Download Introduction to Marketing

Introduction to Marketing
Entrance to a
New World
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The BIG Question
WHAT IS
MARKETING?
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Marketing is…
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Advertising
Selling
Creating Needs
Manipulating People
Telling Lies in a Convincing Way
Not for the Defence Industry
Not Scientific
The Role of Marketing
BEAUTY, COMFORT, SAFETY, STATUS etc
EXCHANGE
PROCESS
CASH, DEBT, TIME, EFFORT, VOTES etc
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(Bovee et al, 1995)
Definition (at last)
“A social and managerial process whereby
individuals and groups obtain what they
need and want through creating and
exchanging products and value with
others”
(Kotler and Armstrong, 2001)
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More Definitions!
“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 goals”
(American Marketing Association, 1985)
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Basic Concepts 1/2
l Needs
l Wants
l Demands
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(Kotler and Armstrong, 2001)
Basic Concepts 2/2
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Customer Value (difference between gains and
costs)
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Customer Satisfaction (match between
perceived performance and expectations)
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Relationship Marketing (with customers)
Network Marketing (with all stakeholders)
The Evolution of Marketing
The Production Concept
The Product Concept
The Sales Concept
The Marketing Concept
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The Production Concept
Customers will buy whatever they find
available and affordable
l Management Focus is on improving production
and distribution efficiency
CONDITIONS
l Demand > Supply
l Monopoly
l High Cost
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The Product Philosophy
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Customers will buy the best product in terms of
quality, performance and features
Management Focus is on continuous product
improvement
SIDE EFFECTS
l Marketing Myopia (i.e. Trains, Boats, Cinema)
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The Selling Concept
The Customer will NOT buy unless the
organization undertakes a large-scale selling
and promotion effort
CONDITIONS
l Supply > Demand
l Overcapacity
l Unsought Product
SERIOUS SIDE EFFECT
l Dissatisfied Customer
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The Marketing Concept
The Customer will buy a product that satisfy
his/her individual needs and wants better than
other ones
CONDITIONS
l Supply > Demand
l Intensive Competition
l Consumer Diversity
IMPORTANT DEVELOPMENT
l Societal Marketing Concept – Long term
Welfare
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Marketing Concept vs
Selling Concept 1/2
Selling Concept
Starting Point Factory
Market
Focus
Existing Products
Customer Needs
Means
Selling Promoting
Profit through
Sales Volume
Integrated Marketing
Ends
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Marketing Concept
Profits through
Customer Satisfaction
Marketing Concept vs
Selling Concept 1/2
SELLING CONCEPT- INSIDE OUT
COMPANY
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MARKET
MARKETING CONCEPT- OUTSIDE IN
The TWO-FOLD
Character of Marketing
THE MARKETING PHILOSOPHY
THE MARKETING FUNCTION
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The Marketing Philosophy
WHAT IS
THE CUSTOMER
FOR OUR COMPANY?
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The Marketing Function
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Strategic Level
Marketing Research
Segmentation
Targeting
Positioning
THE 4 P’s
The 4 P’s
l Product – Services, Ideas
l Price
l Place – Distribution
l Promotion – Communication
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Marketing in a Changing World
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Connecting Technologies – Internet
Connection with Customers (more selectively, for
life, directly)
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Connection with Marketing Partners (in other
departments, with suppliers and distributors,
through strategic alliances)
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Connection with the World Around Us (globally,
with values and responsibilities, broadened
connections)
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(Kotler and Armstrong, 2001)