Introduction of marketing management
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Transcript of Introduction of marketing management
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Chapter 1
Introduction of Marketing
By- Anjali SharmaBusiness
Administration 2
Do You Know?
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What is Marketing? Marketing is “Meeting needs
Profitably.” Marketing is the delivery of customer
satisfaction at a profit. Marketing is the performance of business
activities that direct the flow of goods and services from the producer to the consumer.
Definition of MarketingAccording to American Marketing
Association, “Marketing is an organisational function and a set of processes for creating, communicating & delivering value to the customers and for managing customers relationships in way that benefit the organisation and its stakeholders.”
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Marketing Defined Marketing is the activity, set of instructions,
and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
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OLD view of marketing:
Making a sale—“telling and selling”
NEW view of marketing:
Satisfying customer needs
Features of MarketingMarketing is:-Business ActivityTotal SystemManagerial ActivityFour P’sSubject Matter- Products, Services and IdeasCustomer want satisfactionGoal of Marketing Operation is (Present customer + Prospective customer)Universal in natureAn Art 8
Cont.… Creation of Utilities Ongoing or Dynamic process Matching Process Integrated Process Encompasses all activities of exchange Continuous process Process of Planning & Executing Not Selling Viewpoint
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Marketing’s task: satisfying consumer needs
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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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The Goal of Marketing is: To attract new customer by
promising superior value. Keep current customers by
delivering satisfaction.
Why is Marketing Important? Shifting Business Paradigms
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Sellers’ markets
Buyers’ markets
Core Concepts of Marketing
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Needs, Wants & Demands
Products &Services
Value & Satisfac-tion
Exchange & Transac-tion
Markets
Needs, Wants, and 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-
expressionWant: Form that a human need takes, as
shaped by culture and individual personality.
Wants + Buying Power = Demand15
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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Products & ServicesProduct: Anything that can be offered to a market to
satisfy a need or want. The concept of product is not limited to physical
objects – anything capable of satisfying a need can be called a product.
Services: In addition to tangible goods, products also
include services, which are activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything.
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Values, Satisfaction & Quality
Customer value: Difference between the values that the customer gains from owning and using a product versus the costs of obtaining the product.
• Customer satisfaction: The extent to which a product’s perceived performance in delivering value matches a buyer’s expectations.
• Quality: the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.
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Exchange, Transactions, and Relationships
Exchange : The act of obtaining a desired object from someone
by offering something in return Transaction : A trade between two parties that involves at least
two things of value, agreed – upon conditions a time of agreement, and a place of agreement.
Relationship marketing : The process of creating, maintaining, and enhancing
strong, value – laden relationships with customers and other stakeholders
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What is Marketed ? (Needs & wants are fulfilled through a Marketing Offering):
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Ideas Services
Organisations Experiences
Places
Information Events
Properties Persons
Products
Goods Major things or entities. It include like food, cars,
refrigerators, television sets, machines etc.
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Services Activities, benefits & satisfaction. It include
Healthcare, Airlines, Hotels, Barbers, Beauticians, Transport, Professionals and Etc.
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Events Launching a new product or conducting Companies
Function. It include major trade shows, artistic performances, companies anniversaries etc.
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Experiences Also called Experiential marketing. Like Disney World,
Haunted house etc.
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Persons Celebrity marketing. Business firm engage a famous
film star or Personality for the publicity or brand ambassador for its product.
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Places
It include country, states, regions, cities etc. It attract Tourists, Factories, Company Headquarters and new Residents.
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Properties
Intangible rights of ownership of either real property or financial property.
Real property- Real estate Financial property- Stocks & Bonds
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Organizations These are engaged in building a strong, favorable,
image in the mind of the customers & spend a lot of money on Corporate Identity Advertisements. For example, Reliance Industries Ltd. It may include universities, museums, non profit organizations etc.
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Information Famous Colleges, Universities & Schools provide
information in their Prospectus, on the basis of these information students decide in which school or college they should take admission.
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Ideas LIC of India sale its Idea in the following form: “Jindgi
ke sath bhi, Jindgi ke baad bhi”. Such Idea helps to the LIC in the marketing of his products & services.
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Marketing Mix
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The 4 Ps & 4CsMarketing
Mix
Product
Price Promotion
Place
Customer’sNeed
Customer’sCost Communication
Convenience
What to Sell ?
At what Price ?
Where to sell ?
What to communicate?
Difference between Selling & Marketing
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Point Selling MarketingEmphasis Product Customer’s Want
Start with the
Seller Buyer
First makes/ determine
Product Consumer's Want
Views business as a
Goods producing process Customer satisfying process
Approach Push approach Pull approach
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Point Selling MarketingCentre Seller Buyer
Management
Sales-volume-oriented Customer satisfaction oriented
Pre-occupied with
Seller’s need Consumer’s need
Planning Short-run-oriented Long run oriented
Stressed Needs of Seller Needs of Buyer
Customer is
Last link in the business Core of the business
Emphasis Saleable surplus Needs of Customer
Exchange activity
Without Value Satisfaction With the Value Satisfaction
Who determine the Price
Cost Customer
Focus on Somehow selling Integrated Selling
Marketing Concept versus
Selling Concept
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Starting Point Focus Means Ends
The Marketing Concept
The Selling Concept
Market Consumer need Integrated MarketingProfit through consumer satisfaction
Factory Product Sell & Promote it Profit through sales volume
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The philosophy that consumers will favor products that are available and highly affordable and that management should therefore focus on improving production and distribution efficiency.
Production Concept
Product Concept
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The philosophy that consumers will favour products that offer the most quality, performance, and innovative features.
Selling Concept
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The idea that consumers will not buy enough of the organization’s products unless the organization undertakes a large – scale selling and promotion effort.
Marketing Concept
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The marketing management philosophy that 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.
Societal Marketing Concept
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The idea that the organization should determine the needs, wants, and interests of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer’s and society’s well – being.
Three Considerations Underlying The Societal
Marketing
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Societal marketing
concept
Society(Human welfare)
Company(Profits)
Consumers(Want satisfaction)
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Markets A market is a collection of buyers & sellers to buy. The set of all actual and potential buyers of a product
or service.
A simple marketing system
Industry (a collection
of sellers)
Market (a collection of
buyers)
Communication
Products / Services
Money
Information
Assignment “Marketing is everywhere” How ? What do you mean by marketing and
elaborate the importance of marketing ? Explain the entities of marketing which are
marketed ? What do you mean by marketing mix and
Explain the concept of 4 p’s. Categories the different concepts of marketing
in chart form. Whai is the difference between selling and
marketing concept ? 44
Assignment Create a list of 10 new
products with concepts and Tag lines.
Identify the difference between 2 or more Advertisement of same product.
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