Marketing Concept , A Brief Introduction

Agenda  Brief introduction to the background  Definition of marketing concept  Category of marketing concept with examples  customer-orientation  coordinated marketing activities  achieving organizational objectives  Is marketing concept necessary ?  Recommendation  Evaluation  Conclusion

Background: Evolution of Marketing

Marketing concept Definition: How organizational goals are achieved by identifying the needs and wants of customers and delivering products that satisfy customers more effectively than competitors could. It contains 3 fundamental principle: 1.Customer orientated 2.Coordinated marketing activities 3.Meet organizational objectives Reference: William O’ Bearden, Thomas N. Ingram and Raymond W. Laforge (2007) Marketing principles and perspectives, Boston: McGraw-Hill, PP 6-7

1.Customer orientated Aims: To keep enduring relationship with the

targeted customers Be viewed as partners

Reference: Etzel, M., Walker, B., Stanton, W., Marketing 13Edition,1(14-15), McGraw Hill Company Marketing, 1(14-15)

1.Customer orientated continue Means:CRM

1.Sort and analyze data  supplied by customers  gathered from third parties  collected from previous transactions To understand them better *The data is shared within the whole company for coordinated marketing activities. (discuss later) Reference:Kerin, A., Berkowitz, N., Hartley, W., Rudlius, W. Marketing 7th Edition , 1(16-18)

1.Customer orientated continue 2.Monitor the market place continuously  Trends  Competitors’ strategy  Changing environment To monitor changes of customers’expectation(value) To develop our own competitive advantages

Reference: Etzel, M., Walker, B., Stanton, W., Marketing 13Edition,1(14-15), McGraw Hill Company Marketing, 1(14-15)

1.Customer orientated continue 3.Create value

What is value? Customer s Cost of Value perceptio products n of benefits of Reference:Kerin, A., Berkowitz, N., Hartley, W., Rudlius, W. Marketing 7 Edition , th

1(17)

1.Customer orientated continue How to create value? Offer products that perform Give more Give professional facts Before and after sales service+support

Satisfied

Repurchase!

Reference: Etzel, M., Walker, B., Stanton, W., Marketing 13Edition,1(14-15), McGraw Hill Company Marketing, 1(14-15)

1.Customer orientated continue Therefore

1.Customers’ preference and needs can be found out. 2.Identify prospective buyers ( new needs>>> new products) 3.Build long term relation (up ladder)

Reference: Etzel, M., Walker, B., Stanton, W., Marketing 13Edition,1(14-15), McGraw Hill Company Marketing, 1(14-15)

Up the Loyalty ladder Partners

Clients

First time customers

Prospects

Suspects

Reference: Randall, G. Principle of marketing, 2 (29-30)

Why relationship is that important???

References: http://hk.acnielsen.com/news/20071002.shtml

Examples 1.Sun Hung Kei Property Research datas from customers, prospective buyers continuously

 Better understand their needs  Continuously improve service Reference: http://www.shkpclub.com/en/activities/activities.php

Example

continued

The SHKP Club (forum) Ken: 請問那裡可以取得住宅的 Floor Plan 呀？ 20:48:56 24 January 2007 請問那裡可以取得住宅的 Floor Plan 呀？ 新地論壇回應 : 單位平面圖 11:42:50 25 January 2007 有關單位的平面圖已刊載於各物業的售樓書中。

Reference: http://www.shkp.com.hk/zh-

Example

continued

Lion Brand cooking oil: Identify new market after research: health conscious group

Reference:http://www.hkbrand.org/5/5_2_1_1.html?id=6

Example

continued

Café Pacific: Personalized service

http://www.youtube.com/watch?v=S8hJWY1U7oA Create value is not just about cheap in price!

Coordinated marketing activities Price Product Promotion Place

Coordinated !

Target Customers

Middle to high income group

Positioning A modern, elegant, Luxury and supreme

property Prestigious Home for sophisticate Landmark of the West Kowloon

Reference: http://www.shkp.com.hk/zhhk/scripts/news/news_press_detail.php?press_id=3489

Product After sales service team  Online checking of the defect

progress report 10 days inspection of property 2 years maintenance guarantee Senior management visits residents Reference: http://www.shkp.com.hk/data/publication/quarterly/24/24/24_360.pdf http://www.shkp.com.hk/data/publication/quarterly/24/24/24_362.pdf http://www.shkp.com.hk/zh-hk/scripts/news/news_press_detail.php?press_id=3543 http://www.shkp.com.hk/zh-hk/pdf/news/corp_brochure/co_brochure_2004.pdf

•

Club House facilities

Price Average $6,750 to $6,927 per square feet for

typical units Avearge $10,500 to $11,500 per square feet for special units (e.g. 4 bedrooms) Average $25,000 per square feet for duplex penthouses

Reference: www.addidea.com/Article/file/pmshow/dcsj/20070122082400.html http://www.shkp.com/zh-hk/scripts/news/news_press_detail.php?press_id=3493 http://www.irasia.com/listco/hk/shkp/newsflash/cn070329.htm http://news.sina.com.hk/cgi-bin/news/show_news.cgi?ct=finance&type=headlines&date=2007-0911&id=2454933

Place Midland Holdings Centaline Property Agency Ltd. Ricacorp Property Ltd. Hong Kong Property Sales department of the Sun Hung Kai

Property Group

Promotion

Manhattan Hill TV advertisement http://www.shkp.com.hk/zh-hk/scripts/news/video/covideo_2 The 'jaguar' theme

adopted for the property promotional campaign Exhibition named

“Majic Happens” in the International Finance Centre Reference: http://www.shkp.com/zhhk/scripts/news/news_press_detail.php?press_id=3493 http://www.shkp.com.hk/zh-hk/scripts/news/news_press_detail.php?press_id=3523

3.Achieving organizational objectives what is a organization’s objective?

Money(profi t)

All the organizations want to have a long-term and stable income as much as possible.

Reference: William O’ Bearden, Thomas N. Ingram and Raymond W. Laforge (2007) Marketing principles and perspectives, Boston: McGraw-Hill, P.6

How can firms achieve their goals? Build a long-term cooperative trading relationships with customers by Brand building

Brand building When you want some coffee and have a leisure time … When you want some soft drinks …

When you want to go by air…

Brand building

Why we will first come up with these

companies? they have build a good brand name by the

firm’s Win customers’ trust

 Good quality product  Good service to the consumer  social responsibility More sales

More profits

Example 1. Sun Hung Kai properties  Mission: building home with heart

 Service provided

1. SHKP club  Provide

the latest information to members  Held various kinds of activities for members  Promoting the appreciation of home Aim: Building long term relationship Create loyal customers Build up a positive brand image Sources: main page of Sun Hung Kai properties http://www.shkp.com/en/scripts/main/main.php.

Example 2. Cathay Pacific Objective : Safety First Mission: Providing Service Straight From the

Heart Service provided

1. Marco Polo Club 2. Partner Frequent Flyer Programme Sources: http://www.cathaypacific.com/cpa/en_HK/homepage

Is marketing concept necessary? continue

 Depend on the type of business B to C

B to B

YES

NOT NECESSARY

Is marketing concept necessary? continue

Marketing concept is less important 1. If the company have natural advantage over competitors, eg patent/monopoly

為港 增光 東西燒 The sales of the chicken wings is so good that there are news report of it. 「東西燒」 took 37 months to invent the machine.Even a Japanese company is interested to buy its patent…

Reference: http://hk.geocities.com/amylam_star/dinner.ht m

Is marketing concept necessary? continue 2.If there is excess demand In the war time, during a crisis……

But this is rarely sustainable in the future. But sometimes, there are substitutes! Also, people’s preference changes.

Reference: Meldrum, M., McDonald, M.(2007) Marketing in a nut shell, Discipline of marketing

Is marketing concept necessary ? Many successful companies in the world have

adopted the marketing concept. P&G, Wal-Mart, Toyota~~~  some company which do not implement the marketing concept well, have lost substantial market : such as IBM, Philips, Fiat. Which have failed to adjust their strategies in marketing.

Recommendation  to Sun Hung Kai properties:  they can develop some new style of

department for display, then collect information from the customer.

To Cathay Pacific:  as the increase of the international students,

they can provide some long-term round trip ticket for students.

Evaluation Cost of marketing = >50% Cost of production = 30% Sometimes cost in marketing

cannot be covered.

Difficult to predict outcome Reference: E tzel, M., Walker, B., Stanton, W., Marketing 13Edition,1(14-15), McGraw Hill Company Marketing, 1(14-15)

Conclusion Marketing concept is not necessary to

all kinds of companies because the cost of it is very high. So firms need to make choices

depending on their affordability and size

Q&A section

The End