Lect1 9.8(Marketing Concepts)

7/31/2019 Lect1 9.8(Marketing Concepts)

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Marketing Basics

09/08/2012

PGDPM

Alok Yadav

What does marketing Means to you?


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Marketing means different things to different people

The Marketing Function is theProcess of

bringing Buyers and Sellers together

PRODUCERSPRODUCERS

MARKETINGMARKETING

Marketing is Performed by AllOrganizations

CONSUMERSCONSUMERS

Simple Marketing System

Industry

(a collection

of sellers)

Market

(a collection

of Buyers)

Goods/services

Money

Communication

Information


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Marketing is not just about advertisement

and Sales promotion

Marketing is a Philosophy

Way of doing a business

The Industrial Revolution gave rise to largescale manufacturing, so this personal contact

ended.

With mass production came mass markets andmass distribution.

Manufacturers were no longer able to offer apersonalised service, and techniques of

marketing were developed to fill this gap.


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Evolution of Business Models and the role of

Marketing

SocietalMktg

MarketingSellingProductProduction

As business philosophy has evolved, so has theAs business philosophy has evolved, so has theAs business philosophy has evolved, so has theAs business philosophy has evolved, so has therole of marketingcustomer satisfaction is nowrole of marketingcustomer satisfaction is nowrole of marketingcustomer satisfaction is nowrole of marketingcustomer satisfaction is now

at the core of most successful corporationsat the core of most successful corporationsat the core of most successful corporationsat the core of most successful corporations

As business philosophy has evolved, so has theAs business philosophy has evolved, so has theAs business philosophy has evolved, so has theAs business philosophy has evolved, so has therole of marketingcustomer satisfaction is nowrole of marketingcustomer satisfaction is nowrole of marketingcustomer satisfaction is nowrole of marketingcustomer satisfaction is now

at the core of most successful corporationsat the core of most successful corporationsat the core of most successful corporationsat the core of most successful corporations

Marketing Philosophies

Production Concept:

The whole focus of the company is the production

Give them better and cheaper products

we can do this by :

company improving

production

distribution

Good method if:

demand is higher than supply

cost of producing is too high

Consumers wanted just basic

transportation at an

affordable price


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Ford Model T car


Product Concept:

The whole focus is to improve the product features

make the product better

The idea is that if we make it better they will keep buying it

problem with this:

May be the customers want something different

other products may replace this product


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Selling Concept:

The company pushes promotion and advertising

The idea is that the more we promote, the more they will buy

we use this method to educate and tell the customers about

the product or service

This is not a complete process. starts with the product then

they sell....unlike the marketing process


Marketing Concept: (this is the one wewill use)

this is a complete approach

process:

first find out the needs and wants of customers

then develop and deliver the goods that will satisfy these

needs and want

this process starts with the needs and wants and then builds

the product...unlike the selling concept

most major successful companies use this concept


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Societal Marketing Concept:

This is the newest marketing philosophy

It is the marketing concept with a conscience

they think of what is good for society

they think about environmental items

they think about a better life for people

they think about the world and social impact

Designing a Customer-Driven

Marketing Strategy

Production ConceptProduction Concept

Product ConceptProduct Concept

Selling ConceptSelling Concept

Marketing Concept

Consumers prefer products that arewidely available and inexpensive

Consumers favor products that offer themost quality, performance, or innovative

features

Consumers will buy products only ifthe company aggressivelypromotes/sells these products

Focuses on needs/ wants of targetmarkets & delivering value better than

competitors

Company (Orientations, Philosophies, Concepts) Towards the

Marketplace

Societal Marketing ConceptSocietal Marketing Concept

Focuses on needs/ wants of targetmarkets & delivering value better than

competitors that preserves the consumersand societys well-being


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Core Concepts of Marketing

Product or OfferingProduct or Offering

Value and SatisfactionValue and Satisfaction

Needs, Wants, and DemandsNeeds, Wants, and Demands

Exchange and TransactionsExchange and Transactions

Relationships and NetworksRelationships and Networks

Target Markets & SegmentationTarget Markets & Segmentation

Marketing ChannelsMarketing Channels

Supply ChainSupply Chain

CompetitionCompetition

Marketing EnvironmentMarketing Environment

Chapter 1- slide 23Copyright 2010 Pearson Education, Inc.

Publishing as Prentice Hall

Core Marketing ConceptsCore Marketing Concepts

Productsand

Services

Value, satisfaction,and quality

Needs, wants,and demands

Exchange, transactions,and relationships

Markets

CoreMarketingConcepts

1. Understanding Marketplace& Customer Needs

1. Customer needs, wants, and demands

2. Market offerings

3. Value and satisfaction4. Exchanges and relationships

5. Markets

Its 5 Core Concepts


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Understanding the Marketplaceand Customer Needs

States of deprivation

Physicalfood, clothing, warmth, safety

Socialbelonging and affection

Individualknowledge and self-expression

Needs

Form that needs take as they are shaped by culture andindividual personalityWants

Wants backed by buying powerDemands

Customer Needs, Wants, and Demands

Understanding the Marketplace

and Customer Needs

Market offerings are somecombination of Products,Services, info, or experiencesoffered to a market to satisfy aneed or want.

Its not limited to physical Product,it also include Services & otherentities, such as persons, places,information & ideas.

Marketing myopia: Sellers whoare so taken with their Productthat they focus only on existingwants & lose sight of underlyingcustomer needs suffer from

marketing myopia.

Customer Value and Satisfaction

Expectations

Customers form expectations about value &

satisfaction that various marketing offers will deliver

and buy.

Marketers must be careful to set the right level of

expectations. If they set expectations too low, they

may satisfy those who buy but fail to attract enoughbuyers. If they raise expectations too high, buyers

will be disappointed.

Customer satisfaction depends on a productsperceived performance in delivering value relative to

a buyers expectations


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Understanding the Marketplace

and Customer NeedsCustomer Value andSatisfaction

Expectations

Customers

Value andsatisfaction

Marketers

Set the right level ofexpectations

Not too high or low

Marketing occurs when people decide tosatisfy needs and wants through exchange

relationships

Exchange is the act of obtaining a desiredobject from someone by offering something in

return

Understanding Marketplace

& Customer NeedsExchanges and relationships

For an exchange to take place. At least two parties must participate.

Each must have something of value.

Each must want to deal with the other.

Each must be free to accept or reject the offer.

Each party must be able to communicate and deliver.

A transaction consists of a trading of values between

two parties.

Marketing consists of actions taken to build &maintain desirable exchange relationships with

target audiences.

Marketers want to build strong relationships by

consistently delivering superior customer value. This

is part of relationship marketing.


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Markets and the marketing system

A market is the set of actual and potential buyers

Marketing means managing markets to bring aboutprofitable customer relationships.

Buyers also carry on marketing. Consumers do

marketing when they search for the goods they need

at prices they can afford.

Company purchasing agents do marketing when

tracking sellers & bargain for good terms

Main elements in a modern marketing system

Company & competitors send offers & messages toconsumers.

All actors in the system are affected by environmentalforces

2. Designing a Customer-Driven

Marketing Strategy

Marketing management is the art and scienceof choosing target markets and building

profitable relationships with them.

Marketing managers aim is to find, attract,keep, and grow target customers by creating,

delivering, and communicating superior

customer value.

What customers will we serve?

How can we best serve these customers?


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Designing a Customer-Driven MarketingStrategy

Market segmentation refers to dividing the

markets into segments of customers

Target marketing refers to which segments to go

after

Marketing management is customer

management and demand mgt

Selecting Customers to Serve


Demarketing is marketing to reduce demand

temporarily or permanently; the aim is not to

destroy demand but to reduce or shift it

Selecting Customers to Serve


Choosing a Value Proposition

The value proposition is the set of benefits or values a

company promises to deliver to customers to satisfy

their needs

Company must decide how it will serve targetedcustomers - how it will differentiate & position itself

in the marketplace.

Value propositions differentiate one brand from

another answering, Why should I buy your brand

rather than a competitors?


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Choosing a Value Proposition

The value proposition is the set of benefits or values a

company promises to deliver to customers to satisfy

their needs

Company must decide how it will serve targeted

customers - how it will differentiate & position itself

in the marketplace.

Value propositions differentiate one brand from

another answering, Why should I buy your brand

rather than a competitors?

Sales executives think in these terms

o 1. Sales volume rather than profito Increase current sales

o Achieve commission and bonus

o 2. Short run rather than long runo Think only about today's products, markets, customers and

strategies

o Don't think about product/market expansion strategies over thenext 5 years

o 3. Individual customers rather than market segmentso Knowledgeable about individual accounts

o Less interested in developing strategies for market segments

o 4. Field work rather than desk worko Prefer to sell to customers instead of developing plans and

strategies and plans of implementation


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Marketing executives think in these

termso 1. Profit planning

o Plan sales volume around profits.

o Plan product mix, c ustomer mixes and marketing mixes to achieveprofit

o Plan with acceptable risk

o 2. Long run trends, threats and opportunitieso How to translate these into new products and markets

o Use to develop strategies to assure long term growth

o 3. Customer types and segment differenceso Determine ways to offer superior value to the most profitable

segments

o 4. Good system for market analysis, planning and controlo They are comfortable with numbers and working out financial

implications of marketing plans

Marketing Is the

IntegratingFunction

Human Resources Production

Finance Legal Collaborators

CUSTOMER

MARKETING


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Marketing Is the

IntegratingFunction

Human Resources Production

Finance Legal Collaborators

CUSTOMER

MARKETING

Basic Concepts 1


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The Marketing Mix

The set of controllable, tactical marketingtools that the firm blends to produce theresponse it wants in the target market.

Marketing Mix

Product

Price

Place

Promotion

Marketing Mix

Product

Price

Place

Promotion

Targeted

Customers


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The 4 Ps of the Marketing Mix

Basic concepts 2

Segmentation :

Dividing the market

into distinct groups

of buyers based on

demographic,

psychographic andbehavioural

considerations


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Targeting is the actual selection of

the segment you want to serve

the target market is the group of

people or organizations whose

needs a product is specifically

designed to satisfy

Positioning is defined as the act of

designing the companys offering and

image to occupy a distinctive place in

the mind of the target market

Take any brand from the book The Human

Story Behind the Drugs we use

Briefly Describe the brand-The Story behind it.

Describe the current status of that brand, its

competitors

Assignment should not be more three pages.

Class Assignment :

5 Marks

DEADLINE 16 AUGUST 2012

Documents

Lect1 9.8(Marketing Concepts)