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By: Prof. Dipti Purohit
³Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others.´ By Philip Kotler
³Marketing is the application, management and satisfaction of demand through the exchange process.´ By Evans and Burman
MARKETING MANAGEMENT DEFINITION ³Marketing (management) is the process of planning and executing the conception. pricing. goods and services to create exchanges that satisfied individual and organizational objectives.´ By American Marketing Association . promotion and distribution of ideas.
puts marketing in this way: µThere will always. the marketing should result in a customer who is ready to buy. a leading management theorist. But the aim of marketing is to make selling superfluous. one can assume. Ideally. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself.MARKETING MANAGEMENT DEFINITION Peter Drucker. be need for some selling.¶ . All that should be needed then is to make the product or service available.
.Selling vs. Marketing Selling is ³push´. Marketing is ³pull´.
target market and its wants are identified. First a product is made. Only current products and markets are considered. Short-term results are expected from planning.Emphasis on the needs of the buyer 2. Marketing 1. 4. Future growth is an ultimate aim.Emphasis on the needs of seller 2.The company¶s goal is to convert the product into cash by selling a large volume. Long-term strategic planning and new markets are considered. The company¶s goal is to satisfy the needs and wants of customer by means of the product. Profitable sales volumes is incidental 4. The product is made to satisfy these wants.Selling vs. . Marketing Selling 1. 3. then efforts are taken to sell it 3. First.
Following are the marketing elements: Needs. cost and satisfaction Exchange. transactions and relationship Market Marketers .ELEMENTS OF MARKETING The marketing thinking starts with customer¶s needs. Each marketer wants to retain and satisfy each and every customer because of intense competition. wants and demands Products Value. Today the customer is on the driver¶s seat.
. attractive. Marketing do not create the needs.wants and demands Needs are basic human requirements people need food .Needs . In fact they influence the demand by making the product appropriate . air. water clothing and shelter. affordable.
Importance of Marketing Have you seen this girl before? .
Do you remember the NIRMA jingle? .
Importance of Marketing Marketing Promotes Product Awareness to the Public Marketing Helps Boost Product Sales Marketing Builds Company Reputation .
social.This is a Need Needs .state of felt deprivation including physical. and individual needs .
.Wants Needs become wants they are directed to specific objects that might satisfy their needs.
.This is a Want Wants ± Needs become wants when they are directed to specific objects that might satisfy the need.
.Demands Demands are wants for products that are bagged by an ability and willingness to buy them.
This is Demand
Wants Buying Power
NEEDS AND TYPES OF NEEDS
A Need is something, which cannot be created by Marketer but unspeakable and known part of human biology. It is a state of feeling of some basic satisfaction. Need is a compulsory activity without which, human cannot live or sustain. Generally a person will be in a need of Food, Water, Shelter and clothes. These are basic needs. In marketing a Need can be in different nature. For a particular product, there can be so many needs and those are mentioned below.
TYPES OF NEEDS
There are five types of Needs, which differ from person to person and place to place.
Eg: Taking example in case of a CAR.
A/c.e. I. He can express his need of extra fittings in the car.I STATED NEEDS These needs are something can be stated i... expressive in nature.e. A Customer can be in a position to express his needs. Music System. . paintings on his car etc.
.. i.II REAL NEEDS These needs are real needs. which are compulsory.e. without repairs frequently and low petrol consumption. A customer needs low maintenance of car.
Such as he may feel happy.III UNSTATED NEEDS These needs are not expressive as these are some extra feelings of customer which makes him happy and satisfied apart from the benefits of car. he may be honored and well received by them with welcome drinks etc.. . A customer may require better & good service from the company or showroom. if company or showroom management sends him festival greetings or birthday greetings and when ever customer goes to them.
surprise gifts. lucky draws or schemes given to customer as offers that makes him delight. discounts.IV DELIGHT NEEDS These needs are like fringe benefits or windfall benefits to the customer. .
A customer can expect same honor & respect from the company or showroom management to his friend or relative who is introduced by him.v SECRET NEEDS These needs are which above the unstated needs and very secret in nature. .
Take a product relate it to all the types of need explained.Assignment With an example explain the need concept. .
NEEDS. without which a human cannot live and survive. . cloth and shelter. water. WANTS AND DEMANDS Needs are basically like food.
MARKET & MARKETERS Market is place where buying and selling takes place and where buyers and sellers exist to exchange the goods and services for a value. . Marketers are those who takes the products to the end users through promotional activities.
WHAT IS MARKETED? GOODS SERVICES EVENTS EXPERIENCES PERSONS PLACES PROPERTIES ORGANIZATIONS INFORMATION IDEAS .
Scope of Marketing ideas information organisations goods services experiances properties places events persons .
WHO MARKETS? .
business. digital Metamarket: a cluster of complementary closely related in the minds of consumers.WHO MARKETS? Key customer markets: consumer. and nonprofit. Marketplace: physical Marketspace. global. spread across a diverse set of industries .
WHO MARKETS? Marketers market to Prospects Marketers do Demand management: seek to influence the level. timing & composition of Demand 8 Demand states are possible. .
students not interested in new foreign courses because of unaware or ignorance. vaccinations. dental work. aids treatment. farmers not interesting in new cultivating methods.DEMAND STATES AND MARKETING TASKS 1 Negative Demand: Eg.. exconvicts has negative demand 2 No Demand: Eg. .. vasectomies and employees such as alcoholics.
harmless cigarettes.. excess usage of cell phones etc. fuel efficient cars. 4 Declining Demand: Eg. fat-free pizzas and burgers.DEMAND STATES AND MARKETING TASKS 3 Latent Demand: Eg.. at present software jobs are facing declining demand .
seasonal demand like raincoats.DEMAND STATES AND MARKETING TASKS 5 Irregular Demand: Eg.. a/c¶s. theaters face demand only at weak ends. 6 Full Demand: Eg.. umbrellas. any new product with reasonable price and good quality .
x-rated movies.DEMAND STATES AND MARKETING TASKS 7 8 Overfull Demand: Eg. marketing products.. Unwholesome Demand: Eg. pirated cd¶s etc. Because of good advertising and promotion. attract consumers such as cigarettes. a product can have overfull demand which is very difficult to handle. Without proper advertisements. drugs. . alcohol...
.TYPES OF MARKETS CONSUMER MARKETS BUSINESS MARKETS GLOBAL MARKETS NON-PROFIT AND GOVT. MARKETS .
CONSUMER MARKET CONCENTRATES MORE ON @ SELLING MASS CONSUMER GOODS AND SERVICES @ FEATURES OF THE PRODUCT @ QUALITY OF THE PRODUCT @ DISTRIBUTION COVERAGE @ PROMOTION EXPENDITURES HELPS TO ACHIEVE BRAND IMAGE .
PRICE. PLAYS MAIN ROLE TO ACHIEVE BUSINESS CUSTOMERS @ STRONG ROLE BY SALES FORCE.BUSINESS MARKET CONCENTRATES MORE ON @ SELLING BUSINESS GOODS AND SERVICES @ RE-SELL THE PRODUCTS TO OTHERS OR END USERS @ FEATURES & QUALITY OF THE PRODUCT @ ADVT. COMPANY REPUTATION ..
JOINT VENTURE PARTNER. CURRENCY IN DIFFT.. LEGAL SYSTEMS @ TO FOLLOW DIFFT...GLOBAL MARKET CONCENTRATES MORE ON @ HOW TO ENTER( AS AN EXPORTER.. STYLES OF NEGOTIATIONS @ DIFFT. VALUES @ CONDITIONS OF CORRUPTION OR POLITICAL FAVORITISM AND ETC... . COUNTRIES WITH DIFFT.. REQUIREMENTS FOR BUYING. CONTRACT MANUFACTURER OR SOLO MANUFACTURER @ HOW TO ADOPT PRODUCT OR SERVICE @ PRICING THE PRODUCT IN DIFFT. LICENSER. COUNTRIES @ TO ADOPT DIFFT. OWNING AND DISPOSING THE PROPERTY @ DIFFT..
TENDERS. MARKETS CONCENTRATES MORE ON @ SELLING GOODS & SERICES TO NON-PROFIT AND GOVT. PRICING IS MOST IMPORTANT @ LOWER PRICES EFFECT THE QUALITY & FEATURES OF THE PRODUCT @ SELLING THROUGH BIDS... .NON-PROFIT AND GOVT.. ORG. @ LIMITED PURCHASING POWER. ETC. AUCTIONS.
.Company orientations towards the marketplace .
Production concept Product concept Selling concept Marketing concept Holistic marketing concept Relationship marketing Integrated marketing Internal marketing Socially responsible marketing .
Production Concept Consumers favor products that are available and highly affordable Improve production and distribution Focus On Manufacturing (D>S) Goal: Produce All That Is Possible .
´ ³Build a better mousetrap´ .´ ³Make the best product you can and people will buy it. performance.Product Concept Assumption: Consumers favor products that offer the most quality. and innovative features Focus on Manufacturing (D>S) Means: Make quality products ³You can have any color you want as long as it¶s black.
´ . advertising. and distribution was the focus) Focus on selling existing products (D=S) Means: Aggressive Sales & promotion Goal: Maximize Sales ³Sell this inventory no matter what it takes.´ (personal selling.Selling Concept Mid-1920s±early 1950s: weakened demand required that products would have to be ³sold.´ ³You don¶t like black? I¶ll throw a set of glassware.
Marketing Concept Early 1950s±2000s: adopting a customer focus means a commitment to researching and responding to customer needs. Long-Run View Consumer want focus Integrated planning and feedback Adapt to the environment .
Selling versus Marketing Selling Starting point Factory Focus Product Means Selling & promoting Ends Profits through sales volume Marketing Target market Customer needs Integrated marketing Profits through customer satisfa Marketing is not synonymous with ³sales´ or ³advertising´. .
the product is made according to the market requirements and price. tastes and preferences and the product is made based on customer¶s choice. that is ~ low level markets ~ middle level markets ~ high level markets. quality also depends to satisfy that market customer. 2 A market oriented: Here the focus is on market. wants.MARKETING CONCEPT The marketing concept has 4 main features 1 A customer oriented: Management totally focuses on customers needs. .
.e. staffing. planning.MARKETING CONCEPT 3 A support of various departments aimed to company¶s goals: Top management Formulates different objectives to different departments to achieve company¶s main goals i. brand image or profit oriented. . market share.e. 4 An overall performance and operations of the company: Management sets ~ Policies ~ Procedures ~ Organizational Structures ~ Programs to achieve greater total results and applies all functions of management i. directing. firm¶s image. organizing.. coordinating and controlling to entire operations to achieve single set of objective applicable to total organization.
mutually satisfying buyerseller relationships allowing for mutual dependency . 13ed 2006) Using information to create marketing strategies that develop and sustain desirable customer relationships Establishing long-term.Holistic Marketing Concept 1 Relationship Marketing Developing Marketing Networks Using CRM is ³the overall process of building & maintaining profitable customer relationships by delivering superior customer value and satisfaction.´ (Kotler.
McCarthy 4P¶s Robert Lauterborn.4C¶s .Holistic Marketing Concept 2 Integrated Marketing is a comprehensive plan that communicates and delivers the intended value to chosen customers a set of coordinated cross functional activities (a unity of purpose) traditional approach.
Holistic Marketing Concept 3 Internal Marketing External Customers Internal Customers M rk tin Stra g a e g te M rk tin I p e ta n a e g le n tio te a M rk tin rn l a e g ro ra g M rk tin M ae g i C s e ro p o to r sr Ta e M rk ts rg t a e In rn l M rk tin te a a e g ro ra g M rk tin M ae g i Ta e ro p it in rg t s t e rg n tio a iza n .
Holistic Marketing Concept 4 Social responsibility Marketing Act socially responsibly. consider the ethical consequences of one¶s actions..#2 (Want satisfaction) Company «.«« #1 (Human welfare) Consumers .#3 (Profits) .. (Bell& Emory. Focus on satisfying customer needs and wants while enhancing individual and societal well-being Consider the collective needs of society as well as customer desires and the organization¶s profits.1971 JM) Society.
Selling Concept: 4. Holistic Marketing Concept: . Product Concept: 3. Customer Concept: 6. Production Concept: 2. Marketing Concept: 5.Activity A Give at least two examples of companies following these concepts with justifications: 1.
Activity B With the example of Nokia mobile handset. note down the factors involved in the 4Ps of marketing mix: Product Price: Place: Promotion .
wants and desires It makes possible improvements in the existing products It creates and innovates new products and services It increases the comfort level of the customers It makes optimum utilization of all resources It creates more mediators and intermediaries for effective marketing .ADVANTAGES OF MARKETING CONCEPT It satisfies the customer needs.
the firm my cause harm to other segment or to the society as a whole The firm cannot change its products as fast as consumer¶s taste and preferences change The comforts and desires of consumers may not be good and healthy for the society and organizations .LIMITATIONS OF MARKETING CONCEPT By too much concentration on the one sector of consumers satisfaction . firms may loose the other sector consumers By too much concentration on the one segment market.
However. To inform the customers and society about the markets To enable the successful distribution To supply necessary information for marketing decisions. . To organize. the overall objectives can be summarized as: To plan and develop the product on the basis of known customer demand To increase profits and goodwill of the enterprise.Objectives of Marketing The basic objective of marketing is to satisfy the needs and wants of the customers. direct and control all marketing activities.
which is not doing marketing. is not a business >> The success and failure of any organization depends on marketing >> Marketers are forces to sell the products according to the needs and wants of the Customers >> India is developing through marketing concept >> Global markets also depends upon the marketing concept .IMPORTANCE OF MARKETING >> Organizations fulfill their objectives through marketing >> Any organization.
INDIAN MARKETING ENVIRONMENT THERE ARE TWO TYPES OF ENVIRONMENTS IN ANY MARKET. DISTRIBUTORS. SUPPLIERS (WHICH INCLUDES GOODS AS WELL AS SERVICES). THEY ARE 1. TASK ENVIRONMENT. INVOLVES ~~ PRODUCING ~~ DISTRIBUTING ~~ PROMOTING ~~ OFFERING MAIN ACTORS ARE COMPANY. AND THE TARGET CUSTOMERS . DEALERS.
.INDIAN MARKETING ENVIRONMENT (CONTD. INVOLVES SIX COMPONENTS ~~DEMOGRAPHIC ENVIRONMENT ~~ECONOMIC ENVIRONMENT ~~NATURAL ENVIRONMENT ~~TECHNOLOGICAL ENVIRONMENT ~~POLITICAL-LEGAL ENVIRONEMENT ~~SOCIO-CULTURAL ENVIRONMENT .) 2. BROAD ENVIRONMENT.
color. ³a product is anything that can be offered to satisfy a need or want´. including packaging. Stanton.J. . manufacturer¶s prestige.PRODUCTS According to Philip Kotler. retailer¶s prestige and manufacturer¶s and retailer¶s services´. According to W. price. ³ a product is a set of tangible and intangible attributes.
Here the ³product´ is an idea²protecting animals.Product as an idea Products do not have to be physical objects. .
. giving and taking the goods and services in return between two parties or persons who are agreed to act upon the certain terms and conditions for the benefit of the both.EXCHANGE Exchange is a process of. The µExchange¶ is further called ³Transaction´.
there will be products and services exchange in between the two parties. 2] Barter system: Instead 1] Monetary transaction: In of cash transaction.TRANSACTION Transactions are of two types return of products and services the buyer offers cash to the seller. .
VALUE. .. Value = Benefits / Costs Functional Benefits + Emotional Benefits ---------------------------------------------Monetary costs + Time costs + Energy costs + Psychic costs I. COST & SASTISFACTION The product will be successful only if it delivers the satisfaction to the target buyers.e. It is a ration between the customers µgets¶ and what he µgives¶.
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