Ch1mktgmgmt

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OVERVIEW OFMARKETING

Marketing Management


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What is Marketing?

The process of planning and executing the conception,pricing, promotion, and distribution of ideas, goods,and services to create and maintain exchanges that

satisfy individual, organizational, and societalgoals in the systemic context of a globalenvironment.


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Marketing is the social process by which individualsand groups obtain what they need and want throughcreating and exchanging products and value with

others. Kotler.

Management process that identifies, anticipates and

satisfies customer requirements profitably.

The Chartered Institute of Marketing (CIM


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Marketing is the process whereby society, to supplyits consumption needs, evolves distributive systemscomposed of participants, who, interacting underconstraints - technical (economic) and ethical(social) - create the transactions or flows whichresolve market separations and result in exchangeand consumption.

Bartles


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Marketing can be expressed.

Find Wants and Fill then.

Make what you can sell Instead of trying to sell what

you can make. Love the customer and not the product.


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EVOLUTION OF MARKETING

Barter System.

Production orientation: mass production of goods forthe purpose of profit. (care less for customer)

Sales orientation: changes in the sphere of economiclife.

Marketing orientation: Customers importance wasrealized, competition became more stiff.(Advt,

personal selling, large scale sales promotion to boostsales).


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EVOLUTION OF MARKETING

Consumer orientation: Products are brought forwardto the market which are capable of satisfying thetastes, preferences & expectations of consumersatisfaction.

Management Orientation: marketing functionassumes a managerial role to co-ordinate allinteracting business activities with the objective of

planning, promoting and distributing want-satisfying products and services to the present andpotential customers.


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MARKET CLASSIFICATION

ON THE BASIS OF:

AREA: Family, Local, National, World.

GOODS: Commodity, produce, manufactured,Bullion, Capital, Money, Foreign stock.

ECONOMICS: Perfect, Imperfect

TRANSACTION: Spot, Future.

REGULATION: Regulated, Unregulated.

TIME: very short, short, long. VOLUME: Wholesale, Retail.

IMPORTANCE: Primary, Secondary, Terminal.


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WHAT IS MARKETING

GOODS: Refrigerator, TV sets, food products,machinery.

SERVICES: Airlines, hotels, car rental firms,

barbers, beauticians, professions like Accountants,bankers, lawyers, engineers.

EXPERIENCES: Travels, climbing Mt Everest.

EVENTS: Tradeshows, artistic performance, Asian

games, sports events.

PERSONS: Celebrity, artists, musicians, physicians.


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PLACES: Cities, Regions, real estate agents,commercial banks, local business association.

PROPERTIES: Real Property (Real estate),Financial property(Stocks, bonds) bought & sold

region market. ORGANISATIONS: build strong, favorable, unique

image in the minds of their target publics.

INFORMATION: schools, universities-magazines,encyclopedias, newspapers.

IDEAS: In factory we make cosmetics, in the storewe sell hope.


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History of Marketing Thought

Bartering

First

Marketing

is not economics

1800s

College

courses in

distribution

Early 1900s

1930s

First marketing

theories

1960s

Marketing

research

1970s

Becomes major

business function

1980s & 1990s

Focus on customer

& external environment


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Structure of Marketing Theory

Dimensions

of marketing

activities

Goods v.

services

Product

categories

Consumer v.

industrial

Industry

sector

Profit v.

nonprofit

Small v.

large firms

Domestic v.

international

Intermediaries

v. end users


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Marketing and Internal Resources

To get ready for a marketing orientation:

Understand what resources the organization has.

Develop a suitable filter for marketing data.

Find out about the customer.

Review the processes to date.

Manipulate resources to achieve marketing

objectives.


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Complexity of Marketing

Five main dimensions

Multiple

decision

makers

Multiple factors

InteractionTime frame

Global

factors


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The Marketing Mix

Product

mix

Distribution

mix

Communications

mix

Pricing

mix

Marketing mix


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The Marketing Mix

Product line range

Design concept

Color appeal

Style

Package

Brand name

Service function

Warranties

Product mix


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The Marketing Mix

Physical distributionSupplies

Inventory

Storage

TransportationWarehousing

Distribution channels

Retailers

DistributorsWholesalers

Export/import

Distribution

mix


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The Marketing Mix

AdvertisingSales catalog

Field sales force

Telephone sales

Public relationsDirect mail

Sales promotion

Premiums & discounts

MerchandisingResearch

Electronic interaction

Communications

mix


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The Marketing Mix

Price structure

Payment terms

Costs

Pricing

mix


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Selling versus Marketing

Selling

Factory Product Selling & Profits throughpromoting sales volume

Starting

point Focus Means Ends

Marketing

Target Customer Integrated Profits through

market needs marketing customer satisfaction


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Marketing & Corporate Strategy

Market orientation:

The organizationwide generation of marketintelligence pertaining to current and future

customer needs, dissemination of the intelligenceacross departments, and organizationwide

responsiveness to it.


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Marketing Oriented Companies

1. Market Share vs. Volume as Measure of Success2. Use of Market Segmentation Principles3. Market Research4. Specific Marketing Goals and Targets5. Coordination of Nonmarketing Functions to

Achieve Marketing Goals6. Style and Culture Integrates Participants

Internal and External to Firm

7. Market-based Business Concept that ProvidesUnique Customer Value


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At GE Power Systemsafter decades of load growthand prosperitythe attitude toward customersbecame: We make turbines. This is what we charge

for them. Would you care for one? It took ahumbling order drought of several years toovercome that arrogance and make that business acustomer-friendly one.

Jack Welch Speaks, pp. -41.


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Difference Between Products & Benefits

PRODUCTS:

Physical attributes

Example: 2mm drill

BENEFITS:

What customer wants

Example: 2mm hole

Customers dontbuy products,they seek to acquire benefits.


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Marketing and Service Cultures

Whyservices are

more difficult

Lack of tangibility

Lack of mass

marketingLack of direct

competition

Professional status

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