Defining MarketingDefining Marketing
Marketing is a societal process by Marketing is a societal process by which individuals and groups obtain which individuals and groups obtain what they need and want through what they need and want through creating, offering, and freely creating, offering, and freely exchanging products and services of exchanging products and services of value with others. value with others.
Aim of marketing-Aim of marketing- Know & understand Know & understand customer so well that product fits & customer so well that product fits & sells itselfsells itself
Exchange vs. TransactionExchange vs. Transaction
Exchange:Exchange:Act of obtaining a desired object from someone Act of obtaining a desired object from someone
by offering something in return.by offering something in return.
Transaction:Transaction:A trade of values between two parties.A trade of values between two parties.One party gives X to another party and gets Y One party gives X to another party and gets Y
in return. Can include cash, credit, check, or in return. Can include cash, credit, check, or barter.barter.
Market Integratedmarketing
Profits throughcustomer
satisfactionCustomer
needs
(b) The marketing concept
Factory Existingproducts
Selling andpromotion
Profits throughsales volume
Startingpoint Focus Means Ends
(a) The selling concept
Difference b/w marketing & sellingDifference b/w marketing & selling
Marketing orientations
Maximize profits through increased consumer satisfaction & hence raise market share.
“ what can we do that will make product better than competitors in the customer mind”
Sellings orientations
Maximize profits through sales maximization
“ we must somehow hook the customer”
What is a Market?What is a Market?
The set of actual The set of actual and potential buyers and potential buyers of a product.of a product.
These people share These people share a need or want that a need or want that can be satisfied can be satisfied through exchange through exchange relationships.relationships.
ProductsAnything that can be Offered to a Market to Satisfy a Need or Want
Persons Places Organizations
IdeasInformation
What Satisfies Consumers’ What Satisfies Consumers’ Needs and Wants?Needs and Wants?
ServicesActivity or Benefit Offered for Sale That is Essentially
Intangible and Does Not Result in the Ownership of Anything
goods
Events & experiences Services
Ideas
information
properties
What is Marketed
Simple Marketing SystemSimple Marketing System
Industry(a collection
of sellers)
Market(a collection
of Buyers)
Goods/services
Money
Communication
Information
Manufacturermarkets
Services,Services,moneymoney
Governmentmarkets
Services,Services,moneymoney
ServicesServicesServices,Services,
moneymoney
TaxesTaxes
Taxes,Taxes,goodsgoods
Taxes,Taxes,goodsgoods
Taxes,Taxes,goodsgoods
MoneyMoney MoneyMoney
Consumermarkets
IntermediarymarketsGoods, servicesGoods, services Goods, servicesGoods, services
ResourcesResources ResourcesResourcesResourcemarketsMoneyMoney MoneyMoney
Structure of FlowsStructure of Flows
Production ConceptConsumers prefer products that are widely available and inexpensive
High prdn efficiency, low cost,mass distribution
Product Concept Consumers favor products that
offer the most quality, performance, or innovative features
Company Orientations Towards Company Orientations Towards the Marketplacethe Marketplace
Selling Concept
Consumers will buy products only ifthe company aggressively
promotes/sells these productsUnsought goods-insurance,
encyclopedias
Marketing ConceptFocuses on needs/ wants of target
markets & delivering value better than competitors
Holistic Marketing orientation- Development , design & implementation of marketing programs , processes & activities that recognizes their breadth & interdependence
The Four PsThe Four Ps
MarketingMix
Product
Price Promotion
Place
The Four CsThe Four Cs
CustomerSolution
CustomerCost
Communication
Conven-ience
Integrated marketing
Core Concepts of MarketingCore Concepts of Marketing
Product or Offering Value and Satisfaction
Needs, Wants, and Demands
Relationships and Networks
Target Markets & Segmentation
Marketing Channels-communication & channel Supply Chain Competition
Marketing Environment- task & broad
This Is a NeedThis Is a Need
NeedsNeeds – – Basic human Basic human requirements including requirements including physical, social, and physical, social, and individual needs.individual needs.
Types of NeedsTypes of Needs
Physical:Physical: Food, clothing, shelter, safetyFood, clothing, shelter, safety
Social:Social: Belonging, affectionBelonging, affection
Individual:Individual: Learning, knowledge, self-expressionLearning, knowledge, self-expression
This Is a WantThis Is a Want
WantsWants - form that - form that a human need a human need takes, as takes, as shaped by shaped by culture and culture and individual individual personality.personality.
This Is DemandThis Is Demand
“Demand”
Wants Buying Power
Need / Want FulfillmentNeed / Want Fulfillment
Needs and Wants Needs and Wants Fulfilled through a Fulfilled through a Marketing Offer Marketing Offer :: Some combination of Some combination of
products, services, products, services, information, or information, or experiences offered to a experiences offered to a market to satisfy a need market to satisfy a need or want.or want.
Value and SatisfactionValue and Satisfaction
Expectation
Performance810
If performance is lower than expectations, satisfaction is low.
If performance is higher than expectations, satisfaction is high.
Expectation
Performance
108
Segmentation and Target MarketingSegmentation and Target Marketing
Market Segmentation:Divide the market into segments of customers
Target Marketing:Select the segment to
cultivate
#1 #2
The Company’s MacroenvironmentThe Company’s Macroenvironment
Actors in the MicroenvironmentActors in the Microenvironment
Marketing shapes consumer needs and Marketing shapes consumer needs and wants versus marketing reflects the wants versus marketing reflects the needs and wants of consumers.needs and wants of consumers.
Customer-Oriented Customer-Oriented Organization ChartOrganization Chart
Customers
Front-line people
Middle management
Topmanage-
ment
Customers Custom
ers
Evolving Views of Marketing’s Evolving Views of Marketing’s RoleRole
e. The customer as the controllingfunction and marketing as the
integrative function
Customer
Marketing
Production
Human
resources Finance
Marketing Management Tasks Marketing Management Tasks
Creating long term growth
Communicating value
Delivering value
Connecting with customers
Building strong brands
Marketing strategies