Que: When I say marketing what comes to your mind first? Ans: Consumer satisfaction

Why marketing is important to study? The essence of any managerial process is to achieve
organizational objectives by satisfying the needs of the customer. Marketing is a special tool by which the customer and his needs are first of all identified and necessary managerial functions are adopted to satisfy the needs. Customer behavior, objectives and customer relationships management are critical for any organization whether they are in supply of product or service.

Marketing is now driving function of all modern organizations.Marketing was once only a company department performing a staff function. Marketing precedes all management activities of a new organization or introduction of new product or market. marketing has become the most important function in customer relationship management. Importance of marketing in modern business With the advent of internet and resulting information revolution. .

offering . promoting and delivering goods and services to consumer and businesses. Definition by AMA: Marketing management is a process of planning and execution of conception. . . promotion and distribution of ideas. with others. Philip Kotler Social definition: Marketing is a societal process by which individuals and groups obtain what they need and want through creating . pricing. goods and services to create exchanges that satisfy individual and organizational goals.Popular definitions of marketing Marketing is a task of creating. and freely exchanging products and service of value .

. keeping and growing the customers through creation.Good definition Marketing management is art and science of choosing target markets and getting . delivering and communication of superior customer value.

Importance of marketing in organizations The basic reason for firm s existence is customers want satisfaction. Marketing is the only revenue producing activity for the firm. Marketing helps the firm to identify customer needs and wants. Marketing has become increasingly important for service firms and non profit organizations. .

Studying marketing will make you well informed customer. Marketing probably relates directly or indirectly to our career aspirations. .Importance of marketing in our life Marketing is a large part of our daily life. Consumers are exposed to number of commercials a day.

Evolution of marketing This concept has evolved through three successive stages Production Era Sales Era Marketing Era .

Production Era Manufacturers in this stage focused on increasing output while assuming that customers would seek out and buy reasonably priced and well made product. . More emphasis on efficiency and cost control. Executives with background in engineering and manufacturing shaped the firm s strategy.

This era was characterized by aggressive selling and usage of unethical practices to sell products. . During this stage managers realized that to sell the product a firm want to make some promotional activity.Sales Era This concept evolved in early 1930 s.

Marketing Era This era begins in the mid of 1950 s. Companies identifies the importance of customer needs and wants. . Marketing activities were directed towards two goals Customer orientation and profitability.

Production Orientation Some industries remain at the production orientation stage. Production Orientation Sales Orientation Other companies have progressed only to the sales orientation stage. Sales Orientation Marketing Orientation Many companies have progressed to marketing orientation stage. Early 1930s Mid 1950s Production Orientation 1990s .

Marketing Concept Focuses on needs/wants of target market & delivering satisfaction better than competitors. Society s well being.Marketing Management concepts Production Concept Product Concept Selling Concept Consumer favor products that are available and highly affordable. Societal Marketing Concept . Consumer favor products that offers the most quality. Consumer buy the product if company promotes/sells the product. Focuses on needs/wants of target market & delivering superior value. performance and innovative features. Improve production and distribution.

resulted in marketing myopia i. though useful in some situations.Production Concept Believes that consumers will prefer products that are readily available at reasonable prices.e. Improvement In production and distribution efficiency was main focus for the managements. . The production concept. this concept focuses narrowly on their own objectives lose sight of real objectives of customer s needs satisfaction.

Product Concept This concept believes that consumers will automatically favor products that offers most quality. . Continuous improvements in product and quality also lead to marketing myopia. performance and innovative features. Thus the important is on product development.

.Selling Concept This concept believes that left to themselves consumers and business will not buy enough to satisfy the sellers volumes. The sells concept is centered on the idea of high pressure selling to maximize sales volume and hence profits. Thus constant sales promotion efforts have to be made in order to reach the required sales volumes.

. 2.Marketing Concept Believed that instead of make and sell. Proactive orientation: You see a future need and you respond with a product. So by the time the need arrives in the market and your product is there. There are two orientation that supports this concept: 1. Reactive market orientation: You see the need and you respond to with a product. companies should sense and respond. So the job is not to find the right customer for your product but find the right product for your customer.

. Correctly identify the target market and target market consumers needs. Design the most effective product that best meets the requirements of the consumer.Characteristics of Marketing First identify the needsConcept of a target segment of a market. marketing concept focuses on the needs of the customer. Aim at profitably by creating superior customer value. Unlike the selling concept. Implement integrated marketing throughout all d departments in the organizations.

hence the societal approach was introduced. . Care should be taken to minimize the environmental deterioration. poverty and moral breakdown.Societal Marketing Concept Is the marketing concept ethical enough? Marketing has to be made humane and ecological. Hence needs to be satisfied in a manner which enhances and preserves consumers society and society s well being. hunger.

Wants & Demands Markets Products & services Exchange. Transactions and relationship Value. Satisfaction &quality .Core Marketing Concepts Needs.

. Demands: Human wants backed by buying power and willingness to buy. clothing and social needs. Wants: Forms that a human need takes as they are shaped by culture and individual personality characteristics. Wants and Demands? Needs: State of felt deprivation for basic items such as food.What are consumers Needs.

People need food. . wants and what leads to demand? Needs are basic human requirements.Customers needs . An Indian needs food but wants pizza while hungry Chinese may want noodles. People need transport. Demands are wants for specific products backed by ability to pay. People also have strong need of recreation. That might satisfy their needs. education and entertainment. cloths. many people want a car but only few can form the demand for a Mercedes car. air. Shelter for basic survival. Thus wants are shaped by socio-cultural factors. Needs becomes wants when they are directed to specific objects.

Modern Marketing system Suppliers Competit ors Environme nt Company(Markete r) Marketing Intermediaries Environme nt End User Market .

Marketing Mix Set of controllable. . Marketing tools that the firm blends to produce the response it wants in the target market. tactical.

The 4P s of Marketing Product Promotion C Price Place .

Discounts. Price: Money value that consumer pay to buy a product or service. features. brand name.The Marketing Mix To achieve company s objective a marketing program based on the most suitable marketing mix will drawn up. Marketing mix is made up of following factors: Product: Goods and services offered by a company to target market. . credit facilities. The different physical attributes of p[products such as design. allowances. to satisfy needs and wants. payment periods. usage etc. quality.

location. coverage. inventory and logistics management. transport. Include aspects of channels. advertising ad communicating product benefits and attributes to target consumers to persuade them to purchase. . Promotion: Activities of personal selling.Place: Physical distribution activities through which the product moves from the factory to the customer.

An organization s promotional mix consists of: Personal selling Sales promotion Promotiona l Mix Public Relation Publicity Direct Marketing .Marketing mix Promotion Advertising A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market.

Market segmentation Dividing a market into distinct group of buyers who have different needs. characteristics. and who might require separate products or marketing programs. . or behaviors. Market Segment: A group of consumers who respond in a similar way to a given set of marketing efforts.

Levels of Market Segmentation Segment Marketing Individual Marketing Segme ntation Niche Marketing Local Marketing .

Segment Marketing Identifiable group within a market with similar : Wants Purchasing Power Geographical Location Buying attitudes .

Niche Marketing Narrowly defined group whose needs are not well served Distinct needs Specialization Less competition Size. profit and growth Potential .

Individual Marketing Marketing according to individual customer Customized marketing Cars/cloths Architects Software .

Local Marketing Marketing program serving Needs & Wants of local customers. .

objectives.Purpose of Segmentation 1. 3. Providing products matching with needs. 2. Analyze their characteristics & buying behavior.Satisfying needs while meeting org. 4. Identifying groups of customers with similar needs. .

Segmenting Consumer Markets Demographic Variables Age Gender Family Size Income Occupation Education Psychographic Variables Geographic Variables Region City Rural and semi-urban areas Behavioral Variables Occasions Benefits User status Usage rate Loyalty status Readiness stage Attitude toward product Socioeconomic classification Life style .

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Chetan Nisarg Ravi Yashpal .

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