Lec-2-5th-June-Intro2Mktg

8/14/2019 Lec-2-5th-June-Intro2Mktg

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Introduction to Marketing

Marketing is the process of planning and

executing the conception, pricing, promotion

and distribution of ideas, goods and services

to create exchanges that satisfy individual &organizational goals.

Marketing is providing the right product, in

the right place, at the right time, at the right

price to the right customer.


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What Can Be Marketed?

Goods

Services

Experiences

Events

Persons

Places

Properties

Organizations

Information

Ideas


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Core Marketing Concepts

Exchangeinvolves obtaining a desired product

from someone by offering something in return.

It is a process in which two parties are trying to

arrive at mutually agreeable terms.

When an agreement is reached, we say that

Transactionhas taken place.


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Target Markets & Segmentation

Differences in needs, behavior,

demographics or psychographics are usedto identify Segments.

The segment served by the firm is called theTarget Market.

The market offering is customized to theneeds of the target market.

Core Marketing Concepts (Cont.)


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Shopping can take place in a:Marketplace (physical entity - Food World)

Marketspace (virtual entity Amazon.com)

Metamarkets refer to complementary goods

and services that are related in the minds of

consumers but are spread across a diverse

set of industries.

Marketersseek responses fromprospects.


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Needs become wants when they are directed tospecific objects that might satisfy the need.


A Product/Service is any offering that can satisfy a

need or want, while a brandis a specific offering

from a known source.

Demands are wants for specific products backed

by an ability to pay.

Needs describe basic human requirements suchas food, air, water, clothing, shelter, recreation,education, and entertainment.


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Core Marketing Concept: Value

Marketers can enhance the value of an

offering to the customer by:

Raising benefits.Reducing costs.

Raising benefits while lowering costs.

Raising benefits by more than theincrease in costs.

Lowering benefits by less than the

reduction in costs.

Value = Benefits/Costs.


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Relationship marketingaims to build long-termmutually satisfying relations with key parties,which ultimately results in marketing networkbetween the company and its supporting

stakeholders. Marketing Channels:

*Communication Channels

*Distribution Channels*Selling Channels

A supply chain stretches from raw materials to

components to final products that are carried

to final buyers.


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Core Marketing Concept:

Competition

Competition includes all the actual and

potential rival offerings and substitutes that a

buyer might consider.

Four levels of competition can bedistinguished by the level of product

substitutability:

Brand competition Industry competition

Form competition

Generic competition


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Core Marketing Concept:

Marketing Environment Task Environment includes immediate parties

involved in producing, distributing andpromoting.

The following are the 6 components inBroad Environment:Demographics EconomicsNatural environment Technological environment Political-legal environment

Social-cultural environment


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Marketing Mix The 4 Ps

Marketing mix decisions include:

Product: provides customer solution.

Price: represents the customers cost.Place: customer convenience is key.

Promotion: communicates with

customer.

Marketing Mix is the set of marketing toolsthat the firms use to pursue their marketing

objectives in the target market.


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Marketing Mix The 4 Ps

Marketing mix decisions include:

Product: provides customer solution.

Price: represents the customers cost.Place: customer convenience is key.

Promotion: communicates with

customer.

Marketing Mix is the set of marketing toolsthat the firms use to pursue their marketing

objectives in the target market.


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4 types of utilities:

Form Utility: Created when raw materialis converted into a finished product.

Time Utility: By providing the products to

the customers when they want it.

Place Utility: It is provided when product

is made available to customers at the

locations preferred by them.

Possession Utility: When the buyer can

use the product as he wishes.


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Company Orientations

The orientation or philosophy of the firm

typically guides marketing efforts. Several

competing orientations exist:

Production concept

Product concept

Selling concept

Marketing concept

Societal marketing concept


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The Marketing Concept

Achieving organizational goals requires thatcompany be more effective than competitorsin creating, delivering, and communicatingcustomer value.

Four pillars of the marketing concept:

Target market

Customer needsIntegrated marketingProfitability


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Marketing Trends in the 21st

Century:

Relationship Marketing

Customer Lifetime Value

Customer Share: Cross

Selling

Target Marketing

Customization

Customer database

Integrated Marketing

Communication

Channels as partners

Employee Marketer

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