Ch 1 Basics Of Marketing

Introduction Of Marketing

Definition and Functions of Marketing Markets Company Orientation towards

Marketplace

Company Orientation towards Marketplace

Product Production Sales Marketing Societal Transactional Relational Holistic Marketing Orientation Selling v/s Marketing Marketing Myopia

Product

A good or service that meets the requirements of a particular market and yields enough profit.

Management philosophy that consumer prefer those products in the market which are best in terms of quality and price.

Basis of concept of product

1. Quality

2. Comparing quality

3. Meeting overall needs and not a specific need.

Production

Started in 17th century. No research, no survey The processes and methods used to

transform tangible inputs (raw materials, semi-finished goods) and intangible inputs (ideas, information, knowledge) into goods or services.

Sales

A transaction between two parties where the buyer receives goods, services and/or assets in exchange for money.

An agreement between a buyer and seller on the price of a security.

Marketing

Marketing is the activity, set of institutions, and process for communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Marketing is a skillset used to create awareness of a product within the market or a consumer.

Modes of Marketing

1. Television

2. Radio

3. Internet

4. Pamphlets

5. Hoarding

Consumer Survey

Research And

Analysis

ProductsAnd

Markets

Production Distribution Marketing Sales

Societal

Application of commercial marketing concepts, knowledge, and techniques to non-commercial ends (such as campaigns against smoking and drunken driving) for the society's welfare.

Examples1. Ariel: Ariel is a detergent manufactured by Procter and Gamble

(P&G). Ariel runs special fund raising campaigns for deprived classes of the world specifically the developing countries. It also contributes part of its profits from every bag sold to the development of the society.

2. Body Shop: Body Shop is a cosmetic company found by Anita Roddick. The company uses only vegetable based materials for its products. It is also against Animal testing, supports community trade, activate Self Esteem, Defend Human Rights, and overall protection of the planet. Thus it is completely following the concept of Societal Marketing.

Transactional

Transaction oriented marketing is a strategy that focuses on the increase of overall sales and nothing else. Small businesses who engage in transaction oriented marketing shift every possible resource and marketing initiative away from things like customer relations and onto creating more points of sale, ways to buy and purchase rewards for the customer.

Relational

In relationship marketing, customer profile, buying patterns, and history of contacts are maintained in a sales database, and an account executive is assigned to one or more major customers to fulfill their needs and maintain the relationship.

Difference between Transactional and Relational

• Primary focus on achieving organisational objectives

• Single purchase• Limited customer service• Short term goal of

customer satisfaction• Quality a manufacturing

responsibility• Eg – Mobile Shoppe

• Focus on customer retention• Repeated sales• Close/frequent customer

contact• Goal of delighting the

customer• Quality at total organsation

responsibility• Emphasis on longer-term

activities• High level of customer

service• Eg – 5* Hotels

Holistic

A marketing strategy that is developed by thinking about the business as a whole, its place in the broader economy and society, and in the lives of its customers. It attempts to develop and maintain multiple perspectives on the company’s commercial activities.

Selling v/s Marketing

Pull

Marketing shows how to reach to the Customers

Longer term

Push

Usually one to one

Sales is the ultimate result of marketing

One to many

Short termHorizon

Process

Priority

Strategy

Concept Marketing is a wider conceptSales is a narrower concept

Marketing Myopia

A short-sighted and inward looking approach to marketing that focuses on the needs of the company instead of defining the company and its products in terms of the customers' needs and wants.

Failure to see and adjust to the rapid changes in their markets.

Example of Marketing Myopia

Kodak Digital Film Maruti Gypse