An Overview of Marketing : 1 An Overview of Marketing Course Instructor: Kanwal Gurleen
Lecturer, LSB 1 Learning Objectives : Learning Objectives 1. Why do we need to learn marketing?
What is a market and its types?
3. What is Marketing?
4. What is Marketed?
5. What is demand and its types? Learning Objectives : Learning Objectives 6.What are some Core Marketing Concepts?
7.Describe Various marketing management philosophies? Slide 4: 1. Why do we need to learn
Marketing ? Slide 5: Can you sell these products Easily ? Slide 6: How about these products? Slide 7: How about them ?
Can you Market them? Slide 8: How about Their films ? Slide 9: Why Marketing for cooperatives
and Coop Products ? Why Study Marketing? : Why Study Marketing? Plays an important role in society
Vital to business survival, profits and growth
Offers career opportunities
Affects your life every day Why Study Marketing? : Why Study Marketing? “Marketing is too important
to be left to the
Hewlett-Packard Why Study Marketing? : 1/4th to 1/3rd of the entire civilian workforce in the india performs marketing activities
Fastest route up the corporate ladder Why Study Marketing? Why Study Marketing? : Half of every rupee spent by consumers pays for marketing costs
Become a better-informed consumer Why Study Marketing? Slide 14: 2. What is Market and its types? Slide 15: Market ( Market place) A physical place where buyers and sellers gather to exchange goods and services What is a market? Slide 16: markets Business Consumer Nonprofit
government Global Types of markets Slide 17: 1.Consumer Market
Consists of all individuals or house holds who buy or acquire offerings for personal usage.
Consists of buyers who purchase or acquire offerings for resell or reproduction to earn profit
3.Global Market/International markets. Import, export etc.
4.Non Profit & Government Markets Slide 18: 3.What is Marketing? What is Marketing? : What is Marketing? All of the above, plus much more! Personal Selling?
Making products available in stores?
Maintaining inventories? What is Marketing? : What is Marketing? American Marketing Association Definition
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 and organizational goals. Kotler’s Defination : Kotler’s Defination Kotler’s defination: The Art & Science of choosing
target markets and getting,
keeping and growing customers
through creating, delivering and
superior customer value Slide 22: 4.What is Marketed? Slide 23: MARKETING PLACES PERSONS GOODS
IDEAS What is Marketed? : What is Marketed? Basically 10 types of entities are being marketed.
Goods Consumer goods, industrial goods
Services Intangible offerings of people or organizations
Experiences Tourism, Recreation, adventure
Events Anniversaries, shows, testimonials
Persons Marketing one's self e.g. celebrities, politicians, artists etc. Slide 25: Places Cities, states, regions, historical places, tourism
Properties Intangible rights of ownership either real property (real estates) or financial property ( stocks & bonds).
Organizations Firms, Universities, museums.
Information News, views like encyclopedias news papers etc.
Ideas New ideas/research about production, services, advertisement etc. Slide 26: You can market only if there is demand for them::: 5. What is Demand? Slide 27: DEMAND
STATES NEGATIVE NO
DEMAND Slide 28: 1.Negative Demand consumer dislike product and may even pay a price to avoid it. The marketing task is to analyze why the market dislike product and adopt the strategy to change the attitude of consumer.
2.No Demand consumer may be unaware or uninterested In product. The marketing task is to find ways to connect the benefits of the product with the person’s natural needs and interests.
3.Latent Demand Want of consumers exist but not marketing offer to satisfy need. The marketing task is to measure the size of potential market and develop good and services to satisfy that want. Slide 29: 4.Declining Demand Consumers begin to buy the product less frequently or not at all. Marketing task is to reverse declining demand through creative marketing.
5.Irregular demand Variations in demand on seasonal, daily or even hourly bases. The marketing task called Synchromarketing is to find the ways to alter the pattern of demand through flexible pricing, promotion and other incentives.
6.Full Demand supply= demand. The marketing task is to maintain the pattern of demand Slide 30: 7. Overfull Demand Demand level is high as compare to organizational production capacity. Marketing task is called demarketing is to find ways to reduce demand temporarily or permanently.
8. Unwholesome Demand Consumers may be attracted to products that have undesirable social consequences. The marketing task is to organize activities eg. Fear messages, price hikes or reduced availability. Slide 31: 6.What are some Core Marketing Concepts? The Concept of Exchange : The Concept of Exchange Slide 33: Exchange involves obtaining a desired product from someone by offering something in return.
A person can obtain a product by 4 ways
Exchange ( Core of Marketing )
Transaction A trade of values between two or more parties, involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement.
Transfer A gives something to B but doesn’t receive anything tangible in return. Slide 34: Marketer is a some one who is seeking a response (attention,a purchase, a vote, a donation) from another party called prospect.
Prospects means future potential buyer
Need, Wants, and Demand
Need Basic human requirement
Want Need becomes want when it is directed to specific object that satisfies need.
Demand want for specific product backed by purchasing power. Important definations : Market ( Market place) A physical place where buyers and sellers gathered to exchange to exchange goods.
Market Space exchange of goods without physical market (digital, Virtual) e.g. eCommerce, internet etc. Slide 36: Target Market People/place for whom seller designs his particular offering.
Segmentation Division of market in small groups keeping on any base (Purchasing power, age, social values etc.)
Metamarket refers to a cluster of complementary goods and services that are closely related in the minds of consumers but are spread across a diverse set of industries. Customer Value : Customer Value It is ratio between what
consumer gets & what
he gives Value = Benefits / Costs Slide 38: Customer
cost Customer Satisfaction : The feeling that a product has met or exceeded the customer’s expectations. Customer Satisfaction Its related with how well the product performance lives up to customers expectation. Relationship Marketing : Relationship Marketing Maintaining satisfying and
Long term relationship
With customers, partners,
Suppliers and other channel members. Relationship Marketing’s Importance : Relationship Marketing’s Importance Slide 42: 7. What are Various Marketing philosophies? Slide 43: Competing
Concepts Production product Selling MARKETING SOCIETAL
MARKETING Marketing Management Philosophies : Marketing Management Philosophies Slide 45: 1.Production Concept holds that consumers will prefer products that are widely available and inexpensive. Therefore, management should focus on improving production and distribution efficiency. Slide 46: Focused on high production efficiency, low cost and mass distribution.
Useful in/if :
competition is weak . Demand exceeds supply
Developing countries, where customers are more interested in product rather then features.
generic products competing on price
Poor quality, no customer satisfaction, narrowly focused market. Slide 47: 2.Product Concept holds that consumers will favor products that offer the most in quality, performance, and innovative features. Thus, an organization should devote energy to make continuous product improvements.
A General Motors executive said years ago: “ How can the public know what kind of car they want until they see what is available?” Slide 48: But A new or improved product will not necessarily be successful unless the product is priced, distributed, advertised and sold properly
Product oriented companies often design products with no or very little consumer input. They give more importance to products rather then consumers. Slide 49: The Selling Concept holds that consumers will not buy enough of the firm’s products unless it uses a large-scale selling and promotion effort. The concept is typically practiced with unsought goods those that buyers do not normally think of buying, such as insurance or blood donations, encyclopedias, fund-raisers, college admissions offices and by specially political parties etc. Slide 50: Coca-cola’s VP said “ The purpose of marketing is to sell more stuff to more people more often for more money in order to make more profit”.
Their aim is to sell what they make rather than make what the market wants Slide 51: The Marketing Concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. Under the marketing concept, customer focus and value are the paths to sales and profits. Slide 52: Marketing concept is a customer-centered “sense and respond” philosophy. It views marketing not as “hunting,” but as “gardening.” The job is not to find the right customers for your product, but the right products for your customers
The marketing concept starts with a well-defined market, focuses on customer needs, and integrates all the marketing activities that affect customers. In turn, it yields profits by creating long-term customer relationships based on customer value and satisfaction. Slide 53: The Societal Marketing Concept holds that the organization should determine the needs, wants, and interests of target markets. It should then deliver superior value to customers in a way that maintains or improves the consumer’s and the society’s well-being.
It questions whether the pure marketing concept overlooks possible conflicts between consumer short-run wants and long-run welfare of consumer and society. Slide 54: The fast food industry offers tasty but unhealthy food with high fats, salts starch. The products are wrapped in convenient packaging, but this leads to waste and pollution. Thus, in satisfying short-term consumer wants, the highly successful fast-food chains may be harming consumer health and causing environmental problems Slide 55: Holistic Marketing Concept is based on development, design and implementation of marketing programs, processes and activities that recognizes their extent and interdependencies. It holds that “everything matters" in marketing and a broad an integrated perspective is often necessary. Slide 56: Relationship Marketing has aim to build mutually satisfying long-term relationship with key parties like customers, suppliers, distributors etc. for making a strong marketing network.
Integrated Marketing Activities to create, communicate and deliver value to customers through diversified set of integrated activities eg. 4 P’s of Marketing, communication mix, offering mix etc. Slide 57: Internal Marketing It ensures that every one in the organization embraces appropriate marketing functions like sales force, advertising, customer service, product management, marketing research, hiring, pricing etc.
Social Responsibility Marketing Understanding social, ethical, environmental & legal concern of society. Slide 58: TM MM FRONT LINE
PEOPLE CUSTOMERS CUSTOMERS FRONT LINE
PEOPLE MM TM Traditional
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