Sales & Marketing

Why Study Marketing?
• How many of you bought something today? • How many have seen or heard an ad today? • How many of you consumed something today? • How many of you engaged in word of mouth about a product/service today?
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The Marketing Concept?
“Selling is not marketing. Selling concerns
itself with the tricks and techniques of getting people to exchange their cash for your product…[selling] does not, as marketing invariably does, view the entire business process as consisting of a tightly integrated effort to discover, create, arouse and satisfy customer needs.” – Theodore Levitt, “Marketing Myopia” 1960
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Peter Drucker
(writing about lesser developed countries)

“…in an economy that is striving to break the age-old bondage of man to misery, want and destitution, marketing is…the catalyst for transmutation of latent resources, of desires into accomplishments, and the development of responsible economic leaders and informed economic citizens.”
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Reason #1
Marketing is a fundamental human activity • it’s ubiquitous in daily life • it happens around the world • we can learn to make better consumer decisions

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Reason #2
Marketing impacts the economy • Marketing (broadly conceptualized) is about 50% of retail sales expenses • Healthy marketing systems support economic advance

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Reason #3
Marketing management is essential to organizational success

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Build a better mousetrap?
…and the world will beat a path to your doorstep. Or does it???? • 80-90% of new products fail • Same rate for new businesses
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Reason #4
• Marketing can contribute to societal well-being

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Reason #5
• It’s about people (consumers) and it’s fun.

• (Well, it’s more fun than accounting and calculus anyway…)

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Some Criticisms of Marketing
• Marketing communications are not always honest
– “They can sometimes play on people’s emotions and fears and can cause them to buy things they really don’t need.”

• It can “psychologically manipulate” consumers (they sell the “sizzle,” not the steak). • Youth may be targeted by companies selling adult products (e.g. alcohol) • Marketing sells products that can be harmful • Some ads are crude
– “[Sex] is not necessary to sell something, and if it is, the product is not worth much!”
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My criticism of marketing
• Sometimes takes advantage of consumer lack of knowledge (let the buyer beware) • Especially true for goods and services with “credence” qualitites
– Examples: car repair, plumbing, medical services, pharmaceuticals

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One more criticism?: The “Paradox of Choice”
• Sociologist Barry Schwartz shows that more choice can make us less happy
– Choice has increased over time – “Maximizers” may get more than “satisfiers” but may be less happy
• Choice increases the burdens of making “good decisions” and regret over suboptimal decisions • Availability of choice raises expectations

• What’s the solution?
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Business Intelligence
Vision & Strategy

Improving organisations by providing business insights to all employees leading to better, faster, more relevant decisions
Complete and integrated BI offering Widespread delivery of intelligence Enterprise grade and affordable
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What’s good about marketing?
• Usually seeks to be successful by focusing on satisfying consumer desires (needs?) • Often delivers customers what they want, when they want it, at a price they are willing to pay • (More on customer focus later!) • What’s the alternative?
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Introduction to Sales Personnel
• Importance of personal sales:
– Direct link to the customer – Most customers see the sales person as the company

– Are we part of Sales team or Marketing team?

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???
• Which one is applicable
– Marketing subset of Sales – Sales Subset of Marketing – Sales and Marketing are separate domain

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Sales vs Marketing
• What is more important?
– Sales or Marketing… (Give supportive reason)

• Comparison
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Differences between Sales & Marketing Orientations
Sales Focus • Organization’s needs • Selling goods/services • Everybody • Profit through max. sales volume • Intensive promotion
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• • • • •

Marketing Focus Customer’s needs Satisfying customer wants/needs Specific groups of people Profit through customer satisfaction Coordinated mktg. activities (4 p’s)
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Comparison???

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Marketing
• Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others

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Marketing
– « Marketing management is the process of planning and executing programs designed to create, build, and maintain beneficial exchange relationships with target audiences for the purposes of satisfying individual and organizational objectives. »

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Core Concepts of Marketing
Target Markets & Segmentation Target Markets & Segmentation Needs, Wants, and Demands Product or Offering Product or Offering Value and Satisfaction Value and Satisfaction Exchange and Transactions Exchange and Transactions Relationships and Networks Relationships and Networks Marketing Channels Marketing Channels Supply Chain Supply Chain Competition Competition
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Organizations Stakeholders
• • • • • • • Customers Suppliers Distributors Employees Society Local Community Banks/ Source of Finance
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Stages of Marketing Evolution

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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing

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Company Orientations Towards the Marketplace
Production Concept Production Concept Product Concept Product Concept Selling Concept Selling Concept Marketing Concept Marketing Concept
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Consumers prefer products that are widely available and inexpensive Consumers favor products that offer the most quality, performance, or innovative features Consumers will buy products only if the company aggressively promotes/sells these products Focuses on needs/ wants of target markets & delivering value better than competitors
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Evolution of Business Models and the role of Marketing
Product Production Selling Marketing Societal Mktg

As business philosophy has evolved, so As business philosophy has evolved, so has the role of marketing…customer has the role of marketing…customer satisfaction is now at the core of most satisfaction is now at the core of most successful corporations successful corporations
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Evolutions of Marketing Concept

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Evolving Views of Marketing’s Role
Finance Human resources Marketing

Production Marketing

Finance Human resources

Production

a. Marketing as an b. Marketing as a more equal functionBasic Marketing Concept - I important function29 04/22/10

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