OVERVIEW OF MARKETING

THE MARKETING CONCEPT

 THE CONCEPT
KNOWLEDGE BUYERS SATISFACTION
OF NEEDS DEFINITION

O P E R A T I O N S

OPERATING COMPANY KNOWLEDGE OF

RESULTS GOALS DESIRED RESULTS
 WHAT MARKETING DOES
• Is there a market?
• What size?
• What growth?
• Who is the Buyer?
• What does he look for?
• Why does he buy?
• Where is he?
PROFIT & NON – PROFIT
GOODS & SERVICES
 DEFINITION

COMPONENTS
• Needs
• Product or Service
• Management
• Consumption
• Satisfaction
PRODUCT – MARKET RELATIONSHIP

• CONTROLLABLES

• THE MIX
 OWNERSHIP TRANSFER

• INTERNAL FACTORS

• EXTERNAL FACTORS

• UNCONTROLLABLES
 MINIMAL INPUTS

• PRODUCT ORIENTATION
• COMMUNICATON PROBLEMS
• CONFLICTING INTERNAL GOALS
 EXTERNAL INPUTS
• ORIENTATION TO THE MARKET
• POPULATION GROWTH
• MORE HOUSEHOLDS
• MORE DISPOSABLE INCOME
• MORE DISCRETIONARY INCOME
• GROWING MIDDLE CLASS
• DEBT
• TECHNOLOGY
 CUSTOMER ORIENTATION
NONRESPONSIVE

REACTIVE

RESPONSIVE

PROACTIVE

ANTICIPATORY
 PLANNING THE CONCEPT
COMPANY MARKET
GOALS RESEARCH NEEDS

DECISION

OPERATING PLAN

PRODUCTION MARKETING FINANCIAL

IMPLEMENTATION

ATTAINMENT FULFILLMENT
 IMPLEMENTATION

UNIFICATION OF OPERATIONS
THE MARKETING PROCESS
IDENTIFCATION OF MARKETING ACTIVITIES
DIFFICULTIES:
Forward flow of goods
Reverse of information
Putting products in the market
– Selling
– Buying: the other side of selling
Designing the product
Storage of finished goods
 MERCHANDISING ACTIVITIES

• Product planning & development

• Standardizing and grading
• Buying and assembling
• Selling
DISTRIBUTION ACTIVITIES

• Storage
• Transportation
 SUPPORTING ACTIVITIES

• Marketing financing
• Marketing risk bearing
• Collecting and analyzing marketing
information
MERCHANDISING: PRODUCT PLANNING

• Conform to needs wants and desires

• Change in technology
• Shift in buyer preferences
• Inputs from middlemen
• Change in range handled
 MERCHANDISING
STANDARDIZING AND GRADING
• Standard: measurement of consistency
• Grading: establishing specifications
BENEFITS
• Improves efficiency
• Execution of order without inspection
• Variable price as per measurable grade
• Standards to be industry wide
MERCHANDISING: BUYING & SELLING

BUYING:
Raw Material
Finished Goods
ASSEMBLING:
Warehousing
Retailing
ADVANCE PLANNING
MERCHANDISING: SELLING

Personal Selling
Advertising
POP Display
Packaging
Customer Service
 DISTRIBUTION: STORAGE

Availability to customers
Even out the seasonal factor
Economy of business operations
Maturity on ageing
DISTRIBUTION: TRANSPORTATION

Markets
Raw Material
 SUPPORTING ACTIVITY:
MARKETING FINANCE

Source and recipient of credit

Trade credit vs. Banks
Instalment credit
Mercantile credit
 SUPPORTING ACTIVITY:
MARKETING RISK BEARING

Inventory risk
Risk transfer
Natural hazards
Risk reduction
Product differentiation
 SUPPORTING ACTIVITY:
MARKETING INFORMATION

Information vs. News

No information is universal
MARKETING & SOCIETY
 DOES MARKETING COST TOO MUCH?

THE FOUR UTILITIES

• PLACE
• TIME
• POSSESSION
• FORM
Marketing vs. Total costs
 THE COST OF CAPITALISM
HIGH MARKETING NON PRICE
COSTS COMPETITION

CHOICE OF MORE
BRANDS
MARKET
OLIGOPOLY

REDUCING
MARKETING COSTS
 BUYER BEHAVIOR

• Social value of persuasion

• More discretionary income available
• Low income group purchases
• Increase in consumption may not
improve living standards
THE ENVIRONMENT

• Packaging
• Disposable products
• Outdoor advertising
• Etc

Other examples
• Population
• Municipal sewage
• Noise
• Etc
 PUBLIC OPINION
CONSUMERISM MOVEMENT
Upton Sinclair: The
Jungle
• 100,000,000 Guinea Pigs
• Your money’s worth
Ralph Nader
Movement getting stronger
every decade
POLITICAL PRESSURE

LOCAL
STATE
CENTRAL
 LEGISLATIVE ACTION
• Central Laws
• State Laws
• Case Laws
• Controlling bodies
- Pollution
- Manufacturing
- Pricing
- Market forces
- Product design / quality
- Advertising
 COMPETITIVE ACTION

• Expansion
• Relations with competition
• Tactics against competition
 PRODUCTS

• Additions
• Design
• Quality
• Packaging & labeling
 PRICING

• Discrimination
• Minimum prices
• Unfair trade practices
 DISTRIBUTION

• Exclusive dealers
• Tying contract
 PROMOTION
• False advertising
• Corrective advertising
• Bait advertising
• Deceptive price advertising
• Advertising to children
• Promotional allowance & services