1intro Marketing

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Introduction to Marketing


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What is Marketing??Selling?

Advertising?

Promotions?Making products available in stores?

Maintaining inventories?

All of the above, plus muchmore!


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What Is Marketing?

Simple Definition:Marketing is managing profitable

customer relationships.

Goals:

1. Attract new customers by promising

superior value.2. Keep and grow current customers by

delivering satisfaction.


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Marketing Defined

A social and managerial process by whichindividuals and groups obtain what they need andwant through creating and exchanging products andvalue with others.

(Kotlers Social Definition)

OLD Viewof Marketing:

Making a SaleTelling & Selling

New Viewof Marketing:

Satisfyingcustomer needs

NEW Viewof Marketing:

SatisfyingCustomer Needs


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What is Marketing?

Marketing is an organizational functionand a set of processes for creating,

communicating, and delivering value tocustomers and for managing customer

relationships in ways that benefit the

organization and its stakeholders.

Marketing is meeting customers needsprofitably


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The Marketing Process

A simple model of the marketing process:

Understand the customer needs and wants.

Design a customer-driven marketing strategy. Construct a marketing program that delivers

superior value.

Build profitable relationships and create customer

delight. Capture value from customers to create profits

and customer quality.


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Needs, Wants, & Demands

Need:State of felt deprivation including

physical, social, and individual needs. Physical needs:

Food, clothing, shelter, safety

Social needs:

Belonging, affection

Individual needs:

Learning, knowledge, self-expression


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Five Basic Needs

Clothes

Five Basic Needs

Food Drink

Shelter

Warmth


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Needs, Wants, & Demands

Wants:Form that a human need takes, as shaped by

culture and individual personality. Wants are specific satisfier

Wants + Buying Power = Demand


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Demand

Wants for specific product or specificsatisfier

It is backed by an ability to pay As we all know that people have

unlimited wants but they have limited

resources


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Marketing Myopia

Marketing myopiaoccurs when sellerspay more attention to the specific

products they offer than to the benefitsand experiences produced by theproducts.

They focus on the wants and lose

sight of the needs.


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Value & Satisfaction

Care must be taken when settingexpectations:

If performance islower than expectations,satisfaction is low.

If performance ishigher than expectations,satisfaction is high.


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Exchange

Exchange: Act of obtaining a desired object from

someone by offering something in return. Conditions for Exchange:- Involvement of two parties

- Capable of Communication and Delivery

- Both parties are free to accept or reject the offer.- Each party has something that might be of value

to other party.

- Each party believes it is appropriate or desirable

to deal with other party.


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Exchange vs. Transaction

Exchange:

Act of obtaining

a desired objectfrom someoneby offeringsomething inreturn.

Transaction: A trade of

values betweentwo parties.

One party givesX to another

party and gets Yin return. Caninclude cash,credit, or check.


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What Is a Market?

Derived from a Latin Word Marcatus means a place

where business is conducted.

The set of actual and potential buyers of a product.

In other words it is an arena for potential exchanges.

It is a place where buyer and seller personallycontact,interact and finalize their deals.

These people share a need or want that can besatisfied through exchange relationships.


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Market

Market Place:

- Physical place.

-Where one goes for shopping in a store.

Market Space:

- It is digital in nature

- One goes for a shopping on the internet.


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Value Proposition

The set of benefits or values acompany promises to deliver to

consumers to satisfy their needs. Value propositions dictate how firms will

differentiate and position their brands inthe marketplace.


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Modern Marketing System


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Difference Between Marketing And Selling

Marketing Emphasis on Customers Needs

and wants.

Planning is long term oriented. First determine the need and

want of the customers and thendeliver the product to satisfythose needs and wants

Management is profit oriented

through customer satisfaction.

Selling Emphasis is on the product.

Planning is short run oriented.

Organization first make theproduct and then sell it.

Management is sales volumeoriented.


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Modern Marketing Systems

Main elements in a modern marketingsystem include:

Suppliers Company (marketer)

Competitors

Marketing intermediaries Final users


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Marketing Management

The art and science of choosing targetmarkets and building profitable

relationships with them. Requires that consumers and the

marketplace be fully understood


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Marketing Management

Designing a winning marketingstrategy requires answers to the

following questions:1. What customers will we serve?

What is our target market?

2. How can we best serve thesecustomers?What is our value proposition?


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Target Market

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Target market

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What is Marketing Management?

Marketingmanagement is the

art and science

of choosing target markets

and getting, keeping, and growing

customers through

creating, delivering, and communicatingsuperior customer value.


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Marketing Management Tasks

Developingmarketingstrategies

Capturingmarketing insights

Connecting withcustomers

Building strongbrands

Shaping marketofferings

Delivering value Communicating

value

Creating long-term growth.


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Five Components of MarketingManagement

a. Planning

b. Research

c. Implementation

d. Control

e. Evaluation


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Benefits of MarketingManagement

a. Marketing efforts are accomplished in awell-planned, systematic way

b. An adequate amount of marketing researchand other marketing information isgenerated

c. Marketing weaknesses are quickly spottedand corrected

d. Funds and human resources available formarketing are used as efficiently andeffectively as possible


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e. Marketing efforts are always under carefulscrutiny; it is always felt that there is roomfor improvement

f. The organization is in a better position toadapt to change among customers andcompetition, and in the industry

g. Marketing is better integrated into all theorganization's activities and within itsvarious departments


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h. Marketing personnel and other staffmembers are more highly motivated towardachieving marketing objectives

i. There is a much clearer understanding ofmarketing results, good and bad, and thereasons for successes and failures


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Customer Satisfaction

Dependent on the products perceived

performance relative to a buyers

expectations. Customer satisfaction often leads to

consumer loyalty.

Some firms seek to DELIGHT customersby exceeding expectations.


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Scope of Marketing

Goods

Services

Events Experiences

Persons

Places

Properties

Organizations Information

Ideas.

1intro Marketing

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