1. Principles of Marketing
Lecture-2

2. Summary of Lecture-1

3. 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.

4. Marketing

5. Price
Product
Customers
Place
Promotion

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

7. Today’s Topics

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

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

10. 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…)

11. 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…)

12. 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..)

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

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

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

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

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

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

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

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

21. Price
Product
Customers
Place
Promotion

22. 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

23. Core Marketing Concepts

24. Exchange, transactions,
Core Concepts
This CTR corresponds to Figure 1-1 on p. 4 and relates to the discussion on pp Also to the CTRs numbers 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

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

26. Exchange, transactions,
Core Concepts
This CTR corresponds to Figure 1-1 on p. 4 and relates to the discussion on pp Also to the CTRs numbers 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

27. 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’

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

29. Exchange, transactions,
Core Concepts
This CTR corresponds to Figure 1-1 on p. 4 and relates to the discussion on pp Also to the CTRs numbers 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

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

31. 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

32. 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

33. Exchange, transactions,
Core Concepts
This CTR corresponds to Figure 1-1 on p. 4 and relates to the discussion on pp Also to the CTRs numbers 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

34. 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

35. Exchange, transactions,
Core Concepts
This CTR corresponds to Figure 1-1 on p. 4 and relates to the discussion on pp Also to the CTRs numbers 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

36. Goals of the Marketing System

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

38. 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

39. Let’s stop it here

40. Summary

41. Road Map
Understanding Marketing and Marketing Process
Core Marketing Concepts

42. Core Marketing Concepts

43. Exchange, transactions,
Core Concepts
This CTR corresponds to Figure 1-1 on p. 4 and relates to the discussion on pp Also to the CTRs numbers 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

44. Next….

45. Marketing Functions
Customer Relationship Management

46. Principles of Marketing
Lecture-2