Unit 1 introduction to marketing
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This document provides an overview of key marketing concepts including definitions of marketing, the exchange process, marketing orientations (such as production, sales, and marketing), the marketing environment, and marketing functions. It discusses frameworks like the 4Ps and different types of marketing concepts including the selling concept, marketing concept, and societal marketing concept. It also defines important terms like market segmentation, targeting, positioning, the external macro and micro environment, and different types of customer and market demands.
Unit 1 introduction to marketing
- 2. Syllabus:- Introduction, Definitions of market and marketing, The exchange process, Elements of marketing concept, Functions of marketing, Old concept or Product oriented concept, New or modern or customer oriented concept, marketing Environment, Techniques used in environment analysis, characteristics (Micro and Macro), Marketing to the 21st century customer
- 3. ‘Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably’ The Chartered Institute of Marketing
- 4. ‘Marketing is a social and managerial process by which individuals and groups obtain what they want and need through creating, offering and exchanging products of value with others’ Kotler 1991
- 5. ‘Marketing is the human activity directed at satisfying human needs and wants through an exchange process’ Kotler 1980
- 6. *There are at least two parties. *Each party has something that might be of value to the other party. *Each party is capable of communication and delivery. *Each party is free to reject the exchange offer. *Each party believes it is appropriate or desirable to deal with the other party
- 7. Goods Services Events Experiences Persons Places Properties Organizations Information Ideas
- 8. *Consumer markets *Business markets *International Markets/Global markets *Nonprofit/Government markets
- 9. *Production Orientation * --1850s -> 1930s *Sales Orientation * -- 1930s -> *Marketing Orientation * -- 1960s -> ?? *Consumer Relationship Marketing (CRM) * -- 1990s -> ?? *Societal Marketing ---2000 - ??
- 10. *Focuses on internal capabilities of firm. *“ Field of Dreams” strategy *“If we build it, they will come” *Best used when *competition is weak *demand exceeds supply *generic products competing solely on price *Problem is that they don’t understand wants/needs of marketplace.
- 11. *Consumers can be satisfied with reasonable quality and reasonable priced product *There is fair amount of competition and competing products are sold with complete knowledge of the products available in the market *The manufacturer should maintain availability of sufficient quantity of product and consistency in quality
- 12. *The interest of the consumer is virtually ignored to that of the producer *The marketing becomes either product – oriented or production oriented *The stress is not on consumption which is the ultimate objective of industry and commerce *The marketing process comes to an end as soon as the products reach the customer.
- 13. *People will buy more goods/services if aggressive sales techniques are used. *High sales will result in high profits. *Used with unsought products *life insurance *encyclopedias *Problem is that they don’t understand wants/needs of marketplace. *I can sell everything, if I know how to sell it
- 14. *Consumers generally do not waste money in buying things which are not essential or buying excess quantities than required *Consumers prefer to be motivated to buy things by use of selling efforts by organizations *Consumers appreciate good selling techniques *Consumers rating will be more for sales oriented organizations
- 15. Marketing concept The social and economic justification for an organization’s existence is the satisfaction of customer wants and needs, while meeting organizational objectives.
- 16. *Focusing on customer wants so the organization can distinguish its products from competitors’ . *Integrating all the organization’s activities, including promotion, to satisfy these wants. *Achieving long term goals for the organization by satisfying customer wants and needs legally and responsibly.
- 17. *Requires: *Top management leadership *A customer focus *Competitor intelligence *strengths *weaknesses *Interfunctional coordination to meet customer wants/needs and deliver superior values.
- 18. *Constraint to Innovation *Internal disagreement (innovative employees may express dissatisfaction) *Organizational constraint (All needs of customer cannot be satisfied) *Societal Constraints (excess restrictions) *Conflicting Objectives
- 19. *Organization exists not only to satisfy customer wants/needs and to meet organizational objectives, but also to preserve and enhance individuals’ and society’s long-term best interests. *Extends marketing concept to serve one more customer - society as a whole.
- 20. *The selling concept believes that unless organization puts efforts to create awareness and interest of the consumer in its products and makes them inclined positively to buy these products *It also believes that products and services however good in quality and affordable, may not sell on its own unless this is pushed by selling vigoursly
- 21. *Consumers generally do not spend money in buying things which are not essential or buying excess quantities than required *Consumers prefer to be motivated to buy things by use of selling efforts by organizations *Consumers appreciate good selling techniques *Consumers rating of organization is more for sales oriented organizations
- 22. Market Customer needs Integrated marketing Profits from satisfied customers The Marketing Concept Factory Product Sell and Promote it Profits through sales volume The Selling Concept Starting Point Focus Means Ends
- 23. Production/Sales Focus *Organization’s needs *Producing/Selling goods/services *Everybody *Profit through max. sales volume *Intensive promotion Marketing Focus *Customer’s needs *Satisfying customer wants/needs *Specific groups of people *Profit through customer satisfaction *Coordinated mktg. activities (4 p’s)
- 24. Orientation Key Ideas Production Focus on efficiency of internal operations – if we make it, they will buy it Sales Focus on aggressive sales techniques and believe that high sales result in high profits Marketing Focus on satisfying customer needs and wants while meeting objectives - if they will buy it, we will make it Societal Focus on satisfying customer needs and wants while enhancing individual and societal well-being. I.e.-mfg using recyclables
- 25. Definition :- Forging long-term partnerships with customers and contributing to their success is called relationship marketing. *Companies benefit from * repeat sales/referrals that lead to increases in sales, market share and profits, and *decreased costs - it’s less expensive to serve existing customers than attract new ones.
- 26. *Customers benefit from: *stable relationships with suppliers (especially in business-to- business) *greater value and satisfaction *discounts, (frequent flyer programs, shopper clubs, etc.)
- 27. *Successful relationship marketers have: *customer-oriented personnel *effective training programs *employees with authority to make decisions and solve problems * teamwork
- 28. Four Ps Product Price Place Promotion Four Cs Customer solution Customer cost Convenience Communication
- 29. Needs, wants, and demands Target markets, positioning, segmentation Offerings and brands Value and satisfaction Marketing channels Supply chain Competition Marketing environment Marketing planning
- 30. Price Promotion Place Product The Four P’s -the “arrow”
- 31. Social Natural Economic Technologic Political and Legal Competitive External Environmental Factors Helps identify market opportunities
- 32. *All the actors and forces influencing the company’s ability to transact business effectively with it’s target market
- 33. *Includes: *Microenvironment - forces close to the company that affect its ability to serve its customers. *Macroenvironment - larger societal forces that affect the whole microenvironment
- 35. Company’s Internal Environment- functional areas such as top management, finance, and manufacturing, etc. Suppliers - provide the resources needed to produce goods and services. Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers.
- 36. Customers - five types of markets that purchase a company’s goods and services. Competitors - those who serve a target market with similar products and services. Public - any group that perceives itself having an interest in a company’s ability to achieve its objectives.
- 37. Demographic - monitors population in terms of age, sex, race, occupation, location and other statistics. Economic - factors that affect consumer buying power and patterns. Natural - natural resources needed as inputs by marketers or that are affected by marketing activities.
- 38. *Monopolies legislation *Environmental protection laws *Taxation policy *Employment laws *Government policy *Legislation
- 39. *Inflation *Employment *Disposable income *Business cycles *Energy availability and cost
- 40. *Demographics *Distribution of income *Social mobility *Lifestyle changes *Consumerism *Levels of education
- 41. *New discoveries and innovations *Speed of technology transfer *Rates of obsolescence *Internet *Information technology
- 42. Technological - forces that create new product and market opportunities. Political - laws, agencies and groups that influence or limit marketing actions. Cultural - forces that affect a society’s basic values, perceptions, preferences, and behaviors
- 43. *Market Segmentation: It is the process of dividing a market into subsets of consumers with common needs or characteristics. *Market Targeting: It is the selection of one or more of the segments identified for the company to pursue. *Positioning: It refers to the development of a distinct image for the product or service in the mind of the consumer. An image that will differentiate the offering from competing ones.
- 46. *When all the departments of the company work together to serve the customers interests, the result is integrated marketing
- 47. *The Stated Needs (The customer wants an expensive car) *Real Needs (The customer wants low maintenance expenses) *Unstated Needs (the customer expects good service from the dealer) *Delighted Needs (The customer would like the dealer to include a gift) *Secret needs (The customer wants to be seen by friends as a savvy customer)
- 48. *Brand Competition *Industry Competition *Form competition *Generic competition
- 49. *Communication Channels :- newspapers, magzines, radio, television, mail, telephone, billboards, posters, fliers, CD’s, audiotapes, Internet.. *Dialogue Channels :- e-mails, toll free numbers, call centers sales, *Distribution Channels:- warehouses, transportation vehicles, distributors, wholesales, retailers
- 50. *Negative demand :- Keeping the sales away by spending some cost *Latent Demand :- Dissatisfaction about the product to unable to meet customer need *Overfull Demand :- Demand above the ability to meet the customer requirement *Unwholesome Demand:- Undesired demand by customer such as drugs, handguns, alcohol X-rated moveis
- 51. *Explain Societal Marketing *Differentiate between selling concept & marketing concept *Describe 4P’s of marketing *How Production Orientation is different from sales orientation *Discuss different orientation under which marketing companies functions *Explain functions of marketing *Explain Latent demand & overfull demand