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

Price Product Customers Place Promotion

Simple Marketing System Communication Product/Service Producer/Seller Consumer Money Feedback

Today’s Topics

Road map Understanding Marketing and Marketing Process Core Marketing Concepts

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

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

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

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

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

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

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

Actors and Forces in a Modern Marketing System Environment Suppliers Company (marketer) Marketing inter- mediaries End-user market Competitors 3

Simple Marketing System Communication Product/Service Producer/Seller Consumer 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.

Price Product Customers Place Promotion

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

Exchange, transactions, Core Concepts This CTR corresponds to Figure 1-1 on p. 4 and relates to the discussion on pp. 3-10. Also to the CTRs numbers 4 - 8 which follow. Products and Services Needs, wants, and demands Core Marketing Concepts Core Concepts Needs. These emerge from a state of felt deprivation. Ask students to distinguish among physical, social, and individual needs. Wants. These are the form taken by human needs as they are shaped by culture and individual experience. Have students provide examples for different wants based upon geographical differences, gender, age, wealth. Link culture to socio-economic standing, education. Demands. These are wants backed by buying power. Discuss such popular items as dream vacations or favorite cars to illustrate the difference between wants and demands. You may want an Acura Legend but drive a Subaru Justy. Introduce the idea that demands are often for a bundle or group of benefits and may address a number of related needs and wants. Products. These are anything offered for sale to satisfy a need or want. Have students discuss an extended view of products to include services and ideas. Discuss the role of value in distinguishing products. Discussion Note: Ask students to identify their product choice set for cars, vacations, dating partners, or college professors. Exchanges. These are the act of obtaining desired objects by offering something in return. Link to barter economies and promises to pay (i.e., credit, checks). Transactions. These are an actual trade of value between at least two parties. Transaction marketing is part of the larger concept of relationship marketing in which parties build long-term, economic ties to enhance quality and customer-delivered value. Markets. These are the set of actual and potential buyers of a product. Markets may be decentralized or centralized. Markets exist wherever something of value is desired, such as in the labor market, the money market, even the donor market - for human “products” such as blood or organs. Value, satisfaction, and quality Markets Exchange, transactions, and relationships

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

Exchange, transactions, Core Concepts This CTR corresponds to Figure 1-1 on p. 4 and relates to the discussion on pp. 3-10. Also to the CTRs numbers 4 - 8 which follow. Products and Services Needs, wants, and demands Core Marketing Concepts Core Concepts Needs. These emerge from a state of felt deprivation. Ask students to distinguish among physical, social, and individual needs. Wants. These are the form taken by human needs as they are shaped by culture and individual experience. Have students provide examples for different wants based upon geographical differences, gender, age, wealth. Link culture to socio-economic standing, education. Demands. These are wants backed by buying power. Discuss such popular items as dream vacations or favorite cars to illustrate the difference between wants and demands. You may want an Acura Legend but drive a Subaru Justy. Introduce the idea that demands are often for a bundle or group of benefits and may address a number of related needs and wants. Products. These are anything offered for sale to satisfy a need or want. Have students discuss an extended view of products to include services and ideas. Discuss the role of value in distinguishing products. Discussion Note: Ask students to identify their product choice set for cars, vacations, dating partners, or college professors. Exchanges. These are the act of obtaining desired objects by offering something in return. Link to barter economies and promises to pay (i.e., credit, checks). Transactions. These are an actual trade of value between at least two parties. Transaction marketing is part of the larger concept of relationship marketing in which parties build long-term, economic ties to enhance quality and customer-delivered value. Markets. These are the set of actual and potential buyers of a product. Markets may be decentralized or centralized. Markets exist wherever something of value is desired, such as in the labor market, the money market, even the donor market - for human “products” such as blood or organs. Value, satisfaction, and quality Markets Exchange, transactions, and relationships

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

Exchange, transactions, Core Concepts This CTR corresponds to Figure 1-1 on p. 4 and relates to the discussion on pp. 3-10. Also to the CTRs numbers 4 - 8 which follow. Products and Services Needs, wants, and demands Core Marketing Concepts Core Concepts Needs. These emerge from a state of felt deprivation. Ask students to distinguish among physical, social, and individual needs. Wants. These are the form taken by human needs as they are shaped by culture and individual experience. Have students provide examples for different wants based upon geographical differences, gender, age, wealth. Link culture to socio-economic standing, education. Demands. These are wants backed by buying power. Discuss such popular items as dream vacations or favorite cars to illustrate the difference between wants and demands. You may want an Acura Legend but drive a Subaru Justy. Introduce the idea that demands are often for a bundle or group of benefits and may address a number of related needs and wants. Products. These are anything offered for sale to satisfy a need or want. Have students discuss an extended view of products to include services and ideas. Discuss the role of value in distinguishing products. Discussion Note: Ask students to identify their product choice set for cars, vacations, dating partners, or college professors. Exchanges. These are the act of obtaining desired objects by offering something in return. Link to barter economies and promises to pay (i.e., credit, checks). Transactions. These are an actual trade of value between at least two parties. Transaction marketing is part of the larger concept of relationship marketing in which parties build long-term, economic ties to enhance quality and customer-delivered value. Markets. These are the set of actual and potential buyers of a product. Markets may be decentralized or centralized. Markets exist wherever something of value is desired, such as in the labor market, the money market, even the donor market - for human “products” such as blood or organs. Value, satisfaction, and quality Markets Exchange, transactions, and relationships

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: at least two things of value; agreed upon conditions; a time of agreement; and a place of agreement’ may be monetary or barter

Exchange, transactions, Core Concepts This CTR corresponds to Figure 1-1 on p. 4 and relates to the discussion on pp. 3-10. Also to the CTRs numbers 4 - 8 which follow. Products and Services Needs, wants, and demands Core Marketing Concepts Core Concepts Needs. These emerge from a state of felt deprivation. Ask students to distinguish among physical, social, and individual needs. Wants. These are the form taken by human needs as they are shaped by culture and individual experience. Have students provide examples for different wants based upon geographical differences, gender, age, wealth. Link culture to socio-economic standing, education. Demands. These are wants backed by buying power. Discuss such popular items as dream vacations or favorite cars to illustrate the difference between wants and demands. You may want an Acura Legend but drive a Subaru Justy. Introduce the idea that demands are often for a bundle or group of benefits and may address a number of related needs and wants. Products. These are anything offered for sale to satisfy a need or want. Have students discuss an extended view of products to include services and ideas. Discuss the role of value in distinguishing products. Discussion Note: Ask students to identify their product choice set for cars, vacations, dating partners, or college professors. Exchanges. These are the act of obtaining desired objects by offering something in return. Link to barter economies and promises to pay (i.e., credit, checks). Transactions. These are an actual trade of value between at least two parties. Transaction marketing is part of the larger concept of relationship marketing in which parties build long-term, economic ties to enhance quality and customer-delivered value. Markets. These are the set of actual and potential buyers of a product. Markets may be decentralized or centralized. Markets exist wherever something of value is desired, such as in the labor market, the money market, even the donor market - for human “products” such as blood or organs. Value, satisfaction, and quality Markets Exchange, transactions, and relationships

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

Exchange, transactions, Core Concepts This CTR corresponds to Figure 1-1 on p. 4 and relates to the discussion on pp. 3-10. Also to the CTRs numbers 4 - 8 which follow. Products and Services Needs, wants, and demands Core Marketing Concepts Core Concepts Needs. These emerge from a state of felt deprivation. Ask students to distinguish among physical, social, and individual needs. Wants. These are the form taken by human needs as they are shaped by culture and individual experience. Have students provide examples for different wants based upon geographical differences, gender, age, wealth. Link culture to socio-economic standing, education. Demands. These are wants backed by buying power. Discuss such popular items as dream vacations or favorite cars to illustrate the difference between wants and demands. You may want an Acura Legend but drive a Subaru Justy. Introduce the idea that demands are often for a bundle or group of benefits and may address a number of related needs and wants. Products. These are anything offered for sale to satisfy a need or want. Have students discuss an extended view of products to include services and ideas. Discuss the role of value in distinguishing products. Discussion Note: Ask students to identify their product choice set for cars, vacations, dating partners, or college professors. Exchanges. These are the act of obtaining desired objects by offering something in return. Link to barter economies and promises to pay (i.e., credit, checks). Transactions. These are an actual trade of value between at least two parties. Transaction marketing is part of the larger concept of relationship marketing in which parties build long-term, economic ties to enhance quality and customer-delivered value. Markets. These are the set of actual and potential buyers of a product. Markets may be decentralized or centralized. Markets exist wherever something of value is desired, such as in the labor market, the money market, even the donor market - for human “products” such as blood or organs. Value, satisfaction, and quality Markets Exchange, transactions, and relationships

Goals of the Marketing System

Stimulate maximum consumption Maximize consumer satisfaction Maximize variety and choice 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

Exchange, transactions, Core Concepts This CTR corresponds to Figure 1-1 on p. 4 and relates to the discussion on pp. 3-10. Also to the CTRs numbers 4 - 8 which follow. Products and Services Needs, wants, and demands Core Marketing Concepts Core Concepts Needs. These emerge from a state of felt deprivation. Ask students to distinguish among physical, social, and individual needs. Wants. These are the form taken by human needs as they are shaped by culture and individual experience. Have students provide examples for different wants based upon geographical differences, gender, age, wealth. Link culture to socio-economic standing, education. Demands. These are wants backed by buying power. Discuss such popular items as dream vacations or favorite cars to illustrate the difference between wants and demands. You may want an Acura Legend but drive a Subaru Justy. Introduce the idea that demands are often for a bundle or group of benefits and may address a number of related needs and wants. Products. These are anything offered for sale to satisfy a need or want. Have students discuss an extended view of products to include services and ideas. Discuss the role of value in distinguishing products. Discussion Note: Ask students to identify their product choice set for cars, vacations, dating partners, or college professors. Exchanges. These are the act of obtaining desired objects by offering something in return. Link to barter economies and promises to pay (i.e., credit, checks). Transactions. These are an actual trade of value between at least two parties. Transaction marketing is part of the larger concept of relationship marketing in which parties build long-term, economic ties to enhance quality and customer-delivered value. Markets. These are the set of actual and potential buyers of a product. Markets may be decentralized or centralized. Markets exist wherever something of value is desired, such as in the labor market, the money market, even the donor market - for human “products” such as blood or organs. Value, satisfaction, and quality Markets Exchange, transactions, and relationships

Next….

Marketing Functions Customer Relationship Management

Principles of Marketing Lecture-2