Marketing Chapt 1 UIMs
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Transcript of Marketing Chapt 1 UIMs
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In side contentsIn side contents
1.1. An overview of marketingAn overview of marketing
Definition of MarketingDefinition of Marketing
Evolution of marketingEvolution of marketing The marketing conceptThe marketing concept
Ethics and marketingEthics and marketing
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What is Market?
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MARKETINGMARKETING
Marketing is a total system of business activities designed to plan,price, promote and distribute wantsatisfying products to target markets
in order to achieve organizational objectives. This definition has two
significant implications:
Focus:
the entire system of business activities should be customer oriented.
Customers wants must be recognized and satisfied.
Duration:
Marketing should start with an idea about a want- satisfying product
and should not end until the customers wants are completely satisfied,which may e sometime after the exchange is made.
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The basic points of mentioned definition will beThe basic points of mentioned definition will be
expandedexpanded
4ps of marketing or marketing mix4ps of marketing or marketing mix PricePrice
PromoteP
romote
ProductProduct
Physical distributionPhysical distribution
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What is product?What is product?
TheThe setset ofof tangibletangible andand intangibleintangible attributes,attributes, whichwhich maymay includeincludepackaging,packaging, color,color, price,price, quality,quality, andand brand,brand, plusplus thethe sellerssellersservicesservices adad reputationreputation.. AA productproduct maymay bebe aa good,good, service,service, place,place,person,person, oror ideaidea..
what is price?
Price is the amount of money and/or other items with utility needed toacquire a product.
What is promote?
Creation of awareness about the existence of product or service
among the customers is called promote.
Placement or physical distribution
Consumers prefer convenient place to achieve the product or
service where a product place adequately.
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Marketing ConceptMarketing Concept
Analyze needs of the customersAnalyze needs of the customers
Integrated marketing approachIntegrated marketing approach
Maximize the profitMaximize the profit
Analyze needs of the customersneeds of the customers
InIn thethe marketmarket orientationorientation stagestage companiescompanies identifyidentify whatwhat customercustomer
want,want, andand tailortailor allall activitiesactivities ofof thethe firmfirm toto satisfysatisfy thosethose needsneeds asas
efficientlyefficiently asas possiblepossible..Integrated marketing approachIntegrated marketing approach
All the members of organization must work collectively to achieve the
organization goals and this could be the common purpose of each and
any one to work collectively, respect and cooperation with each other
in such away to achieve organizational objectives and goal.
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Refinement of marketingRefinement of marketing
1.1. QualityQuality
2.2. Relation shipsRelation ships
3.3. Mass customizationMass customization4.4. Value creationValue creation
5.5. Return on marketing investmentReturn on marketing investment
Quality: The essential feature or ability of product that gain the satisfaction of theQuality: The essential feature or ability of product that gain the satisfaction of thecustomers.customers.
Relationship: The value of a good relationship is not a new idea. Markets have the longRelationship: The value of a good relationship is not a new idea. Markets have the longreorganized that identifying the needs of customers and satisfying them can bereorganized that identifying the needs of customers and satisfying them can beprofitable. However it is only recently that organizations have made a concertedprofitable. However it is only recently that organizations have made a concertedeffort at relationship marketing . Establishing a connection with a customer sucheffort at relationship marketing . Establishing a connection with a customer suchthat the organizations viewed as partner examining successful partnerships inthat the organizations viewed as partner examining successful partnerships inbusiness and elsewhere (some where or different places)business and elsewhere (some where or different places)
All ideas are subject to refinement in the marketing concept is no exception. As business learns
more about customers, competitive pressure increases both domestically and globally, and
technology alters the way organizations functions, priorities are considered and old ideas areexamined in new ways. And several of these developments are discussed below:
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Mass customizationMass customization
ToTo makemake targettarget inin largelarge numbernumber ofof customerscustomers inin suchsuch aa mannermanner
toto buybuy youryour product,product, byby usingusing differentdifferent massmass productionproduction
techniquestechniques andand massmass market(market( relyingrelying onon networknetwork televisiontelevision
advertisingadvertising toto satisfysatisfy thatthat needneed.. BecomeBecome possiblepossible byby thethe
tremendoustremendous advanceadvance technologytechnology.. TheyThey alsoalso cancan advertiseadvertise toto
eacheach specificspecific audienceaudience throughthrough capabilitycapability andand thethe manymany
interestinterest magazinesmagazines..
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Value creationValue creation
Marketers are taken a close look at whatMarketers are taken a close look at what
customers value in a product.customers value in a product.
As we noted above they heavy emphasingAs we noted above they heavy emphasingmass product and mass marketing were largelymass product and mass marketing were largely
driving by the desire to offer product at thedriving by the desire to offer product at the
lowest possible price.lowest possible price.
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Return on marketing investmentReturn on marketing investment
Recall that one element of marketing conceptRecall that one element of marketing concept
is the accomplishment of organizational goal.is the accomplishment of organizational goal.
In the past impact of marketing onIn the past impact of marketing onorganization goal has been defined ratherorganization goal has been defined rather
broadly because marketing is only one ofbroadly because marketing is only one of
many factors that influence that how customermany factors that influence that how customer
behave.behave.
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The societal Marketing ConceptThe societal Marketing Concept
NotNot longlong afterafter thethe marketingmarketing conceptconcept becamebecame aa widelywidelyacceptedaccepted approachapproach toto doingdoing business,business, itit camecame underunder firefire..FromFrom oneone pointpoint ofof viewview thesethese chargescharges areare truetrue.. AA firmfirmmaymay totallytotally satisfysatisfy itsits customers,customers, whilewhile alsoalso adverselyadversely
affectingaffecting societysociety forfor exampleexample somesome ofof thethe firmsfirms pollutingpollutingthethe airair andand waterwater.. MarketingMarketing managersmanagers areare responsibleresponsibletoto createcreate decision,decision, beneficialbeneficial bothboth societysociety andandorganizationorganization itit meansmeans allall thethe decisiondecision shouldshould havehave socialsocialapplicationapplication..
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Ethics and MarketingEthics and Marketing
MarketersMarketers areare responsibleresponsible toto thethe varietyvariety ofof groupsgroups..CertainlyCertainly theirtheir customerscustomers dependdepend onon themthem toto satisfysatisfy
theirtheir needsneeds.. AlsoAlso theirtheir employersemployers expectexpect themthem toto
generategenerate salessales andand profits,profits, supplierssuppliers andand distributorsdistributorslooklook toto themthem forfor theirtheir continuedcontinued business,business, andand
profits,profits, andand societysociety expectsexpects themthem toto bebe responsibleresponsible
citizenscitizens.. TheThe frequentlyfrequently divergentdivergent interestsinterests ofof thethe
groupsgroups createcreate aa widewide varietyvariety ofof ethicalethical challengeschallenges
forfor marketersmarketers..
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The benefits ofEthical BehaviorThe benefits ofEthical Behavior
OneOne couldcould argueargue thatthat ethicalethical behaviorbehavior shouldshould inin
itselfitself bebe rewardingrewarding.. However,However, therethere areare
tangibletangible benefitsbenefits asas wellwell.. BusinessBusiness isis builtbuilt onon
relationshipsrelationships withwith suppliers,suppliers, customers,customers,
employees,employees, andand otherother groupsgroups.. TheThe strengthstrength ofof
thosethose relationshipsrelationships isis largelylargely aa functionfunction ofof thethe
amountamount ofof trusttrust thethe partiesparties havehave inin eacheach other,other,unethicalunethical behaviorbehavior underminesundermines trusttrust andand
destroysdestroys relationshipsrelationships..
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Evolution ofMarketingEvolution ofMarketing
Marketing has evolved through three successive stages of development:Marketing has evolved through three successive stages of development:
product orientation, sales orientation, and market orientation.product orientation, sales orientation, and market orientation.
Product orientation
Late 1800s
Sales orientation
Early 1930s
Market orientation
Mid 1950s
Product orientation
Manufacturers in the product- orientation
stage typically focused on the quality and
quantity of output while assuming that
customers would seek out and buy
reasonably priced, well- made products.Managers with backgrounds in
manufacturing and engineering shaped a
firms strategy. In and era when the
demand for goods generally exceeded the
supply, the primary focus in business was
to efficiently produce large quantities ofproducts.
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Sales orientation
The world economic crisis of the late 1920s (the Great Depression) changedperceptions.
As the developed countries emerged from the depression it became clear that the
main economic problem no longer was how to produce efficiently, but rather it was
how to sell the resulting output. Just offering a quality product was no assurance of
market success. Managers begin to realize that to sell their products in anenvironment where consumers had limited resources and numerous options required
substantial postproduction effort. They used heavy promotional activity to sell the
products. Along with responsibility came expectations for performance.
Unfortunately, these pressures resulted in some managers resorting to overly
aggressive selling or the hard sell. Old habit die hard, and even now some
organizations believe that they must use a hard sell approach to prosper.
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Market orientationMarket orientation
InIn thethe marketmarket orientationorientation stage,stage, companiescompanies identifyidentify whatwhat
customerscustomers wantwant andand tailortailor allall thethe activitiesactivities ofof thethe firmfirm toto
satisfysatisfy thosethose needsneeds asas efficientlyefficiently asas possiblepossible.. inin thisthis thirdthird
stagestage firmsfirms areare marketingmarketing ratherrather thanthan merelymerely sellingselling..
Needs of the seller
Short term
Sales
market
Needs of the buyer
Long term
Customer satisfaction
Profitable sales
Organization's priority
Planning horizon
Focus
Performance measure
Sales Orientation Market Orientation
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The marketing conceptThe marketing concept
Managers who adopt a market orientation recognize the
marketing is vital to
the success of their organizations. This realization is
reflected in a fundamental approach to doing
Business that gives the customer the highest priority . Called
the marketing concept, it emphasizesCustomer orientation and coordination of marketing
activities to achieve the organizations performance
Objectives.
Nature and rationale
The marketing concept is based on three beliefs that are illustrated in figure 1.2.
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AllAll planningplanning andand operationsoperations shouldshould bebe customercustomer--orientedoriented.. ThatThat is,is, everyevery departmentdepartment
andand employeeemployee shouldshould bebe focusedfocused onon contributingcontributing toto thethe satisfactionsatisfaction ofof customerscustomers
needsneeds..
AllAll marketingmarketing activitiesactivities inin anan organizationorganization shouldshould bebe coordinatedcoordinated.. ThisThis meansmeans thatthat
marketingmarketing effortsefforts (( productproduct planning,planning, pricing,pricing, distributing,distributing, andand promotionpromotion shouldshould
bebe designeddesigned andand combinedcombined inin aa coherent,coherent, consistentconsistent way,way, andand thatthat oneone executiveexecutive
shouldshould havehave overover allall authorityauthority andand responsibilityresponsibility forfor thethe completecomplete setset ofof marketingmarketing
activitiesactivities..
CustomerCustomer--orientedoriented coordinatedcoordinated marketingmarketing isis essentialessential toto achieveachieve thethe organizationsorganizations
performanceperformance objectivesobjectives..
TheThe ultimateultimate objectiveobjective forfor aa businessbusiness isis typicallytypically aa profitableprofitable salessales volumevolume.. However,However,thethe immediateimmediate objectiveobjective mightmight bebe somesome thingthing lessless ambitiousambitious thatthat willwill movemove thethe
organizationorganization closercloser toto itsits ultimateultimate goalgoal..
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Any QuestionAny Question
??