Download Evolution of marketing

The marketing has a remarkable change from its
primitive barter system to the present day
management oriented approach of marketing.
Barter system
Management
orientation
Production
Orientation
Sales
orientation
Customer
Orientation
Evolution process of marketing
Recent marketing innovations
1. 1.SOCIAL MARKETING: The societal marketing concept
calls for a consumer orientation backed by integrated
marketing aimed at generating customer satisfaction.
2. DEMARKETING: It is a situation that may come about as a
result of temporary storage due to short run excess demand
for a company’s products.
3. REMARKETING: Finding new customers or create new
uses or users for an existing product is remarketing.
4. OVER MARKETING: It constitutes the striving by a firm to
generate increased sales while neglecting quality control,
production efficiency and cash flow management.
5 .META- MARKETING: Prof. Kelly EJ, first used this
concept .Meta marketing is to designate a new, although
related discipline which deals critically with marketing as a
discipline.
6. RELATIONSHIP MARKETING :In this approach ,
marketing has to keep in touch with regular customers , to
identify most loyal out of them for providing special
services.
7. AUGMENTED MARKETING: A set of benefits in the
shape if additional customer services like high tech
.services offered to
customer in the augmented
marketing.
8 .ORGANISATION MARKETING: It consist of certain
activities undertaken to create , maintain or ,change
attitudes and behavior if target audiences towards an
organisation.The activities towards particular people is
person marketing.
Difference between selling & marketing
SELLING
1.
2.
3.
4.
5.
It revolves around the needs
and interests of the seller.
It starts with the existing
products of the corporation and
views business as a task of
some how pushing the existing
products of the corporation.
Selling seeks profits by pushing
the products on the buyers. It
means the product is the main
item in this activity.
Over emphasises the
‘exchange’ aspect with out
caring for the value satisfaction
inherent in the exchange.
It is an approach to derive and
attain short term goals.
MARKETING
1. It revolves around the needs and
interests of the seller.
2. It starts with the customers, present
and potential, and views business as a
task of meeting the needs of the
customers by producing and supplying
products and services that would
exactly meet the needs of the
customers.
3. Marketing too seek profits-but not
through aggressive pushing of the
products by meeting the needs of the
customers and giving satisfaction to
them. It means the consumer and his
choices are given prime consideration
in this function.
4. Concern mainly with the value
satisfaction, that should flow to the
customer from the exchange.
5. It represents an integrated approach
to achieve long term goals.
6. It is an activity that
converts goods in to cash.
7. The main emphasises on
staying with the existing
technology and reducing
the cost of production.
8. Costs determine price.
9. Different departments of
the business operate as a
separate water-tight
compartments.
10. It ends with the delivery
of goods against money.
6. It is a function that converts
the needs into products.
7. For providing better value to
the customer, the main
emphasises on innovation in
every sphere i.e., by
adopting the most innovative
technology.
8. Consumer determines price:
Price determines cost.
9. All departments of the
business operate in a highly
integrated manner.
10. It is a creation and delivery
of a standard of living to
society.
Marketing Mix
Place
Product
Target market
Product variety
Channels
Quality
Coverage
Design
Assortments
Features
Price
Promotion
Locations
Brand name
List price
Sales promotion
Inventory
Packaging
Discounts
Advertising
transport
Sizes
Allowances
Sales force
Services
Payment period
Public relations
Warranties
Credit terms
Direct marketing
returns
The other three P’s are
► People
► Place(Physical
► Process
Evidence)
IMPORTANCE OF MARKETING
MANAGEMENT
►
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►
►
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Marketing function is considered important on account of the following
contribution:
Marketing concept enables the organization to keep abreast of changes. An
organization practicing the concept keeps feeling the pulse of the market
through continuous marketing audit, market research and consumer
testing.
The purpose of any marketing concept is the satisfaction of consumers. It is
the customer who willing to pay for g & s, converts economic resources into
wealth, things into goods. All economic activities like production,
distribution & consumption are independent on marketing.
Another distinguishing feature of the marketing concept is integrated
management action i.e., all the different functions of the business must be
tightly integrated with one another, keeping marketing as a pivot.
An efficient marketing set-up increases the volume of sales and thus
reduces the cost of distribution of products and services.
A marketing function maintains a regular interaction with the existing and
potential consumers to ascertain their needs.
Marketing has been described as a means of helping man as a member of
society and as a means of delivering a better standard of life to society as a
whole.
It creates an infra-structure of various activities viz., warehousing,
insurance, transportation e.t.c. due to which employment opportunities
increase.
Scope/Function of marketing
management
Marketing management sets marketing objectives, developing
marketing plans organizes marketing functions, puts marketing
plans and strategies in action and monitors the marketing
programs in the final analysis. According to the scope of
marketing managements powers the following activities like►
►
►
►
►
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Accessing the marketing opportunities.
Planning the marketing activities.
Providing the effective marketing organization.
Organizing and monitoring the stocks at optimum level
so that the customer demand may meet without any
difficulty.
Organizing and maintaining the effectiveness in the
activity of sales promotion, advertisement, credit control
and services after sales.
Evaluating and adjusting marketing efforts.
The marketing functions are built around the process of
marketing involving concentration, equalization and
dispersion.
The marketing process
Concentration
Dispersion
•Buying or
Assembling
•Selling
•Transporting
•Storing
•Storing
•Grading
•Grading
•Financing
•Financing
•Risk bearing
•Risk bearing
•Dividing
•Transporting
Basing on the different classifications given, finally we
classified the marketing functions as
Marketing Functions
Merchandising
Physical
Other functions
(functions of
exchange)
Distribution
•Standardizing
&grading
•Selling
•Storage
•Buying
&advertising
•Transportation
•Financial
•Risk bearing
•Market information
•Market promotion
•Packaging
•Product planning &
development
•Personal selling
MARKETING CONCEPT
Keegan says “marketing is the process of focusing the resources and
objectives of an organization on environmental opportunities and needs…”.
It is a concept, a business and a set of objectives ,as given below.
a) Marketing concept
b) Marketing activities
c) Marketing process
Marketing Concept
Marketing
concept
concept
old/new
Product
services
focus
Customer
competition
means
selling
Integrated
Marketing
activities
end
Profit
Via
sales
Profit
Via
Customer
satisfaction
Marketing Activities
► Product
precision
► Pricing decision
► Distribution decision
► Communication decision
► Research
► Services
Marketing Management Process
► Marketing
is the process of focusing the
resources and objectives of an
organization upon opportunities in the
environment.
Ways of satisfaction of customer wants
product
selling
package
Brand name
advertising
customer
price
service
production
distribution
Company orientation towards
market place
► The
► The
► The
► The
► The
► The
production concept
product concept
selling concept
marketing concept
customer concept
societal marketing concept
The production concept, holds that consumers will
prefer products that are widely available and inexpensive .
The product concept, which holds that consumers will
favor those products that offer most quality, performance,
or innovative features.
The selling concept, holds that consumers and
businesses, if left alone, will ordinarily not buy enough of
the organization’s product.
The marketing concept, holds that the key to
achieving its organizational goals consists of the company
being
more
effective
than
competitors
in
creating,delivering,and communicating superior customer
value to its chosen target markets.
The societal marketing concept, holds that the
organizations task is to determine the needs,wants,and
interests of target markets and to deliver the desired
satisfaction more effectively and efficiently than
competitors in a way that preserves or enhances the
consumer’s and society's well-being.
The marketing concept
► Target
market
► Customer market
► Integrated marketing
► profitability
Nature, importance and scope of strategic
planning
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Serves as a record map for the
►
corporation
Lays down the growth objectives of the
firm and also provides the strategies ►
needed for achieving them.
Serves as a hedge against uncertainty
arising from environmental turbulence. ►
Ensures that the firm remains a
prepared organization.
►
Helps the firm understand trends in
advance and provides the benefit of a
lead time for taking crucial decisions
and actions.
Helps avoid haphazard response to
environment.
Provides the best possible fit between ►
the firm and the external environment.
Ensures that the firm’s
businesses,porducts and
markets are chosen wisely.
Ensures best utilisation of the
firm’s resources among the
product-market opportunities.
Helps build competitive
advantages and core
competencies.
Prepares the firm to not only
face the future but even to
shape the future in its favor
;helps the firm influence its
mega environs in its favour to
the extent possible.
Draws from both intuition and
logic.
Major concerns of strategic
planning
►
►
►
►
Future
Long term dynamics in its
concern;not day-to-day
tasks.
Growth
Direction,extent,place
and timing of growth.
Environment
The fit between the
business and its
environment.
Business portfolio
Product-market scope
and gestures.
►
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Strategy
Strategy is its
concern;not the
operational activities.
Integration
Integration of all
management functions is
its concern;not a
particular function.
Creating core
competencies
/competitive advances,
Creating longterm,sustainable
organizational capability
is its concern.
Component tasks in strategic
planning
►Clarifying
the mission of the
corporation
►Defining the business
►Surveying the environment
►Internal appraisal of the firm
►Setting the corporate objectives
►Formulating the corporate strategies
Purpose of marketing environment
analysis
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►
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To know were the environment
is heading; to observe and size
up the relevant events and
trends in the environment.
To discern which events and
trends are favourable from the
standpoint of the firm, and
which are unfavourable;to
figure out the opportunities
end threats hidden in the
environmental events and
trends.
To project how the
environment –each factor of
the environment-will be at a
future point of time
►
►
To assess the scope of various
opportunities and shortlist
those that can favorably
impact the business
To help secure the right fit
between the environment and
the business unit, which is the
crux of marketing ;to help the
business unit respond with
matching product –market
stratigies;to facilitate
formulation of a marketing
strategy in the right way-in line
with the trends in the
environment and the
opportunities emerging therein
Factors to be covered under
environment analysis
1.Mega/macro environment
Demographic
environment
► Socio-cultural
environment
► Economic environment
► Political environment
► Natural environment
► Technology environment
► Legal environment
► Government policies
►
2.Environment that is specific to the
business
►
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The market/demand
The consumer
The industry
The competition
Government
policies(specific to the
business concerned)
Supplier-related factors
Factors to be covered under
economic environment
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►
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General economic conditions
Economic conditions of
different segments of the
population; their disposable
income, purchasing power,etc.
Rate of growth of the economy
,rate of growth of each sector
of the economy
Income,prices,and
consumption expenditure (size
and pattern)
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Credit availability and interest
rates
Savings rate/capital formation
Inflation rate
Behaviour of capital markets
Foreign exchange reserves
Exchange rates
Tax rates
Prices of important materials
Energy
scene(cost,availability,etc.)
Labour scene(cost,skill
availability,etc.)
Analysis of the consumer behaviour
Factors to be monitored
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According to the firm, what is
the basic need the product
serves?
According to the consumer, what
is the need it serves?
What constitute customer value
in the business as per their
perception?
What benefits do the consumers
look for in the product?
Of the many benefits they look
for, what are their
preferences/priorities/rankings?
who are the
consumers(number,location,etc.)
Purchasing power of the
consumers.
Buying behaviour,buying
motives, buying habits.
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Personality traits/attitudes
Lifestyles and needs; present
position and trends.
Brand loyalty.
Reasons/motives for
customer’s patronage of
specific brands.
Brand shifting; how loyalties
are shifting.
Reactions of the customers to
the company’s and competing
products.
Who among the competitors
remains closest to the
customer and why?
THE SEA CHANGE IN THE INDUSTRIAL,
BUSINESS AND MARKETING ENVIRONMENT
I.ENTERPRENEURIAL FREEDOM VITALISES THE INDUSTRIAL SCENE
► Rush of entrepreneurs.
► Spate of mergers/acquisition/takeovers; corporate enhance size and
synergy.
► The diversification Rush.
II. FDI GOES UP AND INFLUENCES INVESTMENT PATTERN IN INDUSTRIES
III. ASCENDANCY OF MULTINATIONALS IN THE INDIAN MARKETS
► MNCs acquire majority equity in their Indian enterprises and JV’s.
► Many MNC’s enter India anew.
► MNCs become big players even in core industries.
IV. BANKING SECTOR COMES UNDER COMPETITIVE ENVIRONMENT
► Competitive existence foisted by deregulation.
► Onslaught from new private sector banks (NPSBs) with superior
technology and aggressive marketing.
► Capital markets, FIs, MFs, and NBFCs compete with banks.
► Public sector banks, in particular common under severe pressure; they
are compelled to operate as viable, commercial institutions.
► Travails arising from disinvestment.
V. INSURANCE SECTOR TOO EXPERIENCES COMPETITION, WITH NEW
PRIVATE PLAYERS
► Constituted IRDA.
► IRDA issues licenses/ in-principle clearance to several private players and
many of them start operations.
VI. CAPITAL MARKETS UNDERGO RADICAL CHANGE
► FIIs enter Indian capital markets in a big way.
► Foreign brokers closely follow the FIIs.
► NBFCs register growth and form alliances with global finance companies.
► Growth of private mutual funds.
► Indian firms raise capital globally and form alliances with global finance
firms.
► India’s capital markets get integrated with global capital markets.
VII. FINANCIAL SERVICES EMERGE AS A MAJOR BUSINESS
► Emergence of many new financial services and financial service companies.
► Business firms spot financial services as a business and flat financial service
companies of their own.
VIII. PRIVATE SECTOR BECOMES THE DOMINANT COMPONENT OF THE
ECONOMY
► Even in core/infrastructure areas, sector after sector, opened up to private
enterprises: Oil, mining, telecom, road building, railways, ports, civil
aviation, EPZ/SPZ, difference production, all now opened to the private
sector.
► Import trading becomes a fresh business opportunity for the private sector.
Market segmentation
Segmentation is the process of partitioning markets into groups
of potential customers with similar needs and/or characteristics
who likely to exhibit similar purchase behaviour.
The process of dividing a total market into sub group of
consumers who exhibit differing sensitivities to one or more
marketing mix variables.
Market segmentation is a marketing approach that
encompasses the identification Of different groups of customers
with different needs or responses to marketing activity. the market
segmentation process also considers which of these segments to
target.
Market Positioning
► It
is the technique by which marketers try to
image on identity for a product, brand, or
organization. It is the ‘place’ a product occupies
in a given market as perceived by the target
market.
► Positioning is something that is done in the
minds of the target market.
► A product position is how potentially buyers see
the product.
► Positioning is expressed in relative to the
position of competitors.