MAHAJAN SAMANT

INTRODUCTION TO MARKETING PURPOSE OF BUSINESS

INDO GERMAN TRAINING CENTRE

MAHAJAN SAMANT

Purpose of Business is To Create a Customer. Customer Satisfaction is Profit.

Profit is Investment for Future. . . . Peter . F. Drucker

INDO GERMAN TRAINING CENTRE

MAHAJAN SAMANT

Needs Wants - Demands

Needs . . . Basic Human Requirements. State of felt deprivation. Food, Water, Clothing, Shelter, recreation, education, entertainment. Wants . . . Needs diverted to specific objects. Forms of needs shaped by culture, personality . . . Burger & Cola, Mineral Water. Demands . . . Wants for specific products backed by an ability to pay. Mercedes Benz,. . .
INDO GERMAN TRAINING CENTRE

MAHAJAN SAMANT

Needs
1) 2) 3) 4) Stated Needs . . . . . . Inexpensive car Real Needs. . . . . Operating Cost Low Unstated Needs. . . . . .Good Services Delight Needs . . .Onboard facilities can be made 5) Secret Needs . . .Friends to recognise him SAAVY

INDO GERMAN TRAINING CENTRE

MAHAJAN SAMANT

Needs REAPS i.e.

R . . . Rational E . . . Emotional A . . . Aspirational P . . . Physical S . . . Spiritual

INDO GERMAN TRAINING CENTRE

MAHAJAN SAMANT

4 Ways of Satisfaction
1. Self Production Power . . . Generation Self Education . . . Eklavya Reliance Jamnagar Plant. Co-ercion Power Cut (M.P. or Karnataka) Spurious Goods Tel / Electricity Bills Reliance Wireless Roaming Service

2.

INDO GERMAN TRAINING CENTRE

MAHAJAN SAMANT

4 Ways of Satisfaction
3. Supplication State Economy - Budgeting Brazil Economy Management Quota in Seats Gas Cylinder, Subsidy Exchange All Transactions incl. Credit Card, ATM Card (!!)

4.

INDO GERMAN TRAINING CENTRE

MAHAJAN SAMANT

For Exchange Potential, 5 CONDITIONS must be satisfied.

1) 2) 3) 4) 5) There are at least two parties. Each party has something that might be of value to the other party. Each party is capable of communication & delivery. Each party is to accept or reject the exchange offer. Each party believes it is appropriate and desirable to deal with the other party.

INDO GERMAN TRAINING CENTRE

MAHAJAN SAMANT

MARKETING . . . some definitions

To sell more, shift to more people more often for more money in order to make profit - Sergio Zyman, Ex. V.P, Coke Have it your way Burger King You are the Boss United Airlines Putting people first British Airways Partners for Profits Milliken & Company

INDO GERMAN TRAINING CENTRE

MAHAJAN SAMANT

MARKET
is an arena for potential exchanges.

INDO GERMAN TRAINING CENTRE

MAHAJAN SAMANT

MARKETING . . .different aspects

Deals with identifying and meeting human and social needs. Meeting needs profitably. Deliver a higher standard of living. Social process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products & services of value with others. The art of selling products. The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual & organizational goals. AMERICAL MARKETING ASSOCIATION Human activity directed at satisfying needs and wants through exchange process Find wants and fill them.
INDO GERMAN TRAINING CENTRE

MAHAJAN SAMANT

MARKETING - 10 Types of Entities

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) Physical Goods Services Experiences : Walt Disney Events : Olympics Persons : Celebrity, ABCL Places Properties Organizations Informations Ideas
INDO GERMAN TRAINING CENTRE

MAHAJAN SAMANT

MARKETING PRACTICE
There are 3 Stages as follows :
1) Entrepreneurial . . . Wit & Gut. E.g.: Jim Koch (1984) Founder of Boston Beer (bar to bar) no advertisements. 2) Formulated . . . After success, inevitable move!, Boston Beer now advertises, Sales $210 billion!! 3) Intrepreneurial . . . Large

INDO GERMAN TRAINING CENTRE

MAHAJAN SAMANT

MARKETING TASK
Demand State Negative No Latent Declining Irregular Full Overfull Unwholesome Marketing Task Disabuse Create Develop Revitalize Synchronize Maintain Reduce Destroy Formal Name
Conventional Stimulation Developmental Re-Marketing Synchro - M Maintenance De Mktg. Counter Mktg.

INDO GERMAN TRAINING CENTRE

MAHAJAN SAMANT

COMPANY ORIENTATIONS / STANCES

1) Product Concept
Customers will favour those products that offer the most quality, performance, innovative features. Eg.: Coke on soft drinks (Lost Coffee Bars and juice bars), HMT, Bata, Indian Airlines, Signal, Nelco, R. K. Films. Consumers & Businesses if left alone will ordinarily not buy enough UNLESS supported by an aggregate selling & promotion efforts. INSIDE OUT PERSPECTIVE. Eg.: VP Cokes Definition of Marketing, Insurance Agents, Aqua Guard, Soap Opera of 80s, India Shining, Garibi Hatao.
INDO GERMAN TRAINING CENTRE

2) Selling Concept

MAHAJAN SAMANT

COMPANY ORIENTATIONS / STANCES

3) Marketing Concept
Key to achieving its organizational goals consists of the company being more effective and efficient than competitors in creating, delivering and communicating superior customer value to its chosen target markets. - Four Pillars i.e. Target Market, Customer Needs, Integrated Marketing and Profitability. - OUTSIDE IN perspective Level is Customer Segment. Eg.: Liril, Titan, Bajaj Electricals, D-Cold, R.K. Films.

INDO GERMAN TRAINING CENTRE

MAHAJAN SAMANT

COMPANY ORIENTATIONS / STANCES

4) Social Marketing Concept
- Environmental deterioration, Resource shortages, Explosive Population Growth, World Hunger and Poverty, neglected social sections. - Act in best long run interest of the consumers and society. - Organizations task is to determine needs, wants and interests of target market & to deliver the desired satisfactions more efficiently than competitors in a way that preserves or enhances the consumers & societys well being.

INDO GERMAN TRAINING CENTRE

MAHAJAN SAMANT

COMPANY ORIENTATIONS / STANCES

5) Production Concept
Consumers will prefer products that are widely available and inexpensive. High production efficiency, low-cost, mass distribution. Eg.: Developing countries, China Model. Level is customer. Separate offers, services & messages to individual customers. Eg.: Lintas 1 and 2 Organisation Structure for Level (Networking), USA live in Call-Centres, Jet Airways (Paneer).

6) Customer Concept

INDO GERMAN TRAINING CENTRE

MAHAJAN SAMANT

Value and Satisfaction

Value is combination of and

Price!

Quality, Service Q,S,P

Customer Value Trial Value = Benefits Costs

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

INDO GERMAN TRAINING CENTRE

MAHAJAN SAMANT

Four Ps of Marketing Mix (Mc Carthy)

Product
-Product Variety -Quality

Price
-List Price -Discounts -Allowances -Payment Period -Credit Terms

Promotion
-Sales Promotion -Advertising -Sales Force -Public Relation -Direct Marketing

Place
-Channels -Coverage -Assortment -Location -Inventory -Transport

-Design
-Features -Brand Name -Packaging

-Sizes
-Sizes -Services -Warranties

-Returns

INDO GERMAN TRAINING CENTRE

MAHAJAN SAMANT

Robert Lauterborn

Customers Four
Four Ps
- Product

Cs

Four Cs
- Customer Solution

- Price
- Place - Promotion

- Customer Cost
- Convenience - Communication

INDO GERMAN TRAINING CENTRE