Introduction to MarketingEng. Ranil Sugathadasa

BSc.Eng(Hons),MSc.Eng(Moratuwa),MIE(SL),MILT(UK), CEng,

MBA(Colombo),PMP (USA)

Management Consultant/Motivational Trainer/ Executive Coach/Chartered

Engineer

Senior Lecturer, Faculty of Engineering, University of Moratuwa

Founder: TheMotivator

www.themotivator.lk

Phone: 0777 224038

Email: ranilsha@yahoo.co.uk

The Marketing Concept –

Some Definitions

Marketing is the management process whichidentifies, anticipates and satisfies customerrequirements efficiently and profitably.

- Chartered Institute of Marketing (UK)

Marketing is a societal process by which

individuals and groups obtain what they need

and want through creating, offering, and

exchanging products and services of value with

others.

Philip Kotler and Kevin Keller

Marketing is an organizational function and a set

of processes for creating, communicating and

delivering value to customer relationships in

ways that benefit the organization and its stake

holders.

American Marketing Association

Integration of Marketing,

Logistics & Supply Chain

Marketing identify customer needs and

requirements and decide on the best offering

to satisfy the need. Logistics and supply

chain integrates with marketing to create

superior customer value.

What is marketed?

Goods

Services

Places Properties

Persons

Information

What is marketed?

What is marketed?

Experiences

Events

Ideas

Organisations

Evolution of Marketing –

Development of Marketing Orientation

Production concept

‘The customer can have any colour as long as it’s black’

- Henry ford, 1920

Product concept

‘Golden Mouse Trap’

Selling concept

Selling a refrigerator to an Eskimo

Marketing as a Management

Function

Planning

Control

Analysis

Implementation

Micro & Macro Marketing

Micro marketing is the performance of

activities that seek to accomplish an

organization's objectives by anticipating

customer needs and directing a flow of

need satisfying goods and services from

producer to customer or client.

Micro & Macro Marketing (Con’t)

Macro marketing looks at the system as a whole which directs need satisfying flow of goods and services to match the demand of the market.

Objective is to effectively match the heterogeneous supply and demand to accomplish society’s objectives.

Why is Marketing important?

As a consumer

Consumers pay for the cost of marketing activities.

Different Applications

As individuals

Public/private

Profit oriented/non profit

Product /service supplier

Key Concepts in Marketing

Market

Target Market

Industry

(Sellers)

Market

(Buyers)Goods/Services

Communication

Information

Money

Key Concepts in Marketing (Con’t)

Marketer

Needs –a state of felt deprivation

Wants -a need which is directed to specific object in order to satisfy the need

Demand - wants for specific products/services backed by an ability to pay

Offering – what is marketed?

Value and Satisfaction

Value = Benefits/Costs

Benefits- Functional +Emotional

Costs – Money+ Time+ Energy + Psychic

How to increase value?

A firm that offers superior customer value is likely to win and keep customers

Key Concepts in Marketing (Con’t)

Customer -a current and prospective buyer. The

KING

Relationship Marketing- long – term mutually

satisfying relations with key parties- customers,

suppliers, distributors

Key Concepts in Marketing (Con’t)

Key Concepts in Marketing (Con’t)

Marketing channels

Communication channels,

Distribution channels,

Service channels

Competition

Actual and potential rival offerings and substitutes

Marketing Environment

Key Concepts in Marketing (Con’t)

Determine Customer

Needs

Invest resources

Make product/service

Market product/service

(profit via customer

satisfaction)

Market feedback

Sell the product (profit

via increased turnover

Make product

Invest resource

Determine whether

product can be made

Market Orientation Sales/Production Orientation

Holistic marketing

This is a combination of four set of forces

which came into practice in the recent

decades. They are relationship marketing,

integrated marketing, internal marketing and

social responsibility marketing.

Customer at the centre

Key Concepts in Marketing (Con’t)

Marketing Mix

Seller – 4 Ps

Product

Price

Place

Promotion

Buyer - 4 Cs

Customer Solution

Customer Cost

Convenience

Communication

Marketing in the Transport and

Logistics Sector

Logistics management

The 7 R’s

Deliver the right goods in the right

quantity, at the right place, at the right

time in the right condition at the right

price with the right information.