Basic concepts of_marketing

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Basic concepts of Marketing Dr M.Meher Karuna

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Transcript of Basic concepts of_marketing

Page 1: Basic concepts of_marketing

Basic concepts of Marketing

Dr M.Meher Karuna

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DEFINING MARKETING Marketing is a societal process by which

individuals and groups obtain what they need and want through creating, offering and freely exchanging product and services of value with others

Marketing Management is the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering, and communicating superior customer value.

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Definition by AMA

Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

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THE SCOPE OF MARKETING

GOODSPhysical goods constitute the bulk of most countries productions and marketing effort

SERVICESAs economics advance, a growing proportion of their activities are focused on the production of service

EXPERIENCESBy orchestrating several service and goods, one can create, stage and market experiences

EVENTMarketers promote time-based events, such as the Olympics, company anniversaries, major trade shows, sports event and artistic performances

PERSONSCelebrity marketing has become a major business

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PLACESPlaces (cities, states, regions and whole nations) compete actively to attract tourist, factories, company, headquarters and new residents

PROPERTIESProperties are intangible right of ownership of either real property (real estate) or financial property (stocks and bonds)

ORGANIZATIONSOrganizations actively work to build a strong, favorable image in the mind of their publics

INFORMATIONSInformation can be produced and marketed as a product

IDEASEvery market offering includes a basic idea at its core

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Structure of Flows in a Modern Exchange Economy

Manufacturer Markets

Government Markets

Consumer Markets

Intermediary Markets

Resource Markets

Resources

Money

Resources

Money

Money

Goods and services

Money

Goods and services

Service, Money

Service, Money

Taxes, goods

Taxes, goods

Service, Money

Taxes, goods

Taxes

goods

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CORE MARKETING CONCEPTS

Target Markets and Segmentations

Marketers and Prospects

Needs, wants and demand

Product or Offering Value and

Satisfication

Exchange and Transactions

Relationship and Networks

Marketing Channels Supply Chain Competition Marketing

Environment Marketing Mix

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1. Target Markets and Segmentation2. Market Place, Market Space, Metamarket• Market Place: Physical Shopping• Market Space: Digital Shopping• Metamarket: Cluster of complementary

Products. Mohan Sawhney proposed a concept of

metamarket. Metamediaries to assist buyers to move

through these groups.

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3. Marketers and Prospects: A marketer is someone who seeks a response from another party, called the prospect.

4. Needs, Wants, and Demand: A need can be defined as a felt state of deprivation of some basic satisfaction.

• Primary needs/physiological or biogenic needs.

• Secondary / acquired needs.

• Demand: ability and willingness to buy.

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5. Product, Offering, and Brand: Product is a set of benefits companies

offer to satisfy needs. Offering: A combination of products,

services, information and experiences. Brand: an offering from a known source.6. Value and Satisfaction: Value: ratio between what the customer

gets and what he gives. Customer value triad: quality, service and

price (QSP).

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Raise benefitsRaise benefits Reduce costsReduce costs Raise benefits and reduce costsRaise benefits and reduce costs Raise benefits by more than the raise in costs.Raise benefits by more than the raise in costs. Lower benefits by less than reduction in costs.Lower benefits by less than reduction in costs.

tPsychicCosEnergyCostTimeCoststMonetaryCo

enefitsemotionalbbenefitsFunctional

Costs

BenefitsValue

VALUE AND SATISFICATIONVALUE AND SATISFICATION

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7.Exchange and Transactions• Exchange is the process of obtaining

a desired product from someone by offering something in return.

• Transaction is a trade of values between two or more parties.

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8.Relationships and Networks Relationship marketing is building mutually

satisfying long-term relationship with key parties. (customers, suppliers, distributors)

Marketing network consists of the company and its supporting stakeholders (customers, employees, suppliers, distributors, retailers, ad agencies, university scientists and others) with whom it has built mutually profitable business relationships.

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9. Marketing Channels: To reach the target market.

Communication channels: deliver and receive messages.

Distribution channels: display, sell, or deliver physical goods.

Service channels: to carry out transactions with potential buyers. Ex: warehouses, banks, transport, insurance etc.

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10.Supply Chain: Longer chain from raw materials to components to final products that are carried to final buyers.

11.Competition: all the actual and potential rival offerings and substitutes that a buyer might consider.

Brand competition

Industry Competition

Form Competition

Generic Competition

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MARKETING ENVIRONMENT

Competition represent only one force inthe environment in which the marketer operates. The marketing environment consist of the task environment and the broad environment

The broad environment consist of six component : demographic environment, economic environment, natural environment, technological environment, political-legal environment and social cultural environment

MARKETING MIX

Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market

Four P : Product, Price, Place, Promotion Four C : Customer Solution, Customer Cost, Convenience,

Communication

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COMPANY ORIENTATIONS TOWARD THE MARKETPLACE

THE PRODUCTION CONCEPT Holds that consumers will prefers product that are widely

available and inexpensive THE PRODUCT CONCEPT

Holds thats consumers will favor those product that offer the most quality, performance, or innovative features

THE SELLING CONCEPT Holds that consumers and businesses, if left alone, will

ordinarily not buy enough of the organization’s products. The organization must, therefore, undertake an aggressive selling and promotion effort

THE MARKETING CONCEPT Holds that the key to achieving its organizational goals

consist of the company being more effective than competitors in creating, delivering, and communicating customer value to its chosen target markets

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Determinants of Customer Delivered Value

Factory Product Selling and Profits through Promoting sales volume

Target Customer Integrated Profits through market needs Marketing customer saticfaction

Starting Point

Focus Means Ends

A. The Selling Concept

B. The Marketing Concept

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THE SOCIETAL MARKETING CONCEPT

• The societal marketing concept hold s that the organization’s task is to determine the needs, wants and interest of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enchances the customer’s and the society’s well-being.

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HOLISTIC MARKETING CONCEPT

Companies have new capabilities that can transform the way they have been doing marketing.

Companies can operate a powerful new information and sales channel.

Companies can collect fuller and richer information.

Companies can facilitate and speed up internal communication.

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FOUR COMPONENTS

Relationship Marketing. Integrated Marketing. Internal Marketing. Social Responsibility Marketing. An approach to marketing that

attempts to recognize and reconcile the scope and complexities of marketing activities.

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INTERNAL MARKETING

Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well.

It must take place at two levels1. Various marketing functions must be

integrated2.Marketing thinking must be so pervasive

throughout the company.

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SOCIAL RESPONSIBILITY MARKETING

The cause and effects of marketing extend beyond the company and the customer to society.

Social responsibility also requires that marketers carefully consider the role that they are playing and could play in terms of social welfare.

Different names for this situation are humanistic marketing, ecological marketing and societal marketing concept. Also called as cause-related marketing.

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HOW BUSINESS AND MARKETING ARE CHANGING

Company responses and adjustments Reengineering Outsourcing E-commerce Benchmarking Alliances Partner-suppliers Market Centered Global and local Decentralized

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Marketers responses and adjustment Relationship marketing Customer lifetime value Customer share Target marketing Individualization Customer database Integrated marketing communications Every employee a marketer