Post on 08-Apr-2018
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AN OVERVIEW
OF
MARKETING
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What
isMarketing???
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Marketing
is an organizational function
and a set of processes for
creating, communicating anddeliveringvalue to customers
and formanaging customer
relationships
in ways that benefit
the organization and its stakeholdersAmerican
Marketi n
gAs
sociation
Satisfy
Attracti
ngand
retainin
g
custom
ers
Product
Promot
ion
Place
Price
Notaon
etimeac
tivity
butanong
oingpur
suitActivity
pervades
thewhole
organiza
tion
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For Need Satisfaction
There has to be an exchange between
the buyer and the seller.
The exchange is stimulated by an
attractive combination of
* Product * Price
* Promotion and * Place
( called the Marketing Mix )
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Product what does it extend to
Product Strategy Decision Areas
Product Strategy Decision Areas
Variety
Quality
Design
Features
Packaging
Brand name
Services
Warranties
Returns .etc., etc.,.
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What are the
characteristics of products
and
How can they be classified?
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What is a Product
A particular
bundle of benefits
which satisfies
particular needs and
wants.
Anything that can be offered to a
market to satisfy a want or need.
Ins
implew
ords
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Classification of Products
BASIS :Consumer
Use
Business
Durable
GoodsTangibility Non-durable
Services
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How do products fit into the
market placeOFFERINGS
Consumer Business to Business
Goods Services
Shopping
Convenience Specialty
Shopping
Convenience Specialty
Raw
Material
Process
Material
Manufactured
Components
Accessory
Equipment
Operating
Supplies
Services
Distribution Consulting
Financial Operational Marketing Personnel
Use
Tangibi
lity
How
consum
ers
buy
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Characteristics of Products and
Marketing Considerations (1/3)Convenience
productsShoppingproducts
Specialtyproducts
Characteristics Canned fruit Furniture Expensive suits
Time and effort devoted
to shopping
Very little Considerable As much as
necessary to finddesired brand
Time spent planningthe purchase
Very little Considerable Considerable
How soon is the want
satisfied after it arises
Immediately Relatively long
time
Relatively long time
Are price and qualitycompared?
No Yes No
Price Usually low Usually high Usually high
Purchase frequency Usually frequent Infrequent Infrequent
..2
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Characteristics of Products and
Marketing Considerations (2/3)Convenience
productsShoppingproducts
Specialtyproducts
MarketingConsiderations
Canned fruit Furniture Expensive suits
Length of channel Long Short Short to veryshort
Retailer Relativelyunimportant
Important Very important
Number of outlets As many aspossible
Few Few, often onlyone in a market
Stock turnover High Lower Lower
Gross margin Low High High
Responsibility foradvertising
Producer Joint Joint
..3
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Characteristics of Products and
Marketing Considerations (3/3)
Convenienceproducts
Shoppingproducts
Specialtyproducts
Marketing
Considerations
Canned fruit Furniture Expensive suits
Point of purchasedisplay
Very important Less important Less important
Brand or store name Brand name Store name Both
Packaging Very important Less important Less important
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Product Levels
Five Product Levels
Core benefit theprimary benefit
Basic product ageneric tangible product
Expected product setof attributes normally expected
Augmented product the additions the seller adds to
the product to make it attractive
Potential Product allpossible augmentations a product
might undergo in the future
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Product Levels - Bicycle
?
?
?
?
?
Augmented
Potential
Basic
Expected
Core
BICYCLELEVELS
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Product Levels - Bicycle
Light frame, gears, collapsible,
service
Open to creativity, endless
possibilities.
Strong frame, two wheels,pedal, brakes seat
Bell, carrier, chain guard,
tool kit
Cheap self powered
transportation
Augmented
Potential
Basic
Expected
Core
BICYCLELEVELS
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Product Levels Pressing
Iron
?
?
?
?
?
Augmented
Potential
Basic
Expected
Core
PRESSING IRONLEVELS
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Product Levels Pressing
Iron
Cordless, steam ironing,
light weight
Open to creativity, endless
possibilities.
Heavy base, heating coil,handle, power plug, power cord
Temperature control, low power
consumption
Removal of creases
from clothes
Augmented
Potential
Basic
Expected
Core
PRESSING IRONLEVELS
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What does the term Price extend to
Strategy Planning for PriceStrategy Planning for Price
Pricing objectives
Pricing Policies
List price
Discounts and allowances
Credit terms
Legal factors
Markup chain in channels
Costs
Demand (price sensitivity)
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Distribution Customer Convenience
Place Strategy Decision AreasPlace Strategy Decision Areas
Distribution Channels
Coverage
Locations
Inventory
Logistics
Roles of Middlemen
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Promotion
Promotion: Integrated Marketing CommunicationsPromotion: Integrated Marketing Communications
Personal Selling
Advertising
Publicity
Sales Promotion
Trade Promotion
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Companys Orientations
How Marketing became so Important
Marketing - orientationFocus :
Sales - orientation
Focus :
Product - orientation
Production - orientation
Focus:
Sell what is easy
to produce
Push customers to
buy
Long-run customer
satisfaction
Focus:
Focus: Manufacture product
of the highest quality
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Earlier Concepts were..
The Production concept holds thatconsumers will prefer products
that are widely available and inexpensive
The Product concept holds thatconsumers will favor those products
which offer the most quality, performance or
innovative features
The Selling concept holds that consumers
if left alone
will ordinarily not buy the companys products
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What is the
Marketing Concept?
Finding the
Right products for your customersand not the
Right customers for your product
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Components and Outcomes
of the Marketing Concept
Customer
Orientation
Organizations
performance
objectives
+
+
+
Coordinated
marketing
activities
Customer
Satisfaction
Organization
success
There is only one boss : the customer. Sam Walton, founder of Wal - Mart
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Marketings First Task : Discovering
Consumer Needs
Organizations
marketing department
Discover
consumer needs
Information about needs
Potential consumers :
The market
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Marketings Second Task :
Satisfying Consumer Needs
Organizations marketing department
Discover
consumer needs
Information about needs
Potential consumers : The market
Satisfy consumer needs by
finding right combination of :
1. Product 2. Price
3. Promotion 4. Place
Goods, services, ideas
Concepts for
products
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How do Customers Benefit?
Utilities Customers desire
Form
Task
Time
Possession
Place
Utility
Value that comes
from satisfyingcustomer
needs
Provided by Production
with guidance from
Marketing
Provided by Marketing
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THATS ALL FOR
TODAY!!!
End of Session 1