Transcript MARKETING IN A GLOBAL SOCIETY

MARKETING IN A GLOBAL
SOCIETY
Sunarto Prayitno
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What is Marketing?
The Term of Marketing
The term marketing has two principal meanings:
Traditionally, marketing has been considered a
business function – a set of activities
undertaken to help sell a firm’s product.
However, marketing may also mean a
philosophy of business – a point of view that
focuses the attention of the entire business on
the customer and bring the all organization’s
resources and skill to bear on the task of
understanding and meeting consumer needs.
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What is Marketing?
Definition of Marketing:
Marketing is the process of planning and
executing the conception, pricing, promotion,
and distribution of ideas, goods, and services to
create exchanges that will satisfy individual and
organizational objectives.
(The AMA’s Dictionary of Marketing Term, 1985)
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What Is Marketing?
Marketing is an organizational function and a
set of processes for creating, communicating
and delivering value to customers and for
managing customer relationship in ways that
benefit the organizational and its stakeholders.
(American Marketing Association, 2004)
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What is Marketing?
Value:
Value represents the power of a good to
command other goods, such as money in an
exchange; the importance of a product to its
potential consumer.
Creating value, then, means making a product
important to consumers in various ways and for
any number of reasons.
The “ways” and “reason” result from marketing
decisions and strategies.
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What is Marketing?
Exchange:
An exchange is a marketing transaction – often
called a sale - in which a buyer gives something
of value to a seller in return for a product, which
may be either a good, service, or an idea that
the buyer value.
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What is Marketing?
Marketing:
Marketing and selling are sometimes confused.
Selling focus on the firm and what it wants to sell, while
marketing focuses on consumers and what they want to
buy.
Marketing includes of number activities – research,
strategic planning, product development, product
management, pricing, distribution, and marketing
communications – that make selling more efficient.
That is, marketing helps company identify what the
consumer is most likely to buy and then makes it
possible for the consumer to find and buy that product.
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Market
Market:
The word market is used to mean all the people
and organizations who want or need a particular
product and who are both willing and able to buy
it.
Niche Market:
A small, tightly defined group of customers who
share certain characteristics that make them a
target market for some specialized product.
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Market
Customer:
The buyer of a product, often someone with
whom a seller deals on a regular basis.
Consumer:
A consumer is the user of a product, who may or
may not be a buyer.
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Market
Type of Markets:
Traditionally, we divide the market into four types
of markets:
The consumer market.
The industrial market.
The reseller market (intermediaries).
The institutional market.
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Market
The Consumer Market:
In a consumer market, people buy products or
services for their personal use or for the use of
others in their households.
The Industrial Market:
When a firm buys products or services to use in
its business – either in making its products or in
supporting its others business function – it is
operating in an industrial market.
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Market
The Reseller Market:
In a reseller market, intermediaries such as
wholesalers, retailers, and other types of
distributors buy finish goods and resell them to
other businesses or individuals.
The Institutional Market:
In an institutional market, the buyers of large
quantities of product and services are neither
individuals nor companies but institutions like
hospitals, government agencies, and schools.
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Market
The Marketplace:
A market may also be defined geographically.
Indeed, regional market is the contemporary
term for what was originally meant by the word
market: the physical place where an exchange
occurred, like a farmers’ market or a bazaar.
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Market
Global Market:
Marketing is always worldwide: First, because
competition in most industries is now global.
Second, because the basic principles of
marketing are as applicable in every countries.
Global Marketing:
Global marketing means applying the
fundamental concepts, tools, and practices of
marketing on a worldwide basis an focusing an
organization’s resources and objectives on
market opportunities throughout the world.
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Product
The product sold in a marketing exchange is any
tangible good, service, or idea that satisfies
customers’ needs and wants.
Goods:
Tangible products that are grown, produced, or
manufactured.
Durable goods:
Major high-priced purchases that last for three
years or more.
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Product
Consumables (Non Durable Goods):
Products purchased frequently and used up in a
relatively short period of time.
Service:
The time, expertise, or activities of an individual
or firm that does something for customers.
Idea:
Marketers can promote ideas – philosophies,
concepts, and point of view – just as well as
goods and services.
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Dynamics of the Marketplace
In highly competitive markets many companies
struggle just to break even. Such companies are
on the front-line of the supply and demand
battlefield.
A Marketer needs to keep in mind the ways in
which buyers and sellers interact economically
in the marketplace.
These transactions are ruled largely by
economics concepts, like supply and demand
and economic of scale.
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Dynamics of the Marketplace
Demand:
The amount of a product consumers are willing
to purchase at a particular price.
Supply:
The amount of a product producers are willing to
offer for sale at a particular price.
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Dynamics of the Marketplace
Need:
A felt lack of something that people consider
necessary and desirable.
Want:
The manner in which individuals seek to satisfy
a need; influenced by individual tastes and
societal factors.
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Dynamics of the Marketplace
Price:
The statement of value put on goods or services
by a seller. It represents what the buyer is willing
to pay.
Remember that for products like services or
ideas, the “price” may be the time spent,
participation, personal sacrifice, or some other
indication of what something is worth to you.
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Dynamics of the Marketplace
Value:
Value is always a relationship between benefits
received or anticipated from a product and the
price paid for it.
Value Equation:
An expression of value as the relationship
between benefits and cost of a product to the
consumer.
Benefits
Value = ----------Cost
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Dynamics of the Marketplace
Added Value:
Marketing’s contribution to the value of a
product, which may take the form of special
features, extra quality, durability, or reliability.
Value Chain:
Marketing activities whose cumulative effect is
the creation of value for customers.
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Dynamics of the Marketplace
Economies of Scale:
The principle that as the size of a production run
grows, per-unit production costs decrease
because of gains in efficiency.
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The Marketing Philosophy
The Production-Centered Approach:
Focuses on the invention and manufacture of
products.
The Sales-Oriented Approach:
Arose when mass communication and mass
distribution made it possible to offer a variety of
new products to new market.
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The Marketing Philosophy
The Marketing-Driven Approach:
When it became possible to create more
products than the market demand, and when
consumer spending power suddenly increased
substantially.
The highly competitive nature of many markets
led companies to identify people’s needs and
wants and then to fulfill them profitably.
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The Marketing Philosophy
The Marketing Concept:
The philosophy that marketing activities should
focus on consumer needs and wants.
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The Marketing Philosophy
Marketing is everything
Old
New
Future
Focus
Product
Customer
Way of doing
business
Means
Telling and
Selling
Integrated
Marketing Mix
Knowledge and
Experience
End
Profit
Value
Mutually
beneficial
Relationship
Marketing
is ….
selling
A function
everything
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The Marketing Philosophy
Relationship Marketing:
… and the end result of marketing is a relationship that
promotes long-term growth for the company and
maximum satisfaction for the customer.
An approach to marketing in which a company
endeavors to build continuing relationships with
its customers that promote both the company’s
long-term growth and the customer’s maximum
satisfaction.
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The Marketing Philosophy
The Marketing Mix:
The tools and techniques for implementing the
marketing of a product, sometimes referred to as
the four P’s.
Four Ps:
The four major types of activities included in the
marketing mix: activities revolving around the
product’s development; pricing; placement, or
distribution; and promotion, or marketing
communication.
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The Marketing Philosophy
The Marketing Plan:
A document that summarizes a coordinated and
focused program for managing the marketing
mix in order to meet consumer needs at a profit
for this company.
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