Marketing: An Introduction

INTRODUCTION TO MARKETING
Thirumal reddy SSIM

Marketing: An Introduction

A SIMPLE MARKETING SYSTEM

COMMUNICATION

GOODS & SERVICES INDUSTRY (A collection of sellers) MONEY

MARKET (A collection of buyers)

INFORMATION

Marketing: An Introduction

Marketing Management Philosophies Agree or Disagree?

1. Production: consumers will favor products that are
available and highly affordable

2. Product: consumers favor products that offer the

most in quality, performance, and innovative features

3. Selling: consumers will not buy unless an

organization undertakes a large-scale selling and promotional effort

4. Marketing: determining the needs and wants of

target markets and delivering the desired satisfactions more effectively and efficiently then the competitors

5. Societal marketing: generating customer

satisfaction and long-run societal well-being are the keys to both achieving the companys goals and fulfilling its responsibilities

Marketing: An Introduction

Relationships
Relationship marketing: the process of creating,
maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.

Marketing: An Introduction

Marketing Management Practice Essentially Two Types Entrepreneurial marketing:

Businesses started by individuals Creativity, drive, and perseverance are keys to success

Formulated marketing:
Professional, disciplined approach Achieving a market orientation

Marketing: An Introduction

Orientations towards marketing

Production concept (before 1930): demand > supply Selling concept (1930-1950): supply > demand Marketing concept (post-1960s): analyze consumer needs before producing and selling, market orientation, competition

Marketing: An Introduction

Marketing Concept versus Selling Concept

Starting Point Focus Means Ends

The Marketing Concept

Market Customer needs Integrated marketing Profits from satisfied customers

The Selling Concept

Factory Product

Sell and Promote it

Profits through sales volume

Figure 1.3

Marketing Management
Marketing: An Introduction What is marketing management?
Marketing management 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 goals (Philip Kotler)

Marketing management has the task of influencing the level, timing, and composition of demand in a way that will help the organization achieve its objectives.

Marketing: An Introduction

Definitions of marketing
Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably The Chartered Institute of Marketing

Marketing: An Introduction

The right product, in the right place, at the right time, and at the right price Adcock et al

Marketing: An Introduction

Marketing is a social and managerial process by which individuals and groups obtain what they want and need through creating, offering and exchanging products of value with others Kotler 1991

Marketing: An Introduction

Implications of marketing
Who are our existing / potential customers? What are their current / future needs? How can we satisfy these needs?
Can we offer a product/ service that the customer would value? Can we communicate with our customers? Can we deliver a competitive product of service?

Why should customers buy from us?

Marketing: An Introduction

Successful marketing requires:

Profitable Offensive (rather than defensive) Integrated Strategic (is future orientated) Effective (gets results)
1972

Hugh Davidson

Marketing: An Introduction

Marketing management process

Analysis/Audit - where are we now? Objectives - where do we want to be? Strategies - which way is best? Tactics - how do we get there? (Implementation - Getting there!) Control - Ensuring arrival

Marketing: An Introduction

A marketing program
Consists of: Market Segments - groups of people sharing similar wants, buying preferences, or product-use behaviors. Target Market - market segment to which a marketing program is targeted. Position - attempts to establish a unique identity in potential customers minds. Forecasting Demand - research to determine size of the market. Marketing Mix Product/Price/Distribution/Promotion

Marketing: An Introduction

The Overall Themes of Marketing The Traditional Marketing Mix

Product Price Promotion Place

Marketing: An Introduction

Importance of marketing in the domestic economy

Marketing Creates Employment Marketing Creates Utilities: Place utility makes a product accessible to potential customers where they want it. Time utility makes a product available when customers want it. Information utility is created by informing prospective buyers that a product exists. Image utility is the emotional or psychological value that the customer attaches to a product or brand. Possession utility is created when ownership is transferred to the buyer.

Marketing: An Introduction

Importance of marketing in organizations

The basic reason for a firms existence is customers want satisfaction. Marketing is the only revenue-producing activity for the firm. Marketing has become increasingly important for service firms and nonprofit organizations.

Marketing: An Introduction

Continuation in next class

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