Marketing

What is Marketing??
Selling? Advertising? Promotions? Making products available in stores? Maintaining inventories?

All of the above, plus much more!

Marketing
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals
American Marketing Association

Marketing = ?
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.

-Evolution of marketing
An orientation, in the marketing context, relates to a perception or attitude a firm holds towards its product or service, essentially concerning consumers and end-users.

Throughout history, marketing has changed considerably as consumer tastes are changing faster.
The marketing orientation evolved from earlier orientations namely the production orientation (1950s), the product orientation (1960s) and marketing orientation (1970s). Recent approaches in marketing is the relationship marketing with focus on the customer, the business marketing or industrial marketing with focus on an organization or institution and the social marketing (1990s) with focus on benefits to the society. New forms of marketing also use the internet and are therefore called internet marketing or more generally e-marketing, online marketing, personalized marketing or one-to-one marketing.

-Product orientation and market orientation Theories

What is product orientation? Product orientation means that the business places the main focus of attention on the production process and the product itself. More emphasis on technology and quality, but less focus on meeting consumer needs in the market. Many businesses in the past were product orientated when there were quite few competitors and when they produced the unique products in the world, such as the radios when just invented. However, today there are still some businesses which are product orientated. For example, the Concorde airplane company (high technology, but expensive so not many customers taking their planes).

-Product orientation and market orientation Theories

What is market orientation? Market orientation or consumer orientation means that the business places the needs or requirements of consumers at the center of the decision-making process. Market orientation is perhaps the most common orientation used in contemporary marketing. It involves a firm essentially basing its marketing plans around the marketing concept, and thus supplying products to suit new consumer tastes. The implication is that businesses should try best to meet the need of customers in marketing management. A market orientation may have some advantages over product orientation. These advantages are seen in the following table:

-Product orientation and market orientation Theories

Some advantages of a market-orientated business over a product-orientated business: 1. More able to anticipate market changes 2. Respond quickly to market changes 3. More capable of meeting the challenges of new competition 4. More successful in new product development 5. Able to produce to produce and sell the right product at the right time and the right place 6.

-Product orientation and market orientation Theories

What might a market-orientated business do in its marketing management? 1. Do market research continuously. 2. Design the product according to the consumers needs and wants. 3. Produce the product in the quantities that consumers want to buy. 4. Set the price of the product which can be acceptable by most consumers. 5. Respond to consumer changes quickly

Simple Marketing System

Communication

(a collection of sellers)

Industry

Goods/services

Money

(a collection of Buyers)

Market

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Information

Marketing

Marketing is the sum of all activities that take you to a sales outlet. After that sales takes over. Marketing is all about creating a pull, sales is all about push. Marketing is all about managing the four Ps
product price place promotion

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The 4 Ps & 4Cs

Marketing Mix Product Customer Solution Convenience Place

Price Customer Cost

Promotion Communication

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Difference Between - Sales & Marketing ?

Sales
trying to get the customer to want what the company produces

Marketing
trying to get the company produce what the customer wants

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Scope What do we market

Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts

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The Marketing Concept

Key Terms

marketing concept customer

consumer
market target marketing

customer profile
marketing mix
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The Marketing Concept

The Basic Concept
The marketing concept states that businesses must satisfy customers' needs and wants in order to make a profit.

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The Marketing Concept

Customers vs. Consumers
Customers buy a product. Consumers use the product. Example: Parents who buy video games from retailers are customers. The kids who play the video games are the consumers.

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The Marketing Concept

What is a Market?
A market is all potential customers who share common needs and wants and who have the ability and willingness to buy the product.

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The Marketing Concept

U.S. Game Console Market
A market can be described as the people who are potential customers of a product, as well as by the classification of a product in a category. Would you be considered part of the market for game consoles? Why or why not? What other markets are you part of?

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The Marketing Concept

The Marketing Mix
The marketing mix comprises four basic marketing strategies known as the four Ps:

Product
Place Price Promotion

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The Marketing Concept

The Marketing Mix
Product strategies include what product to make, how to package it, what brand name to use, and what image to project. Place strategies deal with how and where a product will be distributed.

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The Marketing Concept

The Marketing Mix
Price strategies should reflect what customers are willing and able to pay.

Promotion strategies deal with how potential customers will be told about the new product, what the message will be, when and where it will be delivered, and with what inducements to buy.

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The Marketing Concept

Target Marketing
Target marketing is focusing all marketing mix decisions on the specific group of people you want to reach.

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Core Concepts of Marketing

Based on : Needs, Wants, Desires / demand

Products, Utility, Value & Satisfaction Exchange, Transactions & Relationships Markets, Marketing & Marketers.

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Core Concepts of Marketing

Needs, wants demands

Products

Utility, Value & Satisfaction

Markets

Marketing & Marketers

Xchange, Transaction Relationships

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Core Concepts of Marketing

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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In order to understand Marketing let us begin with the

Marketing Triangle

Customers

Company

Competition

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How Do Consumers Choose Among Products & Services?

Value - the value or benefits the customers gain from using the product versus the cost of obtaining the product.

Satisfaction - Based on a comparison of performance and expectations.

Performance > Expectations => Satisfaction

Performance < Expectations => Dissatisfaction

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Customers - Problem Solution

As a priority , we must bring to our customers WHAT THEY NEED We must be in a position to UNDERSTAND their problems

Or in a new situation to give them a chance to AVOID the problems

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Customer looks for Value

Value Benefit Cost = Benefit / Cost = Functional Benefit + Emotional Benefit = Monetary Cost + Time Cost + Energy Cost + Psychic Cost

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Marketing -Important features of marketing

Marketing has at least the following characteristics: 1. Marketing is aimed at finding out consumer needs and meeting these needs. 2. Marketing must consider profit as its main objective. 3. Marketing is ongoing all the time. The marketing process has no start or end (see next slide). 1. Businesses must be prepared to respond to the consumer reactions and changes all the time.

Marketing -Important features of marketing

Figure 9-1 Ongoing Marketing Process

Analyze and design marketing strategy

Reconsidering consumer reactions Monitor consumer reactions

Adapt the marketing strategy

Importance of marketing

Marketing is playing a more and more important role in the success of a business. It can be said that no marketing means no business. There are generally some key factors which have made marketing so important for businesses today. The factors can be seen as in the following table:

-Importance

of marketing

Table 9-1 Factors leading to the increasing importance of marketing

Factors 1. economic growth Explain how Economic growth leads to an increase of consumers incomes. So demand for products and services will be increased. Through marketing, businesses can promote their new products and services. Considerable changes in fashion and consumer taste force businesses to produce more new products and services. Marketing makes it possible for businesses to reach these changing customers. New technology has helped the business to create new or high quality products. It is marketing that can makes customers be aware of these new products. Facing more and more fierce competition, businesses must rely on marketing strategy to win in the marketplace.

2. fashion

3. technology

4. competition

The Marketing Plan

A written document that acts as a guidebook of marketing activities for the marketing manager

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CONTENTS of MARKETING PLAN

Business Mission Statement Objectives Situation Analysis (SWOT) Marketing Strategy Target Market Strategy Marketing Mix
Positioning Product Promotion Price Place Distribution

People Process

Implementation, Evaluation and Control

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The Marketing Process

Business Mission Statemen t Objective s Situation or SWOT Analysis

Marketing Strategy
Target Market Strategy

Marketing Mix
Product Promotion Place/Distribution Price

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Implementation Evaluation, Control

Marketing Environment

Why a product like radio declined and now once again emerging as an entertainment medium ?

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What Were the Drivers of This Change ?

Technology ? Government policy ? Other media substitutes ?

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Why Market Leaders Suffered ?

HMT vs. Titan HLL vs. Nirma Bajaj vs. Honda Dot.com boom, then bust and now resurgence

Market leadership today cannot be taken for granted.New and more efficient companies are able to upstage leaders in a much shorter period.

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Factors Influencing Companys Marketing Strategy

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External Marketing Environment

External Environment is not controllable
Demographics Social Change Ever-Changing Marketplace

Product Distribution Promotion Price

Physical / Natural

Economic Conditions

Competition

Target Market
Political & Legal Factors

Environmental Scanning
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Technology

The macro-environment

is the assessment of the external forces that act upon the firm and its customers, that create threats & opportunities

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Product

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Product is . . . . .

Anything that is offered to the market for attention, acquisition, use or consumption that satisfies a want or a need

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Types of Products

PRODUCTS

Consumer Products

Services

Industrial Products

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Product Items, Lines, and Mixes

A specific version of a product that can be designated as a distinct offering among an organizations products.

Product Item

Product Line

A group of closely-related product items.

Product Mix

All products that an organization sells.

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Product Mix
Width how many product lines a company has

Length how many products are there in a product line

Depth how many variants of each product exist within a product line Consistency how closely related the product lines are in end use

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Gillettes Product Lines & Mix

Width of the product mix
Blades and razors Toiletries
Mach 3 Sensor Trac II Swivel

Depth of the product lines

Writing instruments Lighters

Cricket S.T. Dupont

Fusion 5 blade Mach 3 Turbo Series Paper Mate Adorn Flair Toni S.T. Dupont Atra Right Guard Silkience Double-Edge Soft and Dri Lady Gillette Foamy Super Speed Dry Look Twin Injector Dry Idea Techmatic Brush Plus

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What is a Service? Defining the Essence

An act or performance offered by one party to another (performances are intangible, but may involve use of physical products) An economic activity that does not result in ownership A process that creates benefits by facilitating a desired change in customers themselves, or their physical possessions, or intangible assets

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Some Industries - Service Sector

Banking, stock broking Health care

Lodging
Restaurants, bars, catering

Education
Wholesaling and retailing Laundries, dry-cleaning

Insurance
News and entertainment Transportation (freight and passenger)

Repair and maintenance Professional (e.g., law, architecture, consulting)

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Classification of Services
Banking

Pure Intangible Service

Good Transportation Major Service with Minor Product Business Hotels Product = Service Computers Major Product with Minor Services Materials / Components

Pure Tangible Product

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Major Characteristic of Services

Intangibility Services are intangibility cannot be seen, tasted, felt, heard or smelled before purchase. Inseparability - Services are produced and consumed simultaneously. Variability or Heterogeneity Services are highly variable Perishability Services cannot be stored.

Non Ownership - Services are rendered but there is no transfer of title

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The Marketing Mix

The conventional view of the marketing mix consisted of four components (4 Ps): Product, Price, Place/ distribution and Promotion. Generally acknowledged that this is too narrow today; now includes , Processes, Productivity [technology ]People [employees], Physical evidence Marketers today are focused on virtually all aspects of the firms operations that have the potential to affect the relationship with customers.

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The 8Ps of Integrated Service Management vs. the Traditional 4Ps

Product elements

Place, cyberspace, and time

Process Productivity and quality

People
Promotion and education Physical evidence

Price and other user outlays

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The Give and Get of Marketing

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Great Words on Marketing

1. The purpose of a company is to create a customerThe only profit center is the customer. A business has twoand only twobasic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs. The aim of marketing is to make selling unnecessary. While great devices are invented in the Laboratory, great products are invented in the Marketing department. Marketing is too important to be left to the marketing department.

2.

3. 4.

5.

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Drivers of Customer Satisfaction

Many aspects of the firms value proposition contribute to customer satisfaction:
The core product or service offered
Support services and systems The technical performance of the firm Interaction with the firm and it employees The emotional connection with customers

Ability to add value and to differentiate as a firm focuses more on the top levels

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Marketers and Markets

Marketers are focused on stimulating exchanges with customers who make up markets . The market is comprised of people who play a series of roles: decision makers, consumers, purchasers, and influencers. It is absolutely essential that marketers have a detailed understanding of consumers, their needs and wants. Much happens before and after the sale to affect customer satisfaction
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Stages of Customer Interaction

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What Changed in Marketing

Old Economy
Organize by product units Focus on profitable transactions Look primarily at financial scorecard Focus on shareholders Marketing does the marketing Build brands through advertising Focus on customer acquisition No customer satisfaction measurement Over-promise, under-deliver

New Economy
Organize by customer segments Focus on customer lifetime value Look also at marketing scorecard

Focus on stakeholders Everyone does the marketing Build brands through performance Focus on customer retention Measure customer satisfaction and retention rate Under-promise, over-deliver

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Graphic Organizer
The Marketing Mix
The Marketing Concept

Marketing Research

Marketing Segmentation

Product

Price

Place

Promotion

Consumers

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Thank you

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