Chapter 1 Overview of mktg.pptx mareting

Chapter 1 Overview of mktg.pptx mareting

• 1.
  The Nature andScope of Marketing Definitions of Marketing The term ‘Marketing’ has been defined in many ways by different authorities: Marketing is a total system of business activities designed to plan, price, promote and distribute want-satisfying goods and services to present and potential customers (Stanton, 1964).
• 2.
  Basic Concepts UnderlyingMarketing Needs Wants Demands Products Exchange Relationship Marketing Markets Marketers
• 3.
  The Evolution ofMarketing Marketing develops as the society and its economic activities develop. During agrarian economy, the people largely self- sufficient – they grew their own food, produce their own clothes, built their own houses, etc. How ever, when people make more than they wanted, the foundation was laid for trade, and trade (exchange) is the heart of marketing.
• 4.
  Cont’d… Hereafter, the exchangeprocess was a simple one. The emphasis was largely on the production of basic needs which usually was in short supply.
• 5.
  Production concept Customer  –Favor products that are available and affordable Goal  – Improve production and distribution efficiency Usefulness  – Demand exceeds supply  –Risk  - [What to do when situation changes?
• 6.
  Product Concept Consumer  –Favor products with best quality, performance, innovative features Goal  – Improve product features in a continuous fashion Usefulness  – [If market is stable, no competing technologies in sight] Risk  – Competing technology (spray instead of mouse trap) enters market
• 7.
  Selling Concept Consumer  –Will not buy enough products unless seller(s) undertake large-scale promotion and selling effort Goal  – Promote product,  Usefulness  – Unsought goods – encyclopedias, insurance, ... Risk  – Dissatisfied customers – will not buy again, will tell many people!  “Inside out”
• 8.
  Marketing concept  customers Buys product that best satisfies needs and wants Goal – Determine needs and wants of target markets – Deliver the desired satisfaction more effectively and efficiently than competitors Risk  – Short term focus larger social and ethical issues  – Overlooks long term customer welfare.
• 9.
  Cont’d…  When customersknow what they want Customer driving marketing  – When customers do not yet know they even need something  – Meeting existing latent and future needs by understanding customers better than they understand themselves  – “Outside in” perspectives.
• 10.
  Cont’d… Generally, the marketingconcept rests on four pillars: 1. target market, 2. customer needs, 3. integrated marketing, and 4. profitability.
• 11.
  Societal Marketing Concept Somehave questioned whether the marketing concept is an appropriate philosophy in an age of environmental deterioration: Resource shortages, and Explosive population growth, world hunger and poverty, and Neglected social services. Goal: Balance (1) Consumer satisfaction in short and long term, (2) society, (3) company profits
• 12.
  Marketing Management Marketing Managementis analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives.  Simply put, marketing management is demand management.
• 13.
  13 Different states ofdemand  There are Different states of demand up on which the marketing manager has to deal by applying different strategies. These are: 1. Negative Demand: is when the major part of the market dislikes the product and even pay price to avoid it.  Market strategy ( task)- Conversational marketing - Identify (analyze) why the market- dislike the product - Use different strategies to convince the market (buyers) and based on their beliefs and attitudes. 2. No Demand: this happens when the market is unaware of or un interested in the product of the company.
• 14.
  14 Cont’d Market strategy (task)stimulation marketing - Release information to increase general awareness of product. - Relate the functions of the product with individual’s natural need. 3. Latent Demand ( Hidden Demand) - Happens when there is a demand for the product but the product doesn’t exist. Market strategy: Developmental Marketing - Measure the size of the potential market - Develop new and commercialize the products that satisfy these needs
• 15.
  15 Cont’d 4. Decline Demand Thedemand for product declines after some time Market strategy- Remarking /Re stimulating -Analyze why demand declines -Find new target market, price reduction, applying more effective promotional packages 5. Irregular demand - Here demand for company’s product varies on certain time frame. - This causes idle or overworked capacity Market strategy synchronic marketing - is to find ways to alter the pattern of demand
• 16.
  16 Cont’d 6. Full demand -Happens when demand level is the level that company wants to handle. - - The actual demand is the level desired by the business firm. Marketing strategy/ Maintain Marketing Maintain the level of demand by measuring the satisfaction level of consumers along with quality controlling 7. Over full demand - When demand is greater than what can be supplied or handled by company. - Marketing strategy- de marketing - It is the techniques of reducing demand temporarily or permanently.
• 17.
  17 Cont’d - Selective demarketing - General de marketing
• 18.
  Marketing Challenges intothe Next Century  Growth of Non-Profit Marketing  The Information Technology Boom  Rapid Globalization  The Changing World Economy  The Call for More Ethics and Social Responsibility  The New Marketing Landscape
• 19.
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