Introduction to MarketingIntroduction to Marketing

What is Marketing?What is Marketing?

Social definition A societal process by which individuals and

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

What is Marketing?What is Marketing?

Management definition It is the process of planning and executing

the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.

Needs and WantsNeeds and Wants

Needs are basic human requirementsWants are needs directed to specific

objects/services that might satisfy the need

ProductProduct

A product is any offering catered to satisfy needs and wants.

A brand is when the product is from a known source.

DemandDemand

This is the wants for specific products backed by an ability to pay.

Target MarketTarget Market

Very rarely does a product cater to the entire market. Most products are designed to cater to a group of customers who specifically want such a product. This group of customers is the target market which is a slice of the total market. We say it is the market segment.

Value and SatisfactionValue and Satisfaction

Value = Benefits/CostsBenefits = Functional Benefits + Emotional

benefitsCosts = Monetary costs + Time + Energy + Psychic costs

ExchangeExchange

Get something (product /service) by offering something in return.

Eg. kind (barter) or money (value )Exchange is a value creating process

because it leaves both parties better off (win – win situation)

Transaction and TransferTransaction and Transfer

A transaction is an exchange between two things of value on agreed conditions and a time and place of agreement.

A transfer is a one way exchange without receiving anything in return.

Relationship MarketingRelationship Marketing

Building long term mutually satisfying relations with customers, suppliers, distributors in order to retain their long term preference and business

Marketing NetworkMarketing Network

A marketing network is the relationships built with its stakeholders. Effective relationships make up an effective and strong network.

Marketing ChannelsMarketing Channels

Marketing channels are used to reach the target segment.

Communication channels eg. Advertising, telephone enquiry systemDistribution channels – trade, direct sales

Supply ChainSupply Chain

The supply chain represents a value delivery chain – from procurement of raw materials to final delivery of product to consumer.

CompetitionCompetition

Potential and rival substitutes and offerings a buyer might consider.

Competition can be viewed in various perspectives – brand, industry, form, generic

Marketing EnvironmentMarketing Environment

Competition Customers Govt. policies Suppliers Trade

Product Import tariffs Trends Technology Politics

Marketing MixMarketing Mix

It is the tools that an organization employs to pursue its marketing objectives in the target market

Product, Price, Place, Promotion4 C’s – Customer solution, Cost,

Convenience, Communication

Concepts under which firms Concepts under which firms conduct marketing activitiesconduct marketing activities

Production conceptProduct ConceptSelling ConceptMarketing ConceptSocietal marketing Concept

Customer needsCustomer needs

Stated needsReal needsUnstated needsDelight needsSecret Needs

Company Responses and Company Responses and AdjustmentsAdjustments

Reengineering Outsourcing E – Commerce Bench marking Alliances

Partner – supplies Market centered Global/local Decentralization