Chapter 1 Marketing: Definition & Importance All activities involved in creation of time, place and possession utilities. The process of Planning & Executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. American Marketing Association The management process responsible for identifying, anticipating and satisfying customer requirements profitably. Chartered Institute of Marketing
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Chapter 1Marketing: Definition & Importance
All activities involved in creation of time, place and possession utilities.
The process of Planning & Executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.
American Marketing Association
The management process responsible for identifying, anticipating and satisfying customer requirements profitably.
Chartered Institute of Marketing
Chapter 1Marketing: Definition & Importance
- Market vs MarketingMarket is an arrangement to provide an opportunity to exchange goods.
Marketing is sum total of all those activities that are related to flow of goods from production to consumption.
- Marketing, Selling & MerchandizingMarketing is a broader concept which is driven from customer’s demand.
Selling is one part of marketing which deals with persuading customers to buy products that are available with seller.
Merchandizing refers to the process offering a variety of products to a retail consumer in a manner which stimulates demand.
Chapter 1Marketing: Definition & Importance
IMPORTANCE OF MARKETING
1. Marketing helps to achieve, maintain and raise the standards of living- Marketing is means through which production and
purchasing power are converted into consumption.- Better marketing Mass production- Mass production Low cost- Low cost More buying power Higher standard
6. Removes imbalance of supply & demand by transferring surpluses
7. Helps create utilities of time, place & possession
Chapter 1Marketing: Definition & Importance
IMPORTANCE OF MARKETING – Business Firms
1. Marketing Generates Revenue, by generating sales & thereby profits
2. Marketing helps decision making process (what, when & how much to produce, store or transport)
3. Helps change management & innovations
Chapter 2Marketing Concepts
1. Exchange Concept- Exchange is only a small part of the total marketing
process. - Other parts of marketing like customer orientation,
satisfaction, value creation, creative selling etc are not covered
Chapter 2Marketing Concepts
2. Production Concept- Production in large volume, at low cost will be
acceptable to customers- Concentrates on production efficiency- May do well in distribution- Rarely appreciated by customers
Chapter 2Marketing Concepts
3. Product Concept- Focuses on design and quality of products- Believes that customers will automatically buy
products of high quality- R&D is essential element- Do not bother to study the market & consumer in
depth
Chapter 2Marketing Concepts
4. Sales Concept- Believes that customers need to be persuaded to
buy the products- Involves advertising, large scale promotions,
publicity, discounts, public relations etc.- Does not take care of the need of the customer
Marketing Sales
Approach
determine future needs and has a strategy in place to meet those needs for the long term relationship.
makes customer demand match the products the company currently offers.
Focusfulfill customer's wants and needs thru products and/or services the company can offer.
fulfill sales volume objectives
HorizonLonger term Short term
Scope
Identifying customer needs (research), creating products to meet those needs, promotions to advertise said products.
Once a product has been created for a customer need, persuade the customer to purchase the product to fulfill her needs
Chapter 2Marketing Concepts
Sales v/s Marketing
Chapter 2Marketing Concepts
Sales v/s Marketing Marketing Sales
Strategypull push
ConceptMarketing is a wider concept Sales is a narrower concept
PriorityMarketing shows how to reach to the Customers and build long lasting relationship
Selling is the ultimate result of marketing.
Identity
Marketing targets the construction of a brand identity so that it becomes easily associated with need fulfillment.
Sales is the strategy of meeting needs in an opportunistic, individual method, driven by human interaction. There's no premise of brand identity, longevity or continuity. It's simply the ability to meet a need at the right time.
Chapter 2Marketing Concepts
5. Marketing Concept- Starts with determination of consumer needs- Ends with satisfaction of these needs- Organizational activities revolve around customer- Products & Services are designed to serve customer
needs- Satisfied customer will only produce profits
Chapter 2Marketing Concepts
Features of Marketing Concept1. Consumer Orientation
2. Integrated management action
3. Consumer Satisfaction
4. Realizing organizational goals including profits
Chapter 2Marketing Concepts
Benefits of Marketing Concept1. Long Term success
2. Faster penetration
3. Better Products
4. Boosts creativity
5. Integrated functions
6. Mostly in profits
7. Better growth of employees
8. Contributes to overall growth of the society
Chapter 2Marketing Concepts
Dilemma of Marketing Concept1. Customer Orientation v/s Product standardization
2. Customer Orientation v/s Profits
3. May ignore social welfare at times
4. Constrains innovation, at times
Chapter 3Marketing Management Tasks
Responsibilities of Marketing Management1. Market analysis