INTRODUCTION TO INTRODUCTION TO MARKETINGMARKETING

Mayank Singhal

Market

Market means that customers who have purchased or want to purchase a certain product or service.

OR

It is the set of potential customers.

For instance…..

Types Of Market

• Consumer Market

• Industrial Market

• Global Market

• Non profit or Governmental market

Consumer Market

The aim of buying is to consume for their own or somebody who has something to do with in consumer market.

Industrial Market

Business buyers buy goods for their utility in enabling them to make or resell a product to others for the purpose of making profits.

Global Market

Companies selling their goods and services in the global marketplace face additional decisions and challenges.

Nonprofit and Government Markets

Companies selling their goods to nonprofit organizations such as churches, universities, charitable organizations, or government agencies.

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Marketing = ? Marketing is “Demand Management”. Marketing is the sum of all activities that take you to a

sales outlet. After that sales takes over. Marketing is all about creating a pull, sales is all about

push. Marketing is all about managing the four P’s –

product price place promotion

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Simple Marketing System

Industry(a collection

of sellers)

Market(a collection

of Buyers)

Goods/services

Money

Communication

Information

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Marketing ManagementMarketing management is the process of planning, organizing, directing and controlling the activities related to marketing of goods and services to satisfy the customer needs and achieve organizational goals

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The 4 Ps & 4Cs

MarketingMix

Product

Price Promotion

Place

CustomerSolution

CustomerCost

Communication

Convenience

Marketing Management PhilosophiesAgree or Disagree?

1. Production: consumers will favor products that are available and highly affordable

2. Product: consumers favor products that offer the most in quality, performance, and innovative features

3. Selling: consumers will not buy unless an organization undertakes a large-scale selling and promotional effort

4. Marketing: determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently then the competitors

5. Societal marketing: generating customer satisfaction and long-run societal well-being are the keys to both achieving the company’s goals and fulfilling its responsibilities

Orientations towards marketing

• Production concept (before 1930): demand > supply

• Selling concept (1930-1950): supply > demand

• Marketing concept (post-1960s): analyze consumer needs before

producing and selling, market orientation, competition…

Marketing Concept versus Selling Concept

Starting Point Focus Means Ends

Factory ProductSell and

Promote itProfits through

sales volume

The Selling Concept

MarketCustomer

needsIntegratedmarketing

Profits fromsatisfied customers

The Marketing Concept

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Scope – What do we market

Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts

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Core Concepts of Marketing

Based on : Needs, Wants, demand

Products, Utility, Value & Satisfaction

Exchange, Transactions & Relationships

Markets, Marketing & Marketers.

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Needs, wantsdemands

MarketsMarket Marketing &Marketers

Marketing &Marketers

Utility, Value &Satisfaction

Exchange, TransactionRelationships

Products

Core Concepts of Marketing

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Core Concepts of Marketing

Need – food ( is a must )

Want – Pizza, Burger, French fry's ( translation of a need as per our experience )

Demand – Burger ( translation of a want as per our willingness and ability to buy )

Desire – Have a Burger in a five star hotel

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In order to understand Marketing let us begin with the Marketing Triangle

Customers

CompetitionCompany

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Who is a Customer ??

Anyone who is in the market looking at a

product / service for attention, acquisition,

use or consumption that satisfies a want or a

need.

CUSTOMER

IS . . . . .

Common marketing problems

• How can we identify and choose profitable market segments?

• How can differentiate our offer from our competition?

• How should we react to competitors?

• How can we satisfy our customers and build brand loyalty?

• How can we measure the effectiveness of an add campaign, of Public Relations, of a promotion, etc…?

The Marketing Mix

The Marketing Mix

• The tools available to a business to gain the reaction it is seeking from its target market in relation to its marketing objectives

• 7Ps – Price, Product, Promotion, Place, People, Process, Physical Environment

• Traditional 4Ps extended to encompass growth of service industry

Product

Product• Methods used to

improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage e.g.– Extension strategies– Specialised versions– New editions– Improvements – real or

otherwise!– Changed packaging– Technology, etc. Image copyright: www.freeimages.co.uk

Price

Price

• Pricing Strategy• Importance of:

– knowing the market

– Maintain public image of the firm

– Meeting or prevent competition

Promotion

Promotion• Strategies

to make the consumer aware of the existence of a product or service

• NOT just advertising

Place

Place

• The means by which products and services get from producer to consumer and where they can be accessed by the consumer– The more places to buy the product and the

easier it is made to buy it, the better for the business (and the consumer?)

People

People

• People represent the business– The image they present can be important

– First contact often human – what is the lasting image they provide to the customer?

– Extent of training and knowledge of the product/service concerned

– Mission statement – how relevant?– Do staff represent the desired culture

of the business?

Process

Process

• How do people consume services?• What processes do they have to go through

to acquire the services?• Where do they find the availability

of the service?– Contact– Reminders– Registration– Subscription– Form filling– Degree of technology

Physical environment

Physical environment

The ambience, mood or physical presentation of the environment– Smart/shabby?– Trendy/retro/modern/old fashioned?– Light/dark/bright/subdued?– Romantic/loud?

– Clean/dirty/neat?

– Music?

– Smell?

Thank You