Introduction of marketing management
- 1. 1 Chapter 1
- 2. Introduction of Marketing By- Anjali Sharma Business Administration 2
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- 5. 5 What is Marketing? Marketing is “Meeting needs Profitably.” Marketing is the delivery of customer satisfaction at a profit. Marketing is the performance of business activities that direct the flow of goods and services from the producer to the consumer.
- 6. Definition of Marketing According to American Marketing Association, “Marketing is an organisational function and a set of processes for creating, communicating & delivering value to the customers and for managing customers relationships in way that benefit the organisation and its stakeholders.” 6
- 7. Marketing Defined Marketing is the activity, set of instructions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. 7 Making a sale— “telling and selling” Satisfying customer needs
- 8. Features of Marketing Marketing is:- Business Activity Total System Managerial Activity Four P’s Subject Matter- Products, Services and Ideas Customer want satisfaction Goal of Marketing Operation is (Present customer + Prospective customer) Universal in nature An Art 8
- 9. Cont.… Creation of Utilities Ongoing or Dynamic process Matching Process Integrated Process Encompasses all activities of exchange Continuous process Process of Planning & Executing Not Selling Viewpoint 9
- 10. Marketing’s task: satisfying consumer needs 10
- 11. 11 Simple Marketing System Industry (a collection of sellers) Market (a collection of Buyers) Goods/services Money Communication Information
- 12. 12 The Goal of Marketing is: To attract new customer by promising superior value. Keep current customers by delivering satisfaction.
- 13. Why is Marketing Important? Shifting Business Paradigms 13 Sellers’ markets Buyers’ markets
- 14. Core Concepts of Marketing 14 Needs, Wants & Demands Products & Services Value & Satisfac- tion Exchange & Transac- tion Markets
- 15. Needs, Wants, and Demands Need: State of felt deprivation including physical, social, and individual needs. Physical needs: Food, clothing, shelter, safety Social needs: Belonging, affection Individual needs: Learning, knowledge, self- expression Want: Form that a human need takes, as shaped by culture and individual personality. Wants + Buying Power = Demand 15
- 16. Need – food ( is a must ) Want – Pizza, Burger, French fry's (translation of a need as per our experience ) Demand – Burger ( translation of a want as per our willingness and ability to buy ) Desire – Have a Burger in a five star hotel 16
- 17. Products & Services Product: Anything that can be offered to a market to satisfy a need or want. The concept of product is not limited to physical objects – anything capable of satisfying a need can be called a product. Services: In addition to tangible goods, products also include services, which are activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything. 17
- 18. Values, Satisfaction & Quality Customer value: Difference between the values that the customer gains from owning and using a product versus the costs of obtaining the product. • Customer satisfaction: The extent to which a product’s perceived performance in delivering value matches a buyer’s expectations. • Quality: the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs. 18
- 19. Exchange, Transactions, and Relationships Exchange : The act of obtaining a desired object from someone by offering something in return Transaction : 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. Relationship marketing : The process of creating, maintaining, and enhancing strong, value – laden relationships with customers and other stakeholders 19
- 20. What is Marketed ? (Needs & wants are fulfilled through a Marketing Offering): 20 Ideas Services Organisations Experiences Places Information Events Properties Persons Products
- 21. Goods Major things or entities. It include like food, cars, refrigerators, television sets, machines etc. 21
- 22. Services Activities, benefits & satisfaction. It include Healthcare, Airlines, Hotels, Barbers, Beauticians, Transport, Professionals and Etc. 22
- 23. Events Launching a new product or conducting Companies Function. It include major trade shows, artistic performances, companies anniversaries etc. 23
- 24. Experiences Also called Experiential marketing. Like Disney World, Haunted house etc. 24
- 25. Persons Celebrity marketing. Business firm engage a famous film star or Personality for the publicity or brand ambassador for its product. 25
- 26. Places It include country, states, regions, cities etc. It attract Tourists, Factories, Company Headquarters and new Residents. 26
- 27. Properties Intangible rights of ownership of either real property or financial property. Real property- Real estate Financial property- Stocks & Bonds 27
- 28. Organizations These are engaged in building a strong, favorable, image in the mind of the customers & spend a lot of money on Corporate Identity Advertisements. For example, Reliance Industries Ltd. It may include universities, museums, non profit organizations etc. 28
- 29. Information Famous Colleges, Universities & Schools provide information in their Prospectus, on the basis of these information students decide in which school or college they should take admission. 29
- 30. Ideas LIC of India sale its Idea in the following form: “Jindgi ke sath bhi, Jindgi ke baad bhi”. Such Idea helps to the LIC in the marketing of his products & services. 30
- 31. Marketing Mix 31
- 32. 32 The 4 Ps & 4Cs Marketing Mix Product Price Promotion Place Customer’s Need Customer’s Cost Communication Convenience What to Sell ? At what Price ? Where to sell ? What to communicate?
- 33. Difference between Selling & Marketing 33 Point Selling Marketing Emphasis Product Customer’s Want Start with the Seller Buyer First makes/ determine Product Consumer's Want Views business as a Goods producing process Customer satisfying process Approach Push approach Pull approach
- 34. 34 Point Selling Marketing Centre Seller Buyer Management Sales-volume-oriented Customer satisfaction oriented Pre-occupied with Seller’s need Consumer’s need Planning Short-run-oriented Long run oriented Stressed Needs of Seller Needs of Buyer Customer is Last link in the business Core of the business Emphasis Saleable surplus Needs of Customer Exchange activity Without Value Satisfaction With the Value Satisfaction Who determine the Price Cost Customer Focus on Somehow selling Integrated Selling
- 35. Marketing Concept versus Selling Concept 35 Starting Point Focus Means Ends The Marketing Concept The Selling Concept Market Consumer need Integrated Marketing Profit through consumer satisfaction Factory Product Sell & Promote it Profit through sales volume
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- 37. 37 The philosophy that consumers will favor products that are available and highly affordable and that management should therefore focus on improving production and distribution efficiency. Production Concept
- 38. Product Concept 38 The philosophy that consumers will favour products that offer the most quality, performance, and innovative features.
- 39. Selling Concept 39 The idea that consumers will not buy enough of the organization’s products unless the organization undertakes a large – scale selling and promotion effort.
- 40. Marketing Concept 40 The marketing management philosophy that holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do.
- 41. Societal Marketing Concept 41 The idea that the organization should determine the needs, wants, and interests of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer’s and society’s well – being.
- 42. Three Considerations Underlying The Societal Marketing 42 Societal marketing concept Society (Human welfare) Company (Profits) Consumers (Want satisfaction)
- 43. 43 Markets A market is a collection of buyers & sellers to buy. The set of all actual and potential buyers of a product or service. A simple marketing system Industry (a collection of sellers) Market (a collection of buyers) Communication Products / Services Money Information
- 44. Assignment “Marketing is everywhere” How ? What do you mean by marketing and elaborate the importance of marketing ? Explain the entities of marketing which are marketed ? What do you mean by marketing mix and Explain the concept of 4 p’s. Categories the different concepts of marketing in chart form. Whai is the difference between selling and marketing concept ? 44
- 45. Assignment Create a list of 10 new products with concepts and Tag lines. Identify the difference between 2 or more Advertisement of same product. 45