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Marketing people are involved in marketing 10 types of entities: goods, services, experiences, events, persons, places, properties, organizations, information, and ideas. Goods. Physical goods constitute the bulk of most countries’ production and marketing effort. Services. As economies advance, a growing proportion of their activities are focused on the production of services. Experiences. By orchestrating several services and goods, one can create, stage, and market experiences. Events. Marketers promote time-based events, such as the Olympics, trade shows, sports events, and artistic performances. Persons. Celebrity marketing has become a major business. Artists, musicians, CEOs, physicians, high-profile lawyers and financiers, and other professionals draw help from celebrity marketers. Places. Cities, states, regions, and nations compete to attract tourists, factories, company headquarters, and new residents. Place marketers include economic development specialists, real estate agents, commercial banks, local business associations, and advertising and public relations agencies. Properties. Properties are intangible rights of ownership of either real property (real estate) or financial property (stocks and bonds). Properties are bought and sold, and this occasions a marketing effort by real estate agents (for real estate) and investment companies and banks (for securities). Organizations. Organizations actively work to build a strong, favorable image in the mind of their publics. Philips, the Dutch electronics company, advertises with the tag line, “Let’s Make Things Better.”
A brand is an offering from a known source.Maruti Cars.are wants for specific products backed by an ability to pay. Marketers influence wants Product or Offering A product is any offering that can satisfy a need or want. nonfiction books. publishers of encyclopedias.Ex. products and services are platforms for delivering some idea or benefit to satisfy a core need.needs become wants when they are directed to specific objects that might satisfy the need. and distribution of ideas. promotion. and shelter. The production. water. Every market offering has a basic idea at its core. Demands.Fuel efficient. and services to create exchanges that satisfy individual and organizational goals. low maintenance. Wants. goods. clothing. Ex. Among the marketers of information are schools and universities. and Demands Needs.is the process of planning and executing the conception. Ideas. low cost . In essence. Needs. pricing.describe basic human requirements such as food. and Internet Web sites. Needs pre-exist marketers. Wants. packaging.Maruti Associations (brand).Information. and distribution of information is one of society’s major industries. makers of CDs. and specialized magazines. Marketing Concepts Marketing. air.
price Time costs. There are at least two parties.strong. Each party has something that might be of value to the other party. All companies strive to build brand strength. involves obtaining a desired product from someone by offering something in return.Associations make up the brand image. For exchange potential to exist.time spent on the purchase process Energy costs. pride Monetary costs. The buyer chooses between different offerings on the basis of which is perceived to deliver the most value. Each party is capable of communication and delivery. 2.comfort. 3. brand image. Value is the ratio between what the customer gets and what he gives. Ex.mental strain Exchange and Transactions Exchange. five conditions must be satisfied: 1.Automobile Functional benefit.travel Emotional benefit. Value and Satisfaction The product or offering will be successful if it delivers value and satisfaction to the target buyer. .running around Psychic costs. favorable.
Ex. etc. A transaction is a trade of values between two or more parties. Exchange is a value-creating process rather than an event.Newspapers. Ex. 5.to deliver & receive messages from the target buyers. branch office of a bank SIMPLE MARKETING SYSTEM . Each party believes it is appropriate or desirable to deal with the other party. 4. Distribution channels. retailers 3. 2. Place of agreement. radio. Marketing Channels It is the link that connects marketer to the target buyers. Two parties are engaged in exchange if they are negotiating—trying to arrive at mutually agreeable terms. Ex. There are three kinds of marketing channels1.4. Agreed upon conditions. wholesalers. Selling/ service channels. Communication channels.retailers. When an agreement is reached. Time of agreement. 2. At least two things of value. we say that a transaction takes place.to carry out the transactions with the potential buyers. TV.Distributors. Each party is free to accept or reject the exchange offer. 3. A transaction involves several dimensions: 1.to display sell or deliver the physical products or services to the buyer or user.
. performance. Managers in these organizations focus on making superior products and improving them over time. assuming that buyers can appraise quality and performance. This orientation makes sense in developing countries.EVOLUTION OF MARKETING CONCEPT The Production Concept The production concept holds that consumers prefer products that are widely available and inexpensive. or innovative features. where consumers are more interested in obtaining the product than in its features. It is also used when a company wants to expand the market.China. low costs.largest PC manufacturer in the world The Product Concept The product concept holds that consumers favor those products that offer the most quality. and mass distribution. Ex. Managers of production-oriented businesses concentrate on achieving high production efficiency.
Customer needs. The marketing concept rests on four pillars: 1. the result is integrated marketing. the aim is to sell what they make rather than make what the market wants. Integrated marketing (When all of the company’s departments work together to serve the customers’ interests. trusting that their engineers can design exceptional products. Target market. This concept assumes that consumers must be coaxed into buying. holds that consumers and businesses.Uncle Chips packed in carton boxes The Selling Concept The selling concept. so the company has a battery of selling and promotion tools to stimulate buying. and 4. another common business orientation.Unsought goods— goods that buyers normally do not think of buying. such asinsurance In this concept. The organization must. and communicating customer value to its chosen target markets.). therefore. delivering. 3. undertake an aggressive selling and promotion effort. if left alone. Profitability. Ex. The Marketing Concept The marketing concept holds that the key to achieving organizational goals consists of the company being more effective than its competitors in creating. .Product-oriented companies often design their products with little or no customer input. will ordinarily not buy enough of the organization’s products. 2. Ex.
customers. & activities that recognizes their breadth & interdependencies. resource management.is the task of hiring & motivating all employees who want to serve customers well. The Holistic Marketing Concept Concept is based on the development. & network management Internal marketing. Relationship marketing has the aim of building mutually satisfying long term relationships with key parties. Integrated marketing. and produces profits by satisfying customers. technical. The marketing concept takes an outside-in perspective. distributors.The selling concept takes an inside-out perspective. focuses on existing products. Four components of holistic marketingRelationship marketing. suppliers.Marketing mix decisions must be made for influencing the trade channels as well as final customers. It starts with the factory. . process. & other marketing partners.key goal of marketing is to develop deep. enduring relationships with all people or organizations that could directly or indirectly affect the success of the firms marketing activities. Businesses must integrate their systems for demand management. and calls for heavy selling and promoting to produce profitable sales. It starts with a well-defined market. focuses on customer needs. Builds strong economic. coordinates activities that affect customers. & implementation of marketing programs. design. Integration of one marketing activity is done with all other activities in mind. & social ties among the parties.
Socially responsible marketing. INCREASED AWARENESS. . wants. CUSTOMER IS ANYONE WHO IS IN THE MARKET LOOKING AT A PRODUCT / SERVICE FOR ATTENTION. PETROL. REDUCING SMOKING. ACQUISITION.Integrating all company’s departments to work together to serve the customers interests. 1991 MILESTONE LPG POLICY. OFFENSIVE CUSTOMERS GETTING NEW CUSTOMERS DEMARKETING INCREASE IN MARKETING EFFORTS NOT TO INCREASE CONSUMPTION BUT REDUCE CONSUMPTION. DRUGS ETC CONSERVATION OF WATER. & interests of target markets & to deliver the desired satisfactions more effectively & efficiently than competitors in a way that preserves or enhances the consumers & the society’s well being. USE OR CONSUMPTION KINDS OF CUSTOMERS DEFENSIVE CUSTOMERS RETAINING OLD CUSTOMERS. PSYCHOGRAPHICS.holds that the organizations tasks is to determine the needs. ELECTRICITY ETC RELEVANCE OF MARKETING IN INDIA EXCESSIVE COMPETITION. DRINKING.
DINKS MARKETING FUNCTIONS ANALYSIS• FINDING OPPORTUNITIES • AVOIDING THREATS • UNDERSTANDING STRENGTHS • ANALYZING WEAKNESSES PLANNING MARKETING PLANS INCLUDE: • • • • • • • EXECUTIVE SUMMARY ANALYSIS OF CURRENT SITUATION OBJECTIVES TARGETS AND POSITIONING MARKETING MIX BUDGET CONTROLS IMPLEMENTATION • • PLANS ARE TURNED INTO ACTION WITH DAY-TO-DAY ACTIVITIES GOOD IMPLEMENTATION IS A CHALLENGE CONTROL . CHOICE.
MARKETING STRATEGY IS A SERIES OF INTEGRATED ACTIONS LEADING TO A SUSTAINABLE COMPETITIVE ADVANTAGE WHAT IS COMPETITIVE SUSTAINABLE ADVANTAGE? COMPETITIVE ADVANTAGE IS A COMPANY’S ABILITY TO PERFORM IN ONE OR MORE WAYS THAT COMPETITORS CANNOT OR WILL NOT MATCH CHARACTERISTICS OF COMPETITIVE ADVANTAGE SUBSTANTIALITY IS IT SUBSTANTIAL ENOUGH TO MAKE A DIFFERENCE? SUSTAINABILITY CAN IT BE NEUTRALIZED BY COMPETITORS QUICKLY? ABILITY TO BE LEVERAGED INTO VISIBLE BUSINESS ATTRIBUTES THAT WILL INFLUENCE CUSTOMERS SEEKING COMPETITIVE ADVANTAGES • Positions of advantage – Superior customer value – Lower relative total cost . STRATEGIC MARKETING.• • EVALUATION OF THE RESULTS OF MARKETING STRATEGIES CHECKS FOR DIFFERENCES BETWEEN GOALS AND PERFORMANCE STRATEGIC PLANNING.IS THE MANAGERIAL PROCESS OF DEVELOPING AND MAINTAINING A STRATEGIC FIT BETWEEN THE ORGANIZATION'S OBJECTIVES AND RESOURCES AND ITS CHANGING MARKET OPPORTUNITIES.
DESIGNING THE COMPANY PORTFOLIOBUSINESS PORTFOLIO: .• Performance advantages – Customer satisfaction. Profit • Sources of advantages – Superior skills & knowledge.G. Superior resources. 10% GROWTH IN THE NEXT TWO YEARS 2. WHAT IT WANTS TO ACCOMPLISH IN THE MICRO ENVIRONMENT SETTING CORPORATE OBJECTIVES & GOALSAN OBJECTIVE IS A LONG-RANGE PURPOSE • NOT QUANTIFIED AND NOT LIMITED TO A TIME PERIOD • E. 3. Superior business process STEPS IN STRATEGIC PLANNING 1. Market Share. INCREASING THE RETURN ON SHAREHOLDERS’ EQUITY A GOAL IS A MEASURABLE OBJECTIVE OF THE BUSINESS • ATTAINABLE AT SOME SPECIFIC FUTURE DATE THROUGH PLANNED ACTIONS • E.VISION STATEMENT IS A STATEMENT OF THE ORGANISATION FOR THE LONG RUN DEFINE THE COMPANY’S MISSION STATEMENT.MISION STATEMENT IS A STATEMENT OF THE ORGANISATION PURPOSE. DEFINE THE COMPANY’S VISION STATEMENT. Loyalty. 4.G.
IMPLEMENTATION OF THE PLAN 6. (2) it has its own set of competitors. PORTFOLIO ANALYSIS: A TOOL THROUGH WHICH THE MANAGEMENT IDENTIFIES AND EVALUATES THE VARIOUS BUSINESSES WHICH MAKE UP THE COMPANY 5. each requiring its own strategy. CHARACTERISTICS OF A VIABLE SBU UNIQUE BUSINESS MISSION DEFINABLE SET OF COMPETITORS INTEGRATIVE PLANNING DONE INDEPENDENTLY RESPONSIBLE FOR RESOURCE MANAGEMENT IN ALL AREAS LARGE ENOUGH BUT NOT SO LARGE AS TO BECOME BUREAUCRATIC . and (3) it has a manager responsible for strategic planning and profit performance who controls most of the factors affecting profit. General Electric. CONSTANT REVIEW N FOLLOW UP STRATEGIC BUSINESS UNIT? (SBU) Large companies normally manage quite different businesses.THE COLLECTION OF PRODUCTS AND SERVICES WHICH ARE PART OF THE ORGANISATION. An SBU has three characteristics: (1) It is a single business or collection of related businesses that can be planned separately from the rest of the company. has established 49 strategic business units (SBUs). as one example.
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