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Marketing Chapter 1 Nature and scope of Marketing Concept of marketing: Offering something of value and in return getting something

of value, intended to satisfy human or organizational need Exchange: exchange is one of three ways can be fulfilled Make it yourself Theft Offering something of value and in return getting something of value

Conditions of exchange: Two or more people or organization must be involved each having needs or wants The parties in exchange must be involved voluntary Each party must have something of value to contribute in exchange and must believe that it will be benefited from exchange The parties must communicate with each other

Parties in exchange The marketer: who stimulate and facilitate the exchange, develop marketing plans and implement that. Market: consist of people or organization with need to satisfy, money to spend and willingness to spend it

Object of exchange can be product, service, idea, person or place Marketing Marketing is a total system of business activities design to plan, price, promote, place and distribute want satisfying products to the target market in order to achieve organizational objectives. Evolution of marketing Product orientation stage: Focus of quality and quantity of output assuming consumer will buy reasonable and well made products

Demand exceed supply: Focus was on efficiency and cost control. Companys only have sales department and jobs heads was to supervise sales force.

Sales orientation stage: Resulted due to great depression in 1920s i.e. economic crisis, problem was found was not to manufacture efficiently by how to sell output. Substantial post sale effort was observed. Sales promotion comes into existence i.e. promotional activities like heavy advertisement and there was respect of sales executives. Some companies went for aggressive selling i.e. hard sells.

Market orientation stage: When supply caught up demand manufactures went to look back to sales but nit successfully this time as war changed consumers who are now more 1. 2. 3. 4. 5. 6. 7. Sophisticated. Knowledgeable. Experienced. Less easily influence. Women went out and start working. The requirement was to produce what customer wants and not what business wants to sell. Several tasks was performed by other departments becomes tasks to marketing. For example inventory control warehousing and product planning. 8. Everyone should be market oriented.

Marketing concept 1. Nature and rationale: Complete satisfaction of customers need i.e. everyone should be customer oriented. Hub and spoke concept by FedEx i.e. customer is hub in a wheel. Coordination: elements of marketing mix i.e. 4Ps should be coherent and consistant with each other. Organization: performance object is may include return on investment, stock, price, profit, market share et casa well as social contribution.

2. Implementation: Customer orientation: The concept of customer relationship management (CRM) trust and mutual respect lot of time and effort, and are not appropriate exchange satisfaction. Mass customization: Mass production and mass marketing is challenged by mass customization which was possible due to advertisement information, communication and manufacturing technology. Coordinated marketing activities: Quality is the priority of every company and its at least requirement for going international. (a) Total Quality Management (TQM) i.e. is system implementing organization-wide commitment to quality that involves every employee accepting this responsibility for continuous quality improvement. (b) Volume Creation: Values and benefits can be Functional i.e. roominess of a van Aesthetic i.e. attractiveness of a van Psychological i.e. safety of a van. Organizational objectives: These includes Return on investment, profit, market share, brand acceptance and customer satisfaction. The Societal Marketing concept: A company should work in societys interest, taking care of environmental issues and customer rights