1 Marketing Fundamentals

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Introduction to Marketing


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What we shall look at

The importance of marketing

The scope of marketing

Some fundamental marketing concepts

Tasks for marketing managers


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What is Marketing?

Marketing is an organizational function and

a set of processes for creating, communicating anddelivering value to customers and

for managing customer relationships in ways

that benefit the organization and its stakeholders

American Marketing Association


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Marketing more thoughts

Meeting needs profitably

Identifying and meeting human & social needs Marketing is a societal process by which individuals

and groups obtain what they need and want

through creating, offering and freely exchanging

products & services of value with others


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What is Marketing Management?

Marketing management is the art and science

of choosing target markets and

getting, keeping and growing customers

through creating, delivering and communicating

superior customer value


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What is marketed?

Goods Services

Events

Experiences

Persons

Places Properties

Organizations

Information

Ideas


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What is a product?


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Needs, Wants, Demands

Needs basic human requirements such as food, air, shelter,clothing, education, recreation, communication etc

Wants specific satisfiers of needs

Demands wants for specific products backed by theability and desire to pay


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5 Types of Needs

1. Stated needs: I am looking for an inexpensive car

2. Real needs: operating costs low not initial price

3. Unstated needs: good service expected from dealer

4. Delight needs: dealer should include music system free

5. Secret needs: wants friends to perceive him as savvy


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Key Customer Markets

Consumer markets: aimed at individuals / families

Business markets: aimed at institutions

Global markets: across countries / geographies

Government & Non-profit markets

Consider also:

Marketplaces

Market spaces

Meta-markets


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Value Proposition

A set of benefits offered to customersto satisfy their needs


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Offerings & Brands

The intangible value proposition is made tangible

or physical in the form of an offering

a combinations of physical products, services,information, experiences

A brand is an offering from a known source andis a valuable asset of the source organization


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Value & Satisfaction

Value: sum of perceived tangible & intangible benefits

compared with costs to customers

Satisfaction: customers judgment of products

perceived performance compared to expectations


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Marketing Channels

3 types

Communication channels: to deliver andreceive messages (media, phones, Internet)

Distribution channels: to display, sell, deliver

(distributors, retailers, agents)

Service channels: to carry out transactions

(banks, transport companies, insurance)


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Competition

Actual & potential rival offerings and substitutes


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Marketing Environment

Task environment All engaged in producing,

distributing, promoting

Company, suppliers,

channels, customers, banks,

insurance, telecom

Agents, brokers, dealers

Broad environment Demographic

Economic

Physical

Technological

Political-legal Socio-cultural


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New Marketing Realities

Major societal forces

Information technology Globalization

De-regulation

Privatization

Increasing competition

Industry convergence

Consumer empowerment & resistance

Retail transformation


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New consumer capabilities

Substantial increase in purchasing power

Power to select from immense variety of products

Access to info about almost everything

Easier interactions and order placement

Ability to interchange info about products

Ability to influence peer & public opinion


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New company capabilities

Internet: powerful info & sales channel, increasing reach

Internet: research

Internet: internal & external communications, buzz

Internet: interactive marketing

Specialized media for target marketing, mobile marketing

Customization, segment of one

Internet: HR, Purchase etc


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Company orientationtowards marketplace

Production concept: belief that consumers prefer products

that are widely available & inexpensive focuses on

production efficiency, low costs, mass distribution

Product concept: buyers want products offering high quality /

performance / innovative features

Selling concept: company undertakes aggressive selling

without which prospects will not buy

Marketing concept: customer-centric suit the product

to customers


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SegmentationTargeting

Positioning


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Segmentation

One offering can rarely satisfy every customer

people differ widely in their wants

Marketers need to divide the market into segments

Market segments are distinct groups of buyers & users

based on their demographic, psychographic and

behavioural characteristics


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Targeting

After identifying market segments,

marketers need to decide which segments

represent the greatest opportunity

which are the most attractive

Factors are segment size & potential,marketers strengths & weaknesses, competition etc


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Positioning

The act of designing a companys offering and image

to occupy a distinctive place in the minds of prospects

It results in the creation of a customer-focused

value proposition by providing the reasonwhy specific target customers should prefer

the offering over competition


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SWOT Analysis

Analysis of an organizations

Strengths and Weaknessesand

Opportunities and Threats

existing in the marketplace


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Product Life Cycle (PLC)


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Marketing Goals

Marketing Objectives or Marketing Tasks what the marketing strategy plan has to achieve

in other words, the destination


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Marketing Strategy

The means of getting to the destination

what resources are needed,how these should be deployed,

what actions to carry out

and also a plan for evaluation


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Levels of a Marketing Plan

Strategic

Target marketingdecisions

Value proposition

Analysis of

marketingopportunities

Tactical

Product features Promotion

Merchandising

Pricing

Sales channels

Service


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Strategic Planning, Implementation,and Control Processes


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Business UnitStrategic Planning Process


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Marketing Management Tasks

Capturing marketing insights

Developing strategies & plans

Connecting with customers Building strong brands

Shaping market offerings

Delivering value

Communicating value

Creating long-term growth

1 Marketing Fundamentals

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