Transcript
CORE CONCEPT OF MARKETING
FACILITATOR: MS. SHEETAL ARORA
(ASSISTANT PROFESSOR)
LOTUS INSTITUTE OF MANAGEMENT, BAREILLY
MARKETING : CONCEPTSimply Put: Marketing is the delivery of
the customer satisfaction.
Goals: Attract new customers by promising superior values and keep grow current customers by delivering satisfaction.
Smallest definition of Marketing: Meeting needs profitability.
WHAT IS MARKETING??? It is the process of developing,
promoting and distributing products to satisfy customer’s wants and need.
Process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.
Marketing starts before launching a product and it continues after selling the product.
DEFINITION OF MARKETING
According to American Marketing Association, "Marketing is an organisational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organisation and its stakeholders."OLD View
of Marketing:Making a Sale –
“Telling & Selling”
NEW View of Marketing:
Satisfying Customer Needs
DEFINITION CONT… A social and managerial process by which
individuals and groups obtain what they need and want through creating and exchanging products and value with others.
“…the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product of service available…”
Peter Drucker
NATURE OF MARKETING1) Marketing is everywhere.2) It is done between marketer and
prospects.3) It can be done formally or informally.4) Involves vast number of activities.5) Marketing of products or services.6) Continuous process.7) Core aim is customer satisfaction (not
selling.8) It is all about product, place, price and
promotion.
MARKETING MIX
the set of controllable marketing variables that the firm blends to produce the response it wants in the target market
4 Psproductpriceplacepromotion
THE 4 P’S AND 4 C’S OF MARKETING MIX
4 P’s
Product Price Place Promotion
4 C’s
Customer Satisfaction
Customer Cost Convenience Communication
PRODUCT
A product is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.
It Includes:- Physical Objects- Services- Events- Persons- Places- Organization- Ideas- Combination of the above
WHAT IS SERVICE??
A SERVICE is a form of product that consist of activities, benefits or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.
Examples includes:- Banking- Hotels- Tax preparation- Home repair service
PRICE
Price is what we pay for what we get.
Rent for home Tuition fees for education Fare for Airline, Taxi, Railway.
PLACE OR DISTRIBUTION CHANNEL
Set of interdependent organizations involved in the process of making a product or service available for use of consumption by the consumers or business users.
PROMOTION Our promotions are designed to create
demand. PR, Online Marketing, Advertising, Direct
Marketing and Event Marketing. Why because promotion is the way in a
business makes its products known to the customers, both current and potential.
The main aim of promotion is to ensure that customers are aware of the existence and positioning of products.
SCOPE OF MARKETING
1. GOODS2. SERVICES3. EVENTS4. EXPERIENCES5. PERSONS6. PLACES7. PROPERTIES8. ORGANIZATIONS9. INFORMATION10. IDEAS
SCOPE OF MARKETING CONT…
1) Goods: A commodity, or a physical, tangible item that satisfies some human want or need, or something that people find useful or desirable and make an effort to acquire it.
2) Services: Activity or benefit offered for sale that is essentially intangible and does not result in ownership.
3) Experiences: The accumulation of knowledge or skill that results from direct participation in events or activities; "a man of experience"; "experience is the best teacher"
SCOPE OF MARKETING CONT…4) Events: Marketers promote time-based
events, such as major trade shows, artistic performances and company anniversaries.
5) Persons: Celebrity is a major business. Artists, musicians, CEOs, physicians, high profile lawyers and financiers all get help from celebrity marketers.
6) Places: Cities, states, regions and whole nations compete actively to attract tourists, factories and new residents. Example: Advertisement of Gujarat.
SCOPE OF MARKETING CONT…
7) Properties: A thing or things belonging to someone; possessions collectively. A building or buildings and the land belonging to it or them.
8) Organizations: Organization actively work to build a strong, favorable image in the mind of their publics. We see corporate identity ads by companies seeking more recognition and acceptance.
SCOPE OF MARKETING CONT…9) Information: Information is essentially
what books, schools and universities produce, market and distribute at a price to parents, students and communities.
10) Ideas: Every market offering includes a basic idea. Products and services are platforms fro delivering some idea or benefit.
WHAT IS MARKETING MANAGEMENT???
According to Philip Kotler,” Marketing Management is the process
of planning and executing the conception, pricing and promotion and distribution of goods services and ideas to create exchanges with target groups that satisfy customer and organizational objectives”.
OBJECTIVES OF MARKETING MANAGEMENT
1. Creating new customer.2. Satisfying the needs of the customer.3. To retain the existing customer.4. Enhancing the profitability of the
business.5. Raising the living standard of people.6. Determining the marketing mix.
PROCESS OF MARKETING MANAGEMENT
Setting Marketing Objectives
Analyzing Marketing Opportunities
Researching &Selecting Target Market
Designing Marketing Strategies
Planning Marketing Programmes
Organizing, Implementing & Controlling Marketing Effort
Step-1
Step-2
Step-3
Step-4
Step-5
Step-6
CORE MARKETING CONCEPTS
1. Segmentation, Targeting & Positioning2. Marketplace, Market Space, Meta Markets3. Marketers & Prospects4. Needs, Wants, Demands5. Offering and Brand6. Value and Satisfaction 7. Exchange and Transactions8. Marketing Channels
SEGMENTATION, TARGETING & POSITIONING Marketer can rarely satisfy every one in the
market.
Therefore marketers start by dividing the market into segments.
After segmentation marketers decide that which market is the target market for them.
And finally the correct positioning is done to convert the target market into customers.
MARKET PLACE, MARKET SPACE AND META MARKET Market Place is physical as when one goes
shopping in a store. Market Space is digital as when one goes
for shopping on the internet. Meta Market is a cluster of complementary
products and services that are closely related in the minds of consumer but are spread across a diverse set of industries.For eg: Maruti Suzuki India, through their website, helps buyers and sellers of second hand cars to sell, buy or exchange Maruti certified used vehicles.
MARKETER AND PROSPECTS
A marketer is someone seeking response (attention, a purchase, a vote, a donation ) from another party.
A prospects is a someone who gives response to marketer.
NEEDS, WANTS AND DEMANDS
Needs:- Needs are the basic human requirements. People need air, food, water, clothing and shelter to survive.
Wants:- These needs become wants when they are directed to specific objects which might satisfy the need. For eg. An American wants bread when he feels hungry while and Indian wants Chapati.
Demand:- Demands are wants fro specific products backed by an ability to buy.
BRAND AND OFFERING
An Offering is a set of benefits that companies offer to customer to satisfy their needs.
A brand is an offering from a known source. Eg. Mc Donald's carries many associations in people’s mind that make up a brand image.
VALUE AND SATISFACTION
The offering will be successful if it delivers value and satisfaction.
Value reflects the sum of the perceived tangible and intangible benefits and cost to customer. It is the combination of quality, service and price. Value increase with quality and services and decrease with price.
Satisfaction reflects to person’s judgment of a product perceived performance in relationship to expectations. If the performance falls short of expectation the customer is dissatisfied and vice-versa.
DETERMINANTS OF CUSTOMER DELIVERED VALUE
CUSTOMER DELIVERED
VALUE
Total Customer
Cost
Product Value
Total Customer
Value
Monetary Cost
Service Value Time Cost
Personnel Value
Energy Cost
Image Value Psychic Cost
GENERIC VALUE CHAIN
LEVI STRAUSS’ VALUE-DELIVERY NETWORK
Competition is between networks, not companies.The winner is the company with the better network.
Delivery
Sears(Retail)Sears
(Retail)Levi’s
(Apparel)Levi’s
(Apparel)
Order
Delivery
Order
CustomerCustomer
Delivery
Du Pont(Fibers)Du Pont(Fibers)
Order
Delivery
Order
Milliken(Fabric)Milliken(Fabric)
EXCHANGE AND TRANSACTION
EXCHANGE Exchange is the process of obtaining a
desired product from someone by offering something in return, exchange takes place where two parties can agree on terms that will leave both better off (or aleast not worst off) than before.
Get something (product/service) by offering something in return.Eg. Kind (barter) or money (value)
TRANSACTION Two parties are engaged in the
exchange if they are negotiating and when an agreement is reached, we say that transaction takes place.
Transaction is a trade of values between two or more parties.
Transaction involves several dimensions: at least two things of value, agreed upon conditions, time and place of agreement.
MARKETING CHANNELSMarketer uses three kinds of marketing channels: Communication Channels deliver and
receive message from target buyers and include newspapers, magazines, radio, television, on the internet etc.
Distribution Channels to display, sell or deliver the physical products or servicer(s) to the buyer or user. It includes distributors, wholesaler, retailers etc.
Service Channels to carry out transaction with potential buyer. It includes warehouse, transportation companies, bank and insurance companies to facilitate transaction.
SIMPLE MARKETING SYSTEM
MODERN MARKETING SYSTEM
FOCUS OF SELLING PHILOSOPHY
Production Selling Consumption
SELLING PHILOSOPHY Output “sold” to customer. Looks at individual, single customer. Seeks sales rather than profit Short- term goal orientation Concerned with current inventory
reduction Narrower view of customer needs Little adaption to environment Informal planning and feedback
FOCUS OF MARKETING PHILOSOPHY
Customer Need
Evaluation
Integrated Marketing
Effort
Customer Satisfaction
Achievements Of
Organizational Goals
FEEDBACK
MARKETING PHILOSOPHY Consumer Oriented. Stresses Research and Consumer
Analysis. Looks at Groups of Consumer. Profit Oriented. Directed to Long Range Goals. Two-Way Interactive Process. Appropriate Adaption to Marketing
Environment. Broad View of Consumer Needs. Integrated Planning and Feedback.
MarketIntegratedmarketing
Profits throughcustomer
satisfactionCustomer
needs
(b) The marketing concept
FactoryExistingproducts
Selling andpromotion
Profits throughsales volume
Startingpoint Focus Means Ends
(a) The selling concept
MARKETING AND SALES CONCEPT CONTRASTED
FUNCTIONS OF MARKETING MANAGEMENT
1) Functions of Exchange
Buying
Assembling Selling
2) Functions of Physical Supply•Transportation
•Storage•Choosing Channel
of Distribution
3) Facilitating Functions
•Financing•Pricing
•Risk-Bearing
•Standardization•Marketing Information
MARKETING MANAGEMENT PHILOSOPHIES
Product Concept
Production ConceptProduction Concept
Product ConceptProduct Concept
Selling ConceptSelling Concept
Marketing ConceptMarketing Concept
Consumers prefer products that are widely available and inexpensive
Consumers favor products that offer the most quality, performance,
or innovative features
Consumers will buy products only ifthe company aggressively
promotes/sells these products
Focuses on needs/ wants of target markets & delivering value
better than competitors
COMPANY ORIENTATIONS TOWARDS THE MARKETPLACE
MARKETING MANAGEMENT PHILOSOPHIES (CONT’D) Societal Marketing Concept
Delivering value to customers in a way that maintains or improves both the consumer’s and the society’s well-being
Inactive orex-customers
RELATIONSHIP MARKETINGCUSTOMER DEVELOPMENT
PartnersAdvocatesClientsRepeat
customersFirst-timecustomers
Suspects
Prospects
Disqualifiedprospects
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
LEVEL OF TRUST MAXIMUMMINIMUM
Marketing in Action
Focus on Customer Lifetime ValueTo keep customers coming back, Stew Leonard’s has
created the “Disneyland of dairy stores.”
Customers
Front-line people
Middle Management
TopManagement
TRADITIONAL ORGANIZATION CHART
CUSTOMER-ORIENTED ORGANIZATION CHART
Customers
Front-line people
Middle management
Topmanage-
ment
Customers Cus
tom
ers
Relationship of Marketing
with Other Functional Areas
EVOLVING VIEWS OF MARKETING’S ROLE
a. Marketing as anequal function
FinanceProduction
Marketing Humanresources
b. Marketing as a moreimportant function
Finance
Humanresources
Marketing
Production
EVOLVING VIEWS OF MARKETING’S ROLE
c. Marketing as themajor function
Marketing
Finance
Hum
an
resources
Production
d. The customer as thecontrolling factor
Customer
Human
reso
urces
FinanceProductio
n
Marketing
EVOLVING VIEWS OF MARKETING’S ROLE
e. The customer as the controllingfunction and marketing as the
integrative function
Customer
Marketing
Production
Hum
an
resources
Finance
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