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
Value perceptio
Cost of
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
Coordinated !
Promotion
Place
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/zh-
hk/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=2007-09-
11&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 YES

B to B 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