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An Introduction to Marketing

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Course Contents

• Nature and Scope of Marketing:• Understanding Marketing Concept & Marketing

Management• Core Concepts of marketing• Evolution of Marketing• Marketing Mix• P’s of Marketing

What is Marketing?

All of the above, plus much more!

Personal Selling?

Advertising?

Making products available in stores?

Maintaining inventories?

Marketing Defined

A Philosophy

An Attitude

A Perspective

A Management Orientation

A Set of Activities, including:

Products

Pricing

Promotion

Distribution

Understanding marketing

• Marketing ,more than any other business function, deals with customers.

• Simply put, Marketing is managing profitable customer relationships.

• Most of the highly successful companies know that if they take care of the customers, market share and profits will follow like Wall Mart, Nokia, Dell, McDonald.

Marketing defined

• A social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others

Core Marketing concepts

• Need: A state of felt deprivation of some generic satisfaction arising out of the human condition. E.g food, clothing and shelter.

• Wants: Desires for specific satisfiers of these ultimate needs. The form human needs take as they are shaped by culture and individual personality. A person needs food but wants a pizza.

• Demand: Human wants that are backed by purchasing power.

• Product: Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

• Service: Any activity or benefit that one party can offer to another that is essentially intangible and does not result in ownership of anything.

Customer Value

The ratio of benefits to the

sacrifice necessary to obtain

those benefits

Needs and Wants can be satisfied through

• Self-Production

• Coercion

• Supplication

• Exchange (Marketing Exists)

The Concept of Exchange

Desire to Deal With Other PartyDesire to Deal

With Other Party

Freedom to Accept or Reject

Freedom to Accept or Reject

Something of Value

Something of Value

Ability to Communicate

Offer

Ability to Communicate

Offer

At Least Two Parties

At Least Two Parties

Necessary Conditions

for Exchange

Necessary Conditions

for Exchange

• There must be at least two parties and each party…

• Must have something the other party values

• Must communicate and deliver goods

• Must be free to accept or reject offer

• Must want to deal with other party

Conditions for Exchange

Definition of Marketing

• It is a human activity directed at satisfying needs and wants through exchange products.

• It 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.

• Simply put: Marketing is the delivery of customer satisfaction at a profit.

American Marketing Association

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.

Marketing Management

Can you name the four marketing management philosophies?

Stages in the Evolution of MarketingProduction

Orientation

Late 1800’s Industrial Revolution

Mass production

Available & affordable

Sales

Orientation

Early 1930’s Great Depression

Problem not to produce but to sell

High promotional activity

Marketing Orientation

Mid 1950’s End of World War II

Huge pent up demand

More demanding customers

Societal Orientation

1990’s Concern towards society and consumer

CompetingCompetingPhilosophiesPhilosophiesCompetingCompeting

PhilosophiesPhilosophies

ProductionProduction

SalesSales

MarketMarket

Societal MarketingSocietal Marketing

Marketing Management Philosophies

Marketing Management Philosophies

PhilosophyPhilosophy Key Ideas

ProductionProduction

SalesSales

MarketMarket

SocietalSocietal

Focus on efficiency of internal operations

Focus on satisfying customer needs and wants

Focus on satisfying customer needs and wants while enhancing individual and societal well-being

Focus on aggressive techniques for overcoming customer resistance

Production Orientation• The firm is focused on what it does best• Less concerned on customers’ needs• Customers favour available & affordable products.• Businesses concentrate on achieving high production efficiency, low

cotsts & mass distribution• Examples:

Sales Orientation• Based on assumption that consumers , if left alone will either not

buy or not buy enough.• Organisation must therefore undertake aggressive sales

techniques• Focus on product• Practiced with unsought goods like insurance

Market Orientation

The marketing concept states

that the social and economic

justification for an organization’s

existence is the satisfaction of

customer wants and needs while

meeting organizational

objectives.

The Marketing Concept

Focuses on customer wants and needs to distinguish products from competition

Integrates all organization’s activities to satisfy customer wants and needs

Achieves organization’s long-term goals by satisfying customer wants and needs

Sales vs. Market Orientations

Organization’sFocus

Firm’sBusiness

ForWhom?

Primary Profit Goal?

Tools to Achieve

Selling goods and services

Everybody Maximum sales

volume

Primarily promotion

InwardSales Orientation

Market Orientation

Outward Coordinated use of all marketing activities

Customer satisfaction

Specific groups of

people

Satisfying wants and

needs

Societal Marketing

• Organisation’s task is to determine the needs and wants of target markets & to deliver more effectively and efficiently than competitiors in a way that preserves or enhances the consumer’s and the societal well being.

• Firms make marketing decisions in an ethical and socially responsible manner.

• Practise Green Marketing

Societal Marketing Orientation

Less toxic products

More durable products

Products with reusable or

recyclable materials

Marketing that preserves or enhances an individual’s and society’s long-term best interests

Marketing Mix

The set of controllable marketing tools-product, price, place and promotion-that the firm blends to produce the response it wants in the target market.

Marketing Objectives

• Characteristics– Consistent with company objectives– Measurable– Time specific

• Benefits– Energize employees– Set standards of performance

Marketing Mix

• Product• Place (Distribution)• Promotion• Price

Marketing Mix Variables

ProductProduct

Place(DistribPlace(Distribution)ution)

PromotionPromotion

PricingPricing

Goods, services, or ideas that satisfy customer needs

The ready, convenient, and timely availability of products

Activities that inform customers about the organization and its products

Decisions and actions that establish pricing objectives and policies and set product prices

ProductProduct

Place(DistribPlace(Distribution)ution)

PromotionPromotion

PricingPricing

Shape, size, taste, flavour, colour, quality, brand, style, design, packaging

Wholesalers. Retailers, Exclusive distribution

Advertising, PR, Personal Selling, Direct marketing, Sales promotion

List Price, Allowances, Discounts

Scope of Marketing

• Products• Services• Places• Organisation• Properties• Information• Experience• Events• Ideas• Persons

Componentsof

Strategic Marketing

FIGURE 1.1

Marketing Strategy

• Select one or more target markets• Set market objectives• Develop & maintain a marketing mix