what is marketing?

¿ WHAT IS MARKETING?

Team: Diana Ximena Álvarez NiviayoDaniel Espejo BrocheroJane Stephanie Morales ReyesMaría Alejandra Pachón Rocha

Tutor: Haidy Johanna Moreno Ceballos

Facultad de Estudios en Ambientes VirtualesGestion de marketing / Gestión de Mercados

Grupo 1 2013B Bogotá D.C. 2013

Introducción

Este presentación es realizada por el grupo quienes a partir de una previa lectura del libro “Principios de Marketing” (Philip Kotler & Armstrong, 2011 edición 14) realizamos un ejercicio o mini simulación y reafirmamos los conocimientos sobre el concepto moderno de Marketing.

Durante el recorrido de las siguientes diapositivas, los intergrantes del grupo seremos los mercadologos y/o asesores de marketing para la empresa Holden Evan Inc. Usaremos una segunda lengua en este caso inglés, por ser una empresa Internacional la que requiere de los servicios y porque entendemos que es el lenguaje internacional de los negocios.

Our team’s scores through the process

These are the ones we chose to analyze the simulation

Chapter 1: ¿ What is marketing?

Marketing is the process by which companies create value for customer relationships in order to capture value from customers in return.

Kotler & Armstrong 2011- Principles of Marketing, 14th edition

Let´s follow an example of marketing

Working as Marketing ManagerHolden Evan Inc., has long been the premium dog food market leader with its flagship Grand Champion brand. The brand targets breeders, trainers, and owners of purebred dogs willing to pay higher prices for superior nutritional and health benefits. During an economic downturn, the Grand Champion brand has suffered a sharp and prolonged decline in sales. The brand has become unprofitable. The marketing team is concerned that customer needs and wants may have shifted. Your objective as Marketing Manager is to re-evaluate the brand´s marketing strategy and marketing management orientation to determinate if they need revision.

Our consideration:

Holden Evan, Inc, has created a product for dogs called “Gran Champion Brand”, nonetheless there was an economic downturn that causes some weird changes and it is necessary the intervention of a Marketing manager with experience in order to advise the supervisor about the situation.

Working as Marketing ManagerYour supervisor, the Vice President of Marketing, describes your assignment. «We have traditionally been the market leader in the premium dog food market whit our Grand Champion brand. However, during the recent economic downtown, the brand suffered a sharp drop in sales. We conducted consumer research about this; here are three representative customer reports for you to review»

Our consideration:

Once the Supervisor, tell us the esccenary, He showed to us three customers reports to start the analysis.

Working as Marketing ManagerCustomer Report : One

Jaime, a breeder of champion German Sheperds, has used Grand Champion for 15 years. He told researchers he loves the quality of Grand Champion. However, in the last few years, demand for his expensive dogs has gone down. He has reduced his breeding form twelve litters a year to two, and puerchases significantly less food for the smaller number of dogs.

Our consideration:

The first report shows that Jaime, has not changed the product, so the problem is not it at all, but the demand of litters is the one that is being affected. In this case We considered that the cost of the product is not the problem either. The customer still like the quality of the food.

Working as Marketing ManagerCustomer Report : Two

Jenna runs a dog-training business specializing in preparing dogs for shows. She has bought Grand Champion for ten years to sell in her business and to feed dogs she boards. However, she has recently switched to a cheaper brand. She explained «I felt that selling Grand Champion added prestige to my business, but demand decreased. My customers needed a less expensive, although still good quality, food»

Our consideration:

We considered that due to the economic downturn, people are saving money, and it is the reason for looking at cheaper product, but not because of “Gran Champion Brand”, Jenna´s store is focused on production concept, so it doesn’t affect us.

Working as Marketing Managers

Customer Report : Three

Andrew and Mandy are wealthy couple who own five purebred dachshunds, which compete in shows. They have bought Grand Champion for several years, because the dogs like the food and because Andrew and Mandy like to give their dogs «the best food, leashes, beds, even clothing.» After Mandy was laid off in the economic downturn, however, the couple has switched to a cheaper dog food.

Our consideration:

In this case Andrew and Mandy, assure that our product is the best, thus the quality is still excellent. Unfortunately, was laid off and it caused a new customer need (save money).

Working as Marketing Manager

Definitely, our product is not the problem, but the economic downturn caused a new customer need, so clients wants the food but the situation is creating confusion, whether buying less food or buying a cheaper one

Working as Marketing ManagerThe Vice President of Marketing continues: «We´ve become concerned that our brand is suffering from marketing myopia. We´ve focused in the past on making Gran Champion more and more elaborated. But in response to current trends, we´ve now eliminated some organic grade A beef and some antioxidants from the food to make it less expensive. It´s still excellent nutrition for dogs. We need to decide what brand experience we should promote for our customers now.» You return to your office to consider. Choose the best brand experience.

Our consideration:

It is so nice to realize the marketing myopia the company is focused on. We think that according to the reports given before, it is not necessary to make changes in the product; of course it can be part of a strategy to enhance it and innovate, but in this case it is not necessary. On the other hand this situation is a step to be better. The company already took the decision, let’s look what happen.


What happen now is that the company has another product variety and customers can have another cheaper option. Doing it can work (product concept), but it continues bringing marketing myopia.


Now that we have two kinds of products, both good qualities, we advised the Company to expand the market. If we just focus on our current customers, it is possible to fail, because their needs are covered with the product they already know. (Focusing on marketing concept)


To answer the question, we consider second option, because, the first one focuses more on competing than covering needs, and the third one is like general for dogs, and the company idea is more for purebred dogs.


The Vice President of Marketing says: « So far you have chosen a target market and an appropiate value proposition. Now you must decide which marketing management orientation is best for our situation. Check with our three marketing analysts for advice before you choose.»

Let’s look the marketing manager orientation and listen to what our analysts suggest.

Marketing Analyst One says: « We need to continue making improvements to Grand Champion in order to recruit more customers. If we offer the best dog food for the money, customers will buy. All other aspects of marketing will follow from our focus on product quiality and innovation.»

We consider that it is not advisable to focus on product concept; one reason is because the customers’ needs are already covered, it changes the concept of marketing and goes more to be marketing myopia.


Marketing Analyst Two says: « We need to really get to know our tageted customers and adapt Grand Champion to suit their needs. This is the starting point for all other marketing efforts.»

We think that this is a good option, but let´s go to the third one.

Marketing Analyst Three says: «Our customers may cheap dog food now, but what´s best for society as a whole and our customers in the future? We have to think bigger than our customers do. We need to keep in mind the long-term welfare of our customers and their dogs.»

We are in agreement with including the society, and surely it is a kind of balance, but this is not the case to find a solution of this situation, now the priority is to see what Is being affected in the company and look for the best procedure.

Choosing a marketing management orientation

As we were analyzing, the best option was the one marked

Customer relatioship management

One idea here that we considered best match is the second one, because neither the first one focuses on Marketing concept (It focuses more on selling concept), nor the third one that goes to be more like a competence, and we are looking for our customer relationships more than competence. It is a good one. Delight our customers would be an effect when they see their Pets’ pictures on a jar.


In this option we can work for the society and go beyond the customer needs. It is like social marketing


Of course that delighting our customers is our satisfaction and as we said before it is so great if part of our family is published everywhere. (considering that nowadays a dog is part of a family)

Part of the key to success for Marketing managers to position their companies and products at the top of the preferred by customers, is analyzing in detail to be able to detect what are the real needs of the market and which products or services the company has to create to provide more than long-awaited satisfaction. It is important to understand that being involved in the entire product or service development process is essential for reliable communication within the company. In addition, if necessary, be willing to enter into parnerships to carry out strategies that make the business remains highly competitive in today's market. Finally, always keep in mind that it is more profitable to offer a product or service that generates welfare society that only "sell it". This will definitely attract more customers and positions the brand bringing excellent results..

Final Conclusions

THANK YOU.

what is marketing?

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