marketing can improve relationships for stakeholders. We must understand the importance of stakeholders as they can have an impact on customers.
Brand value can be created and managed through information, convenience, association and added value. It doesn’t have to just be cheap!
Explain the importance and nature of functional cooperation and integrating customer value.
It’s important to get all departments on board in order to deliver a marketing plan. Some departments may not see the value in the marketing plan if they are not customer orientated. Internal marketing comes into play here to deliver a customer first culture.
Outline the purpose of marketing intelligence and how it contributes to competitiveness.
The purpose of marketing intelligence is to inform organisation activities on developing meaningful customer value. It helps develop strategies that are based on intelligence as opposed to ‘gut feel’.
It’s used to measure marketing performance. Such as:
- Customer experience, satisfaction and loyalty
- Customer profitability
- Competitive position
- Market research
- The importance of each element of the marketing mix delivering value.
1.4. Outline the Marketing planning process.
There is a range of marketing planning frameworks.
- SOSTAC (Situation analysis, objectives, strategy, action, control)
- MOST (Mission, objectives, strategy, tactics)
- APIC (assess, plan, identify, coordinate)
In Situational Analysis you would do External (macro) and Internal (micro) analysis.
External = PESTLE
Internal = Porters 5 forces
- Threat of new entrants
- Power of our suppliers
- Threat of substitutes
- Buyer power of customer
- Competitive rivalry
Example of a generic marketing plan structure:
Where are we now? (Analysis and evaluation)
Where do we want to be? (Business decisions)
How are we going to get there? (Marketing decisions)
How do we arrive? (Control)