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“ Financial success often depends on Marketing ability . Finance , operation accounting and other business functions will not really matter if there is not sufficient demand for products and services.” -Philip Kotler
Marketing Management – “Art & science of choosing target markets and building profitable relationships with them”. Involves getting, keeping & growing customers through creating, delivering and communicating superior customer value.
Marketing is the economic process by which goods and services are exchanged between the producer and the consumers and their value determined in terms of money prices.
Marketing is the function that adjusts the organization’s offering to the changing needs of the market place.
Marketing originates with the recognition of a need on the part of a consumer and terminate with the satisfaction of that need by the delivery of a useable product at the right time , at the right place and at an acceptable price
Marketing is the delivery of standard of living to society
A good is a physical entity i.e. it is a tangible product which can be touched and feel.
CD_ROM of encyclopedia , a shirt , or a bar of chocolate are example of goods
A service is created when human efforts are clubbed with mechanical efforts to provide intangible benefits to the customers; it gives some value to the recipient, e.g.. Health care , laundry, transportation , banking etc
between the values the customer gains from owning & using a product & the costs of obtaining the product.
Customer satisfaction – With a purchase, how well the product’s performance lives up to the customer’s expectations. Customers expectations must be set at the right level of expectations, neither too low or too high.
Needs are the basic human requirements. People need food, air, water, clothing & shelter to survive. People also have needs for recreation, education and entertainment. “Needs Pre-exists” (can’t be created).
The needs become wants when they are directed to specific product/ services that might satisfy the needs.
Eg: while shopping a thirsty and tired customer may need water . But he sits down in a coffee shop orders for bottled water and a cup of coffee. The thirst needs here becomes a want for coffee and bottled water.
When a want is accompanied by consumers ability to pay its become a demand .
Eg: Mercedes , Toyota Lexus , Mont Blank pen.
Today the challenge for marketer is that of converting needs to wants to demands.
Exchange – It is one of the core concepts of marketing. It is the process of obtaining a desired product from someone by offering something in return. There are five conditions that needs to be satisfied:
There are at least two parties
Each party has something that might be of value to the other party
Each party is capable of communication & 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
A transaction is a trade of values between two or more parties. It involves two things:
The market is in a state of negative demand if; a major part of the market dislikes the product and may even pay a price to avoid it.
Eg: People have a negative demand for
Gall bladder operation
Employers feel a negative demand for
The marketing task is to analyze, why the market dislikes the products and to find out whether a marketing program consisting of product redesign , price reduction and more positive promotion could change the customers beliefs and attitude.
ii. Determine whether the demand can be re-stimulated by changing target markets, changing product features and developing more effective communication.
Iii. Reverse the declining demand through creative remarketing of the product.
Example: a hotel in a hill station faced with an irregular demand. …excessive during the peak season and hardly any occupancy during off-season. Marketing task is to promote the hotel during the laen season by offering discount on room and food tariff, organizing special events to attract tourists , promoting it as a conference venue.
Place utility : is provided when a marketer provides the product at locations preferred by the customer.
Domino’s Pizza delivered at your doorstep, is an example of place utility. Dell , Amazon.com etc
Possession utility allows a buyer to use the product as he wishes. It is the value that a buyer obtains from the product.
For example, a customer who has purchased a car may use it for whatever purpose he desires. He may use it to commute to and from his office, or go on vacation with his family, or even rent it out as a taxi.
Transportation , storage and other distribution functions are perceived as mere extensions of the production function
Selling views the customers as the last link in the business
Consumer determine price; price determine costs
They are seen as vital services to be provided to the customer , keeping customers’ convenience in focus
Marketing vies the customers as the very purpose of the business; sees business from the point of view of the customers
Marketing and Selling Orientations Orientation/ Concept Focus Means Ends Selling Product Aggressive selling and sales promotion with emphasis on price variations to close the sale. “ I must somehow hook the customer .” Maximise profits through sales maximization Marketing Customer Integrated marketing plan encompassing product, price, promotion and distribution backed up by adequate environmental scanning, consumer research and opportunity analysis—emphasis on service " what can we do that will make us better than and superior to our competitors, in the customer's eyes "? Maximise profits through increased consumer satisfaction and hence higher market share.
Industries fail not because markets are saturated but because of the failure and short-sightedness of the management.
Example: Pager companies could not foresee technology changes and changing customer expectations and adapt themselves to fulfill customer expectations while mobile companies fulfilled the needs and succeeded in the market.
Similarly, when small cars were introduced in the US market by the Japanese companies, they became a hit in the first year of their introduction.
None of the US research found out what exactly the customers wanted. They focused on what was the best alternative available for a customer . The researches focused on the product, not on customer requirements.
A product is any offering by a company to a market that serves to satisfy customer needs and wants.
It can be an object, service, idea, etc
Product vs. Brand A product is something that is made in a factory A brand is something that is bought by a customer. A product can be copied by a competitor. A brand is unique. A product can be quickly outdated. A successful brand is timeless.
Cause marketing, involves careful planning and preparation
. Negotiating partnership with several other players which includes intermediaries, also develop a strong communication program and finally monetary measuring and evaluating programs for any correspondence .
A good cause can thus help build a strong brand image, facilitate market entry and counter all negative criticism.
Cause marketing can also help create or change public policy
“ Marketing is a process of satisfying customer’s demand for a product or service or solution beyond his / her expectations , taking into account customer value or value addition to customer and social responsibility as compared with a competitor.”
“ When a new product in being marketed and existing old product is being demarketed using a company’s goodwill for the old product in introducing the new one by withdrawing the old product at the same moment.” Dr. P. L. Maggu
This type of situation has been designated as the concept of dual marketing.
The business situation in which the concept of dual marketing can be visualized for example:
A business situation in which a company uses its brand name to introduce a new product in place of the existing product or a substitute product by withdrawing it from the market on account of the following reasons:
The company is fearful to compete in the growing global competitive situation in the near future for want of maintaining the desired price of the quality product at the expected reduced price of the product in the global market.
The company is considering to introduce a new product or substitute product in view of changing technology of fashion in place of existing product of the company in the market.
The company is considering diversification in collaboration with a foreign company.
The company is considering to increase the cost of existing product by changing its pattern and design to attract global market customers.
The company is thinking to replace the existing product on account of a fearful situation to arise in near future on account of the indication showing shortage of raw material being used in existing product as per the government changed business policies.
“ When a company markets a product as a major product and introduces a new product as a minor product the cost of which may be included in the major product and further the minor product is not being produced by any other competitor . Minor product is just a sample product which after some time may be inducted as a major product . This situation has been designated here as Bi-Marketing.” Dr. P. L. Maggu
Example: A business situation in which a company is introducing a gift product along with the major (main) product.