Transcript Markets What - University of Kelaniya

Introduction to Marketing
and Marketing philosophies
Dr. Bandara Wanninayake
PhD (TBU – Czech), MBA (Colombo), Bsc. Mktg (Sp) – USJ, Dip. In mktg (UK), Dip. In. Acco.
Senior Lecturer
Dept. of Marketing Management
University of Kelaniya
Outline of Course Content
What is Marketing
?
Definitions of marketing
•
Marketing is the
social process by
which individuals
and groups obtain
what they need and
want through
creating and
exchanging
products and value
with others (Kotler)
Definitions of marketing
‘The right product, in the right place, at the right
time, and at the right price’
(Adcock et al)
•
Marketing is essentially about marshalling
the resources of an organization so that
they meet the changing needs of the
customer on whom the organization
depends (Palmer)
Definitions of marketing
‘Marketing is the management process that
identifies, anticipates and satisfies
customer requirements profitably’
The Chartered Institute of Marketing
Miss conceptions
• Selling vs. Marketing
– Ice burg theory
– Selling is superfluous
Selling vs. Marketing
Marketing
Selling
1. Broader process of creating,
delivering and
communicating customer
values.
2. focus on developing and
maintaining customer
relationship
3. Focused on customer needs
and wants.
4. Involving large no. of
parties.
1. Process of transfer the
ownership of products under
predetermined financial
value.
2. No such a relationship.
3. Focused on seller needs and
wants.
4. Involving one buyer and
seller
Marketing vs. Advertising
• What
• Why
Role of marketing
• Marketing as a Philosophy
– Focus on the effectiveness
– Relating to the strategic management
Role of marketing
• Marketing as a Business Function
– Involve with different function of marketing
– Focus on efficiency
– Relating to operational management
Combination
Operational Management
Strategic Management
Effective
Ineffective
Efficiency
Thrive
Die slowly
In
efficiency
Survive
Die quickly
Marketing Management
Marketing Management is a process of
planning, executing the conception,
Pricing, promotion and distribution of
ideas, goods, services to create
exchangers that satisfy individual and
organizational goals.
- Philip Kotler -
The Marketing Management
Process
Whole-Company
Strategic
Management
Planning
Adjust Plans
as Needed
Control Marketing
Plan(s) and Program
Marketing
Planning
Implement Marketing
Plan(s) and Program
Marketable Entities
•
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•
•
•
•
•
•
•
Goods
Services
Experience
Events
Persons
Places
Properties
Information
Organization
Ideas
Markets
•
What ?
Marketing Communication
Industry
(Collection of
Marketers)
Market offerings
Money
Marketing Information
Market
(Collection of
Buyers)
Markets
• Types of Markets according to needs
and characteristics of customers
– Consumer market
– Business market
– Global market
– Non profit and governmental market
Markets
•
Types of market according to
customer commitment to purchase
products
– Potential Market – sufficient level of interest
– Available Market – interest, income, access
– Qualified Available Market- interest, income,
access, qualification
– Target Market- all the above conditions and company
has selected to serve
– Actual Market – people who purchase product
continuously.
Core Concepts of Marketing
1. Segmentation and target market
– What is segmentation
– What is target market
2. Market place, space and meta market
3. Marketers and prospects
Core Concepts of Marketing
4. Needs, wants and demand
Needs
Wants
1. Common to all people
2. Limited
3. Primary
4. Naturally created
5. Cannot be changed from social
forces
1. Different one person to another
2. Unlimited
3. Secondary
4. Created by marketers
5. Can be changed from social
forces
- Conditions to convert wants into demand
Core Concepts of Marketing
5. Products, bands and offerings
6. Value and Satisfaction
-
What is value
What is Satisfaction
Core Concepts of Marketing
7. Exchange and transaction
– Methods of satisfying needs
– Necessary conditions for effective exchange
8. Relationship and network
9. Marketing Channels
Core Concepts of Marketing
10. Supply Chain
11. Competition
12. Marketing Environment
13. Marketing Programme
Marketing Programme
• Marketing Program consists of numerous
decisions on the mix of marketing tools to
use
• Marketing mix is the set of marketing tools
the firm uses to pursue its marketing
objectives in the target market.
• Marketing mix is product level marketing
strategy
Product level Marketing Strategy
The
Marketing
Mix
C
The Four Ps of the Marketing Mix
Product
Place
C
Price
Promotion
Strategy Decision Areas
Organized by the Four Ps
Product
Product
variety
Features
design
Quality
Accessories
size
Instructions
Warranty
Packaging
Branding
Service
Price
List price
Discounts
Allowances
Payment
Period
Credit terms
Geographic
Terms
Place
Channel
coverage
Assortments
Locations
Inventory
Transporting
and Storing
Locations of
Stores
Promotion
Advertising
Sales
Promotion
Personal Selling
Public Relations
Direct Marketing
Events and
Experience
Elements of a Firm’s Marketing
Program
STP
+
Marketing
Mix
=
Marketing
Strategy
+
=
Time-Related
Details and Control
Procedures
Marketing
Plan
+
Other
Marketing
Plans
=
A Firm’s
Marketing
Program
Marketing Philosophies
• Production Concept
• Product concept
• Selling Concept
• Marketing Concept
• Societal Marketing Concept
• Customer Marketing Concept
• Holistic Marketing Concept
Production Concept
• Assumption – customers will prefer
products that are widely available and
inexpensive
• Appropriate in excess demand condition
• Homogeneous products
• Large volume and high availability
• Focus on production efficiency
Why production concept become failure
• Henry Ford,
"Doesn't matter
what color car you
want, as long as it
is black."...
• Dominant era:
From mid C19th to
early C20th,
industrial revolution
etc
H
e
n
r
y
F
o
r
d
Product concept
• Assumption – customers will favor to
products that offer most quality,
performance and innovative features.
• Continues improvements of product quality
and features
• Differentiated products
• High cost
Why product concept become failure
Selling Concept
Assumption - Customers will not buy enough of the
organizational products without push them to buy
organizational products.
Therefore, Organization undertake aggressive selling
and promotions
Marketing Concept
Key to achieve organizational goals consists of the company
being more effective than competitors in creating, delivering
and communicating superior customer value to its chosen
target market
Four Pillars of Marketing
Concept
• Target Market
• Customer Needs
–
–
–
–
–
Stated needs
Real needs
Unstated needs
Delight needs
Secret needs
• Integrated marketing
• Profitability
Societal Marketing Concept
• Societal Marketing Concept holds that the
organization’s task is to determine the
needs, wants and interests of target
markets and to deliver the desired
satisfaction more effectively and efficiently
than competitors in the way that preserves
or enhances the consumers and societies
well being.
Customer Concept
Starting point
StartingFocus
point
Means MeansEnds
Focus
Ends
Individual
Customer One to One
Profitability through
Customer
Needs
capturing customer share
Wants
Marketing
loyalty and lifetime value
Total market orientation
• A reactive market orientation
• A proactive market orientation
Holistic Marketing Concept
Model for marketing
Philosophies
• Self Oriented – production, product and selling
• Competitor Oriented – more attention on
competitors and less attention on customers
• Customer Oriented – customer concept
• Market oriented – marketing concept
– Customer orientation
– Competitor orientation
– Inter functional coordination
Customer orientation
Model for marketing
Philosophies
Competitor orientation
Low
Low
High
High
Self
Oriented
Competitor
Oriented
Customer
Oriented
Market
oriented
Evolving Views of Marketing’s
Role in the Company
•
•
•
•
•
Marketing as an equal function
Marketing as a more important function
Marketing as the major function
Customer as the controlling function
Customer as the controlling function and
marketing as the integrative function.
Questions and Discussion