![11. Precedes and follows production
15
Identifying
consumer needs
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a marketing
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Production
activities takes
place
Marketing
precedes
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Marketing helps in the distribution of
the goods which follows production
Hence,
production
and marketing
activities are
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to each other](https://image.slidesharecdn.com/marketingintroduction-201208181528/85/Marketing-introduction-15-320.jpg)
Marketing introduction
- 1. MARKETING Ms. ARATHI M Assistant Professor Department of Economics Ethiraj College for Women
- 2. CONTENT 2 ❏ Features of Marketing ❏ Objectives of Marketing ❏ Importance of Marketing ❏ Difference between selling and marketing
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- 5. 5 1. Customer focus The marketing function of a business is customer-centred. Marketing- Studies the customer needs, and goods are produced accordingly. The existence of business depends on human needs.. In a competitive market, the goods that are best suited to the customer are the ones that are well-accepted. Every activity of a business is customer-oriented.
- 6. 2. Customer satisfaction 6 A customer expects some services or benefits from the product for which payment is made. If this benefit is more than the amount paid to purchase a product, then the customer is satisfied. In the long run, customer satisfaction helps to retain market demand for the particular product. It helps achieve business objectives. Customer satisfaction can be enhanced by providing value-added services, which includes providing additional facilities no cost or less cost.
- 7. 3. Objective-oriented 7 Different objectives are fixed at different levels in the organisation, but the main objective is to earn profit along with the satisfaction of human wants. Marketing activities undertaken by sellers make an attempt to find out the weaknesses in the existing system, and measures are taken to improve the shortfalls so that the objectives are achieved. All marketing activities are objective- oriented.
- 8. 4. Marketing is both art and science 8 A specific skill that is required in marketing of any type of business activity is Art. The concept of marketing includes a bunch of social sciences such as economics, sociology, psychology and law. It indicates market operations based on some principles. Science refers to a systematic body of knowledge, based on facts and principles. Marketing is an art as well as a science.
- 9. 5. Continuous and regular activity 9 Marketing is an activity designed to plan, fix the price, promote and distribute the products to the consumer or users. At the same time, it also addresses both the current and future consumers. Thus, it is a continuous process. A marketer has to consistently monitor environment. This helps in coming up with new products.
- 10. 6. Exchange process 10 Marketing involves exchange of goods, services and ideas with money as a medium. Exchange takes place between buyers and sellers. Most of marketing activities are mainly concerned with the exchange of goods. Exchange functions such as distribution, after-sale services and packaging help in the exchange process. In the exchange process the channels of distribution and physical distribution play an important role by creating place utility.
- 11. 7. Marketing environment 11 Such as Economic policies, market conditions, and environmental factors, such as political, technological, demographic and international, influence marketing activities. A successful marketer needs to adapt to these changing factors and adjust the marketing strategies which suit the new market developments to earn profit.
- 12. 8. Marketing mix 12 A combination of four inputs constitutes the core of a company’s marketing system namely— product, price, place, and promotion. Marketing mix is a flexible combination of variables. Marketing mix are influenced by consumer behavior, trade factors, competition and government regulatory measures.
- 13. 9. Integrated approach 13 Organizational functions such as production, finance, operations, research, purchasing, storekeeping, customer services and public relations (PR) are to be integrated with marketing activity. The marketing activities must be co- ordinated with other functional areas of an organization. With this integrated development it will help the marketer in achieving organizational objectives. Otherwise, it will result in organizational conflicts.
- 14. 10. Commercial and non-commercial organizations 14 With the concept of societal marketing which gains importance, and social marketers are finding useful new ways of applying marketing principles. Commercial organizations are also adopting cause-related marketing to maintain a long-term relations with consumers. Marketing is also applicable in business organizations such as educational institutions, hospitals, religious institutions and charitable trusts etc.,.Thus, business and non- business organizations both are applying marketing principles into their business.
- 15. 11. Precedes and follows production 15 Identifying consumer needs and wants [aim of a marketing manager] Production activities takes place Marketing precedes production Marketing helps in the distribution of the goods which follows production Hence, production and marketing activities are closely related to each other
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- 18. 18 1. Creation of Demand The marketing management’s first objective is to create demand through various means namely marketing. Marketer should have a perfect knowledge in finding out the preferences and tastes of the consumers. Goods and services are produced to satisfy the customer needs. Demand is also created by informing the customers the utility of various goods and services through the way of marketing.
- 19. 19 2. Customer Satisfaction The marketing manager must analyse the demands of customers before offering them any goods or services. Selling the goods or services is not that important as much as to satisfy the customers’ needs. Modern marketing is customer- oriented. It begins and ends with the customer. Customer is the king.
- 20. 20 3. Market Share Every business aims at increasing its market share in the economy. Example: Pepsi and Coke both compete with each other to increase their market share by adopting innovative method like advertising, packaging, sales promotion activities, etc. to increase the total sales in the economy at a global level.
- 21. 21 4. Generation of Profits The marketing department is the only department in the organization which generates revenue for the business. Sufficient profits must be earned as a result of sale of a product which satisfies the customer wants. If the product does not satisfy the customer needs the firm will not earn profit and it will not be able to survive in the market. Mainly profits are also needed for the growth and for the expansion of the firm.
- 22. 22 5.Creation of Goodwill and Public Image The another main objective of marketing is to build up the public image of a firm over a period of time. The marketing department provides quality products to customers or users at affordable prices and thus creates its impact on the customers. The marketing manager seek to raise the goodwill of the business by initiating image such a sales promotion, publicity and advertisement, high quality, affordable price, convenient distribution outlets, customer service etc..
- 24. IMPORTANCE OF MARKETING 24 1) Connecting the link between the consumer and the producer. Marketing process brings new items to retail shops, from where the consumers can buy. 2) It helps in Increasing the Living Standard of People- because of mass production, costs of production and marketing cost may decrease. This facilitates in fixing less prices and create a boon to the society. Thus reduction of prices will increase the standard of living in the society.
- 25. 25 3) It helps to increase National Income- Efficient system of marketing reduces the cost to the minimum; this is turn lowers the prices and the consumers purchasing power increases. This increases national income in a country. 4) Marketing process increases employment opportunities. For continuous production, continuous marketing is needed. Continuous marketing invites numerous activities and job opportunities are provided to many people. 5) It creates modern cultivators- Thus the farmers get continous demand and their livelihood is sustained.
- 26. 26 6) It removes the imbalances of supply by transferring the surplus to deficit area, through better transport facilities. 7) It helps to maintain Economic Stability and Rapid Development- If production is more than the demand, the excess goods can be sold at acceptable prices, thus resulting a fall in prices, and depression creeps in. Similarly, if production is less than demand, prices shoot up, resulting in inflation. In such situations, marketing maintain the economic stability by balancing the two aspects-production and consumption. 8) Marketing includes all activities in the creation utilities- Form, Place, Time, and Possession.
- 27. IMPORTANCE OF MARKETING TO THE INDIVIDUAL FIRMS 27 1) Marketing department generates revenue to the firm-A firm fulfills its aim only through marketing. Development of Market is possible from local to world market. When markets are widened, sales increases, and thus profit increases. 2) Market section of the firm is the source of information to the top management for taking overall decisions in production. The information is the basis on which decisions will be taken by the management.
- 28. 28 3) Marketing and innovations are two basis functions of all business. Change in business on the basis of requirements of customers--new products, new methods etc. is more important than running a business more efficiently. In order to run a business successfully one should adapt to changing preferences, changing style, changing fashions etc. The marketer informs the retailers, retailers inform wholesalers, and they in turn inform manufacturers of the product. 4) Marketing facilitates the development of business and creates employment opportunities for people.
- 29. SELLING 29 Selling is an action which coverts the product of the firm into cash. Selling is the modern version of Exchange under the barter system. Selling consists all those personal and impersonal activities involved in finding, securing and developing a demand for a given product or service. In the words of William J. Stanton Selling is informing and persuading a market about a product or service. It is a function of promotion.
- 30. 30 SELLING MARKETING Emphasises on the product. Emphasises on customer’s wants. Sales are the primary motive. Satisfaction of the customer is primary motive First production, then selling take place at a profit without knowing customer’s needs. First customer’s need is known and then production takes place; then the product is sold at profit. Internal, company orientation. External, market orientation. Company’s need is the motive. Buyer’s need is the motive. Difference between selling and Marketing
- 31. THANKS! 31
Editor's Notes
- #27: 1. Form Utility: This utility is created by changing the form or shape of the materials. For example—A cabinet turned out from steel furniture made of wood and so on. Basically, from utility is created by the manufacturing of goods. 2. Place Utility: This utility is created by transporting goods from one place to another. Thus, in marketing goods from the factory to the market place, place utility is created. Similarly, when food-grains are shifted from farms to the city market by the grain merchants, place utility is created. Transport services are basically involved in the creation of place utility. 3. Time Utility: Storing, hoarding and preserving certain goods over a period of time may lead to the creation of time utility for such goods e.g., by hoarding or storing food-grains at the time of a bumper harvest and releasing their stocks for sale at the time of scarcity, traders derive the advantage of time utility and thereby fetch higher prices for food-grains. Utility of a commodity is always more at the time of scarcity. Trading essentially involves the creation of time utility. 4) Possession Utility Possession utility is the value customers have while buying a product and they have the choice to use the product for the purpose it was made for or finding a new way to use the product.