Professional Documents
Culture Documents
MODULE 1
Concepts of Marketing
Does Marketing
Create or Satisfy Needs?
Understanding the Marketplace
Products
Needs, wants, and
and demands Services
Core
Marketing
Concepts
Markets
Value, satisfaction,
and quality
Exchange, transactions,
and relationships
What is Marketing
Management?
Marketing management is the
art and science
of choosing target markets
and getting, keeping, and growing
customers through
creating, delivering, and communicating
superior customer value.
Company Orientations
Production Product
Selling Marketing
PRODUCTION CONCEPT (1850s-1920s)
Societal
Marketing
Concept
Consumers Company
(Wants) (Profits)
Marketing Management
Philosophies
Finance
Production
Production Finance
Human
resources
Marketing Human
resources Marketing
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Marketing
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Product
•A product is an offering which a business offers to
customers. Strategies are needed for deciding what
products to introduce, managing existing products over
time, and dropping products that are no longer viable.
Price
•Setting the base price for a product is a marketing
decision. Others necessary strategies preferred from
producers to customers and items within a product line,
terms of sale, and possible discounts.
Marketing Mix
Promotion
•Strategies are needed to combine individual methods
such as advertising personal selling and sales
promotion into an integrated communications
campaign.
Place
•The distribution strategies followed by the company.
Decisions regarding the number of channel members,
type of channels used etc.
SEGMENTATION,
TARGETING &
POSITIONING (STP)
Market strategies
• Value Proposition refers to a set of benefits they offer to customers to satisfy their needs.
• It states the target market for the offering, and the differentiating value, the offering provides to its customers.
• In other words, the unique value a business offers to its customers. Unique Selling Proposition (USP)
• It's why your customers will want to do business with you.
• the target market for the offering and the differentiating value the offering provides to its customers
• In other words the unique value a business offers to its customers.
• It's why your customers will want to do business with you
Target Marketing (STP)
• The process of evaluating each
market segment’s attractiveness
and selecting one or more
segments to enter.
Philip Kotler :
A company marketing environment
consists of the actors and forces that
affect the company’s ability to develop
and maintain successful transactions
and relationships with its target
customers.
Marketing Environment
• All the actors and forces influencing the
company’s ability to transact business
effectively with it’s target market.
• Includes:
• Microenvironment - forces close to the company
that affect its ability to serve its customers.
• Macroenvironment - larger societal forces that
affect the whole microenvironment.
Micro environment
Micro Level
Influences that affect a particular firm
The Microenvironment
Company
Demographic
• Natural
Natura - natural resources needed as
inputs by marketers or that are affected by
marketing activities.
The Company’s
Macroenvironment
SEGMENTATION,
TARGETING &
POSITIONING (STP)
Consumer market
• All the individuals and households who
buy or acquire goods and services for
personal consumption
Cultural Factors
Social Factors
Personal Factors
Characteristics affecting consumer
behaviour
Culture - the set of basic values, perceptions,
wants, and behaviors learned by a member of
society from family and other important institutions
• Values in India: • Values in USA:
• Respect & care for • Achievement & Success
elders • Activity
• Honesty & Integrity • Efficiency & Practicality
• Hard work
• Progress
• Achievement &
Success • Material Comfort
• Humanitarianism • Individualism
• Sacrifice • Freedom
• Youthfulness
Characteristics affecting
consumer behaviour
• Sub culture - a group of people with
shared value systems based on
common life experiences and situations
• Social class - relatively permanent and
ordered divisions in a society whose
members share similar values,
interests, and behaviors
Social factors
Reference
Family
groups
Social
Statuses
roles
Personal factors
Involvement determines
Problem Recognition whether some steps are de-
emphasized or extended.
Evaluation
Purchase Decision
Postpurchase
Behavior
Need recognition
Cognitive dissonance
• Buyer discomfort caused by post
purchase conflict
What is Marketing