marketing introduction power point

8/14/2019 Marketing Introduction Power Point

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MARKETINGCore Concept of Marketing

Marketing has been defined in various ways. Thefollowing definition is given by Philip Kotler

"Marketing is a social and managerial process bywhich individuals and group obtains what they

need and want through creating offering andexchanging products of value with others ."


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This definition of marketing rests on

the following core conceptsNeedsWants

DemandsProducts

ValueCost

SatisfactionExchange

TransactionRelationshipMarkets

Marketing and marketers


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Needs

Marketing thinking starts with the fact of humanneeds and wants.

People need food, air, water, clothing and

shelter to survive. Besides this, people have astrong desire for recreation, education and other services. They have strong preferences for peculiar versions and brands of basic goods andservices.

Needs for food, clothing shelter etc are notcreated by society or marketers, they exist onthe very texture of human biology.


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Wants"Wants are desires for specific satisfiers for deeper needs"Needs for travel in a rich country may bemeeting with automobile where as in a poor country the same need may be satisfied by abicycle.An American needs food and wantshamburger, French fries and coke and inanother country this want may be satisfied withother items.Although peoples needs are few their wantsare many. Human wants are continuouslyshaped and reshaped by social forces andinstitution


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Demands Demands are wants for specific products that are

backed by an ability and willingness to buy them.

Wants become demands when supported by

purchasing power. Many people want a Mercedesfew are able to buy one. Companies must knowwhen many people would actually be willing andable to buy rather than how many people want their product.

We can now see that marketers do not "createNEEDS" Needs pre exist marketers. Marketers getpeople to buy thing they don't want.


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ProductsPeople satisfy their needs and wants with goods andservices. We will use the term products to cover both.The importance of physical products lies not so muchowning them but in obtaining the services they render.We buy microwave oven as it supplies cooking service

and car supplies transportation service. In factServices are also supplied by other vehicles, such aspersons, places, activities, organizations etc. For example, if we are bored we can go to a comedy showand watch a comedian (person) or do some walking

activity.A physical product is a package of service andmarketer job is to sell the benefits or service built inthat product rather than just describing their physical


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Value, Cost & SatisfactionHow customers choose among many products that mightsatisfy a given need?Suppose Mr X needs to travel 3 kms every day. A number of products can satisfy the need

A bicycleA motorcycle

An automobileA taxicab

A busNow each product can satisfy various needs.The X has to decide which product will give the most total

satisfaction. The guiding concept is "Customer Value". SupposeX is mainly interested in speed and ease of getting to work andall products are offered free of cost - he will choose automobile.Since each product involves cost he may not buy automobile.Therefore he will consider the products value and price beforemaking a choice. He will therefore buy the product thatproduces most value per Rupee.According to DeRose, value is the satisfaction of customer

requirements at the lowest possible cost of acquisition,ownership, and use


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Exchange, Transactions &Relationships

The fact that people have needs and wants and can place valueon products does not fully define marketing.

Marketing emerges when people decide to satisfy needs andwants through exchange.

Exchange in one of the four ways people can obtain products.1) Self production e.g.: People can relieve hunger throughhunting or fruit gathering.2) Coercion - Hungry people can fight or steal food from others.3) Begging - Nothing to offer back except gratitude.4) Exchange - Hungry people can approach others and offer resources in exchange such as money, another good or serviceMarketing arises from the last approach. Exchange in the act of obtaining a desired product from someone by offering somethingin return.


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Conditions for Exchange

2. They are at least 2 parties

2. Each party has something of value to the other party

3. Each Party is capable of communication & delivery

4. Each party is free to accept or reject the offer

Each party believes it is appropriate or desirable to dealwith the other party.

Two parties are said to be in exchange if they are movingtowards an agreement. If an agreement is reached, wesay a transaction takes place. Transactions are the basicunit of exchange.

A transfer is different from transaction since in transfer one party gives something to the other and receivesnothing. However, the transferor has certain expectationssuch as gratitude or good behavior from the recipient.

To affect successful exchanges the marketer analyses

what each party expects to give and get.


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Marketing-Functions/Objectives

The functions, aims and objectivesof marketing are

to give direction and purpose tothe marketing division as awhole as well as to its variousdepartments

to place present activities inperspective

to discipline various futureactivities to place tactical plans correctly

in the strategic selling

to set growth targets


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MarketsThe concept exchange leaders to the concept of market .

"A market consists of all potential customerssharing a particular need or want who mightbe willing and able to engage in exchange tosatisfy that need or want "

Originally the term "Market" stood for the place where buyers andsellers gathered to exchange their goods, such as village square,grain market, etc.

Economists use the term, market to refer a collection of buyers andsellers who transact over particular product.

The marketers known as sellers constitute the industry and buyersconstitute the market.

The sellers send goods and services and communications (ads,direct mail etc) to the market; in return they receive money andinformation.


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Concepta market is a common place or locality where things are brought and

sold and where buyers and sellers usually meet to affect purchase

and sale.Types of markets

1. The product sold (Cloth market, jute market, share market, grain market etc)

2. volume of selling-Whole sale / retailRegulated market - Panchayath market

Area covered - home, local, national or international4. Time interval -short period market (money market) or long period

market (capital market)5. Economic concept -perfect or imperfect market. volume of

sellingRegulated market

Based on control controlled by an association. say Panchayath market

13.Area covered(home, regional, national, international)

8. Depending upon time , it may be short period market (moneymarket) or long period market(capital market)

Economic concept ( perfect/imperfect) .Sellers position

Depending upon sellers position, it may beprimary/local/secondary/central or terminal market. Consumersbuy from retailers or local dealers.


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MARKETING MANAGEMENT &

MARKETING CONCEPTSDefinition - By American Marketing Association"Marketing management is a process of Planning

and executing the conception, pricing, promotion

and distribution of goods, services and ideas tocreate exchanges that satisfy individual andorganizational goals

There are five competing concepts under whichorganizations conduct their marketing activity.

6. Production concept7. Product concept8. Selling concept9. Marketing concept10.Societal marketing concept


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1) Production Concept

The production concept

holds that consumers willfavour those products thatare widely available and lowin cost.


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2. The Product Concept"The product concept holds thatconsumers will favour these

products that offer the most qualityperformance or innovative features

Product oriented companies often

design their products with little or nocustomer input. They trust that their managers can design the productswith little or no customer output.


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3. The Selling Concep t

The organization mustundertake an aggressive

selling and promotion effort.


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4. The marketing concept achieving organizational goals consists indetermining the needs and wants of target marketsand delivering the desired satisfactions moreeffectively and efficiently than competition.

The marketing concept rests on 4 pillars, namely

1. Target Market2. Customer Needs3. Integrated marketing4. Profitability


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Target Market

No company can operate in every

market and satisfy every need. Nor can it always do job within on broadmarket. Companies do best whenthey define their target market (s)

carefully and prepare a tailoredmarketing program .


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Customer NeedsA company can define its target market but fail

to fully understand the customers needs.Consider the following example.

A satisfied customer Buys more and stays "loyal" longer.Buys additional products as the companyintroduces &upgrades its products.Talk favorably about the company and itsproductsPay less attention to competing brands andadvertising and is less price sensitiveOffers product/service ideas to the company.

Costs less to service than new customers


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Integrated Marketing

When all the companys departmentswork together to serve the customersinterest, the result is integrated marketing .


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Profitability

The ultimate purpose of themarketing concept is to helporganizations achieve their goals PROFIT


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The Societal Marketing

ConceptTARGET MARKET

SOCIETYS WELL BEING


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SCOPE/FUNCTIONS OFMARKETING

Functions of researchFunctions of Physical treatment

(Packaging, Storage, Transport)

Functions facilitating Exchange andpromotion

(PRICING, FINANCE,SALES,ADVT)


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KEY AREASBuilding customer satisfaction through Quality, Service,

and valueWinning markets through Market oriented strategic planningManaging Marketing information and measuring market demandAnalyzing marketing environmentAnalyzing consumer markets and buying behavior Analyzing business markets and business buying behavior Analyzing industries and competitors

Developing new productsManaging product lines, brands, and packagingManaging product support and serviceDesigning pricing strategies and programsSelecting and managing marketing channelsManaging retailing, wholesale and marketing logisticsDesigning and managing integrated marketing communications.Managing advertising, sales promotion, and public relationsManaging sales forceManaging direct and online marketingOrganizing, implementing, evaluating, and controlling marketactivities


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SALES MANAGEMENT

SALES MANAGEMENT is a termapplied to the process of distributinggoods from the producer to theultimate user; it is a part of marketingmanagement and consists of advertising and selling, storing,transporting etc.

The three areas attached with salesmanagement are

3. Managing sales force and making themunderstand the definition of their jobs,ie the sales force must know who isselling what , where and to whom

4. Compensation of salesmen, i.e.rewarding sales force suitably.

5. Training of sales force.


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FUNCTIONS-SALES MGMT. Analyzing markets thoroughly Studying consumers psychology and demand. Studying the conditions existing in competitive firms. Studying the market fluctuations. Preparing market, sales and other relevant business forecasts Assisting in the preparation of marketing plan.

Preparing the sales budget from sales plan. Deciding on distribution policy, methods and network Planning of the advertising campaign. Ensuring suitable packing of the products. Creating communication network for the department. Developing systems for sales reporting and statistical analysis. Providing technical advisory and other services to the customers. Determining sales staff requirements and handling the requirement, training and

compensation of sales staff To explore newer markets for selling company products. Ensuring effective coordination with production and financial departments Striving continuously to lower selling costs , to expand sales and improve

products for its wider acceptability


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OBJECTIVES-MARKETING

Marketing management is mainly concerned with

those activities which lead towards to achieve longterm profits by satisfying customer needs and wants.However , the main objectives of marketingmanagement areTo create new customers and attract them towardsfirms goods and services, through promotion mix

Every marketing activity revolves around thepreferences of customers. Therefore, selling is notonly sufficient but satisfaction of consumers is moreimportant.Marketing mix ie 4Ps of the marketing should beplanned in such a manner so as to meet the differentrequirements of all customers.To generate sufficient profits for the growth of business and to survive in the market.To build goodwill of the business by initiating imagebuilding activities such as sales promotion, publicityand advertisement, high quality product, reasonableprice etc. It also helps to raise the living standard of the peo

marketing introduction power point

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