Nature and Scope of Marketing Presentation 1 By Jyoti Sikka, S.S.C.B.S.

The Importance of Marketing in Our Global Economy  Marketing costs consume a sizable portion of buyers’ dollars  Marketing is used in nonprofit organizations  Marketing is important to business  Marketing fuels our global economy

The Importance of Marketing in Our Global Economy (cont’d)  Marketing knowledge enhances consumer awareness  Marketing connects people through technology  Socially responsible marketing can promote the welfare of customers and society  Marketing offers many exciting career prospects

Important to every consumer! Important to your job! Affects economic growth and standard of living! Affects economic growth and standard of living! Marketing Is Important to You!

Definition Marketing: “The (1) process of (2) planning and (3) executing the (4) conception, (5) pricing, (6) promotion, and (7) distribution of (8) ideas, (9) goods, and (10) services to create (11) exchanges that (12) satisfy (13) individual and (14) organizational (15) objectives.” (American Marketing Association “official” old definition [numbering added].)

Definition: AMA new 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.

Marketing: the big picture Product Price Place Promotion Exchange A B Delivering Value Communicating Value Creating Value

Marketing Management: Definitions Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

The Scope Of Marketing Marketers are involved with marketing ten types of entities: 1. Physical Goods 2. Services 3. Experiences 4. Events 5. Persons 6. Places 7. Properties 8. Organizations 9. Information 10. Ideas

Key terms  Marketer  Prospect

Demand States  Negative  Nonexistent  Latent  Declining  Irregular  Unwholesome  Full  Overfull

Exchange and Marketing In very basic economic systems, each seller must meet directly with each buyer in order to exchange something of value. As needs increase, the number of exchanges can soon become unmanageable for one person. Ten exchanges required without central market Pots BasketsHats KnivesHoes

Exchange and Marketing Central market middleman Pots BasketsHats Knives Hoes Five exchanges required with central market In a centralized market, a buyer can go to one location to find many different products from many different sellers. By reducing the time both buyers and sellers must spend to complete an exchange, prices can be lowered.

Satisfying Exchange Relationships Exchange The provision or transfer of goods, services, or ideas in return for something of value

The Concept of Exchange Necessary Conditions for Exchange At Least Two Parties Something of Value Communication and Delivery Freedom to Accept or Reject Desire to Deal With Other Party

Key Customer Markets  Consumer markets  Business markets  Global markets  Nonprofit/Government markets  Marketplace  Market space  Meta markets- cluster of complementary products and services

A Simple Marketing System INDUSTRY (A collection of sellers) MARKET (A collection of buyers) COMMUNICATION INFORMATION GOODS & SERVICES MONEY

Structure Of Flows In A Modern Exchange EconomyResourceMarkets ConsumerMarkets IntermediaryMarkets ManufacturerMarkets GovernmentMarkets Money Resources Money Resources Money Money Goods & Services Taxes & Goods Services & Money S&m Taxes & Goods Services Taxes S&mT&g

The marketplace isn’t what it used to be….  Changing technology  Globalization  Deregulation  Privatization  Empowerment  Customization  Convergence  Disintermediation

QUESTIONS ??????