Introduction to Marketing Prof Sujata Umesh Bolake
What is Marketing?• Marketing is managing profitable customer relationships – Attracting new customers – Retaining and growing current customers 1-2
Definitions of marketingMarketing is the management process that identifies, anticipates and satisfies customer requirements profitably’ - The Chartered Institute of Marketing• ‘The right product, in the right place, at the right time, and at the right price’ - Adcock et al• ‘Marketing is the human activity directed at satisfying human needs and wants through an exchange process’ - Kotler 1980
What is Marketing?• Kotler’s social definition: “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.” 1-4
Marketing management process 1. Analysis Audit1. Where are we now?2. Where do we want to be? 2. 5. Control Objectives3. Which way is best? Marketing4. Tactics - how do we get management there? Getting there! process5. Ensuring arrival 4. 3. Strategies Implementation
Core Concepts• Managerial Process involving analysis, planning and control.• Carefully formulated programs and not just random actions• Voluntary exchange of values; no use of force or coercion. Offer benefits.• Selection of Target Markets rather than a quixotic attempt to win every market and be all things to all men.• Purpose of marketing is to achieve Organizational Objectives.• Marketing relies on designing the organization’s offering in terms of the target market’s needs and desires rather than in terms of seller’s personal tastes or internal dynamics. User-oriented and not seller-oriented.• Marketing utilizes and blends a set of tools called the marketing mix – product design, pricing, distribution and communication. Too often marketing is equated either with just advertising or with just personal selling.
Evolution of Marketing SocietalProduction Marketing Sales Orientation MarketingOrientation Orientation OrientationLate 1800s Early 1930s Mid 1950s 1990s
MARKETING vs. SELLINGMarketing starts with the buyer and Selling starts with the seller and isfocuses constantly on buyer’s preoccupied all the time with needsSeeks to convert “customer needs” into Seeks to convert ‘products’ into “Cash‘productsViews business as a customer satisfying Views business as a goods producingprocess processMarketing effort leads to the products The company makes the product first andthat the customers actually need then figures out how to sellMarketing views the customer as the Selling views the customer as the last linkvery purpose of the business in the businessMarketing communication is looked upon Seller’s motives dominate marketingas a tool for communicating communication (promotions)
• WANTS AND DEMANDSHuman wants are desires for specific satisfiers of these deeper needs.Demands are wants for specific products that are backed by an ability andwillingness to buy them.• VALUE AND SATISFACTIONValue = Benefits = Functional Benefits Emotional Benefits Cost Monetary Costs + Time Costs + Energy Costs +Psychic CostsTools for tracking and measuring Customer Satisfaction:Complaint and Suggestion systems, Customer satisfaction surveys
• Marketing Myopia• It was developed by American Professor ‘Theodore Levitt – 1960.• Acco to him Marketing Myopia is a short sighted, narrow minded view of marketing and its environment and it must be avoided at all cost.• It is an Inefficient ,complacement marketing approach• Mr. Levitt is of opinion that the business must be viewed as a customer satisfaction process rather than o goods producing process
Holistic Marketing Orientation & Customer Value• Marketing is becoming more complex & dynamic.• Earlier production was with accordance to order of customers. Producer ↔ Customer• Due to expansion of production market has also expanded• Appointment of Middle man & sales person to collect the order• Need of buyer were also consider as important aspect of business
CUSTOMER VALUE• Value Exploring – How can company identify new value opportunities Value Exploration• Value Creating – How can a Value Creation company create more Value promising new values Delivery offering?• Value Delivering – How companies use into Marketing capabilities and infrastructure to deliver the new value offering more efficiently.
Importance of Marketing• Increasing National Income• Low Prices• Better Standard of Living• Employment Orientation