Transcript 1. Marketing Introduction

An Introduction to Marketing
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1
Course Contents
• Nature and Scope of Marketing:
• Understanding Marketing Concept & Marketing
Management
• Core Concepts of marketing
• Evolution of Marketing
• Marketing Mix
• P’s of Marketing
What is Marketing?

Personal Selling?

Advertising?

Making products available in stores?

Maintaining inventories?
All of the above, plus much more!
Marketing Defined
A Philosophy
An Attitude
A Perspective
A Management
Orientation
A Set of Activities,
including:
Products
Pricing
Promotion
Distribution
Understanding marketing
• Marketing ,more than any other business
function, deals with customers.
• Simply put, Marketing is managing
profitable customer relationships.
• Most of the highly successful companies
know that if they take care of the
customers, market share and profits will
follow like Wall Mart, Nokia, Dell,
McDonald.
Marketing defined
• A social and managerial process whereby
individuals and groups obtain what they
need and want through creating and
exchanging products and value with others
Core Marketing concepts
• Need: A state of felt deprivation of some generic
satisfaction arising out of the human condition.
E.g food, clothing and shelter.
• Wants: Desires for specific satisfiers of these
ultimate needs. The form human needs take as
they are shaped by culture and individual
personality. A person needs food but wants a
pizza.
• Demand: Human wants that are backed by
purchasing power.
• Product: Anything that can be offered to a
market for attention, acquisition, use, or
consumption that might satisfy a want or
need.
• Service: Any activity or benefit that one
party can offer to another that is
essentially intangible and does not result
in ownership of anything.
Customer Value
The ratio of benefits to the
sacrifice necessary to obtain
those benefits
Needs and Wants can be satisfied
through
•
•
•
•
Self-Production
Coercion
Supplication
Exchange (Marketing Exists)
The Concept of Exchange
At Least Two
Parties
Necessary
Conditions
for Exchange
Something of
Value
Ability to
Communicate
Offer
Freedom to
Accept or Reject
Desire to Deal
With Other Party
Conditions for Exchange
• There must be at least two parties
and each party…
•
•
•
•
Must have something the other party values
Must communicate and deliver goods
Must be free to accept or reject offer
Must want to deal with other party
Definition of Marketing
• It is a human activity directed at satisfying needs
and wants through exchange products.
• It is a societal process by which individuals and
groups obtain, what they need and want through
creating, offering and freely exchanging
products and services of value with others.
• Simply put: Marketing is the delivery of customer
satisfaction at a profit.
American Marketing Association
Marketing is the process of planning and executing
the conception, pricing, promotion, and
distribution of ideas, goods, and services to create
exchanges that satisfy individual and
organizational goals.
Marketing Management
Can you name the four marketing
management philosophies?
Stages in the Evolution of Marketing
Production
Orientation
Late 1800’s
Sales
Orientation
Early 1930’s
Marketing
Orientation
Mid 1950’s
Societal
Orientation
1990’s
Industrial Revolution
Mass production
Available & affordable
Great Depression
Problem not to produce
but to sell
High promotional activity
End of World War II
Huge pent up demand
More demanding
customers
Concern towards society
and consumer
Marketing Management
Philosophies
Production
Sales
Competing
Philosophies
Market
Societal Marketing
Marketing Management
Philosophies
Philosophy
Production
Sales
Market
Societal
Key Ideas
Focus on efficiency of internal operations
Focus on aggressive techniques for
overcoming customer resistance
Focus on satisfying customer needs and wants
Focus on satisfying customer needs and
wants while enhancing individual and
societal well-being
Production Orientation
•
•
•
•
•
The firm is focused on what it does best
Less concerned on customers’ needs
Customers favour available & affordable products.
Businesses concentrate on achieving high production efficiency, low
cotsts & mass distribution
Examples:
Sales Orientation
• Based on assumption that consumers , if left alone will either not
buy or not buy enough.
• Organisation must therefore undertake aggressive sales
techniques
• Focus on product
• Practiced with unsought goods like insurance
Market Orientation
The marketing concept states
that the social and economic
justification for an organization’s
existence is the satisfaction of
customer wants and needs while
meeting organizational
objectives.
The Marketing Concept

Focuses on customer wants and needs to
distinguish products from competition

Integrates all organization’s activities to satisfy
customer wants and needs

Achieves organization’s long-term goals by
satisfying customer wants and needs
Sales vs. Market Orientations
Organization’s
Focus
Sales
Orientation
Market
Orientation
Firm’s
Business
For
Whom?
Primary
Profit Goal?
Tools to
Achieve
Inward
Selling goods Everybody Maximum Primarily
promotion
and services
sales
volume
Outward
Satisfying
wants and
needs
Specific Customer Coordinated
groups of satisfaction use of all
marketing
people
activities
Societal Marketing
• Organisation’s task is to determine the
needs and wants of target markets & to
deliver more effectively and efficiently than
competitiors in a way that preserves or
enhances the consumer’s and the societal
well being.
• Firms make marketing decisions in an
ethical and socially responsible manner.
• Practise Green Marketing
Societal Marketing Orientation
Marketing that preserves or enhances an
individual’s and society’s long-term best interests

Less toxic products

More durable products

Products with reusable or
recyclable materials
Marketing Mix
The set of controllable marketing toolsproduct, price, place and promotion-that
the firm blends to produce the response it
wants in the target market.
Marketing Objectives
• Characteristics
– Consistent with company objectives
– Measurable
– Time specific
• Benefits
– Energize employees
– Set standards of performance
Marketing Mix
•
•
•
•
Product
Place (Distribution)
Promotion
Price
Marketing Mix Variables
Product
Place(Distrib
ution)
Goods, services, or ideas that satisfy
customer needs
The ready, convenient, and timely
availability of products
Promotion
Activities that inform customers about
the organization and its products
Pricing
Decisions and actions that establish
pricing objectives and policies and set
product prices
Product
Shape, size, taste, flavour, colour,
quality, brand, style, design, packaging
Place(Distrib
ution)
Wholesalers. Retailers, Exclusive
distribution
Promotion
Advertising, PR, Personal Selling,
Direct marketing, Sales promotion
Pricing
List Price, Allowances, Discounts
Scope of Marketing
•
•
•
•
•
•
•
•
•
•
Products
Services
Places
Organisation
Properties
Information
Experience
Events
Ideas
Persons
Components
of
Strategic
Marketing
FIGURE 1.1
Marketing Strategy
• Select one or more target markets
• Set market objectives
• Develop & maintain a marketing mix