An Overview of Marketing(Word)2LM

8/20/2019 An Overview of Marketing(Word)2LM

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Marketing Principles

I. An overview of marketing.a. What is marketing?b. Five ERAs in the history of marketing.

c. Sales vs. Market Orientationd. Role of Marketinge. Career Oort!nities

What is marketing?

" e#lain ho$ it creates !tility% and describe its role in the global

marketlace. &'oone ( )!rt*+

" ,he rocess of creating% distrib!ting% romoting% and ricing goods%

services% and ideas to facilitate satisfying e#change relationshis $ith

c!stomers and develo and maintain favorable relationshis $ithstakeholders in dynamic environment. &Ferrell ( -!lt+

"is a system concerned $ith the lanning and develoment of rod!cts and

services% determination of rices% creation of romotional rograms and

distrib!tion system to resent and rosective market for satisfaction of their

e#isting needs and $ants% th!s ma#imi*ing rot in the long r!n. &Alminar"

M!tya+

Four Elements of the 3rd denition

/. First element of the denition is that Marketing is a System.

0. ,he second element is the rod!ct or service develoment% ricing%

romotion and lace of distrib!tion.

1. ,he third element of in the denition is the resence of c!rrent and

otential market.

2. ,he fo!rth element is the satisfaction of e#isting h!man needs and

$ants.


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,argetMarket

,hings tobe

Marketed

MarketingSystem

MarketingOrgani*ati

on

!perational "imension of Marketing

• Marketing !rgani#ation " rod!ct or service sellers. E#3

man!fact!rers% $holesalers or retailers of goods.

• $hings to %e marketed 4 rod!cts% services and ideas.

• $arget Market 4 the b!yers of the goods.

Five E&As of Marketing 'Market !rientation(

• $he Production E&A '%efore )*+,s(

5A good rod!ct $ill sell itself6.

•

$he -ales E&A ')*+,earl/ )*0,s(

5Creative advertising and selling $ill overcome cons!mers7

resistance and ers!ade them to b!y6.

• $he Marketing E&A 'since )*0,s(

5,he cons!mer r!les8 Find a need and till it6.


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Marketin

gconcet9eterminati

on ofc!stomerneeds ($ants

:rod!ct

:lanning (develome

nt

Selling

concet

:rod!ct:lanning (develome

nt

:romotionalrograms

• $he &elationship E&A 'since )**,s(

5;ong term relationshis $ith c!stomers and other artners lead

to s!ccess6.

•

$he -ocial E&A 'since +,,,s(.

5Connecting to cons!mers via internet ( social media sites is an

e


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Why st!dyMarketing?> t is imortant to

society> t is imortant to

b!siness> @ood career

oort!nities

Available Careers3

• Sales

• :!blic Relations

• Retailing

• Advertising

• Marketing Management

• Marketing Research

• :rod!ct Management

&So!rce3 :rinciles of Marketing% 'oone ( )!rt*% :hil. Ed.+


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II. $he Marketing Environment). What is Environmental -canning 2 Anal/sis?

• :olitical

• Economics

• Socio"c!lt!ral

• ,echnological

• ;egalReg!latory

• Cometitors

Environmental -canning is the rocess of collecting information abo!tforces in the Marketing Environment.

Scanning involves observationB secondary so!rces s!ch as b!siness% trade%

government% and general"interest !blicationsB and marketing research.

Environmental Anal/sis is the rocess of assessing and interreting the

information gathered thro!gh environmental scanning.

Environmental -canning is the rocess of collecting information abo!t

forces in the Marketing Environment.

Scanning involves observationB secondary so!rces s!ch as b!siness% trade%

government% and general"interest !blicationsB and marketing research.

Environmental Anal/sis is the rocess of assessing and interreting the

information gathered thro!gh environmental scanning.

,$o Aroaches to Environmental Forces3

/. Passive and &eactive Approach. Marketing managers vie$environmental forces as !ncontrollable. nstead of trying to in!ence

forces in the environment% marketing managers adD!st c!rrent

marketing strategies to environmental changes. Oort!nities are

discovered thro!gh environmental scanning and analysis.+. Proactive Approach. Marketing managers believed that

environmental forces can be shaed or adot. For e#amle% if a market


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is blocked by traditional environmental constraints% managers may

aly economic% sychological% olitical% and romotional skills to gain

access to and oerate $ithin it. &marketing by Ferrell ( -!lt+

Selection of a artic!lar aroach deends on an organi*ation7s

managerial hilosohies% obDectives% nancial reso!rces% c!stomers%and h!man skills% as $ell as on the environment $ithin $hich the

organi*ation oerates. &marketing by Ferrell ( -!lt+

Si# Environmental Forces in Marketing3

/. 1ompetitive Forces. Cometition is denes as the other rm that

market rod!cts that are similar to or can be s!bstit!ted for a

marketer7s rod!ct in the same geograhic area.

Four t/pes of competitors

• 4rand competitors. Firms that market rod!cts $ith similar

feat!res and benets to the same c!stomers at similar rices.

E#amle% a thirsty% calorie"conscio!s c!stomer may choose a diet

soda s!ch 9iet Coke or 9iet :esi from the soda machine.• Product competitors. Firms that comete in the same rod!ct

class b!t market rod!cts $ith di


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• !ligopol/. A cometitive str!ct!re in $hich a fe$ sellers control

the s!ly of a large roortion of a rod!ct. E#amle is oil

renery.• Monopolistic competition. A cometitive str!ct!re in $hich a

rm has many otential cometitors and tries to develo a

marketing strategy to di


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0. &ecession. A stage of the b!siness cycle d!ring $hich !nemloyment

rises and total b!ying o$er declines% sti=ng both cons!mer and

b!siness sending.1. "epression. A stage of the b!siness cycle $hen !nemloyment is

e#tremely high% $ages are very lo$% total disosable income is at a

minim!m% and cons!mers lack condence in the economy.2. &ecover/. A stage of the b!siness cycle in $hich the economy moves

from recession or deression to$ard roserity.• '!ying o$er deends on economic conditions and si*e of the

reso!rces"money% goods% and services that can be traded in an

e#change. ,he maDor nancial so!rces of b!ying o$er are

income% credit and $ealth.

Income. ,he amo!nt of money received thro!gh $ages% rents% investments%

ensions% and s!bsidy ayments for a given eriod.

"isposa%le income. After"ta# income.

"iscretionar/ income. 9isosable income available for sending and

saving after an individ!al has !rchased the basic necessities of food%

clothing% and shelter.

Wealth. ,he acc!m!lation of ast income% nat!ral reso!rces% and nancial

reso!rces.

• People6s willingness to spend means their inclination to

sendb!y beca!se of e#ected satisfaction from a rod!ct%

in!enced by the ability to b!y and n!mero!s sychological and

social forces.

1. Political Forces in!ence marketing decisions and strategies. Many

marketers vie$ olitical forces as beyond their control and simly

adD!st to conditions that arise from those forces. System of

government as $ell as olitical c!lt!res in!ence marketing managers

in designing strategies.2. 7egal and &egulator/ Forces. A n!mber of national la$s in!ence

marketing decisions and activities. Hario!s la$s and reg!lations

restricts marketing to$ards designing marketing strategy secially

cororation la$s% ta# la$s% labor la$s and social legislation.0. $echnological Forces.

,echnology is the alication of kno$ledge and tools to solve roblems and

erform tasks more e=ciently.


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III. Ethics and -ocial &esponsi%ilit/). Ethics

Ethics refers to the moral rinciles or val!es that generally govern the

cond!ct of an individ!al or a gro!. t can also be vie$ed as the standard of behavior by $hich cond!ct is D!dged. Standards that are legal may not

al$ays ethical% and vice versa.

Ethical $heories. $heories that guides a person in

solving ethical dilemma

"eontolog/. ,he deontological theory states that the eole sho!ld adhere

to their obligations and d!ties $hen analy*ing an ethical dilemma. ,his

means that a erson $ill follo$ his or her obligations to another individ!al or

society beca!se !holding ones d!ty is $hat is considered ethically correct.

8tilitarianism. ,he !tilitarian theory is fo!nded on the ability to redict the

conseI!ences of an action. ,o a !tilitarian% the choice that yields the greatest

benet to the most eole is the choice that is ethically correct. ,his oint

system rovides a logical and rational arg!ment for each decision and allo$s

a erson to !se it on a case"by"case conte#t.

1asuist. ,he cas!ist ethical theory comares a c!rrent ethical dilemma $ith

e#amles of similar ethical dilemma and their o!tcomes. :ast decisions from

case bearing similar facts co!ld be the most ethical decision of the ethical

dilemma.

Moral &elativists. Moral relativists believe in time"and"lace ethics% that is%

ethical tr!ths deends on individ!als and gro!s holding them. ,he roer

resol!tion to ethical dilemma is based !on $eighing the cometing factors

at the moment and then making determination to take the lesser of the evils

as the resol!tion. Moral relativists do not believe in absol!te r!les. ,heir

beliefs center on the ress!re of the moment and $hether the ress!re

D!sties the action taken.

9irtue Ethics. Aristotle and :lato ta!ght that solving ethical dilemmasreI!ires training% that individ!als solve ethical dilemmas $hen they develo

and n!rt!re a set of virt!es &character trait val!ed as being good+.

Ethical 4ehavior in 4usiness


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First approach to develoing a ersonal set of ethics is to e#amine the

conseI!ences of a artic!lar act. -o$? Jo! need to ask the follo$ing

I!estions3 $ho is heled or h!rt? -o$ long lasting are the conseI!ences?

What actions rod!ce the greatest good for the greatest n!mber of eole?

,he second approach stresses the imortance of r!les. R!les come in theform of c!stoms% la$s% rofessional standards% and the common sense.

E#amle3 al$ays treat others as yo! $o!ld like to be treatedB coying

coyrighted com!ter soft$are is against the la$B and it is $rong to lie%

bribe% or e#loit.

,he third approach emhasi*es the develoment of moral character $ithin

individ!als. Ethical develoment can be tho!ght of as having three levels3

Preconventional moralit/: the most basic level is childlike. t is

calc!lating% self"centered% and even selsh% based on $hat $ill beimmediately !nished or re$arded.

1onventional moralit/ moves from egocentric vie$oint to$ard

e#ectation of society. ;oyalty and obedience to the organi*ation &or

society+ become aramo!nt. Marketing decision maker $o!ld be

concerned only $ith $hether the roosed action is legal and ho$ it

$ill be vie$ed by others. Postconventional moralit/ reresents the morality of the mat!re

ad!lt. At this level% eole are less concerned abo!t ho$ others might

see them and more concerned abo!t ho$ they see and D!dge

themselves over the long r!n. A marketing decision maker $ho hasattained the ostconventional level of morality might ask. 5Even

tho!gh it is legal and $ill increase comany rots% is it right in the

long r!n? Might it do harm than good in the end?6• Ethical "ecision Making. ,he follo$ing factors tend to

in!ence ethical decision making and D!dgment3 E;tent of ethical pro%lems within the organi#ation Marketing

rofessional $ho erceived fe$er ethical roblems in their organi*ation

tend to disarove more strongly of 5!nethical6 or I!estionable

ractices than those $ho erceive more ethical roblems. Aarently%the healthier the ethical environment% the more likely that marketers

$ill take strong stand against I!estionable ractices. $opmanagement actions or ethics to managers can in!ence

the behavior of marketing rofessionals by enco!raging ethical

behavior and disco!raging !nethical behavior.


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Potential magnitude of conse


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• @reen Marketing

I9 1onsumer 4ehavior

4u/ing Process

Social

n!ences

:sychological

n!ences

). -ocial Inuences on 1onsumer "ecision Making

• C!lt!re and S!bc!lt!re

• Social Class

• Reference @ro! and Families

1ulture can be dened as the val!es% beliefs% references% and tastes handed do$n

from one generation to the ne#t. t is the broadest environmental determinant of

cons!mer behavior. &'oone ( )!rt*+

C!lt!re is one of the most basic in!ences on an individ!al7s needs% $ants% and

behavior% since all the facets of life are carried o!t against the backgro!nd of the

society in $hich an individ!al lives.

C!lt!ral val!es are transmitted thro!gh three basic organi*ations3

,he Family

Religio!s Organi*ations and Educational Institutions

-u%culture is gro! $ith their o$n distinct modes of behavior. ,hey di


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As a cons!mer% yo! belong to a n!mber of social gro!s. Jo!r earliest gro!e#erience is yo!r family. As yo! gro$ older% yo! $ill Doin vario!s gro! like% sortsteam% choral gro!% and a vol!nteer in a comm!nity% th!s% by the time yo! becamean ad!lt% yo! are already a member of many social gro!s. Every gro! establishescertain norms of behavior 4 are val!es% attit!des% and behaviors% a gro! deemsaroriate for its members. @ro! members are e#ected to comly $ith these

norms. &'oone ( )!rt*+

"i>erent group status can also inuence %u/ing %ehavior3

Ger Class Middle Class Working Class ;o$er Class

&eference 5roup and Families

Primar/ reference group 4 families and friends -econdar/ reference groups 4 fraternal organi*ations and rofessional

association

Family gro! is the most imortant determinant of cons!mer behavior beca!se of the close% contin!ing interaction among family members.

+. Marketing Inuence on 1onsumer "ecision MakingMarketing strategies are often designed to in!ence cons!mer decision making andlead to rotable e#changes. Each element of the marketing mi# &rod!ct% rice%romotion% lace+ can a


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Marketing comm!nications lay a critical role in informing cons!mers abo!trod!cts and services% incl!ding $here they can be !rchased% and in creatingfavorable images and ercetions.

Place Inuences ,he marketer7s strategy for distrib!ting rod!cts can in!ence cons!mer in several

$ays.First% rod!cts that are convenient to b!y in variety of stores increase the chancesof cons!mers nding and b!ying them.-econd: rod!ct sold in e#cl!sive o!tlets may be erceived by cons!mers ashaving high I!ality.$hird: o


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kno$ a lot abo!t coects

all steps


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/. =eed &ecognition is the starting oint in the b!ying rocess. t occ!rs $hen

cons!mer are faced $ith an imbalance bet$een act!al and desired states

that aro!ses and activates the cons!mer decision"making rocess. A want is

the ne$ $ay that a cons!mer goes abo!t addressing a need.eed is recognition is triggered $hen cons!mer is e#osed to either internal

or e#ternal stim!l!s. nternal stim!li are occ!rrences coming senses likefeeling h!ngry and $anting some food% feeling a headache coming on and

$anting some E#cedrin% or feeling bored and looking for a movie to go to.

E#ternal stim!li are in!ences from o!tside so!rces. E;ample is seeing a

Mc9onald7s sign and then feeling h!ngry or seeing a sale sign for Nara and

remembering that last year yo! $ere $earing coat from there.Marketers sho!ld nd o!t $hat needs and $ants a artic!lar rod!ct can and

does satisfy and $hat !nsatised needs and $ants cons!mers have for $hich

a ne$ rod!ct co!ld be develoed. n order to do so% marketing managers

sho!ld !nderstand $hat tyes of needs cons!mers may have.

Five classications of needs %/ A%raham Maslow according tohierarch/

/. :hysiological needs consist of rimary needs of body% s!ch as food% $ater%

and se#.0. Safety needs. When hysiological needs met% safety needs s!ch as rotection

from hysical harm% ill health and economic disaster and avoidance of the

!ne#ected.1. 'elongingness and love needs. ,hese needs are related to the social and

gregario!s nat!re of h!mans and the need for comanionshi.2. Esteem needs. ,hese needs consist of both the need for the self a$areness of

imortance to others &self"esteem+ and act!al esteem from others.

Satisfaction of these needs leads to feeling of self"condence and restige.. Self"act!ali*ation needs. ,his are can be dened as the desire to become

more and more $hat one is% to become everything one is caable of

becoming.

+. Alternative -earch.Five %asic sources of information for alternative search

nternal so!rces. Search thro!gh $hatever store in mind. @ro! so!rces like family% friends% and neighbors and acI!aintances. Marketing so!rces like advertising% saleseole% dealers% ackaging% and

dislays.

:!blic so!rces $hich incl!des !blicity s!ch as ne$saers% articles abo!tthe rod!ct% and indeendent ratings of the rod!ct% s!ch as Cons!mer

Reorts. E#eriential so!rces refer to handling% e#amining% and erhas trying the

rod!cts $hile $hile shoing.3. Alternative Evaluation@. Purchase "ecision0. Postpurchase Evaluation


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An Overview of Marketing(Word)2LM