Transcript What is Marketing?

Project Done By:
Prajackta S- 09
Ujjwala Parab-13
Ruchira Kubal-16
Tanvi Desai-17
Pramod Shinde-35
KalyanSingh Patil-55
Trupti Ayare -69
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What is Marketing?
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Personal Selling?
Branding?
Advertising?
Making products available in stores?
Maintaining inventories?
All of the above, plus much more!
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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 relationships in ways that benefit the
organization and its stakeholders.”
- The American Marketing Association.
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In other words…
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Forms of Utility
• Form Utility: PRODUCE goods or services.
• Task Utility: CREATE that is required by
customers.
• Time Utility: Available WHEN there is
demand.
• Place Utility: Available WHERE it is required.
• Possession Utility: Customer having the product
after payment. They POSSESS it.
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The Concept of Exchange
• It means that people give up
something to receive something they
would rather have.
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The Concept of Exchange
At Least Two
Parties
Communication
and Delivery
Necessary
Conditions
for Exchange
Freedom to
Accept or Reject
the Offer
Something of
Value
Desire to Deal With
Other Party
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The Concept of Exchange
• Exchange will not
necessarily take place
even if all these conditions
exist.
• An agreement must be
reached between the
buyer & seller.
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• Marketing occurs even if
exchange does not take
place.
Evolution of Marketing
Simple Trade Era: Exchange of goods or services without using money. Sales Surplus
Production Era: More focus on production of specific products. Increased Supply
Sales Era: Selling of surplus stocks through advertising, personal selling etc and Beat
the competition.
Marketing Department Era: Co-ordination and control of many marketing activities in a
Marketing Department.
Marketing Company Era: Long-run satisfaction and sustainability. Involvement of
everyone in the organization for better customer relationships.
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Marketing Management Philosophies
Production Orientation
Sales Orientation
Marketing Management
Philosophies
Market Orientation
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Societal-Marketing
Orientation
1. Production Orientation
• Focuses on internal capabilities of
firm.
• More emphasis to production rather
than consumption
• Best used when:
 competition is weak
 demand exceeds supply
 generic products competing solely on
price
• Problem is that they don’t understand
wants/needs of marketplace.
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2. Sales Orientation
• People will buy more goods/services
if aggressive sales techniques are
used.
• High sales will result in high profits.
• Used with unsought products
 life insurance
 encyclopedias
• Problem is that they don’t understand
wants/needs of marketplace.
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3. Market Orientation
• Focusing on customer wants so the organization
can distinguish its products from competitors’.
• “The social and economic justification for an
organization’s existence is the satisfaction of
customer wants and needs, while meeting
organizational objectives is Marketing Concept.”
• Integrating all the organization’s activities,
including promotion, to satisfy these wants.
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4. Societal Marketing Orientation
• Focus on the fact that its not
only about meeting customer
satisfaction & organizational
objectives but also society’s
long term interests.
• Management is called upon to
bring about balance of 3
What helps people, helps
business.
factors:
 Profitability
 Customer demand satisfaction
 Public interest / Social
Awareness.
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- Leo Burnett
The Organizations Focus
Key Issues in
Developing Competitive
Advantage
Create
Customer
Value
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Build Long-Term
Relationships
Maintain Customer
Satisfaction
Customer Value
• The ratio of
benefits to the
sacrifice necessary
to obtain those
benefits.
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Customer Value
Requirements:
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Offer products that perform
Give consumers more than they expect
Avoid unrealistic pricing.
Give the buyers fact [Informative
advertising and knowledgeable salespeople]
• Offer organization wide in service &
after sales support.
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Customer Satisfaction
• Customer satisfaction
is customer’s
evaluation of a good or
service in terms of
whether it has met
their needs and
expectation.
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Customer Satisfaction
Expectation
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Performance
Expectation
10
10
Performance
• If performance is lower than expectations,
satisfaction is low.
• If performance is higher than expectations,
satisfaction is high.
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How to maintain Customer
Satisfaction….???
• Meet or exceed customer’s
expectations
• Focus on delighting customers
• Provide solutions to customer’s
problems
• Cultivate relationships,
NOT one-time transactions
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Building Customer Relationship
• The name of a strategy that entails
forging long-term partnerships with
customers, both individuals and firms.
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Building Customer Relationship
• Attracting new
customers,
• Increasing business with
existing customers, and
• Retaining current
customers.
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Relationship Marketing
Relationship marketing strategies depend on:
• Customer-oriented personnel who focus on
maintaining relationships with customers.
• Effective training programs to teach employees
and managers how to treat customers.
• Employees with more authority to solve
customer problems.
• Teamwork.
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Firm’s Business
“Benefits” instead of
“goods/services”
• Ensures a customer focus
• Encourages innovation
• Stimulates an awareness of
changes in customer preferences
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Tools the Organization uses to Achieve its
GOAL
SALES ORIENTATION
•Focus on generating
sales through intensive
promotional activities.
•Believe in selling what
they produce rather
than what customer
wants.
•E.g. Life Insurance,
Vacuum Cleaners.
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MARKET ORIENTATION
•Focus mainly on
customer needs and
wants.
•Promotion is one of
the 4p’s of Marketing
[product, price,
promotion and place]
•Believe in customer
satisfaction.
Non-Profit Organization requires Marketing
too…
• A non-profit organization is a legally
constituted organization whose
objective is to support or engage in
activities of public or private interest
WITHOUT any commercial or
monetary profit. E.g. Jaipur Foot
• Non-profits are not selling products,
they are selling their organization's
mission, their ideas, their programs,
and their services.
• Operate with the assumption that
support and recognition will
automatically come to a good cause.
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Non-Profit Organization requires Marketing
too…
• But this is a false premise....
• Non-profit management should make
other groups, associations,
businesses, and individuals aware of
their mission and continuously
maintains that level of awareness.
• Marketing helps in achieve this
prime objective.
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Micro Marketing Vs Macro Marketing
• Refers to the social process
that directs the flow of
goods and services from
producer to consumer.
• Focus on customer needs • Focus is to effectively
drive all aspects of the
match supply and demand
and at same time
marketing mix.
accomplish society’s
• Main aim is build up
objectives.
Customer relationship.
• Main aim is customer
• E.g. Microsoft
satisfaction.
• E.g. B.E.S.T Daily Pass.
• It consists of activities
performed within the
organization.
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Marketing Process
• Analysis: Analyzing and understanding the
market.
• Planning: Marketing programs and events must
be designed for influencing the market's
customers and consumers, and even the firm's
competitors.
• Execution: The marketing events are executed
in the markets: advertisements are run; prices
are set, sales calls are made, etc.
• Monitoring: Markets are not static entities and
thus must be monitored at all times.
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Why study Marketing?
• Plays an important role in
society
• Vital to business survival,
profits and growth
• Offers career opportunities
• Affects your life every day
• Better-informed consumers
• Demand for customer
satisfaction
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Marketing is not an event, but a process ... It has
a beginning, a middle, but never an end, for it
is a process. You improve it, perfect it, change
it, even pause it. But you never stop it
completely.
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