Define & discuss marketing in its broadened Evolution of marketing concept Difference between Selling and Marketing Elements

nts of the marketing mix Examine external environmental forces

sense

 The

production concept prevailed from the time of the industrial revolution until the early 1920's. Mass Production at less cost it was simply to execute transactions at a price determined by the cost of production. Assumption: Consumers will prefer widely available and inexpensive products

 Holds

that consumer will favor those products that offer the most quality, performance. Focusing on improving the quality and making superior products. Assumption: The superior quality products will always be successful
The quality product may not necessarily be successful.

 Around

1930, firms began to practice selling concept, under which companies not only would produce the products, but also would try to convince customers to buy them through personal selling and advertising The selling concept paid little attention to whether the product actually was needed; The goal simply was to beat the competition to the sell with little regard to customer satisfaction. Assumption: We can Push any products by aggressive selling

 The

Purpose of marketing is to sell more stuff to more people more often for more money in order to make more profits
Sergio Zyman ,Former VP of Marketing of CocaCola

 In

1776 in The Wealth of Nations, Adam Smith wrote that the needs of producers should be considered only with regard to meeting the needs of consumers. this philosophy is consistent with the marketing concept, it would not be adopted widely until nearly 200 years later.

While

 Realizing

a profit by successfully satisfying customer needs over the long-term What do customers want? How can we keep our customers satisfied? The marketing concept involves: Focusing on customer needs before developing the product Aligning all functions of the company to focus on those needs

 Make

what you can sell Vs trying to sell what you

made Marketing is all about creating a pull, sales is all about push. Marketing Starts from the customer and ends in Factory Selling Starts from the Factory and ends in Market

There will always be a need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed is to make the product or service available. Peter Drucker

 Selling

is only the tip of the marketing iceberg. One of the arms in Marketing. Other important elements : Marketing research, New Product development, Packaging decisions, Pricing Mechanism, Distribution methods, Advertising and sales promotions Marketing deals with identifying and meeting human needs. Meeting the needs profitably

Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. - AMA

Marketing is both an Art and a Science Two sides of the same coin : Formulated side Creative side

 Marketing

deals with identifying and meeting human needs. Meeting the needs profitably

 Reactive

Market Orientation : Identify and Satisfy the expressed need Proactive Market Orientation : Identify and Satisfy the Latent needs Explore the Customers Blind Spot Probe and learn method

 Sony

Walkman Music in Mobility Emami Fair&Handsome Tata Indica - generous interiors : Unique Selling Proposition.
3M where innovation is the business

Goods Goods Services Services Events & Experiences Events & Experiences Persons Persons Places & Properties Places & Properties Organizations Organizations Information Information Ideas Ideas

Communication

Goods/services

(a collection of sellers)
Money

Industry

(a collection of Buyers)

Market

Information
18

 MARKET

PLACE : Physical as when we shop in a store SPACE: Digital, as when you shop on the internet

MARKET

Consumer Markets

Global Markets

Business Markets

Nonprofit/ Government Markets

Information technology Information technology Liberalization Liberalization Privatization Privatization Globalization Globalization Competition Competition Customization Customization Retail transformation Retail transformation

substantial increase in buying power A greater variety of available goods and services A great amount of information about practically anything Greater ease in interacting and placing and receiving orders An ability to compare notes on products and services An amplified voice to influence public opinion www.consumercomplaints.in

 Strengthening

the brands Measuring marketing effectiveness Driving new product development based on customer needs Gathering meaningful customer insights Utilizing new marketing technology

 To

be successful, a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition

Needs Basic human requirements: air,water,shelter Education, recreation and entertainment ;food Wants When needs are directed to specific Objects that will satisfy the need Pizza, Burger, French fry's ( translation of a need as per our experience ) Demand When wants for specific products backed by an ability to pay and willingness to pay Burger

 Dividing

the Market into segments. Identifying and profiling the distinct groups of the buyers SEGMENTATION Market Segment Bases. Analyze which segments present the greatest opportunity - TARGETING The offerings should be positioned in the minds of target customers as delivering some central benefit- POSITIONING

Value - the value or benefits the customers gain from using the product versus the cost of obtaining the product. Satisfaction - Based on a comparison of performance and expectations.
Performance Performance

> Expectations => Satisfaction < Expectations => Dissatisfaction

Value Benefit Cost

= Benefit / Cost = Functional Benefit + Emotional Benefit = Monetary Cost + Time Cost + Energy Cost + Psychic Cost

Product stands for the goods and services combination the company offers to the target market. Tangible goods : Refrigerator, Washing machines (consumer durables) Soaps, Toothpastes (Fast Moving Consumer Goods) Services (Transportation service, Banking solution)

 Price

stands for the amount of money customers have to pay to obtain the product. PRICING STRATEGIES to meet different types of demand

 Stands

for the company activities that make the product available to target consumers. Dealership, franchising etc. How do goods get to the customer? How quickly do they get there? In what condition will they arrive?

Advertising Advertising

Stands for activities that communicate the merits of the product and persuade target customers to buy it.

Personal Selling Personal Selling Publicity Publicity Sales Promotion Sales Promotion

Marketing Mix

Convenience

Product

Place

Customer Solution

Price

Promotion

Customer Cost

Communication

 The

holistic marketing concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognizes their breadth and interdependancies.

Holistic marketing recognizes that everything matters with marketing and a broad integrated perspective is often necessary.

INTEGRATED MARKETING

INTERNAL MARKETING

HOLISTIC MARKETING

RELATIONSHIP MARKETING

SOCIALLY RESPONSIBLE MARKETING

marketing defined as co-ordination of internal exchanges between the firm and its employees to achieve successful external exchanges between the firm and its customers . Internal marketing includes recruitment, training, motivation and empowerment Marketing activities within the company. Ensuring that everyone in the organization embraces marketing principles. INTRANET PORTALS BEST WAY FOR INTERNAL MARKETING

Internal

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 1-39

 Relationship

marketing has the aim of building mutually satisfying long-term relationship with key parties customers, suppliers, distributors, and other marketing partners. Attracting a new customer may cost five times as much as retaining an existing customer. Customer retention is the key to the Marketing success. Customer Relationship Management(CRM) A marketing network consists of a company and its supporting stakeholders (customers, employees, suppliers, distributors, retailers, ad agencies, university, scientists and others). Partnership Relationship Management (PRM)

 The

marketers task is to devise marketing actvities and assemble fully integrated marketing programs to create, communicate and deliver value for consumer.
Offering

mix

Products/Services Prices Place Promotion

 Social

responsability also requires that marketing consider the role that they are playing and could play in terms of social welfare. The cause and effects of marketing clearly extend beyond the company and the consumer to society as a whole.

 Ethics Environment Legal Community

 Cause marketing or cause-related marketing refers to a type of marketing activity involving the cooperative efforts of a business ("for profit" )and a non-profit organization for mutual benefit

(P&G and CRY)

Donating proceeds from the sale of a product or service - we help organizations work out special promotions, from which a percentage of the profits is donated to CRY. For instance - Novartis India Ltd., in a cause-related marketing scheme, donated 2% of the value of sales of Ovaltine Plus towards CRY's Gujarat rehabilitation operations. The total amount raised was approximately Rs. 40,000. Providing a platform for CRY - you can use your goodwill and influence with your customers, clients, suppliers, and associates to provide a forum for CRY's efforts.For instance the Oberoi Hotels had specially designed and printed envelopes placed in all Oberoi properties, wherein their guests could contribute to CRY which was a huge success, collecting more than Rs. 6.50 lakhs in 18 months.

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 1-48

1.

The purpose of a company is to create a customerThe only profit center is the customer. A business has twoand only twobasic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs. The aim of marketing is to make selling unnecessary. While great devices are invented in the Laboratory, great products are invented in the Marketing department. Marketing is too important to be left to the marketing department.

2.

3. 4.

5.