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What will we be learning..??? What is marketing? Why is marketing important? What is the scope of marketing? Some fundamental marketing concepts. Marketing Challenges in the Globalized economic scenario. Promotion What is Marketing? Definition Of Marketing American Marketing Association AMA : Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Dr. Philip Kotler Kotler : “the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Simply put Marketing is the delivery of customer satisfaction at a profit. Goals Attract new customers by promising superior value and keep and grow current customers by delivering satisfaction. A simple model of the marketing process Create value for customers & build customer relationships Understand the marketplace & customer needs & wants Design a customer driven marketing strategy Construct an integrated marketing program that delivers superior value Capture value from customers in return Build profitable relationships & create customer delight Capture value from customers to create profits & customer equity. VALUE AND SATISFACTION Value is the customers’ estimate of the Product’s capacity to satisfy a set of goals Value is the ratio between what the customer gets and what he gives (V=B/C) Customer gets benefits & assume costs WHEN :Customer Expectance=Performance (satisfied) Customer Expectance>Performance (dis-satisfied) Customer Expectance<Performance (Highly satisfied) Basic Terms: Needs, Wants & Demands Need:• Basic human requirements like food, clothing and shelter • Can also include needs like education and recreation • Find out types of needs Want:• Need directed to specified object • Is shaped by culture and individual • Might satisfy the need Demand:• Wants backed by purchasing power Basic Terms: Value & Satisfaction Value:• Reflects perceived tangible & intangible benefits & costs • Usually combination of quality, service and price Satisfaction:• Customer’s comparative judgment of expectation and perceived performance Basic Terms: Offering & Branding Offering:• Needs are addressed by value proposition • Set of benefits offered to satisfy needs • Value proposition is made physical by an offering Basic Terms: Market Physical place Buyers and Sellers meet Transaction happens Key customer markets:1. 2. 3. Consumer Market Business Market Global Market What is MARKETED…??? Goods Services People Experience Events Properties Organisations NEWS PAPERS BOOKS Ideas Who is Marketer…??? A Marketer is someone who seeks a Response from a party , referred as Prospect. Marketer Skilled in stimulating demand. Responsible for demand management, i.e., identify the demand state and determine plan for it. There are eight Demand States of a consumer which need to be identified. Demand States Negative Demand: Customers dislike the product and may even pay a price to avoid it. Non-existent Demand: Customers may be unaware or uninterested in the product. Latent Demand: Consumers may have a strong need that cannot be satisfied by an existing product. Declining Demand: Consumers buy the product less frequently or not at all. Irregular Demand: Purchases vary on a seasonal, monthly, weekly or even daily. Full Demand: Customers buy in adequate amount products available in market. Overfull Demand: Many consumers would like to buy the product that can be satisfied. MARKETING MYOPIA Term coined by Theodore Levitt Refer to the short sightedness The marketer wants to sell the product and services, without much focusing on the customer demands/needs. “Creativity is thinking up new things. Innovation is doing new things.” Theodore Levitt Evolution of Marketing Concept This marketing philosophy has undergone a thorough and gradual change since the great Industrial Revolution that took place during the latter-half of the 18th and first-half of the 19th centuries. This gradual change can be traced under four periods and captions namely, production orientation period, sales-orientation period, customer-orientation period and social orientation period. Five Core Concepts of Marketing 1. 2. 3. 4. 5. Production Concept Product Concept Selling Concept Marketing Concept Societal Marketing Concept Production Concept The idea that consumers will favor products that are available & highly affordable & that the organization should therefore focus on improving production & distribution efficiency. Product Concept The product philosophy was the dominant marketing philosophy prior to the Industrial Revolution and continued to the 1920s. The idea that consumers will favor products that offer the most quality, performance, & features thereby devoting a company’s energy to making continuous product improvements. Make & sell concept Focus on making superior products No customer input Less competitor product examination. “ Marketing Myopia” Selling Concept It began to be dominant around 1930 and stayed in widespread use until about 1950. The idea that consumers will not buy enough of the firms products unless it undertakes a large scale selling & promotion effort. Practiced most aggressively with unsought goods eg, insurance, encyclopedias. Focuses on creating sales-transactions rather than long term profitable relationships. “Political Relationships” Marketing Concept The marketing era started to dominate around 1950, and it continues to the present. The marketing management philosophy that achieving organizational goals depends on knowing the needs & wants of target markets & delivering the desired satisfactions better than competitors. Sense & respond philosophy. Finding right products for customers Customer-driving marketing – understanding customer needs even better than the customers themselves. Contrast between Sales Concept & Marketing Concept Factory Products Selling &Promoting Profits through sales volume a. THE SELLING CONCEPT Target Customer Market Needs Integrated Profits through Marketing customer satisfaction b. THE MARKETING CONCEPT Societal Marketing Concept Holds that marketing strategy should deliver value to customers in a way that maintains or improves both consumers & the societies wellbeing. Society (Human Welfare) Consumers (Want Satisfaction) Societal marketing concept Company (Profits) Thank You…! That’s It For Today