L1 introduction to marketing mm i
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Transcript of L1 introduction to marketing mm i
Introduction to Marketing
Dr. Ajay Pandit
December 01, 2009
What is marketing?
The Incredible India campaign was launched in the wake of the events of September 11, 2001 and the consequent impact on tourism. The campaign differentiated India from the competing destinations by developing a unique market position and image. The campaign was built around the brand proposition of – India : the voyage to the land of Ananda, the bliss.
What is Marketing?
Social definition
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
What is Marketing?
AMA definition
Marketing is an organizational function and a set of processes for creating, communicating and delivering value to the customers and for managing customer relationships in ways that benefit the organizations and its stakeholders.
What is Marketing?
Marketing is a transaction or exchange through activities designed to generate and facilitate exchanges intended to satisfy human or organizational needs and wants.
What is Marketing?
Marketing is a total system of business activities designed to plan, price, promote and distribute want-satisfying products to target markets in order to achieve organizational objectives.
Needs and Wants
Needs are basic human requirementsWants are needs directed to specific
objects/services that might satisfy the need
Five Types of Needs
Stated Need (Consumer wants inexpensive Car) Real Needs (Car with low operating cost) Unstated Need (Expects good service from the
dealer) Delight Need (Extras) Secret Need (Wants to be seen by friends as a
savvy customer)
Exchange
Get something (product /service) by offering something in return.
Eg. kind (barter) or money (value )Exchange is a value creating process
because it leaves both parties better off
(win – win situation)
Transaction and Transfer
A transaction is an exchange between two things of value on agreed conditions and a time and place of agreement.
A transfer is a one way exchange without receiving anything in return.
Exchange
Five conditions must be satisfied: There are at least two parties Each party has something that might be of value
to the other party Each party is capable of communication and
delivery Each party is free to accept or reject the
exchange offer. Each party believes it is appropriate or desirable
to deal with the other party
What is marketed?
Goods / Products Services Events Experiences Persons Places Properties Organizations Information Ideas
“Commodities”
Water
Salt
Demand
This is the want for specific products backed by an ability to pay.
Target Market
Very rarely does a product cater to the entire market. Most products are designed to cater to a group of customers who specifically want such a product. This group of customers is the target market which is a slice of the total market. We say it is the market segment.
Value and Satisfaction
Value = Benefits/CostsBenefits = Functional Benefits + Emotional
benefitsCosts = Monetary costs + Time + Energy +
Psychic costs
Relationship Marketing
Building long term mutually satisfying relations with customers, suppliers, distributors in order to retain their long term preference and business
Marketing Network
A marketing network is the relationships built with its stakeholders. Effective relationships make up an effective and strong network.
Marketing Channels
Marketing channels are used to reach the target segment.
Communication channels
eg. Advertising, telephone enquiry systemDistribution channels – trade, direct sales
Supply Chain
The supply chain represents a value delivery chain – from procurement of raw materials to final delivery of product to consumer.
Competition
Potential and rival substitutes and offerings a buyer might consider.
Competition can be viewed in various perspectives – brand, industry, form, generic
Marketing Environment
CompetitionCustomersGovt. policiesSuppliersTrade
ProductImport tariffsTrendsTechnologyPolitics
Marketing Mix
It is the tools that an organization employs to pursue its marketing objectives in the target market
Product, Price, Place, Promotion4 C’s – Customer solution, Cost,
Convenience, Communication
The 4 Ps of Marketing
Product: is that which you trade for cash – your customers want your product and you want their cash
Price: The amount of money charged for a product or service
Promotion: How you will promote and create awareness of your product in the market place
Place: How you bring your product together with your customer - distribution
Traditional Marketing Model
Kotler,
4Ps in Action – The Marketing Mix
Your Business
Market place
Control of 4 independent variables (Marketing Mix)
Sales Volume Rs
Current economics
Legislation/Regulation
Political environment
Social trends
Cultural trends
Consumer confidence
Competition• New technology• Their 4 Ps
Uncontrollable
1. Product 2. Price3. Promotion4. Place
Evolution of Marketing
Marketing philosophy
Production conceptProduct ConceptSelling ConceptMarketing ConceptSocietal marketing Concept
1. Production Orientation
Focuses on internal capabilities of firm. “ Field of Dreams” strategy
– “If we build it, they will come” Best used when
– competition is weak – demand exceeds supply– generic products competing solely on price
Problem is that they don’t understand wants/needs of marketplace.
2. Sales Orientation
People will buy more goods/services if aggressive sales techniques are used.
High sales will result in high profits.Used with unsought products
– life insurance– encyclopedias
Problem is that they don’t understand wants/needs of marketplace.
3. Marketing Orientation
Marketing concept: The social and economic justification for an organization’s existence is the satisfaction of
customer wants and needs, while meeting organizational objectives.
3. Marketing Orientation . . .
Focusing on customer wants so the organization can distinguish its products from competitors’ .
Integrating all the organization’s activities, including promotion, to satisfy these wants.
Achieving long term goals for the organization by satisfying customer wants and needs legally and responsibly.
3. Marketing Orientation . . .
Requires:– Top management leadership– A customer focus– Competitor intelligence
strengths weaknesses
– Interfunctional coordination to meet customer wants/needs and deliver superior values.
4. Societal Marketing Orientation
Organization exists not only to satisfy customer wants/needs and to meet organizational objectives, but also to preserve and enhance individuals’ and society’s long-term best interests.
Extends marketing concept to serve one more customer - society as a whole.
ITC – Promoting Heritage India
Social Marketing
www.environment.delhigovt.nic.in
Differences between Sales & Marketing Orientations
Sales FocusOrganization’s
needsSelling
goods/services
Everybody
Profit through max. sales volume
Intensive promotion
Marketing FocusCustomer’s needsSatisfying
customer wants/needs
Specific groups of people
Profit through customer satisfaction
Coordinated mktg. activities (4 p’s)
Global Perspective
Questions
Answers