Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals
American Marketing Association
Marketing = ?
Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
Simple Marketing System Goods/services Money Information Industry (a collection of sellers) Market (a collection of Buyers) Communication
Marketing = ?
Marketing is the sum of all activities that take you to a sales outlet. After that sales takes over.
Marketing is all about creating a pull, sales is all about push.
Marketing is all about managing the four P’s –
The 4 Ps & 4Cs Marketing Mix Customer Solution Customer Cost Communication Convenience Product Price Promotion Place
Difference Between - Sales & Marketing ? Sales trying to get the customer to want what the company produces Marketing trying to get the company produce what the customer wants
Scope – What do we market
Ideas and concepts
Core Concepts of Marketing
Based on :
Needs, Wants, Desires / demand
Products, Utility, Value & Satisfaction
Exchange, Transactions & Relationships
Markets, Marketing & Marketers.
Core Concepts of Marketing Needs, wants demands Markets Marketing & Marketers Utility, Value & Satisfaction Xchange, Transaction Relationships Products
In order to understand Marketing let us begin with the Marketing Triangle Customers Competition Company
Who is a Customer ?? Anyone who is in the market looking at a product / service for attention, acquisition, use or consumption that satisfies a want or a need CUSTOMER IS . . . . .
CUSTOMER has needs, wants, demands and desires
Understanding these needs is starting point of the entire marketing
These needs, wants …… arise within a framework or an ecosystem
Understanding both the needs and the ecosystem is the starting point of a long term relationship
How Do Consumers Choose Among Products & Services?
Value - the value or benefits the customers gain from using the product versus the cost of obtaining the product.
Satisfaction - Based on a comparison of performance and expectations.
Performance > Expectations => Satisfaction
Performance < Expectations => Dissatisfaction
Customers - Problem Solution
As a priority , we must bring to our customers “ WHAT THEY NEED ”
We must be in a position to UNDERSTAND their problems
Or in a new situation to give them a chance to AVOID the problems
Customer looks for Value
Value = Benefit / Cost
Benefit = Functional Benefit + Emotional Benefit
Cost = Monetary Cost + Time Cost + Energy Cost + Psychic Cost
The Marketing Plan
A written document that acts as a guidebook of marketing activities for the marketing manager
CONTENTS of MARKETING PLAN
Business Mission Statement
Situation Analysis (SWOT)
Target Market Strategy
Place – Distribution
Implementation, Evaluation and Control
The Marketing Process Target Market Strategy Marketing Strategy Product Promotion Place/Distribution Price Marketing Mix Business Mission Statement Objectives Situation or SWOT Analysis Implementation Evaluation, Control
Factors Influencing Company’s Marketing Strategy
External Marketing Environment Physical / Natural Demographics Social Change Economic Conditions Political & Legal Factors Technology Competition Environmental Scanning Target Market Product Distribution Promotion Price External Environment is not controllable Ever-Changing Marketplace
The macro-environment is the assessment of the external forces that act upon the firm and its customers, that create threats & opportunities
P r o d u c t
Anything that is offered to the market for attention, acquisition, use or consumption that satisfies a want or a need Product is . . . . .
Types of Products Consumer Products Industrial Products PRODUCTS Services
Product Items, Lines, and Mixes Product Item Product Line Product Mix A specific version of a product that can be designated as a distinct offering among an organization’s products. A group of closely-related product items. All products that an organization sells.
Width – how many product lines a company has
Length – how many products are there in a product line
Depth – how many variants of each product exist within a product line
Consistency – how closely related the product lines are in end use
The Marketing Mix
The conventional view of the marketing mix consisted of four components (4 Ps): Product, Price, Place/ distribution and Promotion .
Generally acknowledged that this is too narrow today; now includes , P rocesses , P roductivity [technology ] P eople [employees], P hysical evidence
Marketers today are focused on virtually all aspects of the firm’s operations that have the potential to affect the relationship with customers.
The “8Ps” of Integrated Service Management vs. the Traditional “4Ps”
Place, cyberspace, and time
Productivity and quality
Promotion and education
Price and other user outlays
The Give and Get of Marketing
Great Words on Marketing
“ The purpose of a company is ‘to create a customer…The only profit center is the customer.’”
“ A business has two—and only two—basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs.”
“ The aim of marketing is to make selling unnecessary.”
“ While great devices are invented in the Laboratory, great products are invented in the Marketing department.”
“ Marketing is too important to be left to the marketing department.”
Drivers of Customer Satisfaction
Many aspects of the firm’s value proposition contribute to customer satisfaction:
The core product or service offered
Support services and systems
The technical performance of the firm
Interaction with the firm and it employees
The emotional connection with customers
Ability to add value and to differentiate as a firm focuses more on the top levels
Marketers and Markets
Marketers are focused on stimulating exchanges with customers who make up markets – B2C or B2B.
The market is comprised of people who play a series of roles: decision makers, consumers, purchasers, and influencers.
It is absolutely essential that marketers have a detailed understanding of consumers, their needs and wants .
Much happens before and after the sale to affect customer satisfaction