MARKETING OVERVIEW

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Unit 1

Introduction :-Definition

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Marketing is the process of planning and executing the conception, pricing , promotion and distribution of goods to create exchanges that will satisfy individual and organizational objectives.

Continue….

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Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.

Kotler

The activity, set of institutions, and processess for creating and exchanging offerings that have value for customers, partners, clients and society at large.

McDaniels, Lamb, & Hair

Why study marketing?

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Important to society

Important to business

Good career opportunities

• marketing research • advertising• retail buying•Hospitals•Universities, etc.

• contribute to firm’s objectives: survival, profits, growth•Setting the price•Develop distribution strategy, etc.

• ensure the availability of foods, cloths, and shelter to cater population size.

Key Concepts

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Needs are a state of felt deprivationWants are the form taken by human needs as

they are shaped by culture and personalityDemands are human wants backed by

purchasing powerProducts is anything that is offered to the

market for sale or consumption

Key Concepts

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6Customer satisfaction is the degree to which

the product’s perceived performance matches the customers’ expectation

Exchange is the act of obtaining an object from someone by offering something in exchange

Markets are made up of the actual and potential buyers of a product

Marketing Activities

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Identifying customer needsDesigning goods and services that meet those

needsCommunicating information about these

goods/services to prospective buyersMaking these goods/services available at

times and places that meet customer’s needs

Marketing Activities

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Pricing goods or services to reflect costs, competition and customers’ ability to buy

Providing for the necessary service and follow up to ensure customer satisfaction after the purchase

marketing management orientations..

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a) Production concept

This concept assumes that customers will want to buy products or services that are easily available and affordable. Therefore management focuses on production efficiency and distribution. This concept is useful when demand for a product exceeds the supply.

Can lead to ‘marketing myopia’

marketing management orientations…cont’

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b) Product concept. This concept holds that consumers will

favor products that offer the most quality and innovative features.

Such companies therefore concentrate on making continuous product improvements.

The risk here is that managers get trapped in the ‘better mousetrap’ fallacy and lose sight of the long term goals of the firm and the needs of the customers.

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COLOUR PENCIL OFFERED BY FABER CASTELL:- NON-TOXICSAFE FOR CHIDREN

1.1.3 marketing management orientations…cont’

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c) Selling concept. Refer to the firms who assumes that

consumers will not buy the firm’s products unless it undertakes aggressive selling.

The consequences are hard selling techniques. Most firms practice this concept when they have over capacity.

High risk ~ focused on creating transaction rather than building long term relationship.

Eg: unsought product : insurance – track down prospect and sell them on product benefit.

marketing management orientations…cont’

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d) Marketing concept. The marketing concept holds that achieving

organizational goals depends on determining the needs and wants of target markets. It takes an outside-in approach.

It recognizes the customer as the most important and aims at complete customer satisfaction. The marketing concept requires and integrated marketing effort.

Customer-driving marketing

Selling conceptsSelling concepts Marketing conceptsMarketing concepts

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Inward, on the organization’s need.

Selling goods and services Everybody Profit through maximum

sales volume Goal can be achieve

through intensive promotion

Outwards, on the wants and reference of customers

Satisfying customer need & wants by delivering superior value

Specific groups and people Profit through customer

satisfaction Through coordinated

marketing and inter-functional activities.

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Differences between selling & marketing concepts:

marketing management orientations…cont’

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e) Societal Marketing Concept Concern for public – depleting ozone layer,

pollution, health concern. Deliver superior value to customers in a way that

maintains or improves the customer’s and the society’s well being

Eg:- STAR: offers STAR Scholarship and organize STAR education fair.

Eg:- FABER CASTELL

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• The World's native forests are a 'celebration' to the diversity of life and colour.

• Forestry plantations help preserve and maintain native forests by providing an alternative and renewable resource for our future generations.

• In Brazil, Faber-Castell manages 10.000 hectares of pine plantations as a source of raw material for over 1.5 billion pencils annually.

• Tree nurseries produce over 1 million seedlings per year and generate 20 m3 of wood every hour (= 1 truck). The Faber-Castell forests and factories have been certified by the Forest Stewardship Council (FSC) as environmentally responsible, socially beneficial and economically sustainable.

• The FSC is a committe of the world's most powerful forestry experts, including organizations such as Greenpeace and WWF.

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Aerial view of part of Faber-Castell's pine plantations

                                            

Tree nursery in Brazil  

Marketing Philosophies

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Adopting of the marketing concept can be triggered by any one of the following:

Poor sales performance. Low company growth. Increased competition. Higher consumer demand expectation. More legislation.

1.2 Marketing Mix

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a. Product. Includes decisions on quality, features,

design, packaging of the product.b. Price.

Includes discount methods, adjustments to prices and payment terms.

c. Promotion. Advertising, personal selling, sales

promotion and publicity.

Marketing mix…cont’

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d. Place (distribution). To have the proper quantities at the right time

and place. Distribution involves:o transportation, o ware-housing, o inventory control and;o selection of marketing channels and

distribution network.

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Marketing Functions

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Exchange function Buying and selling

Physical distribution functions Transporting and storing

Facilitating functions Standardization and grading Financing Risk taking Marketing information

Goals of Marketing System

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Maximize consumption. Marketing stimulates consumption.

Maximize choice. Maximize product variety and consumer choice.

Maximize life quality. Quality of life includes the quality, quantity,

availability and cost of goods, the quality of physical environment.