Marketing

What is Marketing?? Selling? Advertising? Promotions? Making products available in stores? Maintaining inventories?
All of the above, plus much more!

Marketing
Marketing is the delivery of customer satisfaction at a profit. Marketing, more than any other business function, deals with customers. Creating customer value and satisfaction are at the very heart of modern marketing thinking and practice. Some people believe that only large business organizations operating in highly developed economies use marketing, but sound marketing is critical to the success of every organization whether large or small, for profit or non profit, domestic or global

Marketing is
The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

- American Marketing Association Definition

Marketing is
The process of planning and executing the

conception, pricing, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain relationships that will satisfy individual and organizational objectives.

by

-Contemporary Marketing Wired (1998) Boone and Kurtz

Marketing management It is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value

OLD view of marketing: Making a saletelling and selling

NEW view of marketing:

Satisfying customer needs

Simple Marketing System

Communication

Goods/services

(a collection of sellers)
Money

Industry

(a collection of Buyers)

Market

Information

The Goal of Marketing is:

To attract new customer by promising superior value, and to keep current customers by delivering satisfaction

Marketing

is the sum of all activities that take you to a sales outlet. After that sales takes over. Marketing is all about creating a pull, sales is all about push. Marketing is all about managing the four Ps product price place promotion

Marketing Mix Place

Product

Price

Promotion

Communication

Difference Between - Sales & Marketing

Sales trying to get the customer to want what the company produces

Marketing trying to get the company what the customer wants

produce

Core Concepts of Marketing

Needs, wants demands

Products

Utility, Value & Satisfaction

Markets

Marketing & Marketers

Xchange, Transaction Relationships

To explain marketing definition, we examine the following important terms :

Needs, wants, and demands Products and services Value, satisfaction and quality Exchange, transactions, and relationships Markets

Needs: The most basic concept underlying marketing is that of human needs. Human needs are states of felt deprivation. Human have many complex needs: Physical needs for food, clothing, warmth, and safety Social needs or belonging and affection Individual needs for knowledge and self expression Wants: Want are the form taken by human needs as they are shaped by culture and individual personality. People have almost unlimited wants but limited resources. They want to choose products that provide the most value and satisfaction for their money. Demands: When backed by buying power, wants become demands. Consumers view products as bundles of benefits and choose products that give them the best bundle for their money.

Product: Anything that can be offered to a market to satisfy a need or want. The concept of product is not limited to physical objects anything capable of satisfying a need can be called a product. Services: In addition to tangible goods, products also include services, which are activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything.

Values: Customer value is the difference between the values the customer gains from owning and using a product and the costs of obtaining the products. Customers often do not judge product value and costs accurately or objectively. They act on perceived value. Satisfaction: Customer satisfaction depends on a products perceived performance in delivering value relative to a buyers expectation. If the products performance falls short of the customers expectations, the buyer is dissatisfied. Quality: Customer satisfaction is closely linked to quality. Quality has a direct impact on product performance. Quality can be defined as freedom from defects. TQM programs designed to constantly improve the quality of products, services, and marketing processes

Exchange : The act of obtaining a desired object from someone by offering something in return Transaction : A trade between two parties that involves at least two things of value, agreed upon conditions a time of agreement, and a place of agreement. Relationship marketing : The process of creating, maintaining, and enhancing strong, value laden relationships with customers and other stakeholders

Marketing Triangle
Customers

Company

Competition

CUSTOMER
Anyone who is in the market looking at a product / service for attention, acquisition, use or consumption that satisfies a want or a need

International Marketing International marketing means marketing across national frontiers

Differences between domestic and international marketing Domestic International

Research data is available in a Research data is generally in foreign single language and is usually easily languages and may be extremely accessed difficult to obtain and interpret Business is transacted in a single currency Head office employees will normally possess detailed knowledge of the home market Promotional messages need to consider just a single national culture Market segmentation occurs within a single country Many currencies are involved, with wide exchange rate fluctuations Head office employees might only possess and outline knowledge of the characteristic foreign markets Numerous cultural differences must be taken into account Market segments might be defined across the same type of consumer in many different countries.

Domestic
Communication and control are immediate and direct Business laws and regulations are clearly understood Business is conducted in a single language Business risks can usually identified and assessed

International
International communication and control might be difficult Foreign laws and regulations might not be clear Multilingual communication is requires Environments may be so unstable that it is extremely difficult to identify and assess risks

Planning and organizational control systems can be simple and direct

The complexity of international trade often necessitates the adoption of complex and sophisticated planning, organization and control systems

International marketing is more than exporting, because it involves: Marketing products that have been manufactured or assembled in the target country Establishing a permanents presence in the foreign country Licensing and franchising Sourcing components from foreign states

Reasons for marketing abroad Economies of scale and scope Existence of lucrative markets in foreign countries Saturated markets in the home country High R&D costs International opportunities Less competition New trade agreements

Exporting It means the sale in a foreign market of an item produced, stored or processed in the supplying firms home country. Two kinds of exporting: Passive and Active

Sources of foreign demand (passive exporting): Non-availability of appropriate products from domestic producers Price differentials between imported and locally supplied items; Exotic images attaching to foreign products; Inefficiency of local distribution systems, political disruptions, industrial action, or other factors that prevent local firms from supplying goods.

Reasons for active exporting: The product has reached the end of its life cycle at home Less competition Easy access to major customers Export increases turnover.