Introducton to Marketing

7/29/2019 Introducton to Marketing

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Marketing

M. Akbar Bhatti

Fundamentals of Marketing By William J. Stanton (14th Edition)

Principals of Marketing By Philip Kotler (A South Asian Perspective 13th Edition)

Recommended Text Books:


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Basic Terminology

Business: An organization that produces or distributes a good or servicefor profit is called a business.Industry is a word often used to refer to all businesses within a categorydoing similar work. For example, the publishing industry includes anybusiness that deals with producing and selling books, magazines,newspapers, and other printed documents prepared by authors.Innovation: An innovationis something entirely new. Innovations affect

the kinds of products and services offered for sale by other businesses.For example, clothing used to be made from only natural fibers, such ascotton and wool. Then chemical researchers developed synthetic fibers,such as rayon, nylon, and polyester. Now consumers have more choices inclothing and other fabric products. Innovations also affect businessoperations. For example, since Apple Computer built one of the firstpersonal computers about 35 years ago, computers operated by individualemployees have increasingly influenced the way businesses do business.

Computers help businesses design and manufacture products as well askeep track of billing, inventory, and customer information. Computers arenow involved in most key business functions. The Internet is an innovationthat has literally changed the relationships between businesses and theircustomers. Customers have 24-hour access to businesses without leavingtheir homes. Small businesses can compete with large businesses forcustomers from all over the country and even around the world.


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Effectiveness means making the right decisions about whatproducts or services to offer customers and the best ways toproduce and deliver them.

Efficiency means producing products and services quickly, at lowcost, without wasting time and materials.Franchise is a legal agreement in which an individual or smallgroup of investors purchases the right to sell a companys productor service under the companys name and trademark.Entrepreneur: Someone who starts, manages, and owns abusiness is called an entrepreneur.

An intrapreneur is an employee who is given funds and freedomto create a special unit or department within a company in orderto develop a new product, process, or service.Ethics refers to standards of moral conduct that individuals andgroups set for themselves, defining what behaviour they value asright or wrong; anda collection of principles and rules that define right and wrongconduct for an organisation is called business ethics.Utility is the ability of a good or a service to satisfy a want. Inother words, a good or a service that has utility is a useful good orservice.Demand for a product refers to the number of products that willbe bought at a given time at a given price.


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Supply of a product refers to the number of like products that willbe offered for sale at a particular time and at a certain price.

Competition is the rivalry among sellers for consumers dollars.Monopoly is the existence of only one seller of a product.Market refers to the types of buyers a business wishes to attractand where those buyers are located.

Target markets are groups of customers with very similar needsto whom the company plans to sell its product.

Economy The wealth and resources of a country or region, esp. interms of the production and consumption of goods and services.

i.e. activities related to the production and distribution of goodand services in a particular geographic region.Gross Domestic Product.The totalmarket value ofall finalgoods and services produced in a country in a given year,equal to total consumer, investment and government spending,plus the value ofexports, minus the value ofimports.

Pakistan GDP $211.09 BillionGross National Product. GNP is the totalvalue of

all finalgoods and servicesproduced within a nation in aparticular year, plus income earned by its citizens(including income of those located abroad), minus income ofnon-residents located in that country.

Pakistan GNP $509.61 Billion
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Module 1

The Field of Marketing-Creating & Capturing Customer Value

It is the fate of most companies to see a competitor come out with

something new that they should have thought of. Worse, the idea

may have been kicking around in their organisation without eversurfacing at a level where it could have been seized and launched.Good ideas are in the air, and what separates the masters from theplodders is how well organised they are to capture and evaluateideas, and then to develop and launch them successfully.

Philip Kotler


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Nature & Scope of Marketing

Marketing can occur at any time a person or organisation strives toexchange something of value with an other person or organisation.Thus, at its core of marketing is an exchange intended to satisfyneeds and wants of a customer.

Peter Drucker, Business firms have only two major functions-innovation & marketing, and marketing role is to create thecustomer(market).Thus, Marketing is the main business function in an organisation. Ittells us what goods to make, and how many, and by what date;what services to provide, what prices to charge, what discounts to

offer; where and when to advertise, what to say to our customers,and how to say it.It is the engine that drives all other activities. It is the differencebetween success and failure.


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Marketers need to understand customer needs and wantsand the marketplace within which they operate.


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Core Marketplace Concepts

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Need:A state of felt deprivation. A human need is a state of

deprivation of some basic satisfaction. People require food,clothing, shelter, safety, belonging, and esteem. These

needs are not created by society or by marketers. Theyexist in the very texture of human biology and the humancondition. E.g. water

WantThe form taken by a human need as shaped by culture and

individual personality. Wants are desires for specificsatisfiers of needs. Although peoples needs are few, their

wants are many. They are continually shaped and reshapedby social forces and institutions, including masjids, schools,families and business corporations. E.g. Mineral water orsoft drink


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Demands

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ProductAnything that can be offered to a market. It includes

physical objects, services, persons, places, organisations,

and ideas.Service

Any activity or benefit that one party can offer to anotherthat is essentially intangible.

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Demands are wants for specific products that are backed byan ability and willingness to buy them. Companies mustmeasure not only how many people want their product but,more importantly, how many would actually be willing andable to buy it. E.g., Nestle/ Kenly, Pepsi/ Coke, Designer shirt

/ sunglasses / expensive mobile phones


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Customer Perceived Value (Customer Value)The customers evaluation of the difference between all thebenefits and all the costs of marketing offer relative to thoseof competing offers.

Value = Benefit Cost or Value= Benefit/Cost

Customer SatisfactionThe extent to which a products perceived performance matchesa buyers expectations.

Market

The set of all actual and potential buyers of a product orservice. A market is an arena for potential exchanges.The term market refers to a place where exchanges takeplace. People or organisations with wants to satisfy, moneyto spend, and the willingness to spend it; with an existingor potential exchange relationship.

Customer:An individual or organisation that makes a purchase decision.

Consumer:

An individual or organizational unit that uses or consumes the product.


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ExchangeThe act of obtaining a desired object from someone by

offering something in return. Exchange is just one of three

ways we can satisfy needs and wants. Make it yourself,acquire it, or offer something of value (money, services, oranother good).

Conditions for a marketing exchange

TransactionA trade between two parties that involves at least two things

of value, agreed upon conditions, a time of agreement, anda place of agreement.

Two parties (buyer & seller).Willingness to deal with each other.Each having something of value for the other.Right to accept or reject the offer.Capable of communication and delivery.


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Market OfferingsSome combination of products, services, information, orexperiences offered to a market to satisfy a need or want.

Marketing MyopiaThe mistake of paying more attention to the specific products acompany offers than to the benefits and experiences producedby these products. E.g. HP recognises that a computer is morethan a collection of wires and electrical components. Focus onunderlying customers wants not just the current needs.

De-MarketingMarketing to reduce demand temporarily or permanently; the aimis not to destroy demand, but only to reduce or shift it. E.g.,KESC, Suzuki etc

Relationship Marketing

The process of establishing and maintaining mutually beneficialexchange relationships with customer and other stakeholders.

Two components: Customer Focus and Competitive Advantage


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The overall process of building and maintaining profitablecustomer relationships by delivering superior customer value andsatisfaction.the new view is that marketing is the science andart of finding, retaining, and growing profitable customers.

Customer Relationship Management

Customer ValueThat is the

customerperception of all thebenefits of aproduct weighedagainst all the costsof acquiring and

consuming theproduct.

CustomerSatisfactionThe extent towhich aproductsperceivedperformancematches abuyersexpectations

Rethink the concepts

Customer DelightActual Benefits(Product Performance)

Stated Benefits(Expected

Performance)

Actual

Benefits=StatedBenefits


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Creating Utility

A customer purchases a product because it provides satisfaction. Thewant-satisfying power of a product is called its utility and itcomes in many forms and much of product utility is created throughmarketing

Form Utility is associated with production-the physical or chemicalchanges that make a product more valuable. E.g. When lumber is

made into furniture form utility is created. This is production, notmarketing. However, marketing contributes to decisions on colour,style, and size of furniture.Place utility occurs when the product is readily accessible topotential customers. So, physically moving a product to a store nearthe customer adds value.

Time utility means having a product available when you want it.E.g. Prospective buyers can visit the eBay Internet site for onlineshopping at their convenient time.


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Information utility is created by informing prospective buyersthat a product exists. Unless you know a product and where youcan get it, product has no value.Image utility is the emotional or psychological value that a personattaches to a product or brand because of its reputation or socialstanding. Image utility is associated with prestige or high-statusproducts such as designer clothes, luxury automobiles, or certainresidential neighbourhoods (DHA).Possession utility is created when a customer buys the product-that is ownership is transferred to the buyer and there is potentialexchange.


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Creating Customer Loyalty & Retention

Losing customers does not mean losing a single sale but in factlosing the entire stream of purchases that the customer wouldmake over a lifetime.Customer lifetime value: The value of the entire stream ofpurchases that a customer would make over a lifetime ofpatronage.

Companies should not just acquire customers, but keep & growthem as well.The ultimate aim of customer relationship management is toproduce high customer equity.Customer Equity is the total combined customer lifetime values of

all the companys current & potential customers.It is a better measure of a firms performance than current sales ormarket share.

More Loyal firms Higher firmsProfitable customers Customer Equity


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Building Right Relationships with Right Customers

Which customers should the company acquire & retain?

The company can classify customers according to their potentialprofitability &projected loyalty , and manage its relationshipswith them accordingly.

Strangers . Low profitability/ Less Loyal.Butterflies . Profitable/ not LoyalTrue Friends . Profitable/ LoyalBarnacles . Not Profitable/ Highly Loyal

Different types of customers require different relationship

strategies, therefore the goal is to :

Build right relationships with the right customers

Customer Relationship Groups


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Customer Relationship Groups

Butterflies

Good fit between companysofferings & customer needs;

High profit potential

True Friends

Good fit between companysofferings & customer needs;

Highest profit potential

Strangers

Little fit between companysofferings & customer needs;

Lowest profit potential

Barnacles

Limited fit betweencompanys offerings &

customer needs;Low profit potential

High

Profitability

Low

Profitability

Short- term customers Long-term customers

Projected Loyalty 18


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Partner Relationship ManagementWorking closely with partners in other departments of the organisationand outside the company to jointly bring greater value to customers.

Partners Inside the CompanyEvery employee must be customer-focused. Every department orfunction in the organisation should form strong linkage to create anddeliver customer value e.g. P & G customer development teams

Marketing Partners Outside the Firm

Most enterprises are networked companies, relying heavily onpartnerships with other firms. Marketing channel consists ofdistributors, retailers, and others who connect the company to itsbuyers. the supply chain describes a longer channel, stretching fromraw materials to components to final products that are carried to finalbuyers. Through supply chain management many companies are

strengthening their connections with partners. Therefore successfulcompanies, not only, treat suppliers as vendors and distributors ascustomers, but also, as partners in delivering customer value. e.g.

Lexus works with suppliers to improve quality & operations efficiencyand with its franchise dealers to provide sales & service support thatleads to strong customer loyalty.


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Customer Value Proposition(CVP)To succeed in a business, a marketer must offer the right product, tothe targeted customers at a price that is acceptable to them, bases on

their perception of value at a cost that allows the enterprise to beprofitable.This is known as CVP and is the fundamental premise that underpinsall marketing activities.

Therefore, a CVP expresses what an organisation( or part of anorganisation) is all about. It should:

1. Define customer needs that the firm is trying to meet.2. Identify at whom it is targeting its activities.3. state why the firm is different from the competition.

4. explain the benefit difference to customers.5. Indicate how the firm will provide its offerings.

A CVP serves as a framework within which to orient yourbusiness.


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CVP ExamplesFor a Corner Shop to provide a small selection of consumergoods in a convenient location with convenient opening timingsand friendly local service, therefore allowing a higher price to becharged.

For a Retail Bank, to provide a place for customers to depositsecurely and subsequently disburse conveniently their funds.Fastfood outlet, to provide value for money, food and drinks ofconsistent quality globally, served quickly in a friendly manner toyounger people and families.A large organisation, would have more than one CVP,

depending on its customers, e.g.; a large bank would probablyhave one for retail, corporate, financial institutions and offshoreclientele etc.

Thevalue proposition is the set of benefits or values acompany promises to deliver to customers to satisfy their needs.


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Total Quality managementProgrammes designed to constantly improve the quality of products,services and marketing processes.Quality in every process and quality in every employee behaviour

& work.

1.TQM emphasizes increasing quality and developing an effective

organisation.2. TQM is concerned with customer satisfaction and employeemotivation.3. TQM relies on leadership and co-operation versus thetraditional management focus on closely supervising employeebehaviour.4. TQM businesses constantly look for new and improved ways tocomplete their work to increase effectiveness and quality.5. TQM encourages teamwork and employee involvement indecision making.6. TQM businesses view employees as valuable contributors tosuccess and use training to improve employee effectiveness andmotivation.

QualityDelighting the customers by fully meeting their needs andexpectations. These may include product performance, availability,delivery, reliability, maintainability, cost


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Suppliers

Company

(marketer)

Competitors

Marketing

intermediaries

End User

market

Main forces in a modern marketing system


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Defining Marketing:Marketing can be defined from several points of view.

Economic PerspectiveA social process or force that directs the flow of goods & servicesfrom producers to consumers in such a way as to match supply &demand and thereby accomplish the objectives of society. Twoscientific marketing functions promotion & distribution are takeninto consideration.

Business PerspectiveBusiness firms also think like economists but they add additionalthings for marketing function. Designing the product or service thatis offered and the setting the price at which it is offered; referred to

as Marketing Mix, the heart of modern marketing within anenterprise.


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Customer Perspective:Peter Drucker, Marketing is the whole business seen from thepoint of view of its final result; from the customers point of

view. That is a company is likely to remain in business if itcontinues to satisfy its customers. And satisfying customers-ata profit-is what marketing all about.

Marketing is the creation and delivery of standard ofliving.

Social Perspective:The role of marketing has been greatly expanded for socialconcern & change. For instance, a function within Not-for-profitorganisations, hospitals, schools, political campaigns, charity; aforce for social change. Smoking is injurious to health.

Therefore, marketing is helping to build a better society, onethat is more responsive to the needs of its entire people andthat is more concerned about the future.


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Definitions of Marketing:Chartered Institute of Marketing UK

The strategic business function that creates value by stimulating,

facilitating and fulfilling customer demandit does this by buildingbrands, nurturing innovation, developing relationships, creating goodcustomer service and communicating benefits. (Recently Proposed)

Marketing is the management process responsible for identifying,anticipating and satisfying customer requirements profitably. (2009)

Getting the right products, to the right people, in the right place, atthe right time, at the right price, with the right level ofcommunication profitably.

American Marketing Association

Marketing is the activity, set of institutions, and processes forcreating, communicating, delivering, and exchanging offerings thathave value for customers, clients, partners, and society atlarge.(November 2008)


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Marketing is the process of planning and executing the conception,

pricing, promotion, and distribution of ideas, goods, services tocreate exchanges that satisfy individual and organisationalgoals.(1998)

Marketing is a total system of business activities designed to plan,

price, promote, and distribute want-satisfying products to targetmarkets in order to achieve organisational objectives.( William J.Stanton)

Marketing is an organisational function and a set of processes forcreating, communicating, and delivering value to customers and formanaging customer relationships in ways that benefit theorganisation and its stakeholders.( September 2004)

American Marketing Association


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These definitions suggest that marketers are involved into fourfunctions: (1) planning products or services, (2) pricing, (3)

promotion, and (4) distribution. These are the elements ofMarketing Mix. Therefore, Marketing is the function ordepartment within an organisation that is responsible forplanning and implementing the marketing mix.


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Definitions of Marketing

Marketing is a social and managerial process by which individuals

and groups obtain what they need and want through creating,

offering, and exchanging products and services of value with

others.(1994) Philip Kotler

Marketing is the process by which companies create value for

customers and build strong relationships in order to capture value

from customers in return, (2010) Philip Kotler

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Marketing Creating & Capturing Value

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Understand Marketplace and Customer

Needs & Wants

Design a Customer-Driven MarketStrategy

Construct a Marketing Programme

Build Profitable Relationships

Capture value from Customers

The Marketing Process


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Research Consumersand the Marketplace

Manage MarketingInformation andCustomer Data

UnderstandCustomer Needs

and Wants

The Marketing Process - I

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Select consumers toserve MarketSegmentation andTargeting

Value proposition differentiation andpositioning

Design aCustomer-driven

MarketingStrategy

The Marketing Process II

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PRODUCT and ServiceDesign Build StrongBrands

PRICE create realvalue

PLACE managedemand and supplychain

PROMOTION createthe value proposition

Construct a

MarketingProgramme thatdelivers superior

value

The Marketing Process III

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Customer RelationshipManagement withchosen customers

Product RelationshipManagement withchosen suppliers

Build ProfitableRelationships

The Marketing Process IV

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Generate Revenue, EarnProfit

Create loyal, satisfied

customers Capture Customer

Lifetime Value

Increase Market Share

Capturing Valuefrom Customers in

return

The Marketing Process V

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So, What Is Marketing? Pulling It All Together

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Product or Offering

Any thing tangible (good) or intangible (service) that

satisfies a need or want. For instanceGoods, pharmaceuticals, consumer, electronic,industrial, agro chemicals.Services, doctors, lawyers, teachers, an air flight.Persons, music group, e.g Hadiqa Kayani.

Places, Chitral, Murree, Lal Sohanra ParkProperties, Real estate, (Houses), Financial, (shares)Time-based events, T20 World Cup, Music Concerts,Fashion Shows, ExhibitionsInformation, IUB educational ProgrammesIdeas, Smoking is injurious to health.Organisation, Corporate identity ads Nestle Pure Life.Experiences, Dream world, Disney Land, Country Club,


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Marketing Mix (4Ps)Marketing is all about giving the costumers what he wants.This encapsulates: (Product, Price, Place, and Promotion).This combination of 4Ps is used as a mean/ tool to satisfy

target market customers & at the same time achieving theorganisations marketing objectives i.e. Commercial (Sales)& Financial (Profit) objectives.Product, the properties or characteristics of good or service.Customer benefits , Quality , design , technical features, brand name,packaging, service, warranties, sizes, training.

Price, right price and value (CVP),List price, discounts, allowances, payment period, credit terms, bundlingitems, or pricing separately, lump sum or piece rate, rebates or loyaltyschemes, undersell the competition.Place, availability getting your product in front of your costumers,through distribution channels or supply chains,

Coverage, location, inventory, transport Promotion, informing customers in a manner that they understand yourproduct,Advertising (TV, internet, newspaper, F.M Radio) Direct marketing (directmail), sales force (personal selling), exhibitions sponsoring events, items,PR, brochures and catalogues


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4Ps of Marketing Mix


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4Cs of Marketing Mix


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Marketing Relationship between 4Ps& 4Cs


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4Vs of Marketing Mix1. Validity - This model says you should not only develop productsaccording to consumers needs but also consider other environment factors

like environmental friendly, safety and social security.

2. Value - This model talks beyond price and lowest cost. It says youshould provide value for money because now days living standards of

many consumers are raising.3. Venue - It says you should not only provide product or services on theconvenient places but also provide your services at the venue or home of

consumers like pizza home delivery.

4. Vogue - It requires not only two way communication but your promotionshould be in favor Of public and accepted by the public.


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Marketing Evolution (in US)


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Marketing Philosophies/Evolution of Marketing

Production concept:(Mass Production) (prior to 1920s):Mass produce @ lowest cost -Distribute @ affordable price. Nooptions for consumerThe idea that consumers will favour products that are available

and highly affordable and the organisation should therefore focuson improving production and distribution efficiency. E.g. Chinesegoods.Product concept: (1920s):

Build a More Innovative Product, Build a Better MousetrapThe idea that consumers will favour products that offer the mostquality, performance, and features and that the organisationshould therefore devote its energy to making continuous productimprovements.What if the product is not needed by anyone?Selling concept:(1930)

Few product-- sell, sell, sell!; Largest volume at any price, Focuson onetime transaction. The idea that consumers will not buy enough ofthe firms product unless it undertakes a large scale selling andpromotion effort. Therefore, for people to buy products, youhave to do a lot of advertising.

Can good advertising sell a bad product? (Good Milk)


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Components and outcomes of the Marketing Concept


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Marketing Concept:(1950s and beyond)Sam Walton(Wal-Mart) There is only one boss : the

customer.The marketing management philosophy holds that achievingorganisational goals depends on knowing the needs and wants ofthe target markets and delivering the desired satisfaction betterthan competitors do.

Therefore, Marketing concept emphasizes customer orientationand coordination of all marketing activities to achieve the

organisations performance objectives.The marketing concept is based on three beliefs.1. All planning and operations should be customer-

oriented. That is every department and employee should befocused on contributing to the satisfaction of customers need.

2. All marketing activities in an organisation should becoordinated. This means all the marketing efforts should be

designed and combined in a coherent , consistent way, andthat one executive should have overall authority andresponsibility for complete set of marketing activities.

3. Customer-oriented, coordinated marketing is essentialto achieve the organisations performance objectives.The ultimate objective for a business is measured in terms ofROI, stock price and market capatilisation.


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Society(Human Welfare)

Consumers(Want Satisfaction)

Company(Profits)

SocietalMarketingConcept

Society(Human Welfare)

Societal Marketing Concept


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Societal Marketing Concept: Typical thinking in 1990

Marketer must act in a socially responsible manner.

Marketing with a social conscience and care about the society ingeneral. The idea that a companys marketing decisions shouldconsider consumers wants, the companys requirements,consumers long-run interests, and societys long-run interests.E.g., PSO Tree Plantation drive, UBL Insurance

Example: A fashion retailer have several markets to satisfy, theowners or stakeholders, the employee who make the clothing,and the third world economies that would be affected if the jobswere not available.

The marketing concept and companys social responsibility arecompatible if management strives over the long run to satisfy thewants of its product buying customers, meet the societal needsof others affected by the firms activities, and achieve thecompanys performance objectives.


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Contrast between Selling & Marketing

The Selling Concept takes an

inside-out view that focuseson existing products andheavy selling. The aim is tosell what the company makesrather than making what thecustomer wants.

Emphasis is on the product.

Company first makes the productthen figures out how to sell it.

Management is sales volume-oriented.

Planning is short-run oriented, in

terms of todays products &markets.

Needs of seller are stressed.

The Marketing Concept takes

an outside-in view thatfocuses on satisfyingcustomer needs as a path toprofits.

Emphasis is on customers needs

and wants. Company first determines the

customers wants and thenfigures out how to make anddeliver a product to satisfy thosewants.

Management is profit-oriented. Planning is long-run oriented, in

terms of new products,tomorrows markets, and futuregrowth.

Wants of buyers are stressed.52


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Focus on

Long-termProfitability

Inter-functionalCoordination

CompetitorOrientation

CustomerOrientation

Elements of a firms marketing orientation

Target Market

Marketing Orientation


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Customer orientation:An organisation must have a thorough understanding of itstarget buyers, so that it can create a product of superior value for

them. Remember that value can be defined only by customersthemselves, and can be created by increasing the benefits to thebuyer in relation to the buyers costs or by decreasing the buyerscosts in relation to the buyers benefits. A customer orientationrequires that a company understand not only the present value tothe customer, but also how this is likely to evolve over time.Competitor orientation: As well as focusing on its customers, afirm should look at how well its competitors are able to satisfybuyers needs. It should understand the short-term strengths andweaknesses and long-term capabilities and strategies of current andpotential competitors.

Marketing Orientation (Adopting Marketing ConceptPhilosophy)Marketing orientation requires all the staff & departments of an

organisation to think customer and to work together to createvalue, and to satisfy customer needs and expectations better thanthe competition.


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Inter-functional coordination: It is futile for marketingmanagers to develop marketing plans that are not acted upon by

people who are capable of delivering promises made tocustomers. Many individuals within an organisation have aresponsibility for creating valuenot just marketing staffand amarketing orientation requires that the organisation draw uponand integrate its human and physical resources effectively andadapt them to meet customers needs.


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The Changing Marketing Landscape/ Future Trends inMarketing

The Digital Age

Dramatic changes are occurring in the marketing arena. Theboom in computers, telecommunications, information, andtransportation has created exciting new ways to learn about and

track customers, and to create products and services tailored toindividual customer needs. Rise of internet users (1.2 billion,expected to reach 3.4 billion by 2015) globally, e-commerce,online shopping, and electronic social media pose newchallenges and offer exciting marketing opportunities. Thatswhy, online marketing is now the fast growing form of

marketing, and the digital media must be fully integrated intothe marketers customer relationship building efforts.


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Rapid GlobalisationThe world is considered a global village. In an increasingly smaller

world, many marketers are now connected globally with theircustomers and international marketing partners. Today, almostevery company, large or small, is touched in some way by globalcompetition. Today, managers around the globe are recognising thefact that markets are becoming increasingly international in nature.To achieve sustainable growth in global markets and to survive in

domestic markets that are increasingly attacked by internationalplayers; todays marketers must develop the skills, aptitudes, andknowledge necessary to compete in global arena.

The Call for More Ethics and Social ResponsibilityTodays marketers are re-examining their ethical and socialresponsibilities. Marketers are being called upon to take greater

responsibility for the social and environmental impact of theiractions. Any poor action can affect customer relationships.Therefore, marketers seek ways to profit by serving the best long-run interests of their customers and communities.


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The Growth of Not-for-Profit Marketing

In the past , marketing has been most widely applied in for-profit business sector. In recent years, however, marketingalso has become a major part of the strategies of many not-for-profit organisations, such as colleges, hospitals, museums,zoos, and even religious institutions. An NGO/ not-for-profitorganisation may face stiff competition for support and

membership. Sound marketing can help attract membershipand support. ( SKMCH&RC Lahore in 1984 was establishedfollowing an extensive local and international marketingcampaigns that raised record amount of a billion rupees incash and kind and the govt donated a 20-acre piece of land.Continue to benefit poor patients by doing fund-raising

campaigns, coin collection boxes., Zakat campaign, GiveZakat, Give Hope. )

Core Message of MarketingBuild strong customer relationships.


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The Worlds Most Valuable Brands in 2009

Brand Value ($bn)

Coca Cola 68.73IBM 60.21Microsoft 56.65GE 47.78

Nokia 34.86McDonalds 32.28Google 31.98Toyota 31.33Intel 30.64Disney 28.45

Source: Interbrand

A brand is a cluster of functional and emotional values that enablesorganisations to make a promise about a unique and welcomedexperience.

Th M t V l bl Gl b l B d 2012


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Rank 2011 Rank change Rank 2012 Category BrandBrand Value2012 ($M)

1 0 1 Tech Apple 182,951

2 1 2 Tech IBM 155,985

3 -1 3 Tech Google 107, 857

4 0 4 Fast Food McDonald's 95,188

5 0 5 Tech Microsoft 76,651

6 0 6 Soft drinks Coca-Cola 74,286

8 7 7 Tobacco Marlboro 73,612

7 8 8Communication Provide

AT&T 68,870

13 9 9 Communication Provider

Verizon 49,151

9 10 10Communication Provider

China Mobile 47,041

The Most Valuable Global Brands 2012

Documents

Introducton to Marketing