Principles of Marketing Page_11

Mashal Institute of Higher Education

Principles of Marketing

Source person: Kamran Khan

M.Com, B.Com

Lecturer at Mashal Institute of Higher Education

Mashal institute of Higher Education, Shar-e-new Park, Kabul

Chapter No. 01

Introduction to Marketing

Chapter No.01 Introduction to Marketing

Topic-1 Introduction of Marketing

What image comes to mind when you hear the word marketing? Some people think of advertisements or brochures, while others think of public relations (for instance, arranging for clients to appear on TV talk shows). The truth is, all of theseand many more thingsmake up the field of marketing. The Knowledge Exchange Business Encyclopedia defines marketing as planning and executing the strategy involved in moving a good or service from producer to consumer.

Definitions of marketing

Marketing has several definitions. Some of them are as under:

According to Encyclopedia

Marketing is the action of identifying, satisfying and increasing the buyers demands for companys products.

According to William J. Stanton

Marketing is the total system of business activities designed to plan, price, promote and distribute wants satisfying products, services and ideas to target market in order to achieve the organizational objectives.

This definition has two important points.

a. Focus: The entire system of business activities should be customer-oriented. Customers wants must be recognized and satisfied.

b. Duration: Marketing should start with an idea about a wantsatisfying product and should not end until the customers wants are completely satisfied, which may be some time after the exchange is made.

According to Philip kotler

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

Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

Topic-2 The Scope of marketing

Scope of marketing means what we can market or what we can offer. The scope of marketing is as under:

1. Goods

These are commodities, we can market them. For example, Pepsi, Coca-Cola, Dew, Shoes such as Service, Bata, Aero soft etc, ice cream, Cloth, buildings and cars etc.

2. Services

Some people also market their services such as doctors, lawyer, engineers, mobile companies such as Etisalat, Afghan wirless communication company, Banks such Azizi bank, Kabul bank, Bakhtar bank etc.

3. Experience

Just like services some famous skilful people provide their experienced skill to others. For example Imran khan offers his experience to teach new cricketers. Shahrukh khan teaches to new actors.

4. Events

Special occasions such as Eids, independence days, new years, summer or winter seasons, sports events, and Olympic etc.

5. Person

The people who are famous, they market their popularity. For example Shahruk khan shahruk khan is a famous actor who comes in various ads and markets his popularity.

6. Places

Places can be marketed. Such as Menari Pakistan, people (tourists), qilla bala hisar, shalamar bag. People come from far away for recreation purpose.

7. Properties

Marketing of houses and buildings is called as property marketing.

8. Organizations

Marketing of hospitals, museums, zoos, parks etc is called organizations marketing.

9. Information

Organization who sells information for a fee is called information marketing. For example, consultants of education, consultants of law etc.

10. Ideas

Now a day you can sell even your ideas for example business consultants, tax consultants sell their ideas on a fee.

Topic-3the Difference between Selling and Marketing

Selling

In the selling process the organization mainly force or emphasize on product.

The company first makes the product then finds out how to sell their product or provide their product to the potential customer.

Planning is a short run oriented in terms of todays.

The concept of selling is short term, their main aim is just sale and to make the market share.

Marketing

In the marketing process the organization mainly force or emphasize on consumers wants.

The company first determine the customers needs and wants and then deliver them the product and sees either the customer is satisfied or not.

The concept of marketing is to establish a long term relationship with a customer and make the customer loyal of your product.

Company tries to earn profitable sale from the loyal customer.

Topic-4the Difference between market and Marketer

Market

Market is a place where people or organization with a need to satisfy, money to spend and willingness to spend on product and service.

Marketers

People those who are involved in the process of buying and selling are called marketers.

Topic-5the Difference between customer and consumers

Customer

Those persons who are involved in the purchasing process are called customers.

Consumers

Those individuals who are actually involved in using or consuming the product are called consumers.

Core marketing concepts

Topic-6 the Core concepts of Marketing

a. Needs

Needs are state of felt deprivation. Needs may b

1) Physical needs: for food, clothing, warmth, and safety.

2) Social needs: for belonging and affection.

3) Individual needs: for knowledge and self-expression.

These needs are not created by marketers; they are a basic part of the human makeup.

b. Wants

Wants are the form human needs take as they are shaped by culture and individual personality. For example a Patan needs food but wants a bowl of rice and fish. A person in Peshawar, Pakistan, needs food but wants chapli kababs, karahi and Afghan nan. Wants are shaped by ones society and are described in terms of objects that will satisfy needs.

c. Demands

Wants when backed by buying power, become demands. Or when we have money or the power to purchase the thing which is our want is called demands.

d. Product

Anything that can be offered to a market for attention of customers is known as product. Product may be:

a. Tangible: items that we can touch and physically exist such as shoes, clothes, soaps, oils, furniture, motor cars etc.

b. Non tangible: items that we cannot touch and not physically existed such as services.

e. Marketing offerings

Some combination of products, services, information, or experiences offered to a market to satisfy a need or want. Marketing offerings are not limited to physical products.

They also include services, activities or benefits offered for sale. For example marketing also involves the marketing of ideas such as awareness about AIDS, and Polio.

f. Marketing myopia

The mistake of paying more attention to the specific products than to the benefits and experiences produced by these products is called marketing myopia. The seller focuses only on existing want and loses sight of underlying customer needs. They forget that a product is only a tool to solve a customer problem.

For example, your personal computer is your backup brain, its your life its your astonishing strategy, dazzling calculation. Its your autobiography, written in thousands of daily word.

g. Customer Value and Satisfaction

Customers face a large number of marketing offers that satisfy a given need. How do they choose among these many market offerings? Customers form expectation about the value and satisfaction that various market offerings will deliver and buy accordingly. Satisfied customers buy again and tell others about their good experiences. Dissatisfied customers switch to competitors and disparage the product to others.

Marketers must be careful to set the right level of expectations. Low expectation will not attract enough buyers and high will disappoint buyers if the expectation was not according to their expectation of value and satisfaction.

h. Exchange and Relationship

Marketing occurs when people decide to satisfy needs and wants through exchange relationship. Exchange is the act of obtaining a desired object from someone by offering something in return. Marketers try to bring about a response to some market offering. The response may be more than simply buying or trading products and service but the long-term relationships.

Topic-7 the Evolution of Marketing or Marketing philosophies

There are several alternative philosophies that can guide organizations in their efforts to carry out their marketing goal(s). Marketing efforts should be guided by a marketing philosophy. Decisions about the weight, given the interests of the organization, customers, and society need to be made by marketing managers. There are five alternative concepts under which organizations conduct their marketing activities.

a. The Production Concept

The production concept holds that consumers will favor products that are available and highly affordable and that management should, therefore, focus on improving production and distribution efficiency. This is one of the oldest philosophies that guide sellers. The production

Concept is useful when:

1). Demand for a product exceeds the supply.

2). the products cost is too high and improved productivity is needed to bring it down.

The risk with this concept is in focusing too narrowly company operations. The production

Concept holds that consumers will favor products that are affordable and available, and therefore managements major task is to improve production and distribution efficiency and bring down prices.

b. The Product Concept

The product concept holds that consumers favor quality products that are reasonably priced, and therefore little promotional effort is required. The product concept states that consumers will favor products that offer the most quality, performance, and features, and that the organization should, therefore, devote its energy to making continuous product improvements.

c. The Selling Concept

Many organizations follow the selling concept. The selling concept is the idea that consumers will not buy enough of the organizations products unless the organization undertakes a large-scale selling and promotion effort.

1). This concept is typically practiced with unsought goods (those that buyers do not normally

Do not know about these products or do no think of buying them e.g. insurance policies).

3). Industries that use this concept usually have overcapacity. Their aim is to sell what they

make rather than make what will sell in the market.

4). There are not only high risks with this approach but low satisfaction by customers.

d. The Marketing Concept

The marketing concept holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. The marketing and selling concepts are often confused.

e. The Societal Marketing Concept

The societal marketing concept holds that the organization should determine the needs, wants, and interests of target markets. It should then deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumers and the societys well being.

What era are we in now?

We are still essentially in the marketing era, since that is the dominant concept, but increasing pressure is being put on to companies to adopt the societal concept.

Topic-8 Marketing Mix | 4 Ps of Marketing

Marketers use different tools in order to get the desired response from the customers or best satisfy their needs. These tools are known as The Marketing Mix. Marketing Mix is probably the most famous term in marketing.

Marketing Mix

The marketing mix consists of everything the firm can do to influence the demand for its product. The many possibilities gather into four groups of variables known as the 'four Ps'; product, price, place and promotion.

Product

Anything that can be offered to a market for attention, acquisition, use or consumption, that might satisfy a want or need is called product. It includes physical objects, persons, places, organizations and ideas. Product may be tangible (goods) or intangible (services).

Price

Price includes the pricing strategy of the company for its products. How much customer should pay for a product?

Place (Placement)

Place not only includes the place where the product is placed,all those activities performed by the company to ensure the availability of the product to the targeted customers. Availability of the product at the right place, at the right time and in the right quantity is crucial in placement decisions.

Promotion

Promotion includes all communication and selling activities to persuade future prospects to buy the product. Promotion decisions include.

Marketing Mix Actual example

Azizi Bank

Product...

Current Accounts, Saving Accounts, Fixed Accounts, Letter of Credit, Western Union, ATM Services.

Price.....

Value Pricing.

Promotion...

Various media and methods, a commercial that appeared on the Television, on Radio, Bill Boards all are the promotional medias.

Distribution...

Azizi Bank has increased its branches to all over Afghanistan including:

Andkhoi, Badakhsan, Farah, Heart, Khost, Kunar, Mazar, Nimroz, Logar, Parwan, Kabul etc.

Lecturer: Mr. Kamran Khan MIHE

M.Com, B.Com, D.Com Mashal Institute of Higher Education