What is Marketing?

 Is marketing the same as selling?

 For exchange to occur, there must be:
 Two parties
 Each with something of value to the other
 Capable of communications and delivery
 Free to accept/reject the offer
 Agreement to terms

The systematic planning, implementation and control of a mix of business activities intended to
bring together buyers and sellers for the mutually advantageous exchange or transfer of products
Marketing is the management process that identifies, anticipates and satisfies customer
requirements profitably –
The Chartered Institute of Marketing.

• Marketing can be defined as "a social and managerial process by which individuals and
groups obtain what they need and want through creating and exchanging products and
value with others" (Kotler et al, 1994).

There is normally a focus upon profitability, especially in the corporate sector

What are Consumer’s Needs, Wants and Demands?

 Needs - State of felt deprivation for basic physical items as food and clothing and
complex needs including social and individual needs.
i.e. I am hungry

Maslow’s Hierarchy of Needs

 Wants : form that a human need takes as shaped by culture and individual personality.
i.e. I want a softy, candy or a soft drink.

 Wants : form that a human need takes as shaped by culture and individual personality.
i.e. I want a softy, candy or a soft drink.

 Demands human wants backed by buying power.

i.e. I have money to buy this mobile. Wants
Needs and Wants Fulfilled through a Marketing Offer

Marketing Myopia

• Sellers pay more attention to the specific products they offer than to the benefits and
experiences produced by the products.
• They focus on the “wants” and lose sight of the “needs.”

Difference between a product and a service

A product is something you can touch, a service is an action performed by someone (labor). If
you buy a new battery for your car, that's a product. The installation of that battery is a
service.

For example, you go to Best Buy to purchase PRODUCTS such as televisions, laptops,
cameras, and DVDs.
However, you can also go to Best Buy to enlist the SERVICE of the company's Geek Squad to
come and set up electronics in your home.

Value and Satisfaction

 Customers value is the difference between the values the customers gain from owning
and using a product and the costs of obtaining the product.
(e.g. Courses, Restaurant)

Customers satisfaction with a purchase depends on how well the products performance lives up
to he customer’s expectations. It is a key influencer on future Buying Behavior
 HowDo
P
Customer Relationship Management

• The process of building and maintaining profitable customer relationships by delivering

superior customer value and satisfaction.

Valu
 How
Exchange, Transaction and Relationship

return.
Pr
 Exchange: The act of obtaining a desired object from someone by offering something in

 Transaction: The Trade of values between two parties

• Relationship means to provide such kind of services that the customer is retained and it
grows there businesses with company.
• Profitable Customer Relationships
Attracting new customers and retaining and building relationships with current customers

What is a Market?

• The set of actual and potential buyers of a product.

• These people share a need or want that can be satisfied through exchange relationships
 Who

Mod
People Who
Exhibit Nee
Marketing Management Philosophies/Orientations/
Concept

PRODUCTION CONCEPT

The idea that consumer will favour products that are available and highly affordable.
The Production Concept

'If a product is made, somebody will want to buy it'. The reason for the predominance of this
orientation is there was a shortage of manufactured goods (relative to demand) during this period
so goods sold easily.

PRODUCT CONCEPT

The idea that consumers will favor products that offer the most in quality, performance and
innovative features (continuous product improvement).

The Product Concept

Product oriented company produces interesting and new products and wants to interest the
market with these products .
• Organise product research in line with the results of market research. Develop a new
product.

• Test market new products in smaller market areas before launching them onto a wider
market.
• Evaluate ongoing customer perception of goods and services, in order to make
improvements to technologies and product offerings.
SELLING CONCEPT

• The idea that consumer will not buy enough of the organization’s product unless the
organization undertakes a large scale selling and promotion activities.
• E.g. Insurance, Blood
• Donation

SELLING CONCEPT

The philosophy or orientation of an organization which emphasizes aggressive selling to achieve

its objectives. Firms rely upon pressure selling and manipulative sales techniques to win business.

• A company-centered rather than a client-centered approach to conduct of business. This

orientation tends to ignore what the customer/user really wants and needs.

SELLIN
MARKETING CONCEPT

The marketing concept holds that achieving organizational goals depend on determining the
needs and wants of target markets and delivering the desired satisfaction more effectively and
efficiently then competitors.
Find out
 SELLIN
CONCE
Difference
Starting pt.
Orientatio
 SalesOrg
vs. an
M
Relationship Marketing Concept

Focus
A form of marketing that puts particular emphasis on building a long-term, more intimate bond
between an organization and its individual customers

Companies benefit from

 repeat sales/referrals that lead to increases in sales, market share and profits, and
 decreased costs - it’s less expensive to serve existing customers than attract new
ones.

•
•
Sales
Customers benefit from:

greater value and satisfaction

discounts, perks (frequent flyer programs, shopper clubs, etc.)
Inw
Orientation
• sense of well-being/bonding (doctor, hair stylist, etc.)

Societal Marketing Concept

The idea that the organization should determine the needs, wants, and interests of target markets
and deliver the desired satisfaction more effectively and efficiently then the competitors do in the
way that maintains and improve the consumer's and society’s well- being. E.g. New Packaging of
Milk and Juices, Environmental Hotel Industry
Societal Marketing Orientation

Marketing that preserves or enhances an individual’s and society’s long-term best interests
 Less toxic products
 More durable products
 Products with reusable or recyclable materials
MARKETING MANAGEMENT

 Marketing Management is concerned with the direction of purposeful activities towards

the attainment of marketing goals.

 It deals with planning, organizing, directing and controlling the activities related to the
marketing of goods, ideas and services to satisfy the customer’s needs and wants.

NATURE OF MARKETING MANAGEMENT

 It is a functional area of marketing

 It is goal directed
 It determines the appropriate marketing mix of the firm.
 It is a specialized job.
 Marketing Management is the marketing concept in action.

OBJECTIVES OF MARKETING MANAGEMENT

 To create customers for the business

 To satisfy the needs o the customers
 To determine the marketing mix
 To generate profits
 To earn goodwill
  To rise the standard of living o the people
SCOPE OF MARKETING

Scope can be understood in terms of functions performed by Marketing Department/Manager

Purpose : To generate revenue by selling goods and services that will satisfy customers wants.

To fulfill this purpose Mktg Managers perform certain functions

 FUNCTIO
 Marketing Research: Analysing the buyer's habits,popularity of the product,effectiveness
of media/adv.
 Objective is to provide timely and accurate information so that better decisions can be
taken.
 “Marketing research is the systematic search for and analysis of facts realted to a
marketing problem.
 Emphasis is shifting from info. Gathering to a problem solving and action recomending
function

Functions Of Exchange

 Buying and Assembling : Procurement/Purchase of Raw Materials,Semi

Finished/Finished products.
 Excellent co-ordination between Marketing and Purchase deptt. Is must.To ensure
purchase of right materials/goods at right time and in right quantities.
  Purchasing involves determination of requirements,Finding the sources of supply,placing
the order and receiving the goods.
 Assembling means collection of goods already purchased from different sources at a
common point

Selling

 Leads to transfer of ownership of goods from the seller to the buyers.

 2 Forms of Sale a)Negotiated Sale b) Auction Sale

Packaging

 To protect the goods from damange during transit

 Facilitates easy transfer of goods to customers
 Helps in creating distinct identity of the product from competitors

Storage

 Goods are generally produced or procured well in advance of demand

 To protect them against from any damage they are stored
 It creates time utility.

Transportation

 Place of production and consumption cannot be the same so movement of goods, services
is required.
 It creates Place utility.
 It creates Time Utility

Functions Facilitating Exchange

Salesmanship

 Personal Selling involves direct / personal contact of seller or his representative with the
purchaser.
 Buyer these days is very well informed and you cannot sell anything/everything to him
which makes task of salesman very challenging.

Marketing Environment

What is Marketing Environment

  The actors and forces outside marketing that affect marketing management’s ability to
build and maintain successful relationships with target customers.
MICRO ENVIORNMENT

 The actors close to the compa ny that affect its ability to serve its customers – the
company,suppliers,marketing intermeiateries,customers,competitors and publics.
 It consists of forces that effect the marketing and business directly.
► it is a more local relationship, and the firm may exercise a degree of influence

The Company
Actors
 In designing marketing plans,marketing management takes other company groups into
account-
 Top Management
 Finance
 Research & Development
 Purchasing
 Operations
 Accounting

Suppliers
  Suppliers provide the resources needed by the company to produce its goods and services.
 Suppliers problem can seriously affect marketing. i.e
 Supply Shortages or delays
 Labor Strikes
 Rise in Supply Cost

Marketing Intermediaries

 Firms that help the Company to promote,sell and distribute its goods to final buyers.
 Resellers like wholesalers and retailers,who buy and resell merchandise
 Physical Distribution Firms help the company to stock and move goods from their place of
origin to their destinations. Marketers must keep in mind Cost,Deliver,Speed and Safety
while working with them.

 Marketing Services Agencies:

The marketing research firms,advertisement agencies,media firms that help the company
target and promote its products to the right market.Marketers must keep in mind factors like
creativity,quality,services and price while choosing them.
 Financial Intermediaries
inludes banks,credit companies,insurance companies they help in financing transactions or
insure against the risks associated with the buying and selling of goods.

Competitors

 Its not only important to meet or beat competitors but it is important to gain competitive
edge.

Customers

 5 types of customers markets:

 Consumer Markets
 Business Markets
 Resellers Markets
 Government Markets
 International Markets

Publics

 Any group that has an actual or potential interest in or impact on an organization's ability to
achieve its objectives
 Seven Types of Publics:
 Financial Publics
 Media Publics
 Government Publics
  Citizen Action Publics
 Local Publics
 General Publics
 Internal Publics

MACRO ENVIRONMENT

 It consists of demographic, economic, cultural ,political ,social and technological forces

that effect marketing policies and operations.
 These are all uncontrollable as far as business is concerned.

The Macro-environment
Actors
♣ Political (and legal) forces,
♣ Economic forces,
♣ Socio-cultural forces,
♣ Technological forces.
♣ These are known as PEST factors.

Political Factors

♣ The political arena has a huge influence upon the regulation of businesses, and the
spending power of consumers.

♣ You must consider issues such as:

  How stable is the political environment?
 Will government policy influence laws that regulate or tax your business?
 What is the government's position on marketing ethics?

 Does the government have a view on culture and religion?

 What is the government's policy on the economy?
 Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others

Economic Factors

Marketers need to consider the state of a trading economy in the short and long-terms.

This is especially true when planning for marketing, You need to look at:
◦ Income
◦ Inflation
◦ Recession
◦ Interest Rate
◦ Exchange Rate

The social and cultural Factors

Values

b) Time Starved Customers

c) Multiple Lifestyles

d) Changing Structures of Families

Technological Factors

Technology is vital for competitive advantage, and is a major driver of globalization.

► Consider the following points:
1. Does technology allow for products and services to be made more cheaply and to a better
standard of quality? E.g. Less man power used

2.Do the technologies offer consumers and businesses more innovative products and services
such as
► Internet banking, new generation mobile telephones, etc?
3.How is distribution changed by new technologies
► e.g. books via the Internet, flight tickets, auctions, etc?
4.Does technology offer companies a new way to communicate with consumers
► e.g. banners, Customer Relationship Management (CRM), etc?

Demographic Factors

 Adolescents
 Youth
 People Between 35 & 45
 People Between 45 & 60
 People Above 60

Natural Environment

 Air Pollution
 Noise Pollution
 Water Pollution
 Wood Based Industries
 Green House Effect
 Shortage of Inputs:Power

Benefits of Scanning Environment to Marketers

 First mover advantage by looking at unmet needs.

 Customers delight whan marketers are able to know stated , unstated,secret,and real needs
and present the product.
 Trendy products can be brought out in market

 Competitors moves can be anticipated and countered

 Adapting to the uncontrollable environment becomes easy
 Marketing Mix strategy can be properly formulated
 Marketer is able to know the organisational strengths, capabilities and related opportunities
 Marketer is able to appropriately remove weaknesses, and counter threats from the
environment