Module – 1 The Concept Process of Marketing - bms.lkbms.lk/download/GDM_Tutorials/batch-32/MM/week...

Module – 1

The Concept&

Process of Marketing

MATHISHA HEWAVITHARANA

MBA (Col),BBA Sp.Mktng (Col), PPG DIP.In Mktng (UK), MCIM (UK), Chartered

Marketer (UK), Practicing Marketer (SL),ACMA, CGMA CIMA (UK), DBF (IBSL),

AIB (IBSL), MSLIM(SL),

Head of Marketing - Siyapatha FinancePLC

SelfIntroduction

You

Your NameWork Place

Job TitlePrior Qualifications

Hobbies

SelfIntroduction

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation fromthe United States edition of Marketing Management, 14e.

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Chapter Contents

Marketing Concept

Evolution of Marketing

Macro Environmental Scanning

Micro Environmental Scanning

Porter’s Competitive Forces


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Chapter Contents

Marketing Concept






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What Is Marketing?

Is it a Theory ?

Is it a Concept ?

Is it Selling Goods & Services ?

Is it creating unnecessary Needs ?

Is it Done by You ?


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What Is Marketing?

Marketing is the activity,set of institutions,

and processes for creating,communicating, delivering,

and exchanging offeringsthat have value for customers,

clients, partners, and society at large.


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What Is Marketing?

Marketing is the systematicmanagement process

that is responsible for identifying,anticipating and satisfying

customer needs and wantscompetitively, effectively and profitably

in a socially acceptable manner.


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What Is Marketing?

Marketing is an organizational functionand a set of processes for creating,

communicating, and delivering valueto customers and for managing

customer relationships in ways thatbenefit the organization and its

stakeholders.


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What Is Marketing Management?

Marketing management is theart and science

of choosing target marketsand getting, keeping, and growing

customers throughcreating, delivering, and communicating

superior customer value.

Refer : Page 05 ( Marketing Management 14th edition)


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What Is Marketed?

• Goods

• Services

• Events

• Experiences

• Places

Refer : Page 05 - 06 ( Marketing Management 14th edition)


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What Is Marketed?

• Persons

• Properties

• Organizations

• Information

• Ideas


V 01


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Markets Marketplace

Marketspace

Metamarket


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Demand States

Negative (Carbonated Drinks) Nonexistent (Medicine) Latent (Space Travelling) Declining (Manual Camera) Irregular (Christmas Decorations) Full (Mobile Phones) Overfull (Motor Cars – Maruti 800) Unwholesome (Alcohol / Cigarettes)



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Structure of Flows in ModernExchange Economy



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A Simple Marketing System



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Key Customer Markets

Consumer markets

Business markets

Global markets

Nonprofit / Government markets



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Chapter Contents

Marketing Concept






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The Production Concept


The Product Concept

The Selling Concept

The Marketing Concept

The Holistic MarketingConcept

Refer : Page 18 ( MarketingManagement 14th edition)


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Beginning of Capitalism to Mid 1950’s

Henry FordModel “T”

$ 950


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The Product Concept


1950’s – 1960’s


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Product Concept



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The Selling Concept


1960’s – 1970’s


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Sales Concept



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The Marketing Concept


V 02 / 03


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Marketing Concept



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Holistic Marketing



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Hotistic Marketing Concept



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Major Societal Forces / Issues

Network informationtechnology

Globalization

Deregulation

Heightened competition

Industry Convergence

Retail transformation

Disintermediation

Consumer buying power

Consumer information

Consumer participation /Resistance



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New Company Capabilities Use of Internet Marketing

Ability of Collecting Information

Use of Social Media

Improved Methods of Internal Communication

Improved methods of External Communication

Use of Mobiles Marketing

Customization of the Offer

Application of Just-in-time TechniquesRefer : Page 13 - 15 ( Marketing Management 14th edition)


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Company Orientations

Customer orientation

Competitor orientation


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Limitations of Marketing Concept

Accurate identification of real needs & wants

Internal business capacities

Organizational constrains

Social constrains

Conflict of interest


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Marketing Environment

Internal Environment

External Environment

- Micro environment

- Macro environment


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Macro

Micro

Marketing Environment

InternalEnvironment


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Marketing Environment - Internal

Shareholders

General Employees

Managerial Employees

Departments

Structure / Policies /

Culture


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Chapter Contents

Marketing Concept






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Marketing Environment – External(Micro)

Customers

Distributors

Intermediaries

Financial Service Providers

Competitors

V 04


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Chapter Contents

Marketing Concept






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Marketing Environment – External(Macro)

Political Environment

Economical Environment

Social & Cultural Environment

Technological Environment

Ecological Environment

Legal Environment


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Political Environment

- Taxation

- Political Philosophies

- Political Based Relationships

- Political Structure / Stability


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Economical Environment

- Interest Rates

- Exchange Rates

- Inflation

- Level of Employment


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Social & Cultural Environment

- Social Perceptions

- Cultural values

- Religious Believes

- attitudes

V 05


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Technological Environment

- Production Technology

- Communication Technology


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Ecological Environment

- Green Concept

- Sustainable Growth


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Legal Environment

- Incorporation

- Reporting

- Human Resource Management

- Managing Externalities


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competitors

Direct Competitors

Indirect Competitors


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Chapter Contents

Marketing Concept






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MICHAEL EUGENE PORTER

May 23rd 1947


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Professor at Harvard Business School

Received a B.S.E. with high honors in aerospace andmechanical engineering from Princeton University in 1969

Received an M.B.A. with high distinction in 1971 from theHarvard Business School

Ph.D. in Business Economics from Harvard University in1973.

author of 18 books and numerous articles

He is generally recognized as the father of the modern businessstrategy

PERSONAL PROFILE


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Threat of New Entrants

- Sharing of Resources

- Sharing of Market

- Sharing of Profits

- Sharing of Success

Higher the Threatof New Entrance,

lesser theIndustry

Attractivenesswould be.


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Bargaining Power of Customers

- Delivering High Quality

- Customization

- Offering for the Best Price

- Related & Supporting Services

Higher thebargaining Power

of Customers,lesser theIndustry



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Bargaining Power of Suppliers

- Quality of Input

- Price of Input

- Lead Time of Input

- Credit terms

Higher thebargaining Power

of Suppliers,lesser theIndustry



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Threat of Substitutes

- Availability of Substitutes

- Importance of the Original Product

- Switching Cost

Higher the Threatof Substitutes,

lesser theIndustry



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Competitor Rivalry

- Number of Competitors

- Capacity of Competitors

- Number of Customers

- Industry Regulations

Higher theCompetitor

Rivalry, lesser theIndustry


V 06


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For Review

Marketing Concept





V 07

Thank You !

0773 – 29 20 [email protected]

Module – 1 The Concept Process of Marketing - bms.lkbms.lk/download/GDM_Tutorials/batch-32/MM/week...

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