Download Marketing: An Introduction

Marketing: An Introduction
INTRODUCTION TO
MARKETING
Dr. Prasad Begde,
Assistant Professor, FNU
Marketing: An Introduction
Class Objective:
• Define Market
• Describe Marketing Management
• Elaborate 4 p’s (Marketing mix)
• Define marketing philosophy
• Understand conceptually difference
between marketing and sales
Marketing: An Introduction
What is a market?
“A market consists of all the potential
customers sharing a particular need or
want who might be willing and able to
engage in exchange to satisfy that need
or want” (Philip Kotler)
Marketing: An Introduction
Marketing Definition
• Marketing is the activity, set of institutions,
and processes for creating,
communicating, delivering, and
exchanging offerings that have value for
customers, clients, partners, and society at
large. (Approved by AMA on July 2013)
Marketing: An Introduction
The Overall Themes of Marketing
The Traditional Marketing Mix
•
•
•
•
Product
Price
Promotion
Place
Marketing: An Introduction
Marketing Defined
• Marketing is a process… that is…
•
•
•
•
•
Managerial
Social
Individual
Wants, Desires
Demands – Products and/or Services
Marketing: An Introduction
As far as Customers are concerned there
are three elements to address
• Customer value: Difference between
the values that the customer gains from
owning and using a product versus the
costs of obtaining the product.
• Customer satisfaction: The extent to
which a product’s perceived performance in
delivering value matches a buyer’s
expectations.
• Quality: the characteristics of a product or
service that bear on its ability to satisfy
stated or implied customer needs.
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 company’s 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: An Introduction
Selling Concept
• Customer will not buy product unless they are
persuaded
Marketing Concept
This concept proposes that the reason for success
lies in company's ability to create , deliver and
communicate a better value proposition through its
marketing offer.
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Marketing: An Introduction
Marketing vs. Selling
Sales
• Emphasis on product
• Company manufactures the
product first and then decides
to sell it.
• Mgmt is sales vol oriented
• Planning is short term oriented
in terms of today’s product and
markets.
• Emphasis on staying with
existing
technology
and
reducing costs.
• Different departments work as
highly separate watertight
compartments.
• Cost determines the price
Marketing
• Emphasis on consumer needs
and wants.
• Customer
need
is
first
determined and then delivery
of product is decided
• Mgmt is profit oriented
• Planning is long term oriented
in terms of new product and
future growth.
• Emphasis on innovation in
every sphere
• All deptt. Work in an integrated
manner.
• Consumer determines the
price
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Marketing: An Introduction
What is Sales Management?
• One definition: “The management of the
personal selling part of a company’s marketing
function.”
• Another definition: “The process of planning,
directing, and controlling of personal selling,
including recruiting, selecting, equipping,
assigning, supervising, paying, and motivating
the personal sales force.
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