Marketing

Prof. Rushen Chahal

Prof. Rushen Chahal

Definition of Marketing
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Marketing is the total system of business activities designed to plan, price, promote, and distribute want-satisfying products, services, and ideas to target markets in order to achieve organizational objectives y Marketing means adopting a customer focus for the organization; keeping the customers needs in mind all the time. It may not always mean making an immediate sale.
Prof. Rushen Chahal

In the Socioeconomic System:

Marketing creates utilities: y Place utility makes a product accessible to potential customers where they want it. Time utility makes a product available when they want it. y 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.
Prof. Rushen Chahal

Importance of Marketing to Organizations

The basic reason for firms existence is customers want satisfaction. y Marketing is the only revenue-producing activity for the firm. y Marketing has become increasingly important for service firms and not-forprofit organizations.
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Prof. Rushen Chahal

The Global Importance of Marketing

Nations depend upon marketing to sell their raw materials and industrial output to other countries. y Companies now compete in markets all over the world. y Honda and Toyota now build cars in Canada, starting from nothing 15 years ago.
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Prof. Rushen Chahal

The Importance of Marketing in Your Life

Marketing is a large part of your daily life. Consumers are exposed to 3,000 commercial messages a day. y Studying marketing will make you a betterinformed customer. y Marketing probably relates -- directly or indirectly -- to your career aspirations.
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Prof. Rushen Chahal

Key Words in the Marketing Definition

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total system: not an ad hoc approach system: business activities: but not just for businesses activities: plan, price, promote, distribute: the distribute: marketing mix want-satisfying: want-satisfying: meeting customers needs products, services, ideas: not just products ideas: target markets: not a broad-brush approach markets: organizational objectives: not just profits objectives:

Prof. Rushen Chahal

The Focus of Marketing

marketing involves the exchange of things of value y much of marketings focus today is on the creation of value for customers y we must develop a good understanding of customer needs and wants y ultimately, successful companies develop a close customer relationship
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Prof. Rushen Chahal

Fundamental Bases for Exchange

Two or more people, or units, must be involved y Parties must be willing to be involved (voluntary participation) y Each party must have something of value to contribute to the exchange y Parties must communicate with each other to facilitate the exchange process
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Prof. Rushen Chahal

Evolution of Marketing
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marketing has evolved from a production, to a selling, to a marketing stage in the production-orientation stage, emphasis was on making a better physical product in the sales-orientation stage, the emphasis was on how to sell that product a marketing-oriented organization places emphasis on satisfying the wants and needs of customers
Prof. Rushen Chahal

Stages in the Evolution of Marketing

PRODUCTION ORIENTATION Some industries and organizations remain at the production-orientation stage.

PRODUCTION ORIENTATION

SALES ORIENTATION

Other industries and organizations have progressed only to the sales-orientation stage. PRODUCTION ORIENTATION SALES ORIENTATION MARKETING ORIENTATION

Many industries and organizations have progressed to the marketing-orientation stage. Late 1800s Early 1930s Mid-1950s
Prof. Rushen Chahal

1900s

The Marketing Concept

objective is to produce long-term customer satisfaction and organizational success y all of the organizations planning and operations are customer-oriented y all of the marketing activities of the organization should be consistently designed and delivered y all activities are intended to achieve the firms organizational objectives
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Prof. Rushen Chahal

An Innovation Based on the Marketing Orientation.

Relationship Marketing
An attempt to build personal, longterm bonds with customers. Relationship marketing has expanded to include all groups an organization interact with: suppliers, employees, unions, government, and even competitors.

Prof. Rushen Chahal

Drivers of Customer Satisfaction

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getting the core product right is essential many services and systems support the core customers expect good technical performance of the product or service they also expect to be treated well in face-toface interaction with employees the company must also consider how it makes the customer feel in many subtle ways
Prof. Rushen Chahal

The Difference Between Marketing and Selling

Marketing is the process of determining customer wants and then developing a product to satisfy that need and still yield a satisfactory profit. It is externally focused. y Selling is producing a product and then trying to persuade customers to purchase it -- in effect, trying to alter consumer demand. It is internally focused.
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Prof. Rushen Chahal

How Should Marketing Be Defined?

Company
Kodak

ProductOriented
We make cameras and film. recordings.

MarketingOriented
We help preserve beautiful memories.

Amazon.com We sell books and HewlettPackard Levi Strauss Caterpillar

We make computer printers. We make blue jeans We make construction machinery.

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The Marketing Concept

MARKETING CONCEPT
Customer orientation

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Organizations performance objectives

Coordinated marketing activities

Customer satisfaction

Organizational success

Prof. Rushen Chahal

The Societal . Marketing Concept A revised philosophy, called the societal marketing concept, involves broadly concept defining customer and taking a long-term view of customers satisfaction.

Prof. Rushen Chahal

Quality in Marketing
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quality in what an organization offers is a major contributor to value and customer satisfaction if the customer is satisfied with the quality, he or she is likely to return to buy again quality is very much defined by the customer; it also varies across individuals and over time quality, as perceived by the customer, is influenced not only by physical products but by service as well requires a commitment from all staff to deliver the highest quality possible

Prof. Rushen Chahal

Another Innovation:
Mass Customization
An attempt to provide affordable products customized to come as close as possible to meeting the needs of individual customers. This is made possible because of advances in information technology.

Prof. Rushen Chahal

Ethics in Marketing
Marketing is intended to influence the behaviour of customers and others. The use of marketing tools can create a wide variety of ethical challenges. y There is disagreement over what constitutes ethical or unethical behaviour. Ethics are standards of behaviour generally accepted by society. Ethics vary from society to society.
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Prof. Rushen Chahal

More About Ethics

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Corporations are taking action to instill ethical awareness in their employees by: Avoiding unreasonable pressure on employees to perform. Communicating clearly what is expected of employees. Employing an Ethics Officer to advise employees on ethical dilemmas. Rewarding only ethical performance.

Prof. Rushen Chahal