Introductary Concepts

8/8/2019 Introductary Concepts

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Session1 & 2

Marketing Management

IMT Dubai


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Marketing: An Introduction

Typically seen as a task of creating,

promoting and delivering goods and

services to consumers and businesses. Scope of marketing

Goods, services, experiences, events,

persons, places, properties, organizations,

information and ideas


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What is Market?

Economics collection of buyers and sellers who transact over a period.

Marketing Sellers as industry and buyers as market.

Consumer markets Business markets Selling goods and services to other organizations for the purpose of

their own use of further production or reselling.

Market place Physical store where goods are placed

Market space Digital when goods are shopped over internet


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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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Manufacturermarkets

Services,Services,moneymoney

Governmentmarkets


ServicesServices


TaxesTaxes

Taxes,Taxes,goodsgoods

Taxes,Taxes,

goodsgoods

Taxes,Taxes,

goodsgoods

MoneyMoney MoneyMoney

Consumermarkets

Intermediary

marketsGoods, servicesGoods, services

Goods, servicesGoods, services

ResourcesResources ResourcesResourcesResourcemarkets

MoneyMoney MoneyMoney

Structure of Flows


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Defining marketing

Is the process of planning and executing the

conception, pricing, promotion and distribution

of ideas, goods and services to create

exchanges that satisfy individual andorganizational goals.

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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Basic concepts

Needs basic human requirements. Eg.

Food, air, water and clothing

Wants needs become wants when theyare directed to specific objects that might

satisfy the need.

Demands are wants for specific products

backed by an ability to pay.


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Production ConceptProduction Concept

Product ConceptProduct Concept

Consumers prefer products that arewidely available and inexpensive.

Achieve high production efficiency,low costs & high distribution costs.Drawback: it would become impersonaland poor quality

Consumers favor products thatoffer the most quality,

performance,or innovative featuresThey caught up in a love affair withtheir productsThey trust their engineers &designers.Marketing myopia Theodre Levitt

Company Orientations Towards

the Market


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Motorolas Iridium

66 activesatellites

- 2.6 billion

dollars

-Gone

bankrupt


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Selling ConceptSelling Concept

Marketing ConceptMarketing Concept

Consumers if left alone, they will notbuy enough of my products.So, Consumers will buy productsonly if the company aggressively

promotes/sells these products.This is normally followed when thereis over capacity and productionRiskier, if the consumer dont likethe product, they will spread badWOM

Focuses on needs/ wants of targetmarkets & delivering value

better than competitors


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Marketing concept

Target market define it

Customer needs understand it stated needs (customer wants an inexpensive car)

real needs (operating costs low, not initial price low), unstated needs (expect good service from the

dealer),

delight needs (free service for 5 years) and

secret needs (customer wants to be seen by friendsas an intelligent consumer)

Responsive marketer, anticipative marketer andcreative marketer


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Marketing concept

Integrated marketing

all the companies departments work together to

serve the customers interest

External marketing directed to people outside

the company

Internal marketing task ofhiring, training and

motivating employees who want to servecustomers well

Profitability


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MarketIntegratedmarketing

Profits throughcustomer

satisfaction

Customerneeds

(b) The marketing concept

FactoryExistingproducts

Selling andpromotion

Profits throughsales volume

Startingpoint Focus Means Ends

(a) The selling concept


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Drivers to embrace marketing

concept Sales decline

Slow growth

Changing buying patterns Increasing competition

Increasing marketing opportunities


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Customer concept One to one marketing

Achieving customer life time value

From making profits from each sale to making profitsby managing life time value

Data base marketing

Societal marketing

Consumer and society well being Ethical and social considerations in marketing

practices

Cause related marketing


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The FourPsThe FourPs

Marketing

Mix

Product

Price Promotion

Place

The Four CsThe Four Cs

Customer

Solution

Customer

Cost

Communication

Conven-ience


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Evolving Views of Marketings

Role

a. Marketing as an

equal function

FinanceProduction

Marketing Humanresources

b. Marketing as a more

important function

Finance

Humanresources

Marketing

Production


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Role

c. Marketing as the

major function

Marketing

Production

d. The customer as the

controlling factor

Customer


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Role

e. The customer as the controllingfunction and marketing as the

integrative function

Customer

Marketing

Production

Introductary Concepts

Documents

Transcript of Introductary Concepts