8/7/2019 Marketing Chapt 1 UIMs

1/20

8/7/2019 Marketing Chapt 1 UIMs

2/20

In side contentsIn side contents

1.1. An overview of marketingAn overview of marketing

Definition of MarketingDefinition of Marketing

Evolution of marketingEvolution of marketing The marketing conceptThe marketing concept

Ethics and marketingEthics and marketing

8/7/2019 Marketing Chapt 1 UIMs

3/20

What is Market?

8/7/2019 Marketing Chapt 1 UIMs

4/20

MARKETINGMARKETING

Marketing is a total system of business activities designed to plan,price, promote and distribute wantsatisfying products to target markets

in order to achieve organizational objectives. This definition has two

significant implications:

Focus:

the entire system of business activities should be customer oriented.

Customers wants must be recognized and satisfied.

Duration:

Marketing should start with an idea about a want- satisfying product

and should not end until the customers wants are completely satisfied,which may e sometime after the exchange is made.

8/7/2019 Marketing Chapt 1 UIMs

5/20

The basic points of mentioned definition will beThe basic points of mentioned definition will be

expandedexpanded

4ps of marketing or marketing mix4ps of marketing or marketing mix PricePrice

PromoteP

romote

ProductProduct

Physical distributionPhysical distribution

8/7/2019 Marketing Chapt 1 UIMs

6/20

What is product?What is product?

TheThe setset ofof tangibletangible andand intangibleintangible attributes,attributes, whichwhich maymay includeincludepackaging,packaging, color,color, price,price, quality,quality, andand brand,brand, plusplus thethe sellerssellersservicesservices adad reputationreputation.. AA productproduct maymay bebe aa good,good, service,service, place,place,person,person, oror ideaidea..

what is price?

Price is the amount of money and/or other items with utility needed toacquire a product.

What is promote?

Creation of awareness about the existence of product or service

among the customers is called promote.

Placement or physical distribution

Consumers prefer convenient place to achieve the product or

service where a product place adequately.

8/7/2019 Marketing Chapt 1 UIMs

7/20

Marketing ConceptMarketing Concept

Analyze needs of the customersAnalyze needs of the customers

Integrated marketing approachIntegrated marketing approach

Maximize the profitMaximize the profit

Analyze needs of the customersneeds of the customers

InIn thethe marketmarket orientationorientation stagestage companiescompanies identifyidentify whatwhat customercustomer

want,want, andand tailortailor allall activitiesactivities ofof thethe firmfirm toto satisfysatisfy thosethose needsneeds asas

efficientlyefficiently asas possiblepossible..Integrated marketing approachIntegrated marketing approach

All the members of organization must work collectively to achieve the

organization goals and this could be the common purpose of each and

any one to work collectively, respect and cooperation with each other

in such away to achieve organizational objectives and goal.

8/7/2019 Marketing Chapt 1 UIMs

8/20

Refinement of marketingRefinement of marketing

1.1. QualityQuality

2.2. Relation shipsRelation ships

3.3. Mass customizationMass customization4.4. Value creationValue creation

5.5. Return on marketing investmentReturn on marketing investment

Quality: The essential feature or ability of product that gain the satisfaction of theQuality: The essential feature or ability of product that gain the satisfaction of thecustomers.customers.

Relationship: The value of a good relationship is not a new idea. Markets have the longRelationship: The value of a good relationship is not a new idea. Markets have the longreorganized that identifying the needs of customers and satisfying them can bereorganized that identifying the needs of customers and satisfying them can beprofitable. However it is only recently that organizations have made a concertedprofitable. However it is only recently that organizations have made a concertedeffort at relationship marketing . Establishing a connection with a customer sucheffort at relationship marketing . Establishing a connection with a customer suchthat the organizations viewed as partner examining successful partnerships inthat the organizations viewed as partner examining successful partnerships inbusiness and elsewhere (some where or different places)business and elsewhere (some where or different places)

All ideas are subject to refinement in the marketing concept is no exception. As business learns

more about customers, competitive pressure increases both domestically and globally, and

technology alters the way organizations functions, priorities are considered and old ideas areexamined in new ways. And several of these developments are discussed below:

8/7/2019 Marketing Chapt 1 UIMs

9/20

Mass customizationMass customization

ToTo makemake targettarget inin largelarge numbernumber ofof customerscustomers inin suchsuch aa mannermanner

toto buybuy youryour product,product, byby usingusing differentdifferent massmass productionproduction

techniquestechniques andand massmass market(market( relyingrelying onon networknetwork televisiontelevision

advertisingadvertising toto satisfysatisfy thatthat needneed.. BecomeBecome possiblepossible byby thethe

tremendoustremendous advanceadvance technologytechnology.. TheyThey alsoalso cancan advertiseadvertise toto

eacheach specificspecific audienceaudience throughthrough capabilitycapability andand thethe manymany

interestinterest magazinesmagazines..

8/7/2019 Marketing Chapt 1 UIMs

10/20

Value creationValue creation

Marketers are taken a close look at whatMarketers are taken a close look at what

customers value in a product.customers value in a product.

As we noted above they heavy emphasingAs we noted above they heavy emphasingmass product and mass marketing were largelymass product and mass marketing were largely

driving by the desire to offer product at thedriving by the desire to offer product at the

lowest possible price.lowest possible price.

8/7/2019 Marketing Chapt 1 UIMs

11/20

Return on marketing investmentReturn on marketing investment

Recall that one element of marketing conceptRecall that one element of marketing concept

is the accomplishment of organizational goal.is the accomplishment of organizational goal.

In the past impact of marketing onIn the past impact of marketing onorganization goal has been defined ratherorganization goal has been defined rather

broadly because marketing is only one ofbroadly because marketing is only one of

many factors that influence that how customermany factors that influence that how customer

behave.behave.

8/7/2019 Marketing Chapt 1 UIMs

12/20

The societal Marketing ConceptThe societal Marketing Concept

NotNot longlong afterafter thethe marketingmarketing conceptconcept becamebecame aa widelywidelyacceptedaccepted approachapproach toto doingdoing business,business, itit camecame underunder firefire..FromFrom oneone pointpoint ofof viewview thesethese chargescharges areare truetrue.. AA firmfirmmaymay totallytotally satisfysatisfy itsits customers,customers, whilewhile alsoalso adverselyadversely

affectingaffecting societysociety forfor exampleexample somesome ofof thethe firmsfirms pollutingpollutingthethe airair andand waterwater.. MarketingMarketing managersmanagers areare responsibleresponsibletoto createcreate decision,decision, beneficialbeneficial bothboth societysociety andandorganizationorganization itit meansmeans allall thethe decisiondecision shouldshould havehave socialsocialapplicationapplication..

8/7/2019 Marketing Chapt 1 UIMs

13/20

Ethics and MarketingEthics and Marketing

MarketersMarketers areare responsibleresponsible toto thethe varietyvariety ofof groupsgroups..CertainlyCertainly theirtheir customerscustomers dependdepend onon themthem toto satisfysatisfy

theirtheir needsneeds.. AlsoAlso theirtheir employersemployers expectexpect themthem toto

generategenerate salessales andand profits,profits, supplierssuppliers andand distributorsdistributorslooklook toto themthem forfor theirtheir continuedcontinued business,business, andand

profits,profits, andand societysociety expectsexpects themthem toto bebe responsibleresponsible

citizenscitizens.. TheThe frequentlyfrequently divergentdivergent interestsinterests ofof thethe

groupsgroups createcreate aa widewide varietyvariety ofof ethicalethical challengeschallenges

forfor marketersmarketers..

8/7/2019 Marketing Chapt 1 UIMs

14/20

The benefits ofEthical BehaviorThe benefits ofEthical Behavior

OneOne couldcould argueargue thatthat ethicalethical behaviorbehavior shouldshould inin

itselfitself bebe rewardingrewarding.. However,However, therethere areare

tangibletangible benefitsbenefits asas wellwell.. BusinessBusiness isis builtbuilt onon

relationshipsrelationships withwith suppliers,suppliers, customers,customers,

employees,employees, andand otherother groupsgroups.. TheThe strengthstrength ofof

thosethose relationshipsrelationships isis largelylargely aa functionfunction ofof thethe

amountamount ofof trusttrust thethe partiesparties havehave inin eacheach other,other,unethicalunethical behaviorbehavior underminesundermines trusttrust andand

destroysdestroys relationshipsrelationships..

8/7/2019 Marketing Chapt 1 UIMs

15/20

Evolution ofMarketingEvolution ofMarketing

Marketing has evolved through three successive stages of development:Marketing has evolved through three successive stages of development:

product orientation, sales orientation, and market orientation.product orientation, sales orientation, and market orientation.

Product orientation

Late 1800s

Sales orientation

Early 1930s

Market orientation

Mid 1950s

Product orientation

Manufacturers in the product- orientation

stage typically focused on the quality and

quantity of output while assuming that

customers would seek out and buy

reasonably priced, well- made products.Managers with backgrounds in

manufacturing and engineering shaped a

firms strategy. In and era when the

demand for goods generally exceeded the

supply, the primary focus in business was

to efficiently produce large quantities ofproducts.

8/7/2019 Marketing Chapt 1 UIMs

16/20

Sales orientation

The world economic crisis of the late 1920s (the Great Depression) changedperceptions.

As the developed countries emerged from the depression it became clear that the

main economic problem no longer was how to produce efficiently, but rather it was

how to sell the resulting output. Just offering a quality product was no assurance of

market success. Managers begin to realize that to sell their products in anenvironment where consumers had limited resources and numerous options required

substantial postproduction effort. They used heavy promotional activity to sell the

products. Along with responsibility came expectations for performance.

Unfortunately, these pressures resulted in some managers resorting to overly

aggressive selling or the hard sell. Old habit die hard, and even now some

organizations believe that they must use a hard sell approach to prosper.

8/7/2019 Marketing Chapt 1 UIMs

17/20

Market orientationMarket orientation

InIn thethe marketmarket orientationorientation stage,stage, companiescompanies identifyidentify whatwhat

customerscustomers wantwant andand tailortailor allall thethe activitiesactivities ofof thethe firmfirm toto

satisfysatisfy thosethose needsneeds asas efficientlyefficiently asas possiblepossible.. inin thisthis thirdthird

stagestage firmsfirms areare marketingmarketing ratherrather thanthan merelymerely sellingselling..

Needs of the seller

Short term

Sales

market

Needs of the buyer

Long term

Customer satisfaction

Profitable sales

Organization's priority

Planning horizon

Focus

Performance measure

Sales Orientation Market Orientation

8/7/2019 Marketing Chapt 1 UIMs

18/20

The marketing conceptThe marketing concept

Managers who adopt a market orientation recognize the

marketing is vital to

the success of their organizations. This realization is

reflected in a fundamental approach to doing

Business that gives the customer the highest priority . Called

the marketing concept, it emphasizesCustomer orientation and coordination of marketing

activities to achieve the organizations performance

Objectives.

Nature and rationale

The marketing concept is based on three beliefs that are illustrated in figure 1.2.

8/7/2019 Marketing Chapt 1 UIMs

19/20

AllAll planningplanning andand operationsoperations shouldshould bebe customercustomer--orientedoriented.. ThatThat is,is, everyevery departmentdepartment

andand employeeemployee shouldshould bebe focusedfocused onon contributingcontributing toto thethe satisfactionsatisfaction ofof customerscustomers

needsneeds..

AllAll marketingmarketing activitiesactivities inin anan organizationorganization shouldshould bebe coordinatedcoordinated.. ThisThis meansmeans thatthat

marketingmarketing effortsefforts (( productproduct planning,planning, pricing,pricing, distributing,distributing, andand promotionpromotion shouldshould

bebe designeddesigned andand combinedcombined inin aa coherent,coherent, consistentconsistent way,way, andand thatthat oneone executiveexecutive

shouldshould havehave overover allall authorityauthority andand responsibilityresponsibility forfor thethe completecomplete setset ofof marketingmarketing

activitiesactivities..

CustomerCustomer--orientedoriented coordinatedcoordinated marketingmarketing isis essentialessential toto achieveachieve thethe organizationsorganizations

performanceperformance objectivesobjectives..

TheThe ultimateultimate objectiveobjective forfor aa businessbusiness isis typicallytypically aa profitableprofitable salessales volumevolume.. However,However,thethe immediateimmediate objectiveobjective mightmight bebe somesome thingthing lessless ambitiousambitious thatthat willwill movemove thethe

organizationorganization closercloser toto itsits ultimateultimate goalgoal..

8/7/2019 Marketing Chapt 1 UIMs

20/20

Any QuestionAny Question

??