Ch 01 Marketing

7/31/2019 Ch 01 Marketing

1/20


2/20

2000 Prentice Hall

Marketing

Marketing is the belt that connects the

two major wheels of any economy

namely, producers and consumers


3/20

2000 Prentice Hall

Marketing

Marketing is the management process

responsible for :

Identifying

Anticipating and

Satisfying Consumer requirement

profitably


4/20

2000 Prentice Hall

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)


5/20

2000 Prentice Hall

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


6/20

2000 Prentice Hall

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


7/202000 Prentice Hall

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



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



Scope of Marketing

Areas of applicability Goods

Services Experiences

Persons

Events

Places

Organizations

ideas



Functions of marketing

Managerial

Planning function

Organization function

Staffing function

Direction function

Control function



Functions of Marketing

Functional

Market research

Buying

Selling

Standardization and grading

Branding Transportation

Storage and warehousing




Packaging

Pricing

Advertising

Financing

Risk taking Marketing information

servicing




Management

Assessing the marketing opportunities

Planning the marketing activities

Providing effective marketing

organization

Motivating the human side

Evaluating and adjusting marketing

efforts



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



Simple Marketing System

Industry

(a collection

of sellers)

Market

(a collection

of Buyers)

Goods/services

Money

Communication

Information



The Four Ps

Marketing

Mix

Product

Price Promotion

Place

The Four Cs

CustomerSolution

Customer

Cost

Communication

Conven-ience



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



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


19/20

2000 Prentice Hall

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


20/20

2000 Prentice Hall

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

Documents

Ch 01 Marketing