Chapter 1

MANU H NATESH MBA,M.Com. BMSEAC [email protected]

Chapter 1INTRODUCTION TO MARKETING


MARKET

• a regular gathering of people for the purchase and sale of provisions, livestock, and other commodities.

• an area or arena in which commercial dealings are conducted.

• advertise or promote (something).


MARKETING

Dr. Philip Kotler defines marketing as “the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit.

“Marketing is concerned with the people and activities involved in the flow of goods and services from producer to consumer” - AMA


MARKETING MANAGEMENT


• The management process through which goods and services move from concept to the customer. It includes the coordination of four elements called the 4 P's of marketing:

• (1) identification, selection and development of a product,• (2) determination of its price,• (3) selection of a distribution channel to reach the

customer's place, and• (4) development and implementation of a

promotional strategy .

http://www.businessdictionary.com/definition/management.html

http://www.businessdictionary.com/definition/process.html

http://www.businessdictionary.com/definition/goods-and-services.html

http://www.businessdictionary.com/definition/concept.html

http://www.businessdictionary.com/definition/coordination.html

http://www.businessdictionary.com/definition/element.html

http://www.businessdictionary.com/definition/call.html

http://www.businessdictionary.com/definition/four-P-s-of-marketing.html

http://www.businessdictionary.com/definition/selection.html

http://www.businessdictionary.com/definition/development.html

http://www.businessdictionary.com/definition/distribution-channel.html

http://www.businessdictionary.com/definition/cumulative-audience-Cume.html

http://www.businessdictionary.com/definition/customer.html

http://www.businessdictionary.com/definition/promotional-strategy.html


CONCEPTS OF MARKETING


Approaches to study marketing

• Commodity approach - In commodity approach of marketing we study the flow of a certain commodity and its journey from producer to consumers or buyers. We can have a complete picture of the field of marketing.


• Functional approach - Functional approach attention is draw towards specialized services or functions or activities performed by the marketers.


• Institutional approach - Institutional approach focuses on the marketing institutions or agencies like wholesalers, retailers, transport undertaking, banks, insurance companies etc who generally participate in discharging their marketing responsibilities during the movement of distribution of goods.


• Systems approach - System approach is a set of interacting or interdependent components or groups coordinated to form a uniformed whole and organized marketing activities to accomplish a set of objectives, we have the objective, inputs, processors, outputs and feedback.


• Managerial or decision making approach Finally decision making or management approach combines some features of the commodity, institutional, functional approaches and seek to relate them from the decision making view point. Areas of marketing decisions are marketing organizations, product, distribution, policies, pricing , advertising and personal selling.


Functions of marketing


Recent trends in marketing


• E – business• Tele marketing• Mobile marketing• Green marketing• Retailing• Customer relationship management(CRM)


• E-business (electronic business) is the conduct of business processes on the Internet. These electronic business processes include buying and selling products, supplies and services; servicing customers; processing payments; managing production control; collaborating with business partners; sharing information; running automated employee services; recruiting; and more.

http://searchitchannel.techtarget.com/definition/partner


E business models

• B2C The business-to-consumer, or B2C, model of e-business sells products directly to retail consumers online. Amazon.com is an example of a B2C model.

• B2B• The business-to-business, or B2B, model

involves companies using the Internet to conduct transactions with one other. B2B businesses generate revenue from direct sales.


• C2BConsumer-to-business, or C2B, is a unique e-business model in which consumers create value and demand for products. Reverse auctions are a common characteristic of C2B models, in which consumers drive transactions and offer their own prices for products.


• C2C Consumer-to-consumer, or C2C, e-business models enable consumers to behave as buyers and sellers in third-party-facilitated online marketplaces.


Tele marketing• the marketing of goods or services by means of

telephone calls, typically unsolicited, to potential customers.


Mobile marketing

• Mobile marketing is promotional activity designed for delivery to cell phones, smart phones and other handheld devices, usually as a component of a multi-channel campaign.


Green marketing

• Green marketing is the marketing of products that are presumed to be environmentally preferable to others. Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, sustainable packaging, as well as modifying advertising.


Retailing

• Retailing is a trading activity directly related to the sale of goods and services to the ultimate consumer for personal and non business use.


Characteristics• He is regarded as the last link in the chain of

distribution.• He purchases goods in large quantities from the

wholesaler and sell in small quantity to the consumer.• He deals in general products or a variety of

merchandise.• He develops personal contact with the consumer.• He aims at providing maximum satisfaction to the

consumer.• He has a limited sphere in the market.


Functions

• The retailer buys a variety of products from the wholesaler or a number of wholesalers. He thus performs two functions like buying of goods and assembling of goods.

• The retailer performs storing function by stocking the goods for a consumer.

• He develops personal contact with the consumers and gives them goods on credit.

• He bears the risks in connection with Physical Spoilage of goods and fall in price. Besides he bears risks on account of fire, theft, deterioration in the quality and spoilage of goods.

• He resorts to standardization and grading of goods in such a way that these are accepted by the customers.

• He makes arrangement for delivery of goods and supply valuable market information to both wholesaler and the consumer.


Service of a Retailer

To Customers:• He provides ready stock of goods and as such he sells and

quantity of goods desired by the customers.• He keeps a large variety of goods produced by different producers

and thereby ensures a wide variety of choice to the customers.• He relives the consumers of maintaining large quantity of goods

for future period because he himself holds large stock of goods.• He develops personal relationship with the customers by giving

them credit.• he provides free-home delivery service to the customers.• He informs the new product to the customers.• he makes arrangement for replacement of goods when he receive

complaints.


To Wholesaler• He gives valuable market information with regard to taste,

fashion and demand for the goods to the wholesaler.• The retailer maintains direct contact with the customers and

so he relieves the wholesaler with regard to maintenance of direct contact.

• He helps the wholesaler in getting their goods distributed to the consumer.

• He is regarded as an important link between the wholesaler and the consumer.

• He creates demand for the products by displaying the goods to the consumers.


Customer relationship management (CRM))


Customer relationship management (CRM))

• Customer relationship management (CRM) is an approach to managing a company's interaction with current and future customers. It often involves using technology to organize, automate, and synchronize sales, marketing, customerservice, and technical support.


Benefits of CRM

• Improved Customer Experience• Automated Analytics and Reporting• Better Coordination and Cooperation• More Administrative Support• Growth in numbers of customers• Long term profitability and sustainability

Chapter 1

Marketing

Transcript of Chapter 1