INTRODUCTION TO MARKETING www.AssignmentPoint.com
WHAT IS MARKETING Marketing is a social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others. Kotler & Armstrong Goals: To attract new customers by promising superior value To keep current customers by delivering satisfaction. www.AssignmentPoint.com
CORE MARKETING CONCEPT Needs, wants & demands Core Marketing Concepts Markets Products & services Exchange & relationships Value, satisfaction & quality www.AssignmentPoint.com
Needs, Wants & Demand Need A state of felt deprivation. Physical needs Social needs Individual needs Wants Human needs which are shaped by culture and individual personality. Demands Human wants that are backed by buying power. www.AssignmentPoint.com
Products & Services Product Anything that can be offered to a market to satisfy a need or want. Tangible Goods Services Experiences Persons Places Organizations Information Ideas www.AssignmentPoint.com
Customer Value, Satisfaction & Quality Customer Value The difference between the values the customer gains from owning/using a product and the costs of obtaining the product. Satisfaction The extent to which a product’s perceived performance matches a buyer’s expectation. Quality The totality of features and characteristics of a product or service that bear on its ability to satisfy needs. TQM – Programs for quality improvement www.AssignmentPoint.com
Exchange & Relationships Exchange The act of obtaining the desired object from someone by offering something in return. Relationship The process of creating, maintaining Marketing and enhancing strong relationships with customers and stakeholders. www.AssignmentPoint.com
(A collection of sellers) (A collection of buyers) Markets A market is the set of actual and potential buyers of a product or service. A Simple Marketing System Industry (A collection of sellers) Products-services Market (A collection of buyers) Money Information www.AssignmentPoint.com
Main actors & forces in a modern marketing system Suppliers Company (marketer) Marketing intermediaries End user market Competitors Environment www.AssignmentPoint.com
STAGES OF MARKETING PRACTICE Entrepreneurial Marketing Stage 2 Formulated Marketing Stage 3 Intrepreneurial Marketing www.AssignmentPoint.com
MARKETING MANAGEMENT PHILOSOPHIES Production concept Product concept Selling concept Marketing concept Societal marketing concept www.AssignmentPoint.com
1) The Production Concept The production concept holds that consumers will favor products that are available and highly affordable. Management should focus on improving production and distribution efficiency. Useful in two types of situations – Basic necessity goods Unfulfilled demand www.AssignmentPoint.com
2) The Product Concept The product concept holds that consumers will favor products that offer the most in quality, performance and innovative features. Management should focus on product improvements continuously. www.AssignmentPoint.com
3) The Selling Concept The selling concept holds that consumers will not buy enough of the organization’s products unless it undertakes a large-scale selling and promotion effort. Useful in three situations – With unsought goods Overcapacity Increasing competition www.AssignmentPoint.com
4) The Marketing Concept The marketing concept holds that achieving organizational goals depends on determining the needs and want of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. www.AssignmentPoint.com
Difference between Selling & Marketing concept Starting point Focus Means Ends Selling & promoting Existing products Profits through sales volume Factory The Selling concept (Inside-out) Profits through Customer satisfaction Customer needs Integrated Marketing Market The Marketing concept (Outside-in) www.AssignmentPoint.com
5) The Societal Marketing Concept The societal marketing concept holds that organization must follow the marketing concept in a way that maintains or improves the consumer’s and the society’s well being. Society (Human welfare) Societal marketing concept Consumers (Want satisfaction) Company (Profits) www.AssignmentPoint.com
MARKETING MIX DECISIONS IMPLEMENTATION & CONTROL MARKETING PROCESS SITUATION ANALYSIS MARKETING STRATEGY MARKETING MIX DECISIONS IMPLEMENTATION & CONTROL www.AssignmentPoint.com
1) Situation analysis 5C analysis Company Customers Competitors Collaborators Climate PEST analysis Political Economic Societal Technological SWOT analysis Strengths Weaknesses Opportunities Threats www.AssignmentPoint.com
2) Marketing strategy Market segmentation Dividing the market into distinct group of buyers Market targeting Selecting one or more segments to enter Market positioning Arranging for a product to occupy a clear, distinctive and desirable place in target consumers’ mind www.AssignmentPoint.com
3) Marketing mix decision (4Ps) Product Variety Quality Design Features Brand name Packaging Services Price List price Discounts Allowances Payment period Credit terms Target customers Promotion Advertising Personal selling Sales promotion Public relations Intended positioning Place Channels Coverage Assortments Locations Inventory Transportation Logistics www.AssignmentPoint.com
Seller’s point of view Buyer’s point of view 4Ps Product Price Place Promotion Buyer’s point of view 4Cs Customer solution Customer cost Convenience Communication www.AssignmentPoint.com
4) Implementation and Control Preparing marketing plan Launching the product Monitoring continuously Making change, if necessary www.AssignmentPoint.com