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7/31/2019 Ch 01 Marketing
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Marketing
Marketing is the belt that connects the
two major wheels of any economy
namely, producers and consumers
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Marketing
Marketing is the management process
responsible for :
Identifying
Anticipating and
Satisfying Consumer requirement
profitably
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Defining Marketing
Marketing is a societal process bywhich individuals and groups obtain
what they need and want throughcreating, offering, and freelyexchanging products and services of
value with others.- Philip Kotler (p. 7)
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Characteristics of Marketing
It is operational ( No gain without pains)
It is customer oriented
It is mutuality of benefits
It is value driven
It is proactive to the environment It covers both profit and non-profit
making organizations
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Difference between market and
marketing
Market
A system or an
atmosphere or a
mechanism that facilitatesbuying or selling
It is an outlet to let out the
products
Narrow concept Change
Marketing
Sum of all those activities
that are related to the
free-flow of goods frompoints of production to the
points of consumption.
It is a gigantic machinery
to move the goods bycreating utilities of place,
time and ownership.
Wider concept
Consistent
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Marketing
Involves the design of
product acceptable to
customers and transfer ofownership between the
sellers and buyers
Focus is on satisfying the
wants of customers Customer-oriented
process
Selling
Involves obtaining orders
from customers and
supplying them theproducts. Concerned
with the sale of goods
already produced
Focuses on the need ofthe seller to convert
products into cash
Product-oriented process
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Marketing
Begins much before the
production of goods and
services. Continues evenafter sales (after-sale
services)
Has philosophical and
strategic implications.Directed towards the
long-term objectives of
growth and stability.
Marketing is selling
Selling
Comes after the
production has been
completed and comesaround with the delivery
of the product to the
customer
Tactical routine activitywith a short-term
perspective
Is a part of marketing.
Selling is not marketing
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Scope of Marketing
Areas of applicability Goods
Services Experiences
Persons
Events
Places
Organizations
ideas
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Functions of marketing
Managerial
Planning function
Organization function
Staffing function
Direction function
Control function
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Functions of Marketing
Functional
Market research
Buying
Selling
Standardization and grading
Branding Transportation
Storage and warehousing
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Functions of Marketing
Packaging
Pricing
Advertising
Financing
Risk taking Marketing information
servicing
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Functions of Marketing
Management
Assessing the marketing opportunities
Planning the marketing activities
Providing effective marketing
organization
Motivating the human side
Evaluating and adjusting marketing
efforts
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Core Concepts of Marketing
Product or Offering
Value, Cost and Satisfaction
Needs, Wants, and Demands
Exchange and Transactions
Relationships and Networks
Marketing Channels
Supply Chain
Competition
Marketing Environment
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Simple Marketing System
Industry
(a collection
of sellers)
Market
(a collection
of Buyers)
Goods/services
Money
Communication
Information
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The Four Ps
Marketing
Mix
Product
Price Promotion
Place
The Four Cs
CustomerSolution
Customer
Cost
Communication
Conven-ience
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Production Concept
Product Concept
Selling Concept
Marketing Concept
Consumers prefer products that arewidely available and inexpensive
Consumers favor products thatoffer the most quality, performance,
or innovative features
Consumers will buy products only if
the company aggressivelypromotes/sells these products
Focuses on needs/ wants of targetmarkets & delivering value
better than competitors
Company Orientations
Towards the Marketplace
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Societal ConceptTask of management is to
identify and satisfy consumer wantsIn conformity with social interest
Company Orientations
Towards the Marketplace
Concept Nature Activities Output profits
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Concept Nature Activities Output profits
Production Emphasis on
large
production
More
distribution
Product at low
price
Profit throu
more
production
Product Emphasis on
quality
product
Distribution
without
promotion
Quality
product
Profit throu
features of
product
Selling Emphasis on
selling
selling
techniques
Easy
availability of
product to
consumer
profit thro
sale
Marketing Emphasis onconsumer
satisfaction
Integratedmarketing
productsaccording to
consumer
need
Profit throuconsumer
satisfactio
Societal Emphasis onsocial welfare
Integratedmarketing with
Productaccording to
Profit throusocial welf
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MarketIntegratedmarketing
Profits throughcustomer
satisfaction
Customerneeds
(b) The marketing concept
Factory
Existing
products
Selling and
promotion
Profits through
sales volume
Startingpoint Focus Means Ends
(a) The selling concept
Customer Delivered Value