INTRODUCTION TO MARKETING - Meaning, Importance, Types .pptx
- 1. UNIT 1 INTRODUCTION TO MARKETING
- 2. CONTENTS • MEANING • DEFINITION • WHAT ALL THINGS ARE MARKETED? • NATURE • SCOPE • OBJECTIVES • IMPORTANCE • APPROACHES • FUNCTIONS • COMPONENTS • CONCEPTS • MARKETING ENVIRONMENT • CONCEPT OF HOLISTIC MARKETING • ROLE OF MARKETING IN MODERN ORGANIZATION • MAJOR CONCEPTS IN DEMAND MEASUREMENT & MARKETING RESEARCH
- 3. MEANING & DEFINITION • The term Marketing has been derived from the Latin word Marketus which refers to the method or place of contact between buyers and sellers. • Market is a place or geographical area where buyers and sellers meet and enter into transactions involving transfer of ownership of goods and services. • Marketing is “the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals.” -American Marketing Association. • Marketing is “the management process that identifies, anticipates and satisfies customer requirements it profitably.” -The Chartered Institute of Marketing.
- 4. • The right product, in the right place, at the right time, and at the right price. -Adcock et al • Marketing is not only much broader than selling; it is not a specialized activity at all. It encompasses the entire business. It is the whole business seen from the point of view of the final result, that is, from the customer’s point of view. Concern and responsibility for marketing must therefore permeate all areas of the enterprise.” -Peter Drucker • Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. -Philip Kotler • Marketing is “The management process responsible for identifying, anticipating and satisfying customer requirements profitably.” -The Chartered Institute of Marketing
- 5. What all things are marketed? • SERVICES: Services include the work of airlines, hotels, cars rental firms, barber and beauticians, maintenance and repair people, and accountants, bankers, lawyers ,engineers doctors, software programmers, and management consultants. • EVENTS: Marketers promote time-based events, such as major trade shows, artistic performances, and company anniversaries. Global sporting events such as the Olympics and the World cup are promoted aggressively to both companies and fans. • EXPERIENCES: By orchestrating several services and goods, a firm can create, stage and market experiences. Veega land, Black Thunder etc represents this kind of experiential marketing. • PERSONS: Celebrity marketing is a major business, Artists, Musicians, CEOs, physicians, high- profile lawyers and financiers, and other professionals all get help from celebrity marketers. • PLACES: Cities, states, regions, and whole nations compete actively to attract tourists, factories, company headquarters, and new residents. Place marketers include economic development specialists, real estate agents, commercial banks, local business associations, and advertising and public relations agencies.
- 6. What all things are marketed? • PROPERTIES: Properties are intangible rights of ownership of either real property (real estate) or financial property (stocks and bonds). Properties are bought and sold, and these exchanges require Marketing. • ORGANIZATIONS: Organizations actively work to build a strong, favorable, and unique image in the minds of their target publics. • INFORMATION: Information is essentially what books, schools, and universities produce, market, and distribute at a price to parents, students, and communities. • IDEAS: Every market offering includes a basic idea. Social marketers are busy promoting such ideas as “Friends Don’t Let Friends Drive Drunk” and “A Mind Is a Terrible Thing to Waste.”
- 7. NATURE OF MARKETING • Exchange is the essence of marketing. • Marketing is customer/ consumer oriented. • Marketing starts and ends with customers/ consumers. • Modern marketing precedes and succeeds production. • Marketing is goal oriented and the goal being profit maximization through satisfaction of human needs. • Marketing is a science as well as an art. • Marketing is the guiding element of business (It tells what, when, how to produce; Marketing is capable of guiding and controlling business. • Marketing is a system. • Marketing is a process, i.e., series of interrelated functions.
- 8. SCOPE OF MARKETING: Marketing plays a pivotal role in any organization as it connects businesses with customers, ensuring that the goods and services produced are tailored to satisfy their needs. The scope of marketing encompasses a wide range of activities and decisions, as highlighted below: a) Study of Consumer Wants and Needs Marketing begins with identifying and understanding the wants and needs of consumers. Goods are produced to satisfy these desires, making it essential to analyze: • What consumers need and want. • The motivations behind consumer purchases. This understanding allows businesses to create products and services that resonate with their target audience, ensuring customer satisfaction and loyalty. b) Study of Consumer Behavior An in-depth study of consumer behavior is vital for effective marketing. This includes analyzing: • Buying patterns. • Preferences and decision-making processes. • Understanding consumer behavior helps marketers in: o Market Segmentation: Dividing the market into distinct groups based on similar characteristics. o Targeting: Focusing on the most profitable market segments to optimize marketing efforts.
- 9. c) Channels of Distribution Selecting the right channels of distribution ensures products reach consumers efficiently. Marketers and sales managers decide on the most suitable channels, including: • Wholesaling: Selling in bulk to intermediaries. • Distribution: Managing the movement of goods from production to retail. • Retailing: Directly selling products to end consumers. These decisions impact the availability and accessibility of products in the market. d) Pricing Policies Pricing is a critical component of marketing strategy. Marketers must decide on pricing policies by considering: • The level of competition. • The product's life cycle stage. • The company’s marketing objectives. Pricing varies by product and directly influences sales volume, profitability, and brand positioning. e) Promotion Promotion is essential for creating awareness and persuading customers to choose a product or service. It involves: • Personal Selling: Direct interaction with customers to build trust and answer queries. • Sales Promotion: Offering incentives like discounts, contests, or freebies. • Advertising: Using media channels to reach a broader audience. An optimal promotion mix ensures marketing goals are achieved effectively.
- 10. f) Sales Management Selling is an integral part of marketing, encompassing all activities aimed at converting potential customers into actual buyers. Key responsibilities include: • Customer Identification: Recognizing and reaching out to prospective customers. • Finding Customer Needs: Understanding specific requirements and preferences. • Persuading Customers: Encouraging purchase decisions through effective communication. • Customer Service: Providing post-sale support to enhance satisfaction and build long-term relationships. g) Finance Every marketing activity requires financial planning. Marketers must operate within budget constraints while allocating funds to: • Packaging: Designing attractive and functional product packaging. • Advertising: Running campaigns to increase visibility. • Sales Force: Training and managing the sales team. Efficient financial management ensures marketing objectives are met cost-effectively. h) After-Sales Services Marketing extends beyond the point of sale to include after-sales services, which are crucial for: • Maintaining strong customer relationships. • Resolving customer queries and complaints promptly. • Building brand loyalty and encouraging repeat purchases.
- 11. OBJECTIVES OF MARKETING 1. Increase in sales volume • The objective of marketing is not only the satisfaction of consumers needs but increase in sales volume of the concern also. • An increase in sales volume will increase the profits of the concern as well as its future growth potentiality. 2. Increase in net profit • Profit is residual (left behind) of sales minus costs . When sales increase the costs reduce due to economic of scale and there is an increase in net profits. • It is thought that proper consumers needs are solved out and satisfied which in turn increase the net profits of the organisation so a number of marketing experts agree that the maximization of profits is one of the prime goals of the marketing 3. Growth of enterprise: • The object of an organisation is stability with growth and profitability. • Marketing contributes to it by knowing all about the customers and provides them what they demand. • It will increase the good will, sales and profits of the enterprise. • When organisation has sufficient profits then the resources are generated and invested back for growth. • It has been realized that even at level the economy can grow by the free playing or market forces.
- 12. IMPORTANCE OF MARKETING Importance of Marketing to Companies: • Helps in income generation. • Helps in planning and decision-making. • Helps in distribution. • Helps in exchanging information. • Helps to adapt to changing environment. • Expands global presence. • Helps to earn goodwill. Importance of Marketing to Consumers: • Provides quality products. • Provides variety of products. • Improves knowledge of consumers. • Helps in selection. • Consumer satisfaction.
- 13. IMPORTANCE OF MARKETING Importance of Marketing to Society: • Marketing bridges the gap between firm and society. • Provides employment. • Raises standard of living. • Creates utilities. • Reduces costs. • Solves social problems. • Makes life easier. Importance of Marketing to Economy: • It stimulates research and innovation. • Saves the economy from depression. • Increase in national income. • Economic growth.
- 14. APPROACHES: There are four different approaches to the study of marketing. These approaches explain clearly the mechanism and concept of marketing. These approaches are Commodity Approach, Institutional Approach, Functional Approach and Decision Making Approach. (1) Commodity Approach or Product Approach: • This approach refers to the study of a product in detail. The marketing situation of each product chosen for study is examined from such viewpoints as sources and conditions of supply, producer marketing organisations, policies, different middlemen (wholesaler’s / retailers etc.) who take part in distributing the product. • Problems with regard to a particular product are studied in detail under this approach. Products of any nature e.g. agricultural products wheat, rice, maize, etc., industrial products like machine tools, lathe-machines, generators, oil engines, etc., and any other products can be covered under this study. In practice, this approach tends to be repetitive and time consuming.
- 15. (2) Institutional Approach: • This approach relates to various marketing institutions viz., wholesalers, retailers etc., engaged in marketing. In applying this approach, a thorough study with regard to a particular middleman is undertaken. For example, in retailing, nature and significance of retailing in terms of functions and services performed and rendered by retail institutions like departmental stores, multiple shops, mail order houses etc. • Besides wholesalers and retailers, other marketing institutions can be stock exchanges, produce exchanges, banks, regulated markets, etc. In short, it can be said that this approach is applicable on various types of marketing intermediaries. (3) Functional Approach: • As the very name suggests this approach comprises of the study of various activities or functions performed in the process of marketing of goods and services. It analyses each function in relation to the importance of its performance. • Various marketing functions are buying, selling, financing, transportation, banking, risk bearing, market information etc. By analysing and studying every function in detail and problems confronted in the performance of each function, it is possible to understand marketing properly.
- 16. (4) The Decision Making Approach: • This approach is of vital importance from the viewpoint of marketing management. Various decisions are taken at every level of management. In successful marketing, decision making occupies an important place. The marketing manager should be very expert and competent in his job so that he takes proper decisions for marketing the goods and services. FUNCTIONS OF MARKETING
- 17. The seven functions of marketing are interconnected and vital to business success. Each function contributes to delivering value to consumers while achieving organizational goals. Below is a detailed explanation of each function, numbered for clarity: 1. Product Management Product management involves designing, developing, and maintaining a product throughout its lifecycle to meet consumer needs and preferences. It ensures the product's features, quality, and packaging align with market demands. For instance, when Nike launches a new line of running shoes, they focus on integrating cutting-edge technology, such as improved cushioning or lightweight materials, to enhance performance and attract athletes. 2. Pricing Pricing is the process of determining the monetary value of a product or service. This function balances production costs, consumer affordability, and competitive dynamics. A notable example is subscription-based services like Spotify, which offer tiered pricing plans to cater to different customer segments, such as free ad-supported access and premium ad-free memberships. 3. Distribution (Place) This function ensures products are available to consumers at the right time and place. It involves selecting distribution channels, managing inventory, and optimizing logistics. An example is Starbucks, which strategically places its coffee shops in high-traffic areas, such as urban centers and airports, to maximize accessibility and convenience for customers.
- 18. 4. Promotion Promotion communicates the value of a product to the target audience using advertising, public relations, sales promotions, and digital marketing. Coca-Cola is a prime example, as their “Share a Coke” campaign personalized bottles with names, encouraging customers to purchase and share them on social media, thereby boosting brand visibility and engagement. 5. Financing Financing ensures businesses have the financial resources to produce, promote, and distribute products. It also includes offering credit or payment options to consumers. For example, Tesla allows customers to finance electric vehicles through installment plans, making the purchase more affordable while supporting the company’s sales objectives. 6. Marketing Information Management This function involves collecting and analyzing data to make informed decisions. It helps businesses understand market trends, customer preferences, and competitive landscapes. For instance, Amazon tracks customer purchases and browsing habits to recommend products and tailor marketing strategies, ensuring a personalized shopping experience. 7. Selling Selling focuses on direct interaction with customers to persuade them to buy a product or service. It involves relationship building and addressing customer needs. For example, a luxury car dealership relies on skilled sales representatives to highlight features such as advanced safety systems and luxurious interiors, ultimately convincing potential buyers to make a purchase. By addressing these seven functions effectively, businesses can build a strong marketing strategy that meets consumer needs, drives demand, and achieves profitability.