MM Core Concepts (2)

8/7/2019 MM Core Concepts (2)

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Bharat Warlyani Dual-D 2008-10


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Marketing Management is a socialand managerial process by which

individuals or firms obtain what theyneed or want through creating,offering, exchanging products of value with each others.


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CORE CONCEPTS OF

MARKETING:

BUSINESSENTITY

MARKETING

1. NEED/ WANT/ DE MAND 2. PRODUCT (GOODS/ SERVICES)3 VALUE/ COST/ S ATISF ACTION4 EXCH ANGE/ TR ANS ACTION5 RE LATIONSHIP/ NET WORK

CUSTO MER

CUSTO MER

CUSTO MER

(6)

MARKET

7. MARKETERS/ PROSPECTS


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1. NEED/ WANT/ DEMAND :

Need:It is stat e of dep rivation of som e basicsatisfaction.eg .- foo d, clothin g, saf e ty, sh e lte r.


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Want :De sir e for s pe cific satisfi e r of n eed .eg .-Ind ians needs foo d wants pan ee r tikka/ tan doori chick e n.

Am e ricans needs foo d-wants hambur ge r/ Fr e nch fri e s.


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De man d:Want for a s pe cific product back ed up byability an d willingne ss to buy.eg .- Need trans portation.Want car (say , Me rcede s)

but abl e to buy only maruti.Th e r e for e, demand is for maruti.


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De man d is influ e nc ed by makin g product APPROPRIATE ATTRACTIVE

APPROACHABLE/ AFFORDABLE AVAILABLE EASILY


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2 . PRODUCTS-

GOODS/SERVICES/ PLACE .

Pro duct is anythin g that can satisfy n eed / want.Pro duct com pon e nt- 1. Phy sical Goo d .

2. S ervice .3. I dea .

eg . Fast foo d- bur ge r/ p izza.Physical Goo d - mat e rial e at e n.

S e rvice - purchas e of raw mat e rial/cookin gIde a - s peed of com pute r/p roc e ssin g

pow e r.


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Importanc e of p roduct li e s in a) Ownin g the m (minor)

b) Obtainin g the m (major).

He nc e , pr oducts are reall y a via- mediaf or services .

He nc e, in mark e ting, focus is on p r oviding / satisf y ing service rat her t han p r oviding pr oducts .


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(3) VALUE/ COST/ SATISFACTION

De cision for purchas e ma de bas ed onvalu e / cost satisfaction de live r ed by

product/ off e ring .Pro duct fulfills/ satisfi e s Need / Want.Valu e is products ca pacity to satisfyneed s/ wants as pe r consum e rs

pe rcep tion or e stimation.Each product woul d hav e a cost/ pricee le me nts attach ed to it.


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Eg . Trav e l from city A to city B.

Need to r e ach B ( from A)Me tho d / Pro ducts- Rail/ air/ roa d or train/p lan e .Satisfaction Estimat ed in te rms of tim e le a d &

trav e l comfort.VALUE - Pro ducts ca pacity to satisfy.COST - Pric e of e ach p roduct.


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4 . EXCHANGE/ TRANSACTION :

To satisfy n eed / want , pe op le mayobtain th e product throu gh1. S e lf Pro duction2. By forc e or co e rcion3. B egg ing

4 . Exchan ge


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EXCHA NGE : -

Th e act/ proc e ss of obtainin g a de sir ed productfrom som e on e by off e ring som e thin g in r e turn

For e xchan ge pote ntial to e xist , thefollowin g con d itions must b e fulfilled .1. Th e r e must b e at l e ast two parti e s.2. Each party has som e thin g of valu e for oth e r

party.3. Each party is ca pabl e of communication & de live ry

4 . Each party is fr ee to acc ep t/ r e je ct th e e xchan geoff e r.5. Each party b e lie ve s it is a pp ropriat e to de al with th e

oth e r party.


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TRANSACT ION: -

Ev e nt that ha ppe ns at th e e nd of an e xchan ge .Exchan ge is a proc e ss towar ds an a g r ee me nt.Wh e n a gr ee me nt is r e ach ed, we say that a

transaction has tak e n p lac e .

Ty pe s of Transaction1. Bart e r Syst e m2. Mon e tary Transaction


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For a transaction to tak e p lac e the followin gcon d itions must b e satisfi ed

1. At l e ast two thin gs of valu e .2. Con d ition a g r eed upon.3. Tim e of a g r ee me nt.4 . Plac e of a g r ee me nt.5. May hav e leg al syst e m for com p lianc e .

Proof of transaction is BILL/ INVOICE.


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5. RELATIONSHIP/ NETWORKING :

Re lationshi p mark e ting: -Its a patt e rn of buil d ing lon g te rm

satisfyin g r e lationshi p with custom e rs ,su pp lie rs , d istributors in or de r to r e tainthe ir lon g te rm pe rformanc e s an dbusin e ss.


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Achi e ved throu gh p romis e an d de live ry of 1. hi gh quality

2. goo d s e rvice3. fair p ricing, ov e r a pe riod of tim e .

Outcom e of R e lationshi p Mark e ting is a

MARKET ING NETWORK.


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6. MARKET :

A mark e t consists of all pote ntial custom e rssharin g particular n eed / want who may b e

willing an d abl e to e nga ge in e xchan ge tosatisfy n eed / want.

Mark e t Siz e= Fn ( Numb e r of pe op le who hav e need / want;hav e r e sourc e s that int e r e st oth e rs , willing or abl e to off e r th e s e r e sourc e s in e xchan ge for what th e y want).


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Type s of Mark e ts :1. R e sourc e Mark e t,

2. Manufacturin g Mark e t,3. Inte rm ed iary Mark e t,4 . Consum e r Mark e t,5. Gov e rnm e nt mark e t.


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7. MARKETERS/ PROSPECTS :

Wo rking wit h markets t o actualize po tential x c hanges f or t he pur po se of satisf y ing needs

and wants.

On e party s ee ks th e e xchan ge mor e activ e ly, call ed as Mark e te r, an d the oth e r party is call edPros pe ct.

P r os p ect is s ome one w ho m marketer identifies as po tentiall y willing and a ble t o engage in e x c hange .


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MM Core Concepts (2)