Mkt 201 - Lecture 1

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Transcript of Mkt 201 - Lecture 1

UNIVERSITY COLLEGE OF THE CARIBBEAN BSc. Degree in Business AdministrationYears 1 & 2 - Principles of Marketing Course Code: MKT 201

Lecturer: Beverley PriceTelephone: 457-6176 / 854-0168 Email: price.beverley@ymail.com beverleyp@tpdco.org

Class Objectives for Today1. 2. 3. 4. 5.

Introduction & Getting to Know You Overview of the Course Discussion of Major Project Class Rules Questions

Learning Objectives for Todayy At the end of this unit students

should be able to:y 1. Define what is Marketing y 2. Outline the basic concepts y y y y

behind Marketing 3. Distinguish between the major marketing philosophies 4. Design a basic Business Portfolio 5. Outline the marketing process 6. Discuss the process managing the marketing effort

Introduction to Marketing Management concepts Marketing Management Philosophies Strategic Planning and the Marketing Process Designing a basic Business Portfolio Outline the Marketing Process Discuss the process managing the marketing effort

What is Marketing?Marketing is the management process that identifies, anticipates and satisfies customer requirements profitablyy Marketing is a social

and managerial process by which individuals and groups obtain what they want and need through creating, offering and exchanging products of value with others(Kotler)

The Chartered Institute of Marketing - (CIM)

Aim of Marketing

To create satisfied customersWhat is Satisfaction?is a person s feelings of pleasure or disappointment resulting from comparing a product s perceived performance (or outcome) in relation to his or her expectations.

Recap of MarketingMarketing is managing profitable customer relationships. Goals: 1. Attract new customers by promising superior value. 2. Keep and grow current customers by delivering satisfaction.OLD View of Marketing NEW View of Marketing

Making a Sale Telling & Selling

Satisfying Customer Needs

Needs are states of felt deprivation including physical,

social, psychological and individual needs that are felt by all humans . act .

They are the basic forces that compel consumers to

EXAMPLES Physical Needs Social Needs Individual Needs : Food, clothing, shelter, safety : Belonging, affection, recognition, respect : Learning, knowledge, self expression

Wants & DemandsWants are the forms that a human need takes as shaped by his her culture, and or individual personality. It reflects a person personal desire for satisfying his needs (e.g. bread, service club, education, chicken, Grace etc.) Demands are human wants backed by buying power i.e. money. Consumer wants for a product much backed by their ability to buy it Wants + Buying

Power = Demand

What benefits are derived from using a Drill

Functional Satisfaction

Psychological Satisfaction

It bores a hole fast and effectively

Its a good brand, so it is top of line Its design makes it safe and easy to use

A simple model of the Marketing Process1.

Understand the marketplace and customers needs and wants. Design a customer-driven marketing strategy. Construct a marketing programme that delivers superior value. Build profitable relationships and create customer delight. Capture value from customers to create profits and customer quality.

2. 3.

4. 5.

The Marketing Concept or OrientationProduction ConceptConsumers prefer products that are widely available and inexpensive. The focus of the company is on its production capabilitiesConsumers favor products that offer the most quality, performance,or innovative features. The focus of the company is on the uniqueness of its products Consumers will buy products only if the company aggressively promotes/sells these products.Customers should coaxed into buying Focuses on the needs/ wants of its target markets & delivering value better than competitors. The focus of the company is on its customers Focuses on the needs/ wants of target market and balances these against the greater good of society

Product Concept

Selling Concept

Marketing Concept

Societal Marketing

Developing a Marketing Orientationy Acknowledge that serving the needs and wants of

your target customers is the sole reason for the existence of the companyy Integrate all departments within the company

around delivering value to all customers (internal and external)y Understand the needs of your external customers y Design

and sustain a winning strategy for satisfying your customers needs profitably and better than your competitors

Developing a Marketing Orientation Marketing seeks to build profitable

relationship with customers. retaining customer loyalty

Companies benefit by attracting and

Customers benefit by obtaining goods and

services that satisfying their needs through the delivery of superior value companies compete to earn customer loyalty

These exchanges occur in a market where

SUMMARYy The aim of marketing is to create satisfied

customers.y Marketing Management provides the means

for analyzing, planning, implementing and controlling the companys marketing effort.y Marketing is responsibility of the entire

company.

Discussion Question

Discuss the proposition that: Marketing is far too important to be left to the marketing department and, to be truly effective, must be viewed as an overall organizational business philosophy rather than merely another functional area of management.

Definition Marketing Management Marketing management is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.Kotler, P. Marketing Management.

Definition Marketing Management Marketing Management involves (1)Analysis,

(2)Planning,(3)Implementation & (4)Control

It rests on the notion of exchange. The goal is to produce satisfaction for the parties involved.

Four Marketing Management FunctionsMarketing Analysis of Companys Situation & Environment

Planning Develop Strategic Plans Develop Marketing Plans

Implementation Carry Out the Plans

Control Measure Results Evaluate Results Take Corrective Action

Marketing Management Processy Analysis/Audit y Objectives y Strategies y Tactics y Implementation y Control

- where are we now? - where do we want to be? - which way is best? - how do we get there? - Getting there! - Ensuring arrival

Marketing Mgmt & the Organization Marketing Management does not occur in a

vacuum It is an integral part of a companys strategic plan,

which results from the strategic planning process.

Strategic Planning . is the process of developing and

maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities. It involves developing an overall company

strategy for the long-run survival and growth of company.

Strategic Planning Process Includesy Defining the Company Mission

Statement of an organizations purpose - what it wants to accomplish in the larger environment.

y Setting Company Objectives and Goals

Goals are future outcomes that a company wants to achieve. They become objectives when they are quantifiable and time specific.

y Designing the Business Portfolio

Business portfolio are a collection of businesses and products that make up the company

y Planning Functional Strategies

Detailed planning for each department designed to accomplish strategic objectives

Board of Directors

Defines Mission Set broad strategic goals

GK Investments

GK Foods

Business Units

GKFS

Functional Strategies

Product Strategies

Marketings Role in Strategic Planningy Provides a guiding philosophy y Provides inputs to strategic planners y Designs strategies for reaching companys

objectives in each business unit or functional area

Summary Customers are the lifeblood of any organization. Marketing is the responsibility of the entire

organization It starts by ascertaining customers needs and wants,

it ensures the organization is focused on satisfying those needs and constantly monitor customers to ensure they are happy Marketing Management provides the framework and

tools to make this happen thought 4 key functions, scanning the environment, planning, implementing & controlling

What is Strategic Planning?Finding a fit between an organization and its environment

Pertains directly to an organization s ability to adapt to changing environmental forces and matching organizational capabilities to the opportunities that exist within the current marketing environment.

Strategy Planning1. 2. 3. 4. 5.

Where are we now? Where do we want to go? How will we get there? How much will it cost? When will we get there?

(Audit) (Objective) (Strategy) (Budget) (Schedule)

Benefits of PlanningPlanning is the basis for sound decision making in any situation in life.1.

Encourages management to think ahead in a systematic way Forces managers to clarify objectives, policies and direction Helps companies to anticipate and respond quickly to changes and sudden developments in their marketing environment

2.

3.

The Strategic Planning Process(1) Establish or define the organizations Mission (2) Define the Strategic Business Unit (SBUs) (3) Set the organizations Objectives & Goals (4) Analyze The SBUs performance (5) Assess the Organizational growth opportu