1. Introduction to Marketing www.gyanbigyan.com

2. Objectives n To develop an appreciation for the historical perspective of how markets have evolved n To appreciate both views of the evolution of marketing. n To introduce marketing as an exchange process

3. www.gyanbigyan.com n To understand the societal implications of marketing n To comprehend marketing as an organizational process n To introduce the fundamentals of marketing strategy Objectives

4. www.gyanbigyan.com Spontaneous Economic Combustion n Labor Specialization n Consumption Satiation

5. www.gyanbigyan.com The Evolution of Marketing Production Era Sales Era Marketing Era Relationship

6. www.gyanbigyan.com Orientation: Dominant time period: The Evolution of Marketing Production Era n Business philosophy focusing on manufacturing efficiency; demand exceeds supply = seller’s market n Prior to the 1920s

7. www.gyanbigyan.com Orientation: Dominant time period: Sales Era n Business philosophy focusing on selling existing products; supply exceeds demand = buyer’s market n Prior to the 1950s The Evolution of Marketing

8. www.gyanbigyan.com Orientation: Dominant time period: Marketing Era n Business philosophy focusing on consumer wants and needs; any supply/demand situation n Last half of 20th century The Evolution of Marketing

9. www.gyanbigyan.com Orientation: Dominant time period: Relationship Marketing Era n Business philosophy focusing on reinforcing the customer-oriented focus of the marketing era n Last decade of 20th century The Evolution of Marketing

10. www.gyanbigyan.com AMA Definition of Marketing n Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that will satisfy individual and organizational objectives

11. www.gyanbigyan.com Broader Definition of Marketing The definition of marketing includes the non- profit sector of society (homeless shelter)

12. www.gyanbigyan.com Broader Definition of Marketing Hal Riney and Partners Oakland Museum

13. www.gyanbigyan.com Broader Definition of Marketing The definition of marketing includes the non- profit sector of society (U.S. Army)

14. www.gyanbigyan.com Broader Definition of Marketing The Martin Agency Drug Free America

15. www.gyanbigyan.com Broader Definition of Marketing The definition of marketing includes the non- profit sector of society (societal cause)

16. www.gyanbigyan.com Broader Definition of Marketing The definition of marketing includes the non- profit sector of society (forest protection)

17. www.gyanbigyan.com Exchange Process Process by which one or more parties give something of value to each other to satisfy perceived needs

18. www.gyanbigyan.com Exchanges Learning Environment TuitionTuition Promised Action VotesVotes

19. www.gyanbigyan.com Exchanges FeeFee ConsultingConsulting Products/servicesProducts/services MoneyMoney

20. www.gyanbigyan.com Exchanges Producer Wholesaler Retailer Consumer

21. www.gyanbigyan.com Activities of Marketing

22. www.gyanbigyan.com Activities of Marketing ExchangeExchange n Buying - seeking and evaluating alternatives n Selling - promotion of alternatives to consumers

23. www.gyanbigyan.com Activities of Marketing

24. www.gyanbigyan.com Activities of Marketing LogisticalLogistical n Transporting - movement of goods and services n Storing - holding of goods and services

25. www.gyanbigyan.com Activities of Marketing

26. www.gyanbigyan.com Activities of Marketing FacilitatingFacilitating n Financing - facilitating exchange n Risk-taking - holding title n Providing information - understanding markets (consumer and industrial) n Standardizing and grading - sorting by size and quality

27. www.gyanbigyan.com The Marketing Concept n Customer orientation n Coordinated effort by all departments of the firm to satisfy customers n Emphasis on long term profit

28. www.gyanbigyan.com Strategic Marketing Concept Corporate mission is to seek n Sustainable competitive advantage n Meet customer needs

29. www.gyanbigyan.com Societal Marketing Concept n Adoption of Marketing Concept n Considering the needs of society as a whole n Environment n Health n Safety

30. www.gyanbigyan.com Marketing Myopia n Short sightedness by business firms causing management to define their business too narrowly

31. www.gyanbigyan.com Marketing Myopia Examples Myopic Description: n Railroad company n Electricity company n Television network Broad Description: n Transportation company n Power company n Entertainment provider

32. www.gyanbigyan.com The Marketing Mix Variables Product Distribution PromotionPrice TargetMarket

33. www.gyanbigyan.com The Marketing Mix Variables Target Market Group(s) of potential customers toward which a firm directs its marketing mix(es)

34. www.gyanbigyan.com The Marketing Mix Variables Product Strategy n Identifying consumer needs and wants n New product development n Designing the product n Branding n Packaging

35. www.gyanbigyan.com The Marketing Mix Variables Distribution Strategy n Physical distribution n Channel management

36. www.gyanbigyan.com The Marketing Mix Variables Pricing Strategy n Pricing objectives n Price determination n Pricing policies

37. www.gyanbigyan.com The Marketing Mix Variables Promotion Strategy n Advertising n Personal selling n Sales promotion n POP, sponsorships, PR

38. www.gyanbigyan.com The Marketing Environment n n Microenvironment n n Objectives and resources n Macroenvironment n Competitive environment n Legal/political environment n Socio-cultural environment n Economic environment n Technological environment

39. www.gyanbigyan.com Environmental Scanning n Identification of important trends n Analysis of impact on the firm

40. www.gyanbigyan.com Separations Between Producers and Consumers Separations naturally exist between producers and consumers, buyers and sellers, and any other parties who enter into exchanges

41. www.gyanbigyan.com n Producers and consumers are generally separated by space or geography Separations Between Producers and Consumers Spatial Separation

42. www.gyanbigyan.com Functions Of Advertising Hal Riney and Partners Henry Weinhard

43. www.gyanbigyan.com n Producers and consumers want to produce and consume at different times. Sales of skis generally occur during the winter but producers want to manufacture them all year Separations Between Producers and Consumers Temporal Separation

44. www.gyanbigyan.com n Producers may lack information about the whereabouts of consumers and consumers may lack information about the producer’s offerings Separations Between Producers and Consumers Perceptual Separation

45. www.gyanbigyan.com n There is a separation between producers and consumers in reference to title. Producers pass (exchange) title of product/services for title to the money the consumer holds Separations Between Producers and Consumers Ownership Separation

46. www.gyanbigyan.com n There is a separation between producers and consumers because producers value the costs and prices of their products while consumers value the utility of the product Separations Between Producers and Consumers Values Separation

47. www.gyanbigyan.com Four Types of Utility UtilityUtility

48. www.gyanbigyan.com n Transformation of raw materials and/or labor into a finished good and/or service that the consumer desires Four Types of Utility Form Utility

49. www.gyanbigyan.com Four Types of Utility Form Utility The Martin Agency Ping

50. www.gyanbigyan.com n Transformation of raw materials and/or labor into a finished good and/or service that the consumer desires Four Types of Utility Form Utility

51. www.gyanbigyan.com Four Types of Utility UtilityUtility

52. www.gyanbigyan.com n Availability of a good and/or service where the consumer wants or needs it Four Types of Utility Place Utility

53. www.gyanbigyan.com n Availability of a good and/or service where the consumer wants or needs it Four Types of Utility Place Utility

54. www.gyanbigyan.com n Availability of a good and/or service where the consumer wants or needs it Four Types of Utility Place Utility

55. www.gyanbigyan.com Four Types of Utility UtilityUtility

56. www.gyanbigyan.com n Transferring title of a good and/or service from producer to consumer Four Types of Utility Ownership Utility

57. www.gyanbigyan.com Four Types of Utility UtilityUtility

58. www.gyanbigyan.com n Availability of a good and/or service when consumer wants/needs it Four Types of Utility Time Utility

59. www.gyanbigyan.com n Availability of a good and/or service when consumer wants/needs it Four Types of Utility Time Utility

60. www.gyanbigyan.com Separations/Functions/Utility

61. www.gyanbigyan.com Separations/Functions/Utility

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