You , Your Needs and Organisations

• Most people in Sri Lanka are now born in hospitals, educated in schools (Government or Private), and buy almost all of their daily needs from businesses.

• Further there are many other Government, Non Government, Religious and Social agencies that influence their behavior

• All these institutions are organizations

Organisations

• Organizations are a group of people working towards achieving a set of goals.

• It could be a Company ( Unilever), Supermarket( Cargils), University ( University of Sri Jayewardenepura), Air Line( Sri Lankan), Armed Force( Sri Lanka Army) NGO ( Sarvodaya) Religious Organisation( Gangarama Temple(Nugegosa Church/ Maradana Mosque? Wellawatte Kovil)

Organisations, Resources & Managemnet

• All these organizations handle resources such as Human, Financial, Physical and information.

• Managers are responsible for combining and coordinating these various resources to achieve their organization's goals.

• In this process they make decisions, plan, organize, lead and control resources

Management in General

• Therefore the Management could be defined as

• “ A set of activities directed at an organization's resources with the aim of achieving organizational goals in an efficient and effective manner.

• EfficientEfficient- using resources wisely and in a cost effective manner

• Effective-Effective- making the right decisions and successfully implementing them.

Areas(Functions) of Management

• Managers may work in a various areas in a company.

• Depending on the complexity of the organisation a company may have areas such as

• Marketing Management• Financial Management• Human Resource Management• Operations Management• Administrative Management• Other kinds such as – Information Tec,

Research etc,

There are many managers

Acquiring needs and wants- past and present• Early humans had only basic requirements such

as food and shelter• They themselves obtained them collecting,

growing and hunting. They lived under trees or in caves

• Once the needs became more, the man could not obtain them on his own.

• Then he had to exchange for what he has with others. Barter system

• Then came the introduction of medium exchange called money as there were many problems with the barter system

• The birth of selling goods and services started with the use of money as a medium of exchange.

• People started producing more items than that they want and sold them in the market for money and obtained their other requirements from the money they received,

• That gave birth to markets. Markets are places where customers and suppliers meet.

Barter System

Markets

• The excess items were sold in the market and markets became very competitive

• The focus shifted to sales, retaining customers, finding new customers

• Selling could not be done well without really understanding the needs and wants of customers

• Therefore customers became more important• A customer oriented approach had to be used • That paved the way to form businesses as

marketing organisations

What is Marketing?• Customer is the center of all Marketing

activities.• Marketing focuses on the needs and wants of

customers. • It is concerned about satisfying customers

through supply of goods and services• Marketing involves analysis planning and

control• Marketing is concerned about competition and

making profits• Marketing is functional area of business as well

as a philosophy of business• Marketing has a heavy emphasis on

relationships

Few definitions of Marketing• Adams Smith( 1776) “ Consumption is the

sole purpose of all production and interest of product ought to be attended to, only so far as it may be necessary for promoting that of the consumer”

• Phillip Kotler( The Millennium Edition –2000) “Marketing is a societal process by which individuals and groups obtain what they want through creating, offering and freely exchanging products and services of value with others”

• American Marketing Association“Marketing Management 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 organisational goals”

Chartered Institute of Marketing – UK“ Marketing is a management process,

which is responsible in identifying, anticipating and satisfying customer needs and wants at a profit”

• The Author’s(Maxwell Ranasinghe’s) own definition is more broad and it encompasses the total operation of marketing in relation to the needs of the whole world;

• “"Marketing is the science of understanding the role played by humans as individuals and groups as a customer and finding out their needs and wants  and delivering them through a managed business process with due regard to needs of the society at large”

• ( refer for more details on “ Definition of Marketing for the new millennium” by Maxwell Ranasinghe on Slideshare.net)

Is Marketing a mind game?• Modern day marketing could be

considered as a mind game. • It tries to get a unique position in

the customers mind for a product• A customer may have two values for

a product• Experiential Value ( product already

used)• Perceived value ( product not yet used)

Is Marketing a function of Is Marketing a function of management or a business management or a business

philosophy ? Discussphilosophy ? Discuss • It is a function of management as

well as a business philosophy• Businesses has various divisions

that handles different functions such as human resource, financial, operations and marketing.

• Marketing functions in general is to identify, create, retain and grow customers.

• When all the activities and processes of marketing is analysed it could be grouped into following categories

• Investigative Marketing-Investigative Marketing- Collection and tabulation of information

• Directional Marketing-Directional Marketing- Analysing information ascertaining key issues, developing vision, mission, setting goals and targets

• Strategic Marketing-Strategic Marketing- Segmenting, targeting, differentiating and positioning

• Tactical Marketing-Tactical Marketing- Using various ways and means of achieving targeted goals. Using the tools in the Marketing Mix

• Administrative Marketing-Administrative Marketing- Preparation of strategic marketing plans and monitoring and controlling them.

Marketing as a business Philosophy• Marketing is also considered as an overall

business philosophy. This is a wider view point of marketing.

• It says that the marketing view point “Customer centered approach” should run through the whole of the organization if a business to be successful.

• A marketing integrated approach is required in all departments and functions of a company

• Peter Drucker- “Business success is not determined by the producer but by the customer”

Explain Production, Product, Selling, Explain Production, Product, Selling, Marketing and Societal Concepts in Marketing and Societal Concepts in the evolution of Marketingthe evolution of Marketing?

• Production Concept: “ Consumers will prefer products that are widely available and inexpensive”

• - Concentrates on – high production efficiency- low cost- mass distribution

• Example : Ford T- Model• : Govt Hospital and other Service

Depts• Heavy focus on the Price and Place on M.Mix

Ford T Model

• Product ConceptProduct Concept• “ Consumers will favor those products that

offer most quality, performance or innovative features”

• Just making superior products will make customers seek and buy them

• More focus on “Product” in the M. Mix. • Better mouse trap of Woolworth Co. Made

a very effective reusable mousetrap that the existing ones but price was more than double. It did not sell well. People did not want to spend twice as they used to throw the mousetrap also with the catch.

• Marketing Myopia- shortsightedness of not considering customer needs and behavior

Woolverths mouse trap

• Selling ConceptSelling Concept• “If consumers are left along, will

ordinarily not buy enough of the organisation’s products. Therefore the organisations must undertake aggressive selling and promotional effort”

• Consumers have buying inertia and have to be persuaded

• Practiced more on unsoughted goods• Sell what is made or available rather than

what consumer wants.• Heavy focus on Promotion on the M.Mix

Consumers have to be persuaded

• Marketing ConceptMarketing Concept• “Key to achieving organisational goals

consists in determining the needs and wants of target market and delivering the desired satisfaction more effectively than competitors”

• Marketing concept rest on four pillars• Target Market- Consumer needs-

coordinated marketing- Profitability.• Focus on all Ps of the Marketing mix.26

What a customer ?

Selling Vs. MarketingSelling Vs. Marketing

• Starting Point- focus- Means- End

Factory Product PromotionProfits through sales volume

Target Market

Customer

needs Cordinated - Mktg

Profit through customer satisfaction

• Customer ConceptCustomer Concept• Rather than focusing on a segment or a

group of customers this method says that you must focus on individual customers.

• This has become possible with the development of the information technology

• Data base of customers and their requirements should be ascertained and contacted through internet, email, sms, mobile phones

• Goods and services can be delivered to customers exact requirement

• Societal Marketing ConceptSocietal Marketing Concept“Organisations task is to determine the needs,

wants and interest of consumers of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserve or enhances the customer’s and the societies well being”

Societies well being is the public interest which includes – Ecological ( Green Marketing), Human

( Ethical Marketing) and The Intelligent Consumption

What is Green Marketing?• This stems from how marketer responds

to the environment. The marketers have been practicing very environmental destructive activities.

• Resource depletion and degradation - Genetic engineering- Pollution- Harmful emissions and products- health hazards

• Barriers to Green M- Cost- Technological problems- less innovation -less commitment and ignorance- considering world as bundle of raw materials for the benefit of the current generation.

What is ethical Marketing?• Ethical Marketing are the rules of conduct and

moral principals regulating marketing.- The limit of Claims/Promises that can be made

as to product benefits- Discriminating competing products- Marketing of products like cigarettes, alcohol- Limitations in Marketing products to children- Religious/racially susceptible Brand names and

images- Unaccepted Promotional methods- Using women in unaccepted manner- Purposeful deception -

Identify and explain the anticipated benefits of introducing marketing orientation to an organisation.• If a company to be successful in the long run

the most important philosophy they should follow is the marketing orientation/ concept

• The mere survival of a company in the modern globalised world depends on how much of customer satisfaction that it can offer.

• Therefore the customer focus should be an integral part of the organisation

• All the departments in the company should have an integrated approach towards satisfying customers

• Further it would be able to reduce the number of dissatisfied customers.

• Dissatisfied customers will tell others • Research confirms it takes six times

of effort and cost to make anew customer than keeping the existing ones.

• It would make the organisation gain a competitive advantage

If an organisation can adopt a marketing oriented approach it would be able to get

• Increased customer satisfaction• Increased customer loyalty• Increased reputation• Increased motivation among staff• Increased market share• Reduction of waste• Combat threats from competitors

Barriers in implementing the marketing approach• The main problem is with the differences of

emphasis of other branches of the organisation.

• Engineering, production, Finance, R&D, HR etc.

• Resistance from top to bottom• Inability to to adapt to change• Cost of training• Difference in attitudes/culture• Difficulty in integrating departments

Iceberg Theory

Iceberg- under water

Selling

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Water

Iceberg Theory

• Most of the people who have not studied marketing in depth say that marketing is all about selling and advertising as they see only that part in marketing. ( The part above the water in an iceberg is the part that you see)

• But there is so much to marketing that you do not see.

• ( The part below the water level in an iceberg is not seen)

So what ?

• That’s my introduction to marketing.

• If you like the subject area and it is of interest to you pursue further studies on the subject.

• If not give it up and start doing some other subject that you really like.