Session 1
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Marketing &
Market Orientation
Marketing
Marketing is defined to be the process responsible for anticipation, identification ,
and satisfaction of customer needs through a profit
Marketing manager
He is the bridge between the company and the customers
His functions are (APIC)
Analysis
Planning
Implementation
Control
What are Consumers’ Needs, Wants, and Demands?
Needs Needs - state of felt deprivation including physical, social, and individual needs i.e hunger
WantsWants - form that a human need takes as shaped by culture and individual personality i.e. bread
DemandsDemands - human wants backed by buying power i.e. money
American Association of Advertising Agencies
This ad demonstrates that advertising can’t make consumers buy things that they don’t need despite high-pressure selling.
Push versus pull strategies
A push strategy involves the manufacturer using its sales
force and trade promotion money to induce intermediaries
to carry, promote, and sell the product to end user.
A pull strategy involves the manufacturer using
advertising and promotion to induce consumers to ask
intermediaries for the product, thus inducing the
intermediaries to order it
Production ConceptProduction Concept
Product ConceptProduct Concept
Selling ConceptSelling Concept
Marketing ConceptMarketing Concept
Societal Marketing ConceptSocietal Marketing Concept
Marketing Management Philosophies
Production concept
The production concept holds that consumers will
prefer products that are widely available and
inexpensive.
Product concept
-The product concept holds that consumers will favor those products
that offer the most quality, performance, or innovative features
-In order to compete effectively, the product needs to have features that
appeal to individual consumers. In a product-oriented firm, the
products are designed to incorporate a large number of features in
order to meet the needs of a large number of consumers.
Unfortunately, the cost becomes too high for most people, and of
course people do not want to pay for features that they are unlikely
ever to use.
Selling concept
The selling concept holds that consumers and
businesses, will ordinarily not buy enough of the
organization’s products, therefore, the
organization must undertake aggressive selling
and promotion effort.
Marketing conceptThe marketing concept holds that the key to achieving organizational
goals consists of the company being more effective than competitors in
creating, delivering, and communicating superior customer value to its
chosen target markets.
Reactive marketing orientation: understanding and meeting consumers’ expressed needs.
Proactive marketing orientation: researching or imagining latent consumers’ needs through
a “probe-and-learn” process
e.g. Wal Mart
Marketing Concept Evolution
Production Concept Consumers prefer products that are widely available and inexpensive
Product Concept Consumers favor products that offer the most quality, performance, and
innovative features
Selling Concept Consumers will buy products only if the company aggressively promotes/sells
these products
Marketing Concept Focuses on needs/wants of target markets & delivering value better than
competitors
Marketing orientation and increasing customer
value British airways and American airlines may use
the same kind of aircraft to fly executives first class between New York and London but British airways (BA) beats American airlines by meeting customers’ needs for convenience and rest at every step of the journey
BA value delivery system includes a separate first class express check in and security clearance plus a pre-flight express meal service in the first class lounge so that time pressed executives can maximize sleep time on the plane without the distraction of in flight meals . BA was the first to put seats that recline into perfectly flat beds into first class section
Selling focuses on the needs of the seller ,
Marketing on the needs of the buyers
Marketing orientation
Marketing orientation
The 4 P’s & 4 C’s of the Marketing Mix
4 P’s Product Price Place Promotion
4 C’s Customer Solution Customer Cost Convenience Communication
Social responsibility
It is the obligation of any organization to increase its positive effects and decrease its negative effects on the society
Types
1-Stakeholder
2-Profit
3-Societal
The Avon walk for breast cancer
Avon is the largest corporate supporter of the breast cancer cause with more
than $ 250 million generated since the first program in
1992