MGT301 Principles of Marketing Lecture-2

Summary of Lecture-1

Marketing Involves having the Right Product available in the Right Place at the Right Time and making sure that the customer is Aware of the Product.

Marketing

Product Price PlacePromotion Customers

Simple Marketing System Producer/SellerConsumer Communicatio n Communicatio n Product/Servi ce Product/Servi ce Money Money Feedba ck Feedba ck

Today’s Topics

Road map Road map Understanding Marketing and Marketing Process Understanding Marketing and Marketing Process Core Marketing Concepts Core Marketing Concepts

Road Map Introduction-an overview of marketing. Introduction-an overview of marketing. Understanding Marketing and Marketing Process Understanding Marketing and Marketing Process Marketing Functions and Customer Relationship Management Marketing Functions and Customer Relationship Management

Marketing in Historical perspective and Evolution of Marketing Marketing in Historical perspective and Evolution of Marketing Marketing Challenges in the 21st century Marketing Challenges in the 21st century Marketing Management Process Marketing Management Process Marketing Management Process (cont….) Marketing Management Process (cont….) Strategic Planning and Marketing Process Strategic Planning and Marketing Process The Marketing process The Marketing process The Marketing process (cont…) The Marketing process (cont…)

Marketing Environment (Micro) Marketing Environment (Micro) Marketing Environment (Macro) Marketing Environment (Macro) Analyzing Marketing opportunities and developing strategies- MIS Analyzing Marketing opportunities and developing strategies- MIS Marketing Research Marketing Research Consumer Market-understanding the consumer Consumer Market-understanding the consumer Consumer Markets and consumer buying behavior Consumer Markets and consumer buying behavior Consumer Markets and consumer buying behavior (cont…) Consumer Markets and consumer buying behavior (cont…)

Buying Behaviors for New Products and services Buying Behaviors for New Products and services Business Buying Behavior Business Buying Behavior Business Buying Behavior (cont..) Business Buying Behavior (cont..) Market segmentation Market segmentation Market segmentation (cont..) Market segmentation (cont..) Developing the Marketing Mix--- 4 P’s Developing the Marketing Mix--- 4 P’s Product Planning Product Planning Product Planning (cont..) Product Planning (cont..)

Service Strategy Service Strategy Pricing Pricing Pricing Strategies Pricing Strategies Price Adjustment and Price Changes Price Adjustment and Price Changes Distribution Channels Distribution Channels Distribution Channels (cont..) Distribution Channels (cont..) Logistics Management Logistics Management Retailing and wholesaling Retailing and wholesaling Promotion Planning Promotion Planning

Advertising Advertising Public Relations Public Relations Personal Selling Personal Selling Sales Promotion Sales Promotion Sales Force Management Sales Force Management Integrating and analyzing the marketing plan Integrating and analyzing the marketing plan Global Marketing Global Marketing Technological developments and Marketing Technological developments and Marketing

Web base Marketing Web base Marketing Social Marketing Social Marketing Social, Ethical and Consumer issues Social, Ethical and Consumer issues Review Review Marketing in a Glance Marketing in a Glance

Actors and Forces in a Modern Marketing System Environment Suppliers Company (marketer) Marketing inter- mediaries End-user market Competitors

Simple Marketing System Producer/SellerConsumer Communication Product/Service Money Feedback

Simple Questions, Hard Answers Who are our customers? What important & unique benefits do we provide? Are these benefits sustainable?

Process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.

More simply: Marketing is the delivery of customer satisfaction at a profit. Marketing is the delivery of customer satisfaction at a profit.

Product Price PlacePromotion Customers

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. Kotler 1994

Core Marketing Concepts

Products and Services Value, satisfaction, and quality Needs, wants, and demands Exchange, transactions, and relationships Markets Core Marketing Concepts Core Marketing Concepts

Needs Needs ‘...a state of felt deprivation ’ Wants Wants needs ‘...shaped by culture and individual personality’ Demands Demands wants ‘...backed by purchasing power ’

Products and Services Value, satisfaction, and quality Needs, wants, and demands Exchange, transactions, and relationships Markets Core Marketing Concepts Core Marketing Concepts

A Product is.... ‘...anything that can be offered to a market for attention, acquisition, use or consumption and that may satisfy a need or want’

includes: –physical goods, services, people, places, organizations, activities, ideas etc

Products and Services Value, satisfaction, and quality Needs, wants, and demands Exchange, transactions, and relationships Markets Core Marketing Concepts Core Marketing Concepts

Exchange is... ‘...the act of obtaining a desired object from someone by offering something in return’

Five conditions 1. Two parties 2. Something of value to offer each other 3. Willing to deal 4. Free to accept or reject offer 5. Able to communicate and deliver

A transaction is... ‘...a trade between two parties that involves: ‘...a trade between two parties that involves: at least two things of value; at least two things of value; agreed upon conditions; agreed upon conditions; a time of agreement; and a time of agreement; and a place of agreement’ a place of agreement’ may be monetary or barter may be monetary or barter

Products and Services Value, satisfaction, and quality Needs, wants, and demands Exchange, transactions, and relationships Markets Core Marketing Concepts Core Marketing Concepts

A market is... ‘...a set of actual and potential buyers of a product’ ‘...a set of actual and potential buyers of a product’ A place A place Marketing satisfies the needs of markets by facilitating the exchange process Marketing satisfies the needs of markets by facilitating the exchange process

Products and Services Value, satisfaction, and quality Needs, wants, and demands Exchange, transactions, and relationships Markets Core Marketing Concepts Core Marketing Concepts

Goals of the Marketing System

Stimulate maximum consumption Stimulate maximum consumption Maximize consumer satisfaction Maximize consumer satisfaction Maximize variety and choice Maximize variety and choice Maximize quality of life Maximize quality of life

Marketing Process Activities Understand the organization’s mission Set marketing objectives Gather, analyze, interpret “SWOT” information Develop a marketing strategy Implement the marketing strategy Design performance measures Evaluate marketing efforts--change if needed

Let’s stop it here

Summary

 Road Map  Understanding Marketing and Marketing Process  Core Marketing Concepts

Core Marketing Concepts

Products and Services Value, satisfaction, and quality Needs, wants, and demands Exchange, transactions, and relationships Markets Core Marketing Concepts Core Marketing Concepts

Next….  Marketing Functions  Customer Relationship Management

MGT301 Principles of Marketing Lecture-2