MARKETING

MARKETING
DEFINITION

Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating,offering and exchanging products of value with others.

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.

What Is Marketing?
Planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives

OR

Finding a need and filling it!

GOOD MARKETING HAS BECOME AN INCREASINGLY VITAL INGREDIENT FOR BUSINESS SUCCESS

CREATING THE RIGHT PRODUCT ..

Sony playstation 3 game system Apple ipod nano digital system Toyota prius hybrid car

REQUIREMENTS FOR MARKETING TO OCCUR

FOR MARKETING TO OCCUR, AT LEAST 4 FACTORS ARE REQUIRED: 1. TWO OR MORE PARTIES (INDIVIDUALS OR ORGANIZATIONS) WITH UNSATISFIED NEEDS, 2. A DESIRE AND ABILITY ON THEIR PART TO BE SATISFIED, 3. A WAY FOR THE PARTIES TO COMMUNICATE, AND 4. SOMETHING TO EXCHANGE.

CORE CONCEPTS OF MARKETING

Needs, Wants, and Demands Product or Offering Value and Satisfaction Exchange and Transactions Relationships and Networks Target Markets & Segmentation Marketing Channels Supply Chain Competition Marketing Environment

NEEDS & WANTS

A NEED OCCURS WHEN A PERSON FEELS PHYSIOLOGICALLY DEPRIVED OF BASIC NECESSITIES SUCH AS FOOD, CLOTHING, AND SHELTER. A WANT IS A FELT NEED THAT IS SHAPED BY A PERSONS KNOWLEDGE, CULTURE, AND PERSONALITY.

DEMAND
WHEN BACKED BY BUYING POWER WANTS
BECOME DEMANDS

PRODUCT
ANY OFFERING THAT SATISFYING A NEED IS CAPABLE OF

VALUE AND SATISFACTION

VALUE = BENEFITS-COSTS BENEFITS = FUNCTIONAL BENEFITS + EMOTIONAL BENEFITS COSTS = MONETARY COSTS + TIME + ENERGY + PSYCHIC COSTS

CUSTOMER VALUE & SATISFACTION

CUSTOMER VALUE IS THE DIFFERENCE BETWEEN THE VALUES THE CUSTOMER GAINS FROM OWING AND USING A PRODUCT AND THE COST OF OBTAINING A PRODUCT CUSTOMER SATISFACTION DEPENDS ON A PRODUCTS PERFORMANCE IN DELIVERING VALUE RELATIVE TO A BUYERS EXPECTATION

VALUE PROPOSITION

Value to the Target Market

Benefits to the Target Market

Price to the Target Market

A clear and simple statement of the intended target market, the benefits of the offering, and the price.

TOYOTA QUALIS
BENEFITS: DURABILITY AND SPACE & SAFETY PRICE: 20 PERCENT PREMIUM TARGET MARKET: SAFETY-CONSCIOUS LARGE UPSCALE FAMILIES

DOMINOS PIZZA
BENEFITS: FAST DELIVERY (WITHIN 30 MINUTES) PRICE: 25 PERCENT PREMIUM TARGET MARKET: CONVENIENCE MINDED PIZZA EATERS

SPICE JET
BENEFITS: NO FRILLS PRICE: LOW TARGET MARKET: BUDGET MINDED LEISURE AND BUSINESS TRAVELER

EXCHANGE AND TRANSACTIONS

EXCHANGE IS THE PROCESS OF OBTAINING THE DESIRED PRODUCT BY OFFERING SOMETHING IN RETURN A TRANSACTION IS TRADE BETWEEN TWO PARTIES OF VALUE

EXCHANGE
EXCHANGE IS A VALUE CREATING PROCESS BECAUSE IT LEAVES BOTH PARTIES BETTER OFF (WIN WIN SITUATION)

CONDITIONS OF EXCHANGE
ATLEAST TWO PARTIES EACH PARTY HAS SOMETHING THAT MIGHT BE OF VALUE TO THE OTHER PARTY EACH PARTY IS CAPABLE OF COMMUNICATION & DELIVERY EACH PARTY IS FREE TO ACCEPT OR REJECT THE EXCHANGE OFFER EACH PARTY BELIEVES IT IS DESIRABLE TO DEAL WITH THE OTHER PARTY.

TRANSACTION AND TRANSFER

A TRANSACTION IS AN EXCHANGE BETWEEN TWO THINGS OF VALUE ON AGREED CONDITIONS AND A TIME AND PLACE OF AGREEMENT. A TRANSFER IS A ONE WAY EXCHANGE WITHOUT RECEIVING ANYTHING IN RETURN.

RELATIONSHIPS AND NETWORKS

RELATIONSHIP MARKETING AIMS AT BULIDING MUTUALLY SATISFYING LONG TERM RELATIONS WITH KEY PARTIES
A MARKET NETWORK CONSISTS OF COMPANY AND ITS SUPPORTING STAKEHOLDERS WITH WHOM IT HAS BUILT MUTUALLY PROFITABLE BUSINESS RELATIONSHIP

RELATIONSHIP MARKETING
BUILDING LONG TERM MUTUALLY SATISFYING RELATIONS WITH CUSTOMERS, SUPPLIERS, DISTRIBUTORS IN ORDER TO RETAIN THEIR LONG TERM PREFERENCE AND BUSINESS

MARKETING NETWORK
A MARKETING NETWORK IS THE RELATIONSHIPS BUILT WITH ITS STAKEHOLDERS. EFFECTIVE RELATIONSHIPS MAKE UP AN EFFECTIVE AND STRONG NETWORK.

TARGET MARKET
VERY RARELY DOES A PRODUCT CATER TO THE ENTIRE MARKET. MOST PRODUCTS ARE DESIGNED TO CATER TO A GROUP OF CUSTOMERS WHO SPECIFICALLY WANT SUCH A PRODUCT. THIS GROUP OF CUSTOMERS IS THE TARGET MARKET WHICH IS A SLICE OF THE TOTAL MARKET. WE SAY IT IS THE MARKET SEGMENT

NIRMA WASHING POWDER

KARSANBHAI PATEL ATTRACTIVE VALUE PROPOSITION DISTRIBUTION PENETRATION, DEALER RELATIONS , WORD OF MOUTH
WITH INDIGENOUS PROCESS, PACKAGING AND LOW-PROFILED MARKETING, NIRMA CREATED AN ENTIRELY NEW MARKET SEGMENT IN DOMESTIC MARKETPLACE AND QUICKLY EMERGED AS DOMINANT MARKET PLAYER.

MARKETING CHANNELS
COMMUNICATION CHANNELS DISTRIBUTION CHANNELS SERVICE CHANNELS

MARKETING CHANNELS
MARKETING CHANNELS ARE USED TO REACH THE TARGET SEGMENT. COMMUNICATION CHANNELS EG. ADVERTISING, TELEPHONE ENQUIRY SYSTEM DISTRIBUTION CHANNELS TRADE, DIRECT SALES

SUPPLY CHAIN
THE SUPPLY CHAIN REPRESENTS A VALUE DELIVERY CHAIN FROM PROCUREMENT OF RAW MATERIALS TO FINAL DELIVERY OF PRODUCT TO CONSUMER.

MARKET
MARKET IS DERIVED FROM THE LATIN WORD MARCATUS MEANING MERCHANDISE, TRADE OR PLACE WHERE BUSINESS IS CONDUCTED. CONDUCTED.

MARKET PLACE,MARKET SPACE & META MARKET

MARKET PLACE IS PHYSICAL MARKET SPACE IS DIGITAL META MARKET IS CLUSTER OF COMPLEMENTARY PRODUCTS & SERVICES THAT ARE CLOSELY RELATED

MARKETERS & PROSPECTS

A MARKETER IS SOMEONE SEEKING A RESPONSE FROM ANOTHER PARTY,CALLED THE PROSPECT

COMPETITION
POTENTIAL AND RIVAL SUBSTITUTES AND OFFERINGS A BUYER MIGHT CONSIDER.

MARKETING ENVIRONMENT
MARKETING ENVIRONMENT INCLUDES ALL FORCES THAT AFFECT MARKETING POLICIES, DECISIONS AND OPERATIONS OF A COMPANY

MARKETING ENVIRONMENT
MACRO ENVIRONMENT MICRO ENVIRONMENT

DEMOGRAPHIC ENVIRONMENT SOCIO-CULTURAL ENVIRONMENT ECONOMIC ENVIRONMENT NATURAL ENVIRONMENT TECHNOLOGY ENVIRONMENT POLITICO-LEGAL ENVIRONMENT

CUSTOMERS COMPETITORS INTERMEDIARIES SUPPLIERS GENERAL PUBLIC

MARKETING MIX
IT IS THE TOOL THAT AN ORGANIZATION EMPLOYS TO PURSUE ITS MARKETING OBJECTIVES IN THE TARGET MARKET PRODUCT, PRICE, PLACE, PROMOTION

EVOLUTION OF COMMERCE AND INDUSTRY

HOUSEHOLD ECONOMY

BARTER ECONOMY

VILLAGE ECONOMY

RISE OF ENTREPRENEURS

CONCEPTS OF MARKETING
THE EXCHANGE CONCEPT THE PRODUCTION CONCEPT THE PRODUCT CONCEPT THE SALES CONCEPT THE MARKETING CONCEPT THE SOCIETAL MARKETING CONCEPT

EXCHANGE CONCEPT
EXCHANGE OF A PRODUCT BETWEEN SELLER AND BUYER

THE PRODUCTION CONCEPT

CONSUMERS PREFERENCE TO WIDELY AVAILABLE & INEXPENSIVE PRODUCTS HIGH PRODUCTION EFFICIENCY, LOW COSTS & MASS DISTRIBUTION MARKET EXPANSION FOCUS

THE PRODUCT CONCEPT

PRODUCTS QUALITY, PERFORMANCE & INNOVATIVE FEATURES FOCUS ON MAKING SUPERIOR PRODUCTS AND IMPROVEMENT LITTLE OR NO CUSTOMER INPUT INTERNAL FOCUS MARKETING MYOPIA

MARKETING MYOPIA

Prof. Theodore Levitt

COLOURED PERCEPTION ABOUT MARKETING, SHORT-SIGHTEDNESS ABOUT BUSINESS EXCESSIVE ATTENTION TO PRODUCT OR PRODUCTION AT THE COST OF CUSTOMER & HIS ACTUAL NEEDS LEADS TO INADEQUATE UNDERSTANDING OF THE MARKET

THE SELLING CONCEPT

AN AGGRESSIVE SELLING AND PROMOTION EFFORT PREMISE THAT CONSUMERS SHOW BUYING INERTIA EFFECTIVE SELLING & PROMOTION TOOLS LEAD TO MORE BUY SELL WHAT THEY MAKE RATHER WHAT MARKET WANTS RISK OF DISSATISFIED CUSTOMERS

THE MARKETING CONCEPT

INSTEAD OF HUNTING, MARKETING IS GARDENING THE KEY TO ACHIEVING ORGANISATIONAL GOALS CONSISTS OF THE COMPANY BEING MORE EFFECTIVE THAN COMPETITORS IN CREATING DELIVERING, & COMMUNICATING SUPERIOR CUSTOMER VALUE TO ITS CHOSEN TARGET MARKET

THE MARKETING CONCEPT

CUSTOMER CENTERED : SENSE & RESPOND PHILOSOPHY RIGHT PRODUCTS FOR YOUR CUSTOMERS ORGANIZATIONAL GOALS BY CREATING, DELIVERING & COMMUNICATING SUPERIOR CUSTOMER VALUE IN TARGET MARKETS FOUR PILLARS: TARGET MARKET, CUSTOMER NEEDS, INTEGRATED MARKETING & PROFITABILITY

MARKETING CONCEPT
HAS BEEN EXPRESSED IN MANY COLOURFUL WAYS: MEETING NEEDS PROFITABLY

FIND WANTS & FILL THEM LOVE THE CUSTOMERS,NOT THE PRODUCT STATE BANK OF INDIA) YOURE THE BOSS(UNITED AIRLINES) PUTTING PEOPLE FIRST(BRITISH AIRWAYS) FOR YOU, ALWAYS (INDIAN OIL) WITH YOU-ALL THE WAY

REDEFINING MARKETING CONCEPT

Target Market

Customer Needs

HRD Finance Marketing Purchase Production R&D

Profit through customer satisfaction

MARKETING CONCEPT
DELL COMPUTER DOESNT PREPARE A PERFECT COMPUTER FOR ITS TARGET MARKET, RATHER IT PROVIDES PRODUCT PLATFORMS ON WHICH EACH PERSON CUSTOMIZES THE FEATURES HE DESIRES.

THE MARKETING CONCEPT IN PRACTICE

FOUR PILLARS OF MARKETING CONCEPT TARGET MARKET CUSTOMER REQUIREMENTS INTEGRATED MARKETING PROFITABILITY

TARGET MARKET
A TARGET MARKET IS SET OF ACTUAL AND POTENTIAL BUYERS OF A PRODUCT, SERVICE,OR IDEA.

Potential market

Available market

Qualified Available market

Penetrated market

Served/ Target market

TRADITIONAL ORGANISATION CHART VS. MODERN CUSTOMER ORIENTED ORGANISATION CHART Top mgt Middle management Front line people customers

customers

Front line people Middle management Top mgt

MODERN ORGANISATION CHART

TRADITIONAL ORGANISATION CHART

THE CUSTOMER IS THE MOST IMPORTANT VISITOR TO OUR ESTABLISHMENT. HE IS NOT DEPENDENT ON US.WE DEPEND ON HIM.HE DOESNT DISTURB US IN OUR WORK.HE IS THE PURPOSE OF IT.HE IS NOT ALIEN IN OUR BUSINESS.HE IS A PART OF IT.WE DONOT DO HIM A FAVOUR WHEN WE SERVE HIM.HE DOES US A FAVOUR BY MAKING IT POSSIBLE FOR US. MAHATMA GANDHI

INTEGRATED MARKETING
TAKES PLACE AT TWO LEVELS VARIOUS MARKETING FUNCTIONS MUST WORK TOGETHER OTHER DEPARTMENTS MUST EMBRACE MARKETING, THEY MUST ALSO THINK CUSTOMER

INTEGRATED MARKETING
HRD

finance

CUSTOMER

R&D
MARKETING

Purchase

Production

SELLING CONCEPT Vs. MARKETING CONCEPT

Starting point Focus Means Selling & promoting Ends Profits Through Sales Volume Factory Products

SELLING CONCEPT

Target Customer Market Needs

Integrated Profits through Marketing Customer Satisfaction

MARKETING CONCEPT

HOLISTIC MARKETING
BASED ON DEVELOPMENT , DESIGN , AND IMPLEMENTATION OF MARKETING PROGRAMS , PROCESSES AND ACTIVITIES THAT RECOGNISES THAT BREADTH AND INTERDEPENDENCIES BASED ON BROAD AND INTEGRATED PRESPECTIVE

HOLISTIC MARKETING

HOLISTIC MARKETING CONCEPT

INTEGRATED MARKETING INTERNAL MARKETING RELATIONSHIP MARKETING PERFORMANCE MARKETING

INTEGRATED MARKETING
TO DEVISE MARKETING ACTIVITIES AND TO ASSEMBLE FULLY INTEGRATED MARKETING PROGRAMS TO CREATE, COMMUNICATE AND DELIVER VALUE FOR CUSTOMERS

INTEGRATED MARKETING
WHEN ALL THE COMPANYS DEPARTMENTS WORK TO SERVE THE CUSTOMERS INTERESTS,THE RESULT IS INTEGRATED MARKETING

INTERNAL MARKETING
ENSURING THAT EVERYONE IN THE ORGANISATION EMBRACES APPROPRIATE MARKETING PRINCIPLES HIRING, TRAINING AND MOTIVATING ABLE EMPLOYEES WHO WANT TO SERVE THE CUSTOMERS WELL MARKETING ACTIVITIES WITHIN THE COMPANY ARE AS IMPORTANT OR EVEN MORE IMPORTANT THAN MARKETING ACTIVITIES DIRECTED OUTSIDE THE COMPANY.

PERFORMANCE MARKETING
UNDERSTANDING THE RETURNS TO BUSINESS FROM MARKETING ACTIVITIES AND PROGRAMS ADDRESSING BROADER CONCERNS AND THEIR LEGAL, ETHICAL SOCIAL AND ENVIRONMENTAL EFFECTS

FINANCIAL ACCOUNTABILITY
MARKETERS NEED TO JUSTIFY THEIR INVESTMENTS TO SENIOR MANAGEMENT IN FINANCIAL AND PROFITABILITY TERMS AS WELL AS INTERMS OF BUILDING BRANDS AND GROWING THE CUSTOMER BASE

THE SOCIETAL MARKETING

BUILD SOCIAL AND ETHICAL CONSIDERATIONS INTO MARKETING PRACTICES BALANCE B/W COMPANY PROFITS, CONSUMER WANT SATISFACTION, AND PUBLIC INTEREST

THE SOCIETAL MARKETING

THE ORGANISATIONS TASK IS TO DETERMINE THE NEEDS,WANTS,AND INTERESTS OF THE TARGET MARKET AND TO DELIVER THE DESIRED SATISFACTIONS MORE EFFECTIVELY AND EFFICIENTLY THAN COMPETITORS IN A WAY THAT PRESERVES OR ENHANCES THE CUSTOMERS AND SOCIETYS WELL BEING

SOCIETAL MARKETING
BODY SHOP: BODY SHOP IS A COSMETIC COMPANY FOUND BY
ANITA RODDICK. THE COMPANY USES ONLY VEGETABLE BASED MATERIALS FOR ITS PRODUCTS. IT IS ALSO AGAINST ANIMAL TESTING, SUPPORTS COMMUNITY TRADE, ACTIVATE SELF ESTEEM, DEFEND HUMAN RIGHTS, AND OVERALL PROTECTION OF THE PLANET. THUS IT IS COMPLETELY FOLLOWING THE CONCEPT OF SOCIETAL MARKETING.

HP: HAS INTRODUCED RECYCLABLE COMPUTERS AND PRINTERS

MC DONALD'S: REDESIGNED PACKAGING

SOCIETAL MARKETING CONCEPT

Society (human welfare)

Societal marketing concept

Consumers (Want satisfaction) Company profits

MARKETING Vs SELLING
MARKETING
Broader concept Focus on customers needs Concerned with customer satisfaction Converts needs into products External company orientation

SELLING
One aspect of marketing Focus on sellers needs Concerned with transfer goods and services Converts goods into cash Internal company orientation

MARKETING Vs SELLING
MARKETING SELLING

Views customer as Views customer as last link very purpose of business Main emphasis on Main emphasis on sales relationship management sales maximisation Means obtaining Means moving the product customers Aims at profit through Aims at profit through customer satisfaction sales

THE NEW MARKETING REALITIES

MAJOR DRIVERS OF NEW ECONOMY DIGITALIZATION AND CONNECTIVITY DISINTERMEDIATION AND REINTERMEDIATION CUSTOMIZATION AND CUSTOMERIZATION INDUSTRY CONVERGENCE

ONLINE MIDDLEMEN
mysimon.com Buy.com Shopbest.com Smartshop.com Priceline.com

The New Player Order

Stephen Ginns

KODAK
TRANSFORMATION OF KODAK INTO DIGITAL BUSINESS

THE NEW ECONOMY

NEW CONSUMER CAPABILITIES.. SUBSTANTIAL INCREASE IN BUYING POWER A GREAT VARIETY OF AVAILABLE GOODS AND SERVICES A GREAT AMOUNT OF INFORMATION ABOUT PRACTICALLY ANYTHING A GREAT EASE IN INTERACTING, PLACING AND RECEIVING ORDERS AN ABILITY TO COMPARE NOTES ON PRODUCTS AND SERVICES AN AMPLIFIED VOICE TO INFLUENCE PEER AND PUBLIC OPINION

Customers can shop online at Calyx and Corolla or ask for a catalog and shop by phone

HOW BUSINESS PRACTICES ARE CHANGING

OLD ECONOMY
ORGANISE BY PRODUCT UNITS FOCUS ON PROFITABLE TRANSACTIONS LOOK PRIMARILY AT FINANCIAL SCORECARD FOCUS ON SHAREHOLDERS MARKETING DOES THE MARKETING BUILD BRANDS THROUGH ADVERTISING FOCUS ON CUSTOMER ACQUISITION NO CUSTOMER SATISFACTION MEASUREMENT OVER PROMISE, UNDER DELIVER

NEW ECONOMY
ORGANISE BY CUSTOMER SEGMENTS FOCUS ON CUSTOMER LIFETIME VALUE LOOK ALSO AT MARKETING SCORECARD FOCUS ON STAKEHOLDERS EVERY ONE DOES THE MARKETING BUILD BRANDS THROUGH PERFORMANCE FOCUS ON CUSTOMER RETENTION MEASURE CUSTOMER SATISFACTION AND RETENTION UNDER PROMISE, OVER DELIVER

NATURE OF MARKETING
MARKETING IS CUSTOMER FOCUSSED MARKETING MUST DELIVER VALUE MARKETING IS A PART OF TOTAL ENVIRONMENT MARKETING IS SURROUNDED BY CUSTOMER NEEDS MARKETING CREATES MUTUALLY BENEFICIAL RELATIONSHIPS

TOYOTA INNOVAUSING CUSTOMER INPUTS TO DRIVE THE BUSINESS

LAUNCHED THE NEW VARIANT G4 DUAL AIR CONDITIONERS EIGHT SEATER VERSION

PIZZA HUT INDIA

MARKETING ORIENTATION IS CUSTOMER ORIENTATION

MADE ITS ENTRY IN 1996 INDIANISATION CAMPAIGN PRODUCT QUALITY AND STANDARDS INTRODUCTION OF INNOVATIVE NEW PRODUCT RANGES EVERY COUPLE OF MONTHS GOOD DINING EXPERIENCE

WHAT IS MARKETED?
Goods Services Events & Experiences Persons Places & Properties Organizations Information Ideas

SCOPE OF MARKETING
GOODS SERVICES EXPERIENCE EVENTS PERSONS PLACES PROPERTIES ORGANISATIONS INFORMATION IDEAS

MARKETING OF GOODS

MARKETING OF SERVICES

EXPERIENCES

EVENTS

CELEBRITY MARKETING

MARKETING OF PLACES

MARKETING OF PLACES

ORGANISATIONS
KINGFISHER AIRLINES, INDIAS LEADING AIRLINE AND THE FIRST AND ONLY FIVE STAR AIRLINE FROM INDIA (14-APR09) ANNOUNCED THAT IT HAS RECEIVED THREE GLOBAL AWARDS AT THE SKYTRAX WORLD AIRLINE AWARDS CEREMONY HELD RECENTLY IN HAMBURG, GERMANY.

INFORMATION

IDEAS

In our factory, we make lipstick. In our advertising, we sell hope. Charles Revson Revlon Cosmetics

A SIMPLE MARKETING SYSTEM

COMMUNICATION

GOODS/SERVICES INDUSTRY MARKET

MONEY

INFORMATION

FUNCTIONS OF MARKETING

FUNCTIONS OF RESEARCH

FUNCTIONS OF EXCHANGE

FUNCTIONS FUNCTIONS OF PHYSICAL FACILITATING TREATMENT EXCHANGE

FUNCTIONS OF RESEARCH

MARKETING RESEARCH PRODUCT PLANNING AND DEVELOPMENT

FUNCTIONS OF EXCHANGE

BUYING SELLING

FUNCTIONS OF PHYSICAL TREATMENT

BRANDING PACKAGING STORAGE TRANSPORTATION

FUNCTIONS FACILITATING EXCHANGE

PRICING SALESMANSHIP ADVERTISING FINANCING