These are the slides that Professor Baker used during his talk to Glamorgan Marketing Chapter Wednesday 19th October. The talk focused on Transformational Marketing. Follow us on Facebook: http://www.facebook.com/GlamorganMarketingChapter

1. Transformational Marketing
Michael J Baker

2. At worst ‘marketing’ is seen as deceptive, misleading
and designed to encourage people to spend money
they can ill afford on products and services with
little or no benefit to them. Materialism and a
global sustainability crisis are the direct result of our
misguided efforts
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3. At best, ‘marketing’ is a harmless and fairly trivial
practice based on advertising and promotion that
keeps us informed of the huge variety of goods and
services available for sale.
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4. As with most things, the truth lies somewhere between
these two extremes.
Professional marketers know marketing is a force for
good and concerned with “the creation and maintenance
of mutually beneficial and satisfying exchange
relationships”. (Baker, 1976)
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5. Marketing is concerned with:
• Researching customer needs and wants
• Communicating the findings to producers
• Involvement in the creation and design of goods
and services
• That add value and deliver the desired benefits
• Segmentation, Targeting and Positioning
• Informing customers of the variety and choice on offer
• Making the offer available for purchase
• Monitoring performance in use, ensuring satisfaction
and continuing after-sales service
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6. So, why the misperception?
Because attention is focused on the tip of the iceberg
rather than the 90 per cent that is hidden from view.
That is, on mass produced, mass consumed, fast moving
consumer goods (fmcg) that are central to the Marketing
Management school of thought that dominates most
marketing education and thinking.
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7. According to the American Marketing Association (AMA)
products may be sub-divided into two main categories:
Industrial goods (four sub-categories)
Consumer goods (three sub-categories)
The three sub-categories of consumer goods are:
Convenience goods (fmcg)
Shopping goods
Specialty good
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8. The basis of this classification is the way in which
goods and services are bought in terms of the thought
and effort involved – in other words buyer behaviour.
It follows that the key to successful marketing
is a full understanding of how buyers make
choice decisions.
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9. Some theoretical explanations:
Reasoned action and planned behaviour
Behavioural economics
Baker’s composite model
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12. A simple composite model of the buying
process may be expressed notationally as:
P = fS [SP (FN, EC, IS, CBA, BR, PPE])
Source: Baker (2002)
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13. P = a Purchase
F = a function (unspecified)
S = a Stimulus or Stimuli
SP = Selective Perception
FN = Felt Need (Awareness)
EC = Enabling Conditions
IS = Information Search (Interest)
CBA = Cost Benefit Analysis (Desire)
BR = Behavioural Response (Action)
PPE = Post Purchase Evaluation
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14. Social marketing is "the systematic application of marketing,
alongside other concepts and techniques, to achieve specific
behavioural goals for a social and environmental good“
(Veronica Sharp, Chapter 12 Social Marketing in, The Marketing
century,Ed. Jeremy Kourdi, 2011, Chichester: John Wiley & Sons
Ltd)
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15. Sharp suggests six important questions:
1 What are the barriers to change?
2 What is the motivation to change?
3 What are the things that the person needs to
move away from
4 What are the things that they need to move
towards?
5 What does the person think, feel and believe?
6 Who does the person listen to and whom do
they trust? (249)
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16. Sharp identifies a great deal of common ground between
commercial and social marketing:
• We both seek success (Commercial = profit; Social = benefit );
• we both focus on the customer;
• we both focus on the competition (which may be each other!);
• we both focus on behaviour (but SM is often trying to change
‘bad’ behaviour and habits, while CM is encouraging them);
• we both work with stakeholders (SM often involved with
more complex relationships).
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17. Sharp argues that commercial marketers may benefit
in several valuable ways by understanding the
principles of social marketing. These include:
• developing a complete, insightful view of the
customer
• focusing on behaviour
• adopting a patient, long-term perspective
• working closely with stakeholders to co-design
• clearly understanding the costs and benefits to the
customer
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18. This is what is meant by
‘Transformational Marketing’.
It is using marketing knowledge,
insights, tools, and techniques to communicate
how choice and behavioural change can increase
individual satisfaction, in both the short and long
term, without having a negative effect on other people,
or the environment which we all share and depend
on for our wellbeing and survival.
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