Unit 1.pptx Marketing Managment- Nature, Scope, Function
- 2. Marketing- Defination • American Marketing association(AMA), • Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. • According to Phillip Kotler • “Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.”
- 3. Characteristics of Marketing 1. Marketing is an Integrated Process: Marketing is not a single activity. 2. Marketing is customer oriented 3. Marketing is Creative 4. Marketing is Goal –oriented 5. Marketing is Pervasive 6. Know Your Market 7. Know Your Customers
- 4. Nature & Scope of Marketing • Creates Awareness • Study consumer’s want • Product Planning • After Sale Service • Pricing Policies • Distribution • Selling • Packaging • Advertising • Collects Feedback
- 5. Objectives of Marketing • Creating New Customers • Satisfying the Needs of Customers • Enhancing the Profitability of the Business • Raising the standard of Living of the People • Determining the Marketing Mix
- 6. Features of Marketing • Marketing is a part of the total Environment: • Marketing is Consumer-oriented: • Marketing is a Specialized Business Function: • Marketing as a Discipline: • Marketing is a System: • Marketing is a Social Function: • Marketing Starts and Ends with the Consumer: • Marketing creates mutual relationships
- 7. Function of Marketing • Identify needs of the consumer • Planning • Product Development • Packing and Labelling • Branding • Customer Service • Pricing • Promotion • Distribution • Transportation • Warehousing
- 8. Types of Market • Consumer Markets. This market type means the marketing of consumer goods and services for personal and family consumption. Consumer market examples are • Fast moving consumer goods are ready to cock meals and newspaper, magazines etc., • consumer durables goods are fridge, televisions, personal computers etc., • soft goods are shoes and clothes and • services include hoteling, hairdressing, schools and colleges etc. • Industrial Markets. The industrial market involves business to business sales of goods and services. These marketers do not target consumer markets. Some examples of the industrial market include • Finish goods like office furniture, • Selling raw materials for businesses i.e. gasses and chemicals • Offering services to businesses2business for example security agencies, auditing and legal services etc.
- 9. • Global markets occur when sales are made across country borders, cultures, languages, and lifestyles. This includes goods and services that utilise globally sourced production elements; many products have some aspect that was affected in some way by the global market. • Government markets are characterised by the vast public utility they provide, often without any direct cost of use. These products can be experienced nearly anywhere you go, whether it's the construction and maintenance of the road you travel on or the protection you experience provided by public safety enforcement. • Institutional markets involve buying goods and services to use within their own production of goods and services. These markets tend to experience inelastic demand for providing services such as healthcare, education, and prisons.
- 10. Core Concepts of Marketing
- 11. Core Concepts of Marketing • 1. Needs: • A need is the state of mind that reflects the lack-ness and restlessness situation. Marketing tries to satisfy needs of consumers. • 2. Wants: • Wants are the options to satisfy a specific need. They are desire for specific satisfiers to meet specific need. • 3. Demand: • Demand is the want for specific products that are backed by the ability and willingness (may be readiness) to buy them. • 4. Product: • Product can also be referred as a bundle of satisfaction.
- 12. • 5. Utility (value), Cost, and Satisfaction: • Utility means overall capacity of product to satisfy need and want. • Cost means the price of product. • Satisfaction means fulfillment of needs. • 6. Exchange, Transaction, and Transfer: • Exchange is an act of obtaining a desired product from someone by offering something in return. • Transaction is the decision arrived or commitment made. • For example, Mr. X pays Rs. 25000 and obtains a computer. There are various types of transactions, such as barter transactions, monetary transactions • Transfer the ownership
- 13. • 7. Relationships and Network: • Relationship marketing is the practice of building long-term profitable or satisfying relations with key parties like customers, suppliers, distributors, and others in order to retain their long-term preference in business. • Network is the ultimate outcome of relationship marketing. A marketing network consists of the company and its supporting stakeholders – customers, employees, suppliers, distributors. It is a permanent setup of relations with stakeholders. A good network of relationships with key stakeholders results into excelling the marketing performance over time.
- 14. 8. Market, Marketing, Marketer, and Prospect: A market consists of all potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy this need or want. Marketing is social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging product and value with others. Marketer is one who seeks one or more prospects (buyers) to engage in an exchange. Prospect is someone to whom the marketer identifies as potentially willing and able to engage in the exchange.
- 15. 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 social orientation period.
- 19. Difference Between Industrial Marketing and Consumer Marketing
- 20. Marketing Environment • A company's marketing environment includes every element that may affect its ability to connect with its customers. This can include internal elements such as resources, equipment and a company's corporate structure. It can also include external components like existing customers, delivery platforms and top competitors. Both internal and external conditions can affect how a customer responds to a business and determine how a business might grow.
- 21. Significance of Marketing Environment • Identify opportunities • Identify threats • Manage changes
- 22. Features of A Marketing Environment • The features of a marketing environment are typically: • Dynamic: The factors that affect marketing environments constantly change over time. These could be technological advancements, industry regulations, or even customer tastes. • Relative: Marketing environments are relative and unique to each organization. A specific product from your company may sell quicker in the U.S. than in Europe because of distinctions in the marketing environment. • Uncertain: Market forces are unpredictable. Even with constant study, you may face unexpected threats or opportunities in your marketing operations. Adept marketers must be able to learn, pivot, and strategize quickly to achieve their goals. • Complex: The many internal and external forces in a marketing environment make it complex, with various essential moving parts. For example, you must coordinate your team’s ability and resources with Stakeholder expectations, customer satisfaction, and other ethical and environmental concerns.
- 23. Importance of marketing environment • 1. To learn about your competitors • 2. To learn about your customers • 3. Necessary for future planning • 4. To make most out of the latest trends • 5. To learn about all the threats and opportunities related to business
- 24. Types of marketing environments
- 25. Internal Marketing Environment • An internal marketing environment consists of factors that fall within your control and impact your marketing operations, including your organization's strengths, weaknesses, uniqueness, and competencies. • Internal marketing environment factors are controllable.
- 26. External Marketing Environment • The external marketing environment includes all factors that do not fall within your organization's control, including technological advancements, regulatory changes, social, economic, and competitive forces. • These factors may be controllable or uncontrollable, but defining and studying their changes and trends gives your business and marketing team some power to stay the course. The external marketing environment can be broadly categorized into micro and macro marketing environments.
- 27. • microenvironment in marketing • The microenvironment in marketing is closely linked to your business and directly affects marketing operations. It includes factors like customers, suppliers, business partners, vendors, and even competitors. Microenvironment factors are controllable to some extent. • macro marketing environment • Your macro marketing environment is made up of all the factors beyond the control of your organization. An easy way to remember these factors is by using the PESTLE acronym, which stands for: • P: Political factors • E: Economic factors • S: Social and demographic factors • T: Technological advancement factors • L: Legal and regulatory factors • E: Environmental factors • These factors are uncontrollable and can impact your business and marketing operations to a significant extent. Political changes, for example, may have a massive effect on how you can market and conduct your business in certain regions.
- 28. Elements Of A Microenvironment In Marketing • 1. Suppliers • 2. Distributors and resellers • 3. Customers • 4. Partners • 5. Competitors • 6. Public
- 29. Elements of a Macroenvironment In Marketing • 1. Demographic environment • 2. Economic environment • 3. Natural environment • 4. Technological environment • 5. Political environment • 6. Social environment • 7. Cultural environment
- 30. Environmental Scanning Environmental scanning is a constant and careful analysis of the internal and external environment of an organization in order to detect opportunities, threats, trends, important lessons, and weaknesses which can impact the current and future strategies of the organization. Environmental scanning is a process of gathering information about the events and their relationship with the internal and external environment of the organization.
- 31. Characteristics of Environmental Scanning The characteristics of environmental scanning are as follows: 1.Continuous Process- The analysis of the environment is a continuous process rather than being sporadic. The rapidly changing environment has to be captured continuously to be on track. 2.Exploratory Process- Scanning is an exploratory process that keeps monitoring the environment to bring out the possibilities and unknown dimensions of the future. It stresses the fact that “What could happen” and not ”What will happen”. 3.Dynamic Process- Environmental scanning is not static. It is a dynamic process and depends on changing situations. 4.Holistic View- Environmental Scanning focuses on the complete view of the environment rather than viewing it partially.
- 32. Importance of Environmental Scanning • Goal Accomplishment: The objectives of an organization cannot be fulfilled unless it adapts itself to environmental changes. One has to adjust the strategies to fit in the changing demands of the environment. • Threats and Weakness Identification: For an organization to grow, it must minimize its threats and identify its weaknesses. This is made possible with the help of environmental scanning with which better strategies can be developed.tz • Future Forecast: Environmental changes are often unpredictable. An organization cannot anticipate all the future events but based on the analysis, it can make better strategic decisions in the future. Hence, environmental analysis helps to forecast the prospects of the business. • Market Knowledge: Every organization must be aware of the ongoing changes in the market. If it fails to incorporate strategic changes due to changing demands, it will not be able to achieve its objectives. • Focus on the Customer: Environmental scanning and analysis make an organization sensitive to the changing needs and expectations of the customer. • Opportunities Identification: With the analysis of the current environment, an organization will be able to identify the possible opportunities and take necessary steps.
- 33. Techniques of Environmental Scanning • SWOT Analysis- SWOT analysis is an acronym for Strengths, Weaknesses, opportunities and threats analysis of the environment. Strengths and weaknesses are considered as internal factors whereas opportunities and threats are external factors. These factors determine the course of action to ensure the growth of the business. • PEST Analysis- PEST stands for Political, economic, social, and technological analysis of the environment. It deals with the external macro-environment. • ETOP- ETOP stands for the Environmental Threat Opportunity Profile. It helps an organization to analyze the impact of the environment based on threats and opportunities. • QUEST- QUEST stands for the Quick Environmental Scanning Technique. This technique is designed to analyze the environment quickly and inexpensively so that businesses can focus on critical issues that have to be addressed in a short span.