Introduction to Marketing    To prepare to be a marketer,    one needs to understand•   What Marketing is?•   How it works...
What Marketing is?• Marketing deals with identifying and  meeting human and social needs.• One of the shortest definitions...
Defining Marketing“Marketing is a societal process bywhich individuals and groups obtainwhat they need and want throughcre...
Some more Definitions:• “Marketing is an organizational function  and a set of processes for creating,  communicating and ...
Some more Definitions:• William Stanton: “Marketing is a total  system of business activities designed to  plan, price, pr...
Features/Characteristics of         Marketing• Regular and continuous activity• Facilitates satisfaction of human  wants• ...
Features/Characteristics of         Marketing• Wider socio-economic  significance• Importance of 4 Ps• Evolutionary concep...
Conditions of Exchange• There are at least two parties• Each party has something of value to the  other party• Each party ...
Adding Degrees of Satisfaction                                                  To                      tion   Possession ...
4 P’s of Marketing
Importance of  Marketing
Business Organization•   Accomplishment of Objectives•   Widens Markets•   Reputation•   Develop Brand Loyalty•   Introduc...
Consumers and Society•   Quality products•   Reasonable Prices•   Higher Standard of Living•   Creation of utility•   Spre...
Core Concepts of Marketing    Target Markets & Segmentation     Needs, Wants, and Demands         Product or Offering     ...
Needs and Wants• Needs are basic human requirements• Wants are needs directed to specific  objects/services that might sat...
Product• A product is any offering catered to satisfy  needs and wants.• A brand is when the product is from a  known sour...
Demand• This is the wants for specific products  backed by an ability to pay.
Target Market• Very rarely does a product cater to the  entire market. Most products are designed  to cater to a group of ...
Value and Satisfaction• Value = Benefits/Costs• Benefits = Functional Benefits + Emotional  benefits• Costs = Monetary cos...
Exchange• Get something (product /service) by  offering something in return.  Eg. kind (barter) or money (value )• Exchang...
Transaction and Transfer• A transaction is an exchange between two  things of value on agreed conditions and a  time and p...
Relationship Marketing• Building long term mutually satisfying  relations with customers, suppliers,  distributors in orde...
Marketing Network• A marketing network is the relationships  built with its stakeholders. Effective  relationships make up...
Marketing Channels• Marketing channels are used to reach the  target segment.• Communication channels   eg. Advertising, t...
Supply Chain• The supply chain represents a value  delivery chain – from procurement of raw  materials to final delivery o...
Competition• Potential and rival substitutes and  offerings a buyer might consider.• Competition can be viewed in various ...
Marketing Environment•   Competition      •   Product•   Customers        •   Import tariffs•   Govt. policies   •   Trend...
Marketing Mix• It is the tools that an organization employs  to pursue its marketing objectives in the  target market• Pro...
Concepts under which firms     conduct marketing activities•   Production concept•   Product Concept•   Selling Concept•  ...
Customer needs•   Stated needs•   Real needs•   Unstated needs•   Delight needs•   Secret Needs
Company Responses and           Adjustments•   Reengineering   •   Partner – supplies•   Outsourcing     •   Market center...
Simple Marketing System                  Communication                Goods/services   Industry                          M...
Structure of Flows      Resources                         Resources       Money          Resource           Money         ...
Traditional Organization Chart              Top           Management        Middle Management         Front-line people   ...
Customer-Oriented Organization Chart                Customers             Front-line people         Middle management     ...
Evolving Views of Marketing’s              Role                                      Finance                         Produ...
Evolving Views of Marketing’s                Role         Production                               on                     ...
Evolving Views of Marketing’s            Role                Production                 Marketing                 Customer...
Concepts of Marketing(Company Orientations Towards the          Marketplace)
Company Orientations Towards the    Marketplace ( Concepts of Marketing)•   Exchange Concept•   Production Concept•   Prod...
Company Orientations Towards the   Marketplace ( Concepts of          Marketing)                       Focuses on exchange...
Company Orientations Towards the     Marketplace ( Concepts of            Marketing)                             Treats la...
Company Orientations Towards the   Marketplace ( Concepts of          Marketing)                           Consumers favor...
Company Orientations Towards the   Marketplace ( Concepts of          Marketing)                  Consumers will buy produ...
Company Orientations Towards the    Marketplace ( Concepts of           Marketing)                              Focuses on...
Company Orientations Towards the   Marketplace ( Concepts of          Marketing)                    Equal weightage to thr...
Company Orientations Towards the    Marketplace ( Concepts of           Marketing)                      Attempts to recogn...
Internal                 Integrated Marketing                Marketing              Holistic              Marketing Social...
Internal Marketing• Marketing Department• Senior Management• Other Departments
Integrated Marketing• Communication• Products and Services• Channels
Relationship Marketing• Customers• Channel• Partners
Socially Responsible            Marketing•   Ethics•   Environment•   Legal Framework•   Community
Selling and Marketing         Selling                     Marketing• Selling starts with seller   • Marketing starts with ...
Selling and Marketing        Selling                   Marketing• Seeks to convert          • Seeks to convert  products i...
Shifts in Marketing Management• From marketing does marketing to  everyone does the marketing• From organizing by product ...
Shifts in Marketing Management• From relying on old market positions to  uncovering new ones• From emphasizing tangible as...
Shifts in Marketing Management• From attracting customers through stores  and salespeople to making products  available on...
Shifts in Marketing Management•   From a focus on gaining market share to a    focus on building customer share•   From be...
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MARKETING

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  • Steel – Cold rolled steel – Bearings – axle assembly - trucks
  • MARKETING

    1. 1. Introduction to Marketing To prepare to be a marketer, one needs to understand• What Marketing is?• How it works?• What is Marketed?• Who does the Marketing?
    2. 2. What Marketing is?• Marketing deals with identifying and meeting human and social needs.• One of the shortest definitions of marketing is “meeting needs profitably.”
    3. 3. Defining Marketing“Marketing is a societal process bywhich individuals and groups obtainwhat they need and want throughcreating, offering, and freelyexchanging products and services ofvalue with others.”- Philip Kotler
    4. 4. Some more Definitions:• “Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stake holders” -- American Marketing Association
    5. 5. Some more Definitions:• William Stanton: “Marketing is a total system of business activities designed to plan, price, promote and distribute want- satisfying products to target markets to achieve organizational objectives.”
    6. 6. Features/Characteristics of Marketing• Regular and continuous activity• Facilitates satisfaction of human wants• Relates to goods and services• Brings transfer of ownership• Creates utility
    7. 7. Features/Characteristics of Marketing• Wider socio-economic significance• Importance of 4 Ps• Evolutionary concept• Precedes and follows production
    8. 8. Conditions of Exchange• There are at least two parties• Each party has something of value to the other party• Each party is capable of communication and delivery• Each party is free to accept or reject the exchange offer• Each party believes it is appropriate or desirable to deal with the other party
    9. 9. Adding Degrees of Satisfaction To tion Possession utility tal s fac Sa tis S ati Place utility fac tal tionTo Time utility Form utility Oriental rug Store has it in stock Delivered to your home Pay with your VISA card
    10. 10. 4 P’s of Marketing
    11. 11. Importance of Marketing
    12. 12. Business Organization• Accomplishment of Objectives• Widens Markets• Reputation• Develop Brand Loyalty• Introduce New Products• Face Competition• Growth and Stability• Economization of storage
    13. 13. Consumers and Society• Quality products• Reasonable Prices• Higher Standard of Living• Creation of utility• Spread effect• Economic Growth and Prosperity
    14. 14. Core Concepts of Marketing Target Markets & Segmentation Needs, Wants, and Demands Product or Offering Value and Satisfaction Exchange and Transactions Relationships and Networks Marketing Channels Supply Chain Competition Marketing Environment
    15. 15. Needs and Wants• Needs are basic human requirements• Wants are needs directed to specific objects/services that might satisfy the need
    16. 16. Product• A product is any offering catered to satisfy needs and wants.• A brand is when the product is from a known source.
    17. 17. Demand• This is the wants for specific products backed by an ability to pay.
    18. 18. Target Market• Very rarely does a product cater to the entire market. Most products are designed to cater to a group of customers who specifically want such a product. This group of customers is the target market which is a slice of the total market. We say it is the market segment.
    19. 19. Value and Satisfaction• Value = Benefits/Costs• Benefits = Functional Benefits + Emotional benefits• Costs = Monetary costs + Time + Energy + Psychic costs
    20. 20. Exchange• Get something (product /service) by offering something in return. Eg. kind (barter) or money (value )• Exchange is a value creating process because it leaves both parties better off (win – win situation)
    21. 21. Transaction and Transfer• A transaction is an exchange between two things of value on agreed conditions and a time and place of agreement.• A transfer is a one way exchange without receiving anything in return.
    22. 22. Relationship Marketing• Building long term mutually satisfying relations with customers, suppliers, distributors in order to retain their long term preference and business
    23. 23. Marketing Network• A marketing network is the relationships built with its stakeholders. Effective relationships make up an effective and strong network.
    24. 24. Marketing Channels• Marketing channels are used to reach the target segment.• Communication channels eg. Advertising, telephone enquiry system• Distribution channels – trade, direct sales
    25. 25. Supply Chain• The supply chain represents a value delivery chain – from procurement of raw materials to final delivery of product to consumer.
    26. 26. Competition• Potential and rival substitutes and offerings a buyer might consider.• Competition can be viewed in various perspectives – brand, industry, form, generic
    27. 27. Marketing Environment• Competition • Product• Customers • Import tariffs• Govt. policies • Trends• Suppliers • Technology• Trade • Politics
    28. 28. Marketing Mix• It is the tools that an organization employs to pursue its marketing objectives in the target market• Product, Price, Place, Promotion• 4 C’s – Customer solution, Cost, Convenience, Communication
    29. 29. Concepts under which firms conduct marketing activities• Production concept• Product Concept• Selling Concept• Marketing Concept• Societal marketing Concept
    30. 30. Customer needs• Stated needs• Real needs• Unstated needs• Delight needs• Secret Needs
    31. 31. Company Responses and Adjustments• Reengineering • Partner – supplies• Outsourcing • Market centered• E – Commerce • Global/local• Bench marking • Decentralization• Alliances
    32. 32. Simple Marketing System Communication Goods/services Industry Market(a collection (a collection of sellers) Money of Buyers) Information
    33. 33. Structure of Flows Resources Resources Money Resource Money markets Services, money Taxes, goods Services, Taxes moneyManufacturer Government Consumer markets markets markets Taxes, goods Services Services, Taxes, money goods Money Money Intermediary Goods, services markets Goods, services
    34. 34. Traditional Organization Chart Top Management Middle Management Front-line people Customers
    35. 35. Customer-Oriented Organization Chart Customers Front-line people Middle management sC erus om t Top om t us manage- er C s ment
    36. 36. Evolving Views of Marketing’s Role Finance ProductionProduction Finance Human resourcesMarketing Human resources Marketing a. Marketing as an b. Marketing as a more equal function important function
    37. 37. Evolving Views of Marketing’s Role Production on cti Fi du n o an Pr ce Marketing CustomerreHu ur ce M so ur an n ar s ma ces na ce ke so m F i t in re Hu n g c. Marketing as the d. The customer as the major function controlling factor
    38. 38. Evolving Views of Marketing’s Role Production Marketing CustomerreHu ur so ce ma ces an n Fin e. The customer as the controlling function and marketing as the integrative function
    39. 39. Concepts of Marketing(Company Orientations Towards the Marketplace)
    40. 40. Company Orientations Towards the Marketplace ( Concepts of Marketing)• Exchange Concept• Production Concept• Product Concept• Selling Concept• Marketing Concept• Societal Concept• Holistic Marketing Concept
    41. 41. Company Orientations Towards the Marketplace ( Concepts of Marketing) Focuses on exchange of goodsExchange Concept and services Supply of Goods Producers Consumers Money Flow
    42. 42. Company Orientations Towards the Marketplace ( Concepts of Marketing) Treats large scale production as the base of marketing. Consumers prefer products that areProduction Concept widely available and inexpensive Production cost is reduced Producers Consumers Large Scale Goods, Production Imposed Wide Choice of Goods
    43. 43. Company Orientations Towards the Marketplace ( Concepts of Marketing) Consumers favor products that offer the most quality,Product Concept performance, or innovative features Product Excellence Producers Products with Consumers Better quality Likes & Dislikes & performance considered Better Quality attracts
    44. 44. Company Orientations Towards the Marketplace ( Concepts of Marketing) Consumers will buy products only ifSelling Concept the company aggressively promotes/sells these products Producers Consumers
    45. 45. Company Orientations Towards the Marketplace ( Concepts of Marketing) Focuses on needs/ wants of targetMarketing Concept markets & delivering value better than competitors Production cost is reduced Producers Consumers Large Scale Goods, Production Imposed Wide Choice of Goods
    46. 46. Company Orientations Towards the Marketplace ( Concepts of Marketing) Equal weightage to three partiesSocietal Concept Consumers, Company and Society Society Producers Consumers Large Scale Goods, Production Imposed
    47. 47. Company Orientations Towards the Marketplace ( Concepts of Marketing) Attempts to recognize andHolistic Marketing reconcile Concept The scope and complexities of marketing activities
    48. 48. Internal Integrated Marketing Marketing Holistic Marketing Socially RelationshipResponsible Marketing Marketing
    49. 49. Internal Marketing• Marketing Department• Senior Management• Other Departments
    50. 50. Integrated Marketing• Communication• Products and Services• Channels
    51. 51. Relationship Marketing• Customers• Channel• Partners
    52. 52. Socially Responsible Marketing• Ethics• Environment• Legal Framework• Community
    53. 53. Selling and Marketing Selling Marketing• Selling starts with seller • Marketing starts with & is preoccupied all the the buyer and focuses time with the needs of constantly on the needs the seller of the buyer• Emphasizes on saleable surplus available with • Emphasizes on the company identification of market opportunity
    54. 54. Selling and Marketing Selling Marketing• Seeks to convert • Seeks to convert products in to cash customer needs in to products • Views business as – a• Views business as – customer satisfying goods producing process process • Marketing views the• Selling views the customer as the very customer as the last link purpose of business in the business
    55. 55. Shifts in Marketing Management• From marketing does marketing to everyone does the marketing• From organizing by product units to organizing by customer segments• From making everything to buying more goods and services from outside• From using many suppliers to working with fewer suppliers in a “Partnership”
    56. 56. Shifts in Marketing Management• From relying on old market positions to uncovering new ones• From emphasizing tangible assets to emphasizing intangible assets (brands, customer base, employees, distributors and supplier relations and intellectual capital)• From building brands through advertising to building brands through performance and integrated communications (IMC Mix)
    57. 57. Shifts in Marketing Management• From attracting customers through stores and salespeople to making products available online• From selling to everyone to trying to be the best firm serving well defined target markets• From focusing on profitable transactions to focusing on customer lifetime value
    58. 58. Shifts in Marketing Management• From a focus on gaining market share to a focus on building customer share• From being local to being “Glocal” – both global and local• From focusing on the financial scorecard to focusing on the marketing scorecard (market share, customer loss rate, customer satisfaction, product quality etc)• From focusing on shareholders to focusing on stakeholders
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