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Basic introduction to marketing 26 07-2016
This document provides a basic introduction to marketing. It defines marketing as identifying and meeting human and social needs profitably. The document outlines the nature of marketing as a specialized business function and social process. It discusses the importance of marketing for financial success and customer satisfaction. The document then covers different marketing orientations from production to societal marketing concepts. It concludes by describing core marketing concepts like segmentation, targeting, positioning, and the marketing environment.
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Basic introduction to marketing 26 07-2016
- 1. Basic Introduction toMarketing
- 2. Contents Meaning andDefinition of Marketing Nature of Marketing Importance of Marketing Marketing Orientations Marketing vs. Selling Scope of Marketing Core Concepts of Marketing
- 3. What is Marketing? Marketing deals with identifying human and social needs and meeting those needs profitably. “Marketing is defined as a social and managerial process by which individuals and group obtain what they need and want through creating and exchanging products and services of value with others.” – Philip Kotler
- 4. Definition of Marketingby AMA “ Marketing is an organizational function and a set of processes for creating, communicating, and delivering values to customers and for managing customer relationship in ways that benefit the organization and its stakeholders.”
- 5. Nature of Marketing Management Specialized business function requiring specialized skills. Social function requiring constant interaction with society. Integrative function combining other business functions like production, finance, personnel, R & D etc. Universal function which can be applied to both profit- motive and non-profit motive organizations. Science as well as an art.
- 6. Nature of MarketingManagement. . . Both consumer oriented and competitors oriented. It starts with consumers and ends at consumers. Marketing is a Process. It Involves a Mix of Product, Pricing, Promotion, and Distribution. It Is Intended to Satisfy Individual and Organizational Needs.
- 7. Importance of Marketing Financial success often depends on the marketing ability Marketing enables the organizations to keep abreast of changes Customer satisfaction, Increases sales and ultimately the profit Uplifting the standard of the society as a whole Employment opportunities
- 8. Importance of Marketing. . . . Increased Competition Marketing help in economic growth and activity Marketing management helps in improving quality of products or services
- 9.
- 10. Marketing Orientations Marketingphilosophies has undergone a thorough and gradual change This gradual change can be traced by studying different concepts or periods What philosophy should guide a company’s marketing efforts? What relative weight should be given to the interests of organization, the customer and the society?
- 11. 1. Production Concept One of the oldest concept of business. Based on the assumption that whatever is produced will be accepted by the customers. It prevailed before 1930s. It holds that consumer will prefer those products which are widely available and inexpensive. Managers concentrate on achieving high production efficiency, low cost and mass distribution.
- 12. 1. Production Concept.. . . . Examples Ford car model T. ITI(Indian Telephone Industry) has monopoly and was producing only black colored instruments. Similarly household electrical appliances like fridge, washing machine geyser, microwave oven etc. were available only in white color (sometime called as white goods).
- 13. 2. Product Concept It holds that customers will accept those products that offer most quality, performance and innovative features. Till 1930s, there prevailed a strong feeling that whenever a firm has a good product, it results in automatic consumer response and needed little or no promotional efforts. “Good wine needs no push”. Managers focus on making superior products and improving them over time.
- 14. 2. Product Concept.. . . . However sometimes these managers caught up in a love affair with their products. Over emphasis on product excellence may lead to ignorance of customer needs and wants. This is called the phenomenon of marketing myopia or short-sightedness.
- 15. 3. Selling Concept The failure of production and product concept paved the way for change in outlook that was possible during 1940s. It states that mere making best product is not enough It is futile unless the firm resorts to aggressive salesmanship. Effective sales promotion, high advertising and public relations are of top importance. The essence is “Goods are not bought but sold”.
- 16. 3. Selling Concept.. . . . The manager’s main task is to convince the buyers through high pressure tactics. The aim is to sell what company’s make rather than what customers want. This concept is used for unsought goods which buyers do not think of buying.
- 17. 4. Marketing Concept Emerged in mid 1950s. It believes that company’s objectives depend upon understanding the needs and wants of customers. Company must deliver the desired satisfaction in a better way than the competitors are doing. The job is not to find right customers for your products, but right products for your customers. It was found that companies who embrace the marketing concept achieve superior performance.
- 19. 5. The SocietalMarketing concept The societal marketing concept hold that marketing strategy should deliver value to the customers in away that maintains or improves both the consumers and society’s well being. Long run welfare than short run wants
- 20. The Core conceptsof Marketing
- 21. 1. Needs, wantsand demands • States of deprivation • Physical—food, clothing, warmth, safety • Social—belonging and affection • Individual—knowledge and self-expression Needs • Need directed by specific objects which are shaped by culture and societyWants • Wants backed by buying powerDemands Customer Needs, Wants, and Demands
- 22. 2. Marketing Offers/The scope of Marketing Products Services Persons Places Organizations Information Ideas Events Experiences/Experience marketing
- 23. 3. Segmentation, Targetingand Positioning (STP) Segmentation- Dividing the market into different segments based on different parameters Targeting- Selecting the segment offering greatest potential and profitability Positioning- Placing the product/service in the minds of the targeted customers.
- 24. 4. Value andSatisfaction The offering will be successful if it delivers value and satisfaction to the targeted buyers Value: the difference between the benefits(Tangible/Intangible) received by using a product/service and the cost(monetary cost/searching cost/psychological cost) of buying a product. Satisfaction: Reflects a person’s comparative judgment resulting from a product’s perceived performance to his expectations
- 25. 5. Marketing Channels Distribution channels: Distributors, wholesalers and retailers etc.
- 26. 6. Supply Chain Describes a longer chain stretching from raw material till the final products that are carried to the buyers.
- 27. 7. Competition Includesall the actual and potential rivals offerings and substitutes that a buyer might consider
- 28. 8. Marketing Environment Microenvironment: customers, suppliers, dealers etc. Macro environment: Demographic, economic. Technological, social, legal and political environment etc.
- 30.