1. Marketing Management (EG851ME) Session 1, Week 2 2 December 2012 Ashish Shrestha ashish@solutions.com.np

2. The scope of marketing: What is marketing? Marketing: 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 management: the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value

3. The scope of marketing: What is marketing? Marketing is not only selling. Marketing makes product/service fit customer & sells itself => customer ready to buy In the end, Marketing makes selling unnecessary Example: iPhone by Apple

4. Core Marketing Concept SellingMarketing Emphasis on ProductEmphasis on Consumer needs, wants Company manufacture product first and then sell it Company first determine customer needs & wants first, then decide on how to deliver a product to sa9sfy want Management is sales volume orientedManagement is profit oriented Planning is short-run oriented, in terms of today’s product & markets Planning is long-run oriented, in terms of new product & tomorrow's markets, future growth Views business as a good producing process Views business as a Consumer Satisfying process Emphasis is on staying with exis9ng technology & reducing cost Emphasis is on innovation in every sphere, on providing better value to the customer by adopting a superior technology

5. The scope of marketing: What is marketing? Satisfying “needs" and “wants” through an exchange “process” Exchange: – at least 2 parties – each has something that might be of value for the other – each is capable of communication & delivery. – each is free to accept or reject the exchange offer. – each believes it is appropriate or desirable to deal with the other party.

6. Core Marketing Concept Needs: Basic human requirements like, air, food, water, clothing, shelter. Different people have different needs some of them are as follows: – Physical needs: This types of need is related to food, clothing and shelter. – Safety needs: Under this need, people want protection from physical harm and economic threat. – Social needs: Under this need, they want love, friendship and belongingness. – Ego needs: Under this need, they want status recognition and self esteem. – Self development needs: They want knowledge, achievement and creativity. Wants: Needs become want when they are directed to specific objects that may satisfy need. Demand: they are wants for specific products backed by an ability to pay.

7. The scope of marketing: What is marketing? Transaction involves: – 2 things of value – certain conditions – time & place Transaction is not transfer (one way)

8. The scope of marketing: What is Marketed? Goods Services Ideas Information Experiences Events Persons Organizations Places Properties

9. The scope of marketing: Who markets? Marketers market to Prospects Marketers do Demand management: seek to influence the level, timing & composition of demand

10. The scope of marketing: Who markets? Eight demand states: – negative: dislike & avoid – nonexistent: unaware or uninterested – latent: strong need unsatisfied by existing product – declining: buy less frequently if not at all – irregular: purchases vary – full: buying all products put into the marketplace – overfull: customers demand is more than product availability – unwholesome: for product that may have undesirable social consequences

11. The scope of marketing: Who markets?

12. Company Orientation toward Marketplace Production concept: high production efficiency, low cost & mass distribution. Usually good developing countries Product concept: Quality, performance or innovation Selling concept: aggressive selling & more promotion efforts Marketing concept: customer-centered, "sense- and-respond”

13. New Orientation Holistic marketing concept everything matters 4 components: relationship marketing, integrated marketing (4 Ps), internal marketing, and social responsibility marketing. 4 Ps (seller) of marketing mix: Product, Price. Place, Promotion 4 Cs (customer): customer's solution, Cost, Convenience, Communication

14. A lion met a tiger, as they drank beside a pool. Said the tiger, “Tell me why You’ re roaring like a fool.” “That’s not foolish,” said the lion with a twinkle in his eyes. “They call me king of all the beasts because I advertise!” A rabbit heard them talking and ran home fast. He thought he’d try the lion’s plan, but his roar was just a squeak. A fox came to investigate and had a nice lunch of rabbit meat in the woods. Moral: when you advertise, be sure you’ve got the goods!

15. Shifts in Marketing Organizing by Product units => by Target Market/ Customer segments Making everything => buying more Goods & Service from outside Using many suppliers => working with fewer in a partnership Relying on old marketing positions ==> uncovering new ones Emphasizing tangible assets => intangible assets Building brands through advertising => through performance & integrated communications Selling to everyone => being the best firm serving well-defined target markets Focusing on profitable transactions => on customer lifetime value

16. Assignment Write-up on “The Marketing Concepts” Not more than 2,000 words. Due next session 9 December 2012, Sunday.

17. Class Discussion For 9 December 2012 Newspaper – Newspapers have been facing declining sales all over the world due to onslaught of television and now Internet in the past two decades. However, some newspapers have suffered more than others. A rare few have managed to grow in spite of difficult times. The picture seems confusing. If you have to start a new newspaper in your town, what will be the key factors that you will devote your attention to? Restaurant – Mr. Joshy has a space of 2,000 square feet at ground floor on a prime location in Kathmandu. The place is walking distance from one of the financial centres and a host of colleges. He is advised by his friends to start a restaurant in the place. He approaches a consultant for planning of the restaurant. Assume that you are the consultant. What are the issues, information, data, etc that you would devote your mind to? In other words, what questions would you like to ask and answer during the process of planning the restaurant? Casino – Mr. Joshy is politically very well connected. He feels that he can get permission from the relevant authorities for starting a casino at the above place. He asks the consultant to evaluate the marketing feasibility of a casino. Discuss the issues involved from a marketing perspective. Divide yourself in groups of 3 or 4, read the situation given, come prepared. We will have 15 minutes to discuss in group and then present.