Defining Marketing

Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. Aim of marketing- Know & understand customer so well that product fits & sells itself

Exchange vs. Transaction

Exchange:Act of obtaining a desired object from someone by offering something in return.Transaction:A trade of values between two parties.One party gives X to another party and gets Y in return. Can include cash, credit, check, or barter.

Difference b/w marketing & selling

FactoryExistingproducts

Selling andpromotion

Profits throughsales volume

Starting

point Focus Means Ends

(a) The selling concept

Marketing orientations

Maximize profits through increased consumer satisfaction & hence raise market share.“ what can we do that will make product better than competitors in the customer mind”

V/SSellings orientations

Maximize profits through sales maximization“ we must somehow hook the customer”

What is a Market?

The set of actual and potential buyers of a product. These people share a need or want that can be satisfied through

exchange relationships.

What Satisfies Consumers’ Needs and Wants?

ProductsAnything that can be Offered to a Market to Satisfy a Need or Want

Persons,Places,Organizations,Information,Ideas

ServicesActivity or Benefit Offered for Sale That is Essentially

Intangible and Does Not Result in the Ownership of Anything

MarketIntegratedmarketing

Profits throughcustomer

satisfaction

Customerneeds

(b) The marketing concept

What is Marketed

1. goods2. properties3. Services4. Ideas5. information6. Events & experiences

Simple Marketing System

Communication

Industry(a collection

of sellers)

Market(a collection

of Buyers)Money

Information

Goods/services

Company Orientations Towards the Marketplace

Production ConceptConsumers prefer products that are widely available and inexpensive High prdn efficiency, low cost, mass distribution

Product ConceptConsumers favor products that offer the most quality, performance, or innovative features

Selling ConceptConsumers will buy products only if the company aggressively promotes/sells these products Unsought goods-insurance, encyclopedias

ManufacturerMarkets

ServicesServices,,moneymoney

Governmentmarkets

ServicesServices,,moneymoney

ServicesServicesServicesServices

,,moneymoney

TaxesTaxes

TaxesTaxes,,goodsgoods

TaxesTaxes,,

goodsgoods

TaxesTaxes,,

goodsgoods

MoneyMoney MoneyMoney

ConsumerMarkets

IntermediaryMarkets

Goods,Goods, servicesservices

Goods,Goods, servicesservices

ResourceResourcess

ResourceResourcessResource

MarketsMoneyMoney MoneyMoney

Structure of FlowsStructure of Flows

Marketing ConceptFocuses on needs/ wants of target markets & delivering value better than competitors

Holistic Marketing orientation- Development , design & implementation of marketing programs , processes & activities that recognizes their breadth & interdependence

Integrated marketing

Marketing Mix

The Four Ps and The Four Cs

Product <> Costumer SolutionPrice <> Costumer CostPromotion <> CommunicationPlace <> Convenience

Core Concepts of Marketing

Target Markets & SegmentationNeeds, Wants, and DemandsProduct or OfferingValue and Satisfaction

Relationships and NetworksMarketing Channels-communication & channelSupply ChainCompetitionMarketing Environment- task & broad

This Is a Need

Needs – Basic human requirements including physical, social, and individual needs.

Types of Needs

Physical: Food, clothing, shelter, safety

Social: Belonging, affection

Individual: Learning, knowledge, self-expression

This Is a Want

Wants - form that a human need takes, as shaped by culture and individual personality.

This Is Demand

Wants + Buying Power = DEMAND

Need / Want Fulfillment

Needs and Wants Fulfilled through a Marketing Offer : Some combination of products, services, information, or

experiences offered to a market to satisfy a need or want.

Value and Satisfaction

If performance is lower than expectations, satisfaction is low.

Segmentation and Target Marketing

Market Segmentation:Divide the market into segments of customers

Target Marketing:Select the segment to cultivate

The Company’s Macroenvironment

Actors in the Microenvironment

Marketing shapes consumer needs and wants versus marketing reflects the needs and wants of consumers.

Marketing shapes consumer needs and wants versus marketing reflects the needs and wants of consumers.

Evolving Views of Marketing’s Role

Customers

Front-line people

Middle management

Topmanage-

ment

Customers

Custo

mer

s

e. The customer as the controllingfunction and marketing as the

integrative function

Customer

Marketing

ProductionH

uman

resources

Finance

Marketing Management Tasks

Marketing strategies

Building strong brands

Connecting with customers

Delivering value

Communicating value

Creating long term growth