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OVERVIEW OF MARKETING

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THE MARKETING CONCEPT

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THE CONCEPT

KNOWLEDGE BUYERS SATISFACTIONOF NEEDS DEFINITION

O P E R A T I O N S

OPERATING

RESULTS

COMPANY

GOALS

KNOWLEDGE OF

DESIRED RESULTS

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WHAT MARKETING DOES

Is there a market? What size?

What growth?

Who is the Buyer? What does he look for?

Why does he buy?

Where is he?

PROFIT & NON PROFIT

GOODS & SERVICES

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DEFINITION

COMPONENTS

Needs Product or Service

Management

Consumption

Satisfaction

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PRODUCT MARKET RELATIONSHIP

CONTROLLABLES

THE MIX

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OWNERSHIP TRANSFER

INTERNAL FACTORS

EXTERNAL FACTORS

UNCONTROLLABLES

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MINIMAL INPUTS

PRODUCT ORIENTATION

COMMUNICATON PROBLEMS

CONFLICTING INTERNAL GOALS

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EXTERNAL INPUTS

ORIENTATION TO THE MARKET POPULATION GROWTH

MORE HOUSEHOLDS

MORE DISPOSABLE INCOME

MORE DISCRETIONARY INCOME

GROWING MIDDLE CLASS DEBT

TECHNOLOGY

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CUSTOMER ORIENTATION

NONRESPONSIVE

REACTIVE

RESPONSIVE

PROACTIVE

ANTICIPATORY

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PLANNING THE CONCEPT

COMPANY

GOALS

MARKET

NEEDSRESEARCH

DECISION

OPERATING PLAN

PRODUCTION MARKETING FINANCIAL

IMPLEMENTATION

ATTAINMENT FULFILLMENT

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IMPLEMENTATION

UNIFICATION OF OPERATIONS

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THE MARKETING PROCESS

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IDENTIFCATION OF MARKETING ACTIVITIES

DIFFICULTIES:Forward flow of goods

Reverse of information

Putting products in the market

Selling

Buying: the other side of sellingDesigning the product

Storage of finished goods

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MERCHANDISING ACTIVITIES

Product planning & development

Standardizing and grading

Buying and assembling

Selling

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DISTRIBUTION ACTIVITIES

Storage

Transportation

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SUPPORTING ACTIVITIES

Marketing financing Marketing risk bearing

Collecting and analyzing marketing

information

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MERCHANDISING: PRODUCT PLANNING

Conform to needs wants and desires Change in technology

Shift in buyer preferences

Inputs from middlemen

Change in range handled

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MERCHANDISING

STANDARDIZING AND GRADING

Standard: measurement of consistency

Grading: establishing specifications

BENEFITS

Improves efficiency

Execution of order without inspection

Variable price as per measurable grade

Standards to be industry wide

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MERCHANDISING: BUYING & SELLING

BUYING:

Raw MaterialFinished Goods

ASSEMBLING:

WarehousingRetailing

ADVANCE PLANNING

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MERCHANDISING: SELLING

Personal SellingAdvertising

POP Display

Packaging

Customer Service

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DISTRIBUTION: STORAGE

Availability to customers

Even out the seasonal factor

Economy of business operationsMaturity on ageing

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DISTRIBUTION: TRANSPORTATION

Markets

Raw Material

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SUPPORTING ACTIVITY:

MARKETING FINANCE

Source and recipient of credit

Trade credit vs. Banks

Instalment creditMercantile credit

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SUPPORTING ACTIVITY:

MARKETING RISK BEARING

Inventory riskRisk transfer

Natural hazards

Risk reductionProduct differentiation

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SUPPORTING ACTIVITY:

MARKETING INFORMATION

Information vs. News

No information is universal

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MARKETING & SOCIETY

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DOES MARKETING COST TOO MUCH?

THE FOUR UTILITIES

PLACE

TIME POSSESSION

FORMMarketing vs. Total costs

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THE COST OF CAPITALISM

HIGH MARKETINGCOSTS

CHOICE OF MORE

BRANDS

NON PRICECOMPETITION

MARKET

OLIGOPOLY

REDUCING

MARKETING COSTS

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BUYER BEHAVIOR

Social value of persuasion

More discretionary income available Low income group purchases

Increase in consumption may not

improve living standards

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THE ENVIRONMENT

Packaging

Disposable products

Outdoor advertising Etc

Other examples

Population Municipal sewage

Noise

Etc

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PUBLIC OPINION

CONSUMERISM MOVEMENT

Upton Sinclair: The Jungle

100,000,000 Guinea PigsYour moneys worth

Ralph NaderMovement getting strongerevery decade

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POLITICAL PRESSURE

LOCAL

STATE

CENTRAL

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LEGISLATIVE ACTION

Central Laws State Laws

Case Laws

Controlling bodies- Pollution

- Manufacturing

- Pricing- Marketforces

- Product design / quality

- Advertising

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COMPETITIVE ACTION

Expansion

Relations with competition

Tactics against competition

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PRODUCTS

Additions

Design

Quality

Packaging & labeling

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PRICING

Discrimination

Minimum prices

Unfair trade practices

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DISTRIBUTION

Exclusive dealers

Tying contract

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PROMOTION

False advertising

Corrective advertising

Bait advertising Deceptive price advertising

Advertising to children Promotional allowance & services