Marketing introduction ppt
- 2. 1.1.1.1. Good Marketing is not an accident but the resultGood Marketing is not an accident but the resultGood Marketing is not an accident but the resultGood Marketing is not an accident but the result of careful planning and execution .of careful planning and execution .of careful planning and execution .of careful planning and execution . 2.2.2.2. Marketing requires the existence of two or moreMarketing requires the existence of two or moreMarketing requires the existence of two or moreMarketing requires the existence of two or more persons or groups each having certain wants, andpersons or groups each having certain wants, andpersons or groups each having certain wants, andpersons or groups each having certain wants, and also processing certain products.also processing certain products.also processing certain products.also processing certain products.also processing certain products.also processing certain products.also processing certain products.also processing certain products. 3.3.3.3. Marketing is a business function and set ofMarketing is a business function and set ofMarketing is a business function and set ofMarketing is a business function and set of processes involved in creating, delivering andprocesses involved in creating, delivering andprocesses involved in creating, delivering andprocesses involved in creating, delivering and communicating value to customers, followed bycommunicating value to customers, followed bycommunicating value to customers, followed bycommunicating value to customers, followed by managing customer relationships, resulting inmanaging customer relationships, resulting inmanaging customer relationships, resulting inmanaging customer relationships, resulting in mutual benefit for the business and itsmutual benefit for the business and itsmutual benefit for the business and itsmutual benefit for the business and its stakeholders.stakeholders.stakeholders.stakeholders.
- 3. Meaning of Market Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, andcommunicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
- 4. According to the American Marketing Association (AMA) Board of Directors, Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging DEFINITIONS OF MARKETING communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. According to Marketing is meeting the needs and wants of a consumer. Andrew CohenAndrew CohenAndrew CohenAndrew Cohen –
- 7. Marketing : Science or Art
- 8. MarketingMarketing isis part sciencepart science and partand part art. Allart. All marketingmarketing campaignscampaigns require both. Therequire both. The sciencescience leads the campaigns to understand whatleads the campaigns to understand what is going on, and theis going on, and the artart inspires its creation to deliver somethinginspires its creation to deliver something appealing born from the initial understanding of theappealing born from the initial understanding of the situationsituation Science: “ Art: "The quality, production, expression, or realm, according toArt: "The quality, production, expression, or realm, according to aesthetic principles, of what is beautiful, appealing, or of more than ordinary significance.“ Science: "A branch of knowledge or study dealing with a body of facts or truths systematically arranged and showing the operation of general laws."
- 9. To MARKETING CLASSTo MARKETING CLASSTo MARKETING CLASSTo MARKETING CLASS
- 10. CLASSIFICATION OFCLASSIFICATION OFCLASSIFICATION OFCLASSIFICATION OFCLASSIFICATION OFCLASSIFICATION OFCLASSIFICATION OFCLASSIFICATION OF MARKETMARKETMARKETMARKET
- 12. 1.Geographioc Area: (a) Local Market (b) National Market (C) International Market 2.Economic: (a) Perfect Market: (b) Monopolistic Market (C) Monopoly Market (d) Oligopoly Market 3.Volume of Business: 6.Nature of goods: (a) Commodity Market (b) Capital Market 7.Regulation: (a) Regulated Market (b) Unregulated Market 8.Nature of transaction: (a) Spot Market (b) Forward Market 3.Volume of Business: (a) Wholesale Market (b) Retail Market 4.Time: (a) Very Short Period Market (b) Short period Market (C) Long period Market 5.Importance : (a) Primary Market (b) Secondary Market (c) Terminal Market
- 13. 1.Geographic area: (a) Local Market: Local marketing also referred to as local store marketing or neighborhood marketing specifically targets the community around a physical store or restaurant. Hoping to not only attract new customers but to drive repeat business, a successful local marketing push allows a store to stake out a significant presence in local consumers’ mental maps of their communities. (b) National Market: The domestic and foreign market in a given country. That is, the national marketThe domestic and foreign market in a given country. That is, the national market describes the supply and demand for all securities that are traded in a country. Each national market is governed by the regulations of its own country. (C) International Market: As technology creates leaps in communication, transportation, and financial flows, the world continues to feel smaller and smaller. It is possible for companies and consumers to conduct business in almost any country around the world thanks to advances in international trade.
- 14. 2.Economic: (a) Perfect Market: A market in which buyers and sellers have complete information about a particular product and it is easy to compare prices of products because they are the same as each other etc. (b) Monopolistic Market: A monopolistic market is a theoretical construct that describes a market where only one company may offer products and services to the public. (C) Monopoly Market: A market structure characterized by a single seller, selling a unique product in (C) Monopoly Market: A market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute. All these factors restrict the entry of other sellers in the market. (d) Oligopoly Market: Oligopoly is a market structure with a small number of firms, none of which can keep the others from having significant influence.The concentration ratio measures the market share of the largest firms. A monopoly is one firm, a duopoly is two firms and an oligopoly is two or more firms.
- 15. 3.Volume of Business: (a) Wholesale Market: Wholesale means that a business buys goods in large quantities directly from manufacturers or distributors, warehouses them, and resells them to other businesses. Due to high-volume purchase orders, those in wholesale are typically able to buy products at a lower price and add their margins.price and add their margins. (b) Retail Market: Retail is the sale of goods and services from businesses to an end user (called a customer). Retail marketing is the process by which retailers promote awareness and interest of their goods and services in an effort to generate sales from their consumers.
- 16. 4.Time: (a) Very Short Period Market: This is when the supply of the goods is fixed, and so it cannot be changed instantaneously. Say for example the market for flowers, vegetables. Fruits etc.The price of goods will depend on demand. (b) Short period Market: When the market exists for a week or month. (C) Long period Market Long period market provides sufficient time to adjust the demand of the customers forLong period market provides sufficient time to adjust the demand of the customers for the products.The price is mainly determined on the basis of demand and supply. Very long period market is a permanent types of market because goods are produced and supplied according to the changing environment. 5.Importance : (a) Primary Market: It is the market for agricultural commodities. (b) Secondary Market: It is market for semi manufactured goods. (c) Terminal Market: It is the market in which the final products are sold to the ultimate consumers.
- 17. 6.Nature of goods: (a) Commodity Market A commodity market is a physical or virtual marketplace for buying, selling, and trading raw or primary products. (b) Capital Market: A capital market is a financial market in which long-term debt or equity-backed securities are bought and sold. Capital markets channel the wealth of savers to those who can put it to long- term productive use, such as companies or governments making long-term investments. 7.Regulation: (a) Regulated Market(a) Regulated Market A regulated market or controlled market is an idealized system where the government or other organizations oversee the market, control the forces of supply and demand, and to some extent regulate the market actions. (b) Unregulated Market: These markets operate according to demand and supply forces and are not governed by rigid rules and regulations. 8.Nature of transaction: ( a) Spot Market The spot market or cash market is a public financial market in which financial instruments or commodities are traded for immediate delivery. It contrasts with a futures market, in which
- 18. Distinction between Marketing and Selling S.No Marketing Selling 1 Selling is part of marketing Marketing is not part of selling 2 Marketing starts before production Selling starts after production 3 Marketing is concerned with buyer's needs Selling is concerned with seller's needs 4 It is a changing concept It is static 5 It is a changing the performance of several activities including selling It is concerned with just one aspect , namely, transfer of title for a price. 6 it is the starting point of all business activities It is done towards the end. 7 The philosophy of marketing is customer satisfaction Profit maximization' is the philosophy of selling
- 21. Modern Marketing Concepts: 1.Modern marketing is consumer oriented: Before a business can offer a product to consumers, they must manufacture or produce said product first.This concept is based on the philosophy of the more something is produced, the less it costs for consumers and if a business can figure out how to produce a product on a mass scale (factories), it lessens the costs for them as well. If this concept could be described in 4 words it would be: Increase profits, reduce costs.could be described in 4 words it would be: Increase profits, reduce costs. 2.Modern marketing precedes and succeeds production: No matter how high quality a production is, the consumer essentially weighs the cost, accessibility, and efficiency before deciding to purchase a product. If a business produces luxury goods that are pricey, then the number of consumers willing to, but the production will possibly below, making it a niche product.There was a feeling among many manufactures in the past that they should think of marketing only after production.
- 22. 3.Modern marketing starts and ends with the buyer: As the marketer’s aim is to satisfy the buyer, the latter becomes the starting point of all marketing activities. The product must be designed to suit the needs of the buyer .The buyer must be convinced about its price. It must be delivered to him at the right time and at the right place. 4. Modern marketing guide business: The marketing concept places the consumer as the main priority for business operations. All motivations for creating a product and creating a marketing strategy to reach potential consumers is all for meeting their wants and needs to increase their operations. All motivations for creating a product and creating a marketing strategy to reach potential consumers is all for meeting their wants and needs to increase their satisfaction. This can lead to a business being the preferred choice among its competitors due to putting the consumers’needs first. Finance is always considered to be the life-blood of business. Accordingly, every business shall proceed to acquire the necessary machinery, employ the necessary men and procure the right type of materials and then start production.
- 23. IMPORTANCE OF MARKETING • Getting Word Out • Higher Sales• Higher Sales • Company Reputation • Healthy Competition
- 24. 1. GETTING WORD OUT : • For a business to succeed, the product or service it provides must be known to potential buyers • Without marketing, your potential customers may never be aware of your business offerings and your business may not be given the opportunity to progress and succeed. 2. HIGHER SALES : • As awareness becomes a reality, it is also the point where new customers start to• As awareness becomes a reality, it is also the point where new customers start to spread the word, telling friends and family about this amazing new product they discovered • Your sales will steadily increase as the word spreads • Without employing marketing strategies, these sales may not have ever happened; without sales, a company cannot succeed 3 .COMPANY REPUTATION : • The success of a company often rests on a solid reputation. • Marketing builds brand name recognition or product recall with a company. • As your reputation grows, the business expands and sales increase.
- 25. 4.HEALTHY COMPETITION: • Without competition, well known companies would continue to sell while lesser known companies or new companies would stand little chance of ever becoming successful. • Marketing facilitates the healthy competition that allows small businesses and new businesses to be successful enter and grow in thebusinesses and new businesses to be successful enter and grow in the marketplace. 5.QUOTES ON MARKETING: • The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself - Peter Drucker • Marketing is a contest for people's attention - Seth Godin • Business has only two functions - marketing and innovation - Milan
- 26. Evolution of Marketing Concept: This marketing philosophy has undergone a thorough and gradual change since the great Industrial Revolution that took place during the latter-half of the 18th and first-half of the 19th centuries. This gradual change can be traced under four periods and captions namely, production orientation period, sales-orientation period, customer-orientation period and Management orientation period. 1.Production Orientation 2.Sales Orientation 3.Marketing Orientation 4.Customer Orientation4.Customer Orientation 5.Management Orientation 1.Production Orientation: The evolution of marketing theory starts with Production orientation is the view that the route to corporate success lies in production efficiency, getting production costs as low as possible (usually by manufacturing in very large volume) in order to reduce costs and prices.
- 27. This orientation had its beginnings at the start of the Industrial Revolution. Up until the nineteenth century, almost everything was hand-made and made to measure. Clothing was produced by tailors to almost exact measurements or was made at home, houses and vehicles were produced to customer specification, and relatively few items were standardized. Producing in this way is relatively expensive, consequently prices were high for most goods and people owned correspondingly fewer things. When machines were introduced to speed up the manufacturing process, costs dropped to perhaps one tenth of the cost of customized products, so that prices could also be cut provided enough goods could be sold.provided enough goods could be sold. The longer the production run, the lower the costs and consequently the greater the profit: customers were prepared to accept items that were not exactly meeting their needs, since prices were a fraction of what they would have had to pay for the perfect, tailor- made article. For manufacturers, the key to success was therefore ever more efficient (and low-cost) production, but at the cost of meeting individual customers’ needs.
- 28. 2. Sales Orientation: Moving on, we can identify the next stage in the evolution of marketing theory as sales orientation.This concept is based on the idea that manufacturing companies can produce far more goods than the market can accept. Sales-oriented companies assume that people do not want to buy goods, and will not do so unless they are persuaded to do so: such companies concentrate on the needs of the seller rather than the needs of the buyer. First, that customers do not really want to spend their money Second, that they must be persuaded by the use of hard-hitting sales techniques Third, that they will not mind being persuaded and will be happy for the salesperson to call again and persuade them some more. Fourth, that success comes through using aggressive promotional techniques. Sales orientation is still fairly common, especially in firms selling unsought goods such as home improvements and insurance, and often results in short-term gains. In the longer term, customers will judge the company on the quality of its products and after-sales service, and (ultimately) on value for money.
- 29. 3.Marketing Orientation: Marketing orientation means being driven by customer needs: this is sometimes also called customer orientation. Companies that are truly marketing oriented will always start with the customer’s needs, whatever the business problem. Customers can be grouped according to their different needs, and a slightly differentCustomers can be grouped according to their different needs, and a slightly different product offered to each group. This type of differentiation allows the company to provide for the needs of a larger group in total, because each target segment of the market is able to satisfy its needs through purchase of one or other of the company’s products. Their needs must be fulfilled as there are many alternatives available in the market the consumer is not dependent on any seller.
- 30. 4.Customer Orientation: A customer-oriented organization places customer satisfaction at the core of each of its business decisions. Customer orientation is defined as an approach to sales and customer-relations in which staff focus on helping customers to meet their long-term needs and wants. Here, management and employees align their individual and team objectives around satisfying and retaining customers. This contrasts, in part, with a sales orientation, which is a strategic approach where the needs and wants of the firm or salesperson are valued over the customer.
- 31. Marketing management orientations are different marketing concepts that focus on various techniques to create, produce and market products to customers. The management usually focuses on designing strategies that will build profitable relationships with target consumers. Marketing strategies are guided by philosophy Organizations use marketing orientations as a basis for their marketing campaigns.orientations as a basis for their marketing campaigns. 1. To meet customer needs more effectively. 2. To avoid strategic mistakes. 3. uncover opportunities before competitors. 4. To achieve higher customer satisfaction. 5. To implement emerging technologies in the concept of marketing orientation.