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1 - *What is Marketing?Marketing is Meeting customer needs
profitably.The Chartered Institute of MarketingMarketing is the
management process that identifies, anticipates and satisfies
customer requirements profitablyMarketing is the process of
creating and delivering the standards of living to societyMarketing
is managing profitable customer relationshipsAttracting new
customersRetaining and growing current customersMarketing is NOT
synonymous with sales or advertising
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1 - *What is Marketing?Kotlers definition: Marketing is 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.Kotlers definition-2: Getting the right goods and
services to the right people at the right place at the right time
at the right price with the right communication and promotion
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1 - *The art and science of choosing target market and getting,
keeping, and growing customers through creating, delivering, and
communicating superior customer valueKotler, koshy, jha
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1 - *What is Marketing?AMAs definition: The process of planning
and executing the conception, pricing, promotion and distribution
of ideas, goods, and services to create exchanges that satisfy
individual and organizational objectives .
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1 - *AMA DEFINITIONMarketing is an organizational function and a
set of processes for creating, communicating, and delivering value
to customers and for managing customer relationships in ways that
benefits the organization and its stake holders
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1 - *The Chartered Institute of Marketing
Marketing is the management process that identifies, anticipates
and satisfies customer requirements profitably
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1 - *Scope of marketingOnly function which raises major revenue
of the firmCompetitive nature of the market makes it essential for
survival and growthIt is the marketers who design the market
offerProfession providing challenging job for millionsKindles
economic activity of the country by creating demandProvide standard
of living through supply of value added productsSatisfy human needs
by creating different utilitiesPlace utility - by transporting
goods to the convenient placeTime utility storing goods to supply
as and when it is demanded by customerPossession utility
salePerson- establish contact with customersKnowledge-
promotionForm utility provide finished product in different forms
as demanded by customer
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1 - *CORE CONCEPTS IN MARKETINGNWD
P
VCS
ETR
marketsMrktgmarktrs
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Needs, Wants and Demand: Needs describe basic human
requirements. States of felt deprivation - Physical, Social,
Individual. Example need for food, air, water, education,
entertainment etc.Needs become wants when they are directed to
specific objects that might satisfy the need. form of needs shaped
by culture and individual personality Need for food ---> Want
for a Hamburger Demands are wants for specific products backed by
willingness and ability to pay. Marketers do not create needs.
Needs preexist marketers. Marketers along with other social
influencers influence wants. 1 - *
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We can distinguish among five types of needs:
Stated needs Real needs Unstated needs Delight needs Secret
needs Responding only to the stated need may shortchange the
customer. Consider a woman who enters a hardware store and asks for
a sealant to seal glass windowpanes. This customer is stating a
solution and not a need. The salesperson may suggest that tape
would provide a better solution. The salesperson met the customers
need, not her stated solution. 1 - *
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There are responsive marketing, anticipative marketing, and
creative marketing. A responsive marketer finds a stated need and
fills it. An anticipative marketer looks ahead into what needs
customers may have in the near future.A creative marketer discovers
and produces solutions customers didnt ask for but to which they
enthusiastically respond. Sony exemplifies a creative marketer
because it has introduced many successful new products that
customers never asked for or even thought were possible.
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Eight different states of demand:
1) Negative demand: if a major part of market dislikes the
product and may even pay a price to avoid it vaccinations, gall
bladder operations etc. Marketing task is to analyse why the market
dislikes the product and whether a marketing program can change
beliefs and attitudes. 2) No Demand: Target consumers may be
unaware of or uninterested in the product. Ex. College students may
not be interested in foreign language courses. Marketing should
look for ways to benefit others with their product and of course
thus sell their product 3) Latent demand: Market feels a strong
needs for some products like harmless cigarettes. Marketer needs to
measure size of this market and develop such goods 4) Declining
demand: market for products etc declines. Then marketer need to
know the causes and rectify 1 - *
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5) Irregular demand: Demand of many products and services are
seasonal. Marketer needs to devise ways called synchromarketing
like flexible pricing, promotions and other incentives 6) Full
demand: sometimes full demand is there. Marketing task is to
maintain current level of demand in face of changing consumer
preferences and increasing competition. 7) Overfull demand:
sometimes demand is higher than what organization can handle. Then
marketing task, called demarketing is required. Like thru raising
prices and reducing promotion and service. Selective marketing is
reducing demand from some parts, say not so profitable, of the
market 8) Unwholesome demand: Unwholesome products will attract
organized efforts to discourage consumption. Like unselling
campaigns against cigarettes, alcohol, and handguns. Marketing can
use fear messages like raising prices, reduced availability.
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Product- Any thing that can be offered to satisfy a need or
wantMany Things Can Be Marketed!
GoodsServicesExperiencesTheme parkEvents -ShowsPersons-Big B
Places-Kerala,Properties-EstatesOrganizationsInformation-
DataIdeas- Siruthuli
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1 - *Value - Customers estimate of products capacity to satisfy
the needs Benefits (functional and emotional benefits) Value =
----------- = --------------------------------------------- Costs
(include monetary costs, time costs, energy costs and psychic cost)
Value of customer offering can be increased by: Raise benefits
Reduce costs Raise benefits AND reduce costs Raise benefits by more
than the raise in costs Lower benefits by less than the decrease in
costs
Core Marketing Concepts
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1 - *
Satisfaction Customer Satisfaction is a persons feelings of
pleasure or disappointment resulting from comparing a products
perceived performance (or outcome) in relation to his or her
expectations Customer Satisfaction is a function of perceived
performance and expectations of the customer. Exchange Exchange is
the act of obtaining a desired object from someone by offering
something in return. Transaction Consists of a trade of values
between two parties Relationships Win-Win
Core Marketing Concepts
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1 - *Market? A market is simply the entire set of people or
organizations who might or will buy or obtain your product
offering.Market place, market space, meta marketMohan Sawhney has
proposed the concept of metamarket to describe a cluster of
complementary products and services that are closely related in the
minds of consumers but are spread across a diverse set of
industries. Metamediaries Consumer marketBusiness marketsGlobal
marketNonprofit marketGovernment market
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*1 - *Marketing Management PracticeEntrepreneurial
marketing:Businesses started by individualsCreativity, drive, and
perseverance are keys to successThe origins of guerilla
marketingFormulated marketing: Professional, disciplined
approachAchieving a market orientationIntrepreneurial marketing:
Encouraging initiative at the local levelPutting creativity and
passion back into the marketing effort
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1 - *Marketing ManagementMarketing management is the art and
science of choosing target markets and building profitable
relationships with them.Creating, delivering and communicating
superior customer value is key.
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1 - *Marketing ManagementCustomer Management:Marketers select
customers who can be served well and profitably.Demand
Management:Marketers must deal with different demand states ranging
from no demand to too much demand.Creation & Management of
demand
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1 - *Customer ManagementSegmentingTargetingPositioning
STP strategies
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1 - *Marketing MixMarketing mix is the set of marketing tool
that the firm uses to pursue its marketing objectives in the target
market. McCarthy classified these tools into four broad groups that
he called the four Ps of marketing: Four Ps & Four Cs Product
customer solutionPrice- customer costPromotion- communicationPlace-
conveniencethe four Ps represent the sellers view of the marketing
tools available for influencing the buyer. From a buyers point of
view, each marketing tool is designed to deliver a customer
benefit. Robert Lauterborn suggested that the sellers four Ps
correspond to the customers four Cs. Mix for every element
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1 - *PRODUCTProduct varietyQuality Design FeaturesBrand
namePackagingSizes ServicesWarrantiesReturns
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1 - *PRICEList priceDiscountsAllowancesPayment periodCredit
terms
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1 - *PROMOTIONSales promotionAdvertisingSales forcePublic
relationsDirect marketing
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*PLACEChannelsCoverageAssortmentsLocationsInventoryTransport
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1 - *Marketing ManagementProduction conceptProduct concept
Selling concept Marketing concept
Societal marketing conceptManagement Orientations How marketers
plan and implement their marketing effort
Marketing ManagementBASIC CONCEPTS
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1 - *Marketing ManagementProduction conceptCustomers will favour
products that are widely available & low in costManagers of
production-oriented business concentrate on mass production
achieving high production efficiency making use of economies of
scale, low costs and mass distribution and mass promotion.It is
also used when a company wants to expand the market. Product
conceptThe product concept holds that consumers will favor those
products that offer the most quality, performance, or innovative
features. makes superior products and improving them over time.
marketing myopia. Company orientation towards the market place
Management Orientations
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The selling conceptThe selling concept holds that consumers and
businesses, if left alone, will ordinarily not buy enough of the
organizations products. The organization must, therefore, undertake
an aggressive selling and promotion effort. This concept one
assumes that consumers typically show buying inertia or resistance
and must be coaxed into buying.Most firms practice selling concept
when they have overcapacity. Their aim is to sell what they make
rather than make what the market wants.1 - *
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THE MARKETING CONCEPTThe marketing concept holds that the key to
achieving its organizational goals consists of the company being
more effective than competitors in creating, delivering, and
communicating customer values to its chosen target markets. The
marketing concept rests on four pillars: target market, customer
needs, integrated marketing and profitability.a company should
carry out internal as well as external marketing. Delivering
desired satisfactionResponsive, anticipative & creativeCustomer
orientationMarket focusCo ordinated marketingprofitability
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\Internal marketing is the task of successfully hiring,
training, and motivating able employees to serve the customers
well
The selling concept takes an inside-out perspective. It starts
with the factory, focuses on the existing products, and calls for
heavy selling and promoting to produce profitable sales. The
marketing concept takes an outside-in perspective. It starts with a
well-defined market, focuses on customer needs, coordinates all the
activities that will affect customers, and produces profits by
satisfying customers
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1 - *Selling versus MarketingStarting
PointFocusMeansEndsFactoryExistingproductsSelling
andpromotingProfits throughsales
volumeMarketCustomerneedsIntegratedmarketingProfits fromsatisfied
customersThe Selling ConceptThe Marketing Concept
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1 - *Societal marketing concept
In an age of environmental deterioration, resource shortage,
explosive population growth, world hunger and poverty. Marketers
needs to be sensitive on these issues The organizations task is to
determine the needs, wants and interests of target markets and to
deliver the desired satisfactions more effectively and efficiently
than competitors in a way that preserves or enhances the consumers
and the societys well being. Enhancing consumers & Societys
well being
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Relationship marketing
The task of creating strong customer loyalty is called
Relationship Marketing. The steps in customer development process
is Suspects -> Prospects -> First-time customers -> repeat
customers -> Clients -> members -> Advocates ->
Partners. There might be defections from any of these levels, in
which case, relationship marketing works on customer win-back
strategies. There are 5 different types of levels of investment in
customer relationship marketing 1. Basic marketing : the sales
person simply sells the product 2. Reactive marketing: the
salesperson sells the product and encourages the customer to call
if he or she has questions comments or complaints. 3. Accountable
marketing: the salesperson phones the customer a short time after
the sales to check whether the product is meeting the expectation.
4. Proactive marketing: the company salesperson contacts the
customer from time to time with suggestion about the improved
product uses or helpful new products. 5. Partnership marketing: the
company works continuously with the customer to discover ways to
perform better.
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1 - *HOLISTIC MARKETING CONCEPTSeen as the development, design
and implementation of marketing programs, processes and activities
that recognize the breadth and interdependencies involved in todays
marketing environment.Everything Matters- Broad integrated
perspectives is necessary.Internal marketingIntegrated
marketingRelationship marketingSocially responsible marketing
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1 - *Marketing ChallengesTechnological advances, rapid
globalization, and continuing social and economic shifts are
causing marketplace changes.Major marketing developments can be
grouped under the theme of Connecting.
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1 - *Marketing ChallengesChanging
technologyGlobalizationDeregulationPrivatizationCustomer
empowermentCustomizationHeightened competitionIndustry
convergenceRetail transformationdisintermediation
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1 - *Challenges for marketersFrom marketing does the marketing
to everyone does the marketing.From organizing by product units to
organizing by costumer segments.From making everything to buying
more goods and services from the outside.From using many suppliers
to working with fewer suppliers in a Partnership.From relying on
old market positions to uncovering new ones.
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1 - *From emphasizing tangible assets to emphasizing intangible
assets.From building brands through advertising to building brands
through performance and integrated communications.From attracting
costumers through stores and sales people to making products
available online.From selling to everyone to trying to be the best
firm serving well-defined target markets.From focusing on
profitable transaction to focusing on customer lifetime value.From
a focus on gaining market share to a focus on building customer
share.From being local to being Glocal-to Both global and
local.From focusing on the financial score card to focussing on the
marketing score card.From focusing on shareholders to focusing on
stakeholders.
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Here are some current trends 1. Reengineering: Focusing on
Functional departments to reorganize the key business processes,
each managed by multidiscipline teams 2. Outsourcing: From making
everything inside to buying more goods and services outside, to
obtain them cheaper and better. Few companies are outsourcing
everything making them Virtual companies owning very few assets and
therefore extraordinary rates of return 3. E-Commerce: Making all
products available on the Internet. Customers can now shop online
from different vendors, have access to a lot of Pricing and Quality
and Variety information. Click and pay systems are evolving along
with B2B systems and B2C systems, with buyers and sellers in Real
Time Systems
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4. Benchmarking: Adopting the best practices of World Class
performers 5. Alliances: Network of partners 6. Partner ships with
Suppliers: the local level 1 - *
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1 - *Marketing Management TasksDeveloping marketing strategies
and plans.Capturing marketing insights.Connecting with
customers.Building strong brands.Shaping the market offerings
Communicating valueDelivering valueCreating long term growth
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1 - *Marketing ChallengesVia technologyWith customersWith
marketing partnersWith the worldAdvances in computers,
telecommunications, video-conferencing, etc. are major
forces.Databases allow for customization of products, messages and
analysis of needs.The InternetFacilitates anytime, anywhere
connectionsFacilitates CRMCreates marketspaces
Connecting
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1 - *Marketing ChallengesSelective relationship management is
key.Customer profitability analysis separates winners from
losers.Growing share of customer Direct sales to buyers are
growing.ConnectingVia technologyWith customersWith marketing
partnersWith the world
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1 - *Marketing ChallengesPartner relationship management
involves:Connecting inside the companyConnecting with outside
partnersSupply chain managementStrategic alliancesConnectingVia
technologyWith customersWith marketing partnersWith the world
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1 - *Marketing ChallengesGlobalizationCompetitionNew
opportunitiesGreater concern for environmental and social
responsibilityIncreased marketing by nonprofit and public-sector
entitiesSocial marketing campaignsConnectingVia technologyWith
customersWith marketing partnersWith the world