Basics Of Marketing

Definition of marketing MARKETING is a societal process by which individuals and groups obtain what they need and want through creating , offering, and freely exchanging products and services of values with others
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The New Economy

What do consumers have today ?

A substantial increase in buying power A greater variety of available goods and services A great amount of information about practically anything
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The New Economy

A greater ease in interacting and placing and receiving orders An ability to compare notes on products and services

The above choices have thrown a big challenge to marketers

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Role of Marketing
Marketing is typically seen as the Task of creating, promoting, and Delivering goods and services to Consumers and businesses

Role of Marketing (Contd.)

Marketers are :

Skilled in stimulating demand for a companys products Responsible for demand management Seek to influence the level, timing and composition of demand to meet the organizations objectives
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Role of Marketing (Contd.) Marketers Are Involved in

1 GOODS 3 SERVICES 2 PLACE 4 PROPERTIES

5 EXPERIENCES
7 EVENTS 9 PERSONS

6 ORGANISATIONS
8 INFORMATIONS 10 IDEAS
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Types of Market
Consumer markets Mass consumer goods, services Business/industrial markets business goods or services Global markets goods services sold in global market Non-profit & government markets goods sold to govt. & Non profit organization (NGO)

Core Marketing Concepts

Target markets & segmentation Marketers identify and profile distinct groups of buyers who might prefer or require varying product and service mixes Market segments are identified based on demographic, psychographics & behavioral differences among buyers Marketers decide, which segment present the greatest opportunity which are its target markets

Core Marketing Concepts

Marketplace, market space, & metamarket The term market is used to cover various groupings of customers such as Need markets (diet seeking market) Product markets (the shoe market) Demographic market (the youth market) & Geographic market (French market) or other markets e.g. Voter markets, labour markets & donor markets 9

Core Marketing Concepts

Marketplace is physical, as when one goes for shopping in a store; Market space is digital, as when one goes shopping on the internet. Meta market can be described as a cluster of complementary products and services that are closely related in the minds of consumer but are spread across a diverse set of industries.
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Core Marketing Concepts

Marketers & prospects Who is a marketer ? Some one seeking a response (attention, a purchase, a vote, a donation) from another party, called the prospect
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Core Marketing concepts

Needs, wants and demands

Needs are the basic human requirements. (Food, air, water, clothing, shelter as well as recreation, education, entertainment) Needs become wants when they are directed to specific objects that might satisfy the need. Demands are wants for specific products backed by an ability to pay
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Core Marketing Concepts

Product , offering and brand

Companies address needs by putting forth a value proposition, a set of benefits they offer to customers to satisfy their needs. The intangible value prepositions is made physical by an offering, which can be a combination of products, services, information, and experiences
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Core Marketing Concepts

A brand is an offering from a known source. A brand carries many imaginations in the minds of people; These imaginations make up a brand image.

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Core Marketing Concepts

Value & satisfaction

The offering will be successful if it delivers value and satisfaction to the target buyer Value can be seen as primarily a combination of quality, service and price Value increases with quality and service and decreases with price
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Core Marketing Concepts

Exchange and transactions Exchange, which is the core concept of marketing, is the process of obtaining a desired product from someone by offering something in return A transaction is a trade of values between two or more parties A barter transaction involves trading goods or services for other goods or services A transaction differs from a transfer. In a transfer, A gives X to B but does not receive anything tangible in return 16

Core Marketing Concepts

Relationship and networks Relationship marketing has the aim of building mutually satisfying long-term relations with key parties customers, suppliers, distributors in order to earn and retain their business A marketing network consists of the company and its supporting stakeholders (customers, employees, suppliers, distributors, retailers, ad agencies, etc.) With whom it has built mutually profitable business relationships
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Core Marketing Concepts

Marketing channels
To reach the target, marketers use three kinds of marketing channels

Communication channels deliver and receive messages from target buyers (e.G. Audio visual media)

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Core Marketing Concepts

Distribution channels are used to display, sell, or deliver the physical products or services to the buyer or user. (E.G. Distributors, wholesalers, retailers, and agents) Service channels are used to carry out transactions with potential buyers. (E.G. Warehouse, transportation companies, banks, and insurance companies)
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Core Marketing Concepts

Supply chain While marketing channels connect the marketer to the target buyers, the supply chain describes a longer channel stretching from raw materials to components to final products that are carried to final buyers
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Core Marketing Concepts

Competition Competition includes all the actual and potential rival offerings and substitute that a buyer might consider

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Core Marketing Concepts

Marketing environment Task environment & broad environment Task environment Includes the immediate people involved in producing, distributing, and promoting the offering. ( e.g. Company, suppliers, distributors, dealers, and the target customers) Broad environment Consists of six components:
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Core Marketing Concepts

Demographic environment Economic environment Natural environment Technological environment Political-legal environment Social-cultural environment

These environments contain forces that can have a major impact on the people in the task environment
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Core Marketing Concepts

Marketing program The marketers job is to build a marketing program or plan to achieve the companys desired objectives The marketing program consists of numerous decisions on the mix of marketing tools to use. The marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in the target market
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Company Orientations Towards Market Place

Organizations conduct marketing activities under following competing concepts 1. Production concept 2. Product concept 3. Selling concept 4. Marketing concept 5. Customer concept & 6. Societal marketing concept
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Company Orientations Towards Market Place

PRODUCTION CONCEPT

The production concept holds that consumers will prefer products that are widely available and inexpensive. Business organizations stress on achieving high production efficiency, low costs, and mass distribution. This concept holds good for developing countries, where consumers are more interested in obtaining the product than in its features.
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Company Orientations Towards Market Place

PRODUCT CONCEPT

According to this concept, customers favour those products that offer best quality, performance, or innovative features. Managers in these firms focus on making superior products and improving them on regular basis.
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Company Orientations Towards Market Place

Selling concept The selling concept holds that consumers & business organizations typically show buying inertia or resistance & must be persuaded into buying The organizations undertake an aggressive selling promotion effort This concept is generally practiced more often with unsought goods,e.g. Insurance products, candidates of a political party or when firms have over capacity The stress is on heavy advertising and sales promotion to make a sale 28

Company Orientations Towards Market Place

Marketing concept The marketing concept holds that to achieve organizational goals (i.e. earning profit) the company should be more effective than competitors in creating, delivering, and communicating superior customer value to its chosen target markets

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Company Orientations Towards Market Place

The marketing concept is based on:

Target market Customer needs Integrated marketing and

Profitability

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Company Orientations Towards Market Place

Customer Concept

In this concept, companies hope to achieve profitable growth through capturing larger share of each customers expenditures by building high customer loyalty and focusing on customer lifetime value.
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Company Orientations Towards Market Place

Societal Marketing Concept

The societal marketing concept holds that the organizations task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors, in a way that preserves or enhances the consumers and societys well being.

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Company Orientations Towards Market Place

The concept calls upon marketers to balance three considerations: Company profits Consumer want , satisfaction & The public interest

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