Transcript Principles of Marketing Fall 1996

Presenter
Name
Naveed Shahzad
Educational Achievements
M.B.A Hill Degree England
Mathematics UoP
Professional Achievements
Shell Dutch Hiegene England
AML Toyota
U.N.O
AIBM
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Principles of
Marketing
Introduction to
Marketing Management
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“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 objectives.”
AMA Board 1985
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The Scope of Marketing
Goods
Services
Experiences
Events
Persons
Places
Properties
Organizations
Information
Ideas
Food, Commodities, Clothing and Housing
Air Lines, Hotels, Barbers, Beauticians
Walt Disney World’s Magic Kingdom,
Climbing Mount Everest
Olympics, Trade Shows, Artistic
Performances
Artists, Musicians, CEOs, Physicians
Stratford, Ontario-Canada, Ireland
Real Estate, Stocks and Bonds
Companies, Museums, Universities
Magazines, CDs, Non Fiction Books
Every market offering includes a basic
idea at its core
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Organizations using Marketing
 All!!
 Corporations:
 Government:
 Hospitals:
 Universities:
 Army:
 Postal Service:
Pepsi, Coke, GM etc.
promoting the health plan,
politicians during elections
Hospitals, in an effort to attract
physicians, have installed services
such as chauffeurs and private
tennis courts.
University of Kardan DBA / BBA
programs
A marketing plan to attract recruits.
1993 launch of the Elvis Presley
stamp was a major media event.
Fans in Nashville lined up at
midnight, postmasters warned that
sales were "first come first
served, no limit“.
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Who is the Customer?
 A customer is the most important person ever
in the office, in person or by mail.
 A customer is not dependent on us, we are
dependent on him.
 A customer is not an interruption of our work,
he is the purpose of it. We are not doing a
favor by serving him, he is doing us a favor by
giving us the opportunity to do so.
 A customer is not someone to argue or match
wits with. Nobody ever won an argument with
a customer.
 A customer is a person who brings us his
wants. It is our job to handle them profitably
to him and to ourselves.
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Needs
Needs describe basic human requirements.
 Biogenic
Needs risen due to Physiological states of tension.
 Hunger
 Thirst
 Discomfort
 Psychogenic
Needs risen due to Psychological states of tension.
 Recognition
 Esteem
 Belonging
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Maslow’s Hierarchy of Needs
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Wants
Needs becomes Wants when they are
directed towards specific objects that
might satisfy that need.
Need: Hunger
Want:
An American wants a hamburger and French
fries.
A Mauritian wants a mango, rice, lentils and
beans.
A Ugandan wants bananas, rice, corn floor and a
plate of beans.
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Satisfaction
Satisfaction is a person’s feelings of
Pleasure or disappointment resulting from
comparing a product’s perceived
performance (or outcome) in relation to
his / her expectations.
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In how many ways a person can get
something?
The person can self produce it
Hunting
The person can use force to get it
Holdup or Burglary
The person can beg
A homeless person asks for food
The person can trade something of value
to get it
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Conditions for an Exchange
1. There are at least two parties.
2. Each party has something that might
be of value to the other party.
3. Each party is capable of
communication and delivery.
4. Each party is free to accept or reject
the exchange offer.
5. Each party believes it is appropriate or
desirable to deal with the other party.
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Utility
Utility is the satisfaction, value, or
usefulness a user receives from a good or
a service.
Example: When you purchase an
automobile, you give up less (in $s) than
the value of the car (to you)...the ability to
get you from home to office safely in a
timely manner.
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Types of Utility
 Form--production of the good, driven by the marketing
function.
 EXAMPLE?? Baskin Robbins turns cream, sugar and milk into
ice cream.
 Place--make product available where customers will buy
the product.
 EXAMPLE?? Food truck at a construction site.
 Time--make product available when customers want to
buy the product.
 EXAMPLE?? A hospital or clinic open 24 hours a day, 365 days
a year.
 Possession--once you own the product, do what you
want with it, i.e. eat it
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Product providing all types of utility
24 hours pizza delivery
service
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The Marketing Mix
Past: MM
 Product
 Price
 Place
 Promotion
Present: MM
 Customer Solution
 Customer Cost
 Convenience
 Communication
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Value and Satisfaction
Value = Benefits
Costs
= Functional Benefits +Emotional Benefits
Monitory Costs + Time Costs + Energy Costs + Psychic
Costs
The product or offering is successful if it delivers
value and satisfaction to the target buyers. The buyer
Chooses between different offerings on the basis of
which is perceived to deliver the most value.
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Marketing Terms
Industry
Sellers constitute Industry
Steel Industry
Movie Industry
Market
Buyers constitute Market
Consumer Markets
Business Markets
Institutional / Government Markets
Global / International Markets
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The Marketing Management
Philosophies
There are a number of different
philosophies that guide a marketing effort.
Like,
The Production Concept
The Product Concept
The Selling Concept
The Marketing Concept
The Social Marketing Concept
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The Production Concept
The production concept holds that consumer
will prefer products that are widely available
and inexpensive.
 Dominant Era: Mid 19th Century to early 20th
Century
 Quote:
"Doesn't matter what color car you
want, as long as it is black." Henry
Ford
 Example:
6.5 ounce bottle packing of Coca
Cola.
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The Product Concept
The Product Concept holds that
consumer will favor those products that
offer the most quality, performance, or
innovative features.
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The Selling Concept
The selling concept holds that consumers
and businesses, if left alone, will ordinarily
not buy enough of the organization’s
products.
The organization must, therefore, undertake
an aggressive selling and promotion effort.
Dominant Era:
1920's to Mid 1930's
WWII to early 1950's.
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The Marketing Concept
The marketing concept holds that the key to
achieving its organizational goals consists of
the company being more effective than
competitors in creating, delivering, and
communicating customer value to its chosen
target markets.
Dominant Era:
Quote:
1930's to WWII 1950's to
the present day.
Putting people first
British Air Ways
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What era are we in now?
We are still essentially in the
Marketing era, since that is the
dominant concept, but increasing
pressure is being put on to
companies to adopt the societal
concept.
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