Defining Marketing Marketing is a societal process by which individuals and groupsobtain what they need and want through creating, offering, and freelyexchanging products and services of value with others.Aim of marketing- Know & understand customer so well that productfits & sells itselfExchange vs. TransactionExchange:Act of obtaining a desired object from someone by offering something inreturn.Transaction:A trade of values between two parties.One party gives X to another party and gets Y in return. Can include cash,credit, check, or barter.Difference b/w marketing & selling Starting point Focus Means Ends Existing Selling and Profits through Factory products promotion sales volume (a) The selling concept
Customer Integrated Profits through Market needs marketing customer satisfaction (b) The marketing conceptMarketing orientationsMaximize profits through increased consumer satisfaction & hence raisemarket share.“ what can we do that will make product better than competitors in thecustomer mind”V/SSellings orientationsMaximize profits through sales maximization“ we must somehow hook the customer”What is a Market? The set of actual and potential buyers of a product. These people share a need or want that can be satisfied through exchange relationships. What Satisfies Consumers’ Needs and Wants? Products Anything that can be Offered to a Market to Satisfy a Need or Want Persons,Places,Organizations,Information,Ideas Services Activity or Benefit Offered for Sale That is Essentially Intangible and Does Not Result in the Ownership of Anything
What is Marketed1. goods2. properties3. Services4. Ideas5. information6. Events & experiences Simple Marketing System Communication Goods/services Industry Market(a collection (a collection of sellers) Money of Buyers) Information
Structure of Flows Resource Resource Resource Money Money Markets Taxes Services, , money Taxes Services,Manufacturer money Government Consumer Markets Taxes markets Markets , Services Taxes, Services goods Money , Money Intermediary Goods, Markets Goods, services servicesCompany Orientations Towards the MarketplaceProduction ConceptConsumers prefer products that are widely available and inexpensiveHigh prdn efficiency, low cost, mass distributionProduct ConceptConsumers favor products that offer the most quality, performance, orinnovative featuresSelling ConceptConsumers will buy products only if the company aggressivelypromotes/sells these products Unsought goods-insurance, encyclopedias
Marketing ConceptFocuses on needs/ wants of target markets & delivering value better thancompetitorsHolistic Marketing orientation- Development , design &implementation of marketing programs , processes & activities thatrecognizes their breadth & interdependenceIntegrated marketingMarketing MixThe Four Ps and The Four CsProduct <> Costumer SolutionPrice <> Costumer CostPromotion <> CommunicationPlace <> Convenience
Core Concepts of MarketingTarget Markets & SegmentationNeeds, Wants, and DemandsProduct or OfferingValue and SatisfactionRelationships and NetworksMarketing Channels-communication & channelSupply ChainCompetitionMarketing Environment- task & broadThis Is a NeedNeeds – Basic human requirements including physical, social, andindividual needs.
Types of Needs Physical: Food, clothing, shelter, safety Social: Belonging, affection Individual: Learning, knowledge, self-expressionThis Is a WantWants - form that a human need takes, as shaped by culture and individualpersonality.This Is DemandWants + Buying Power = DEMANDNeed / Want Fulfillment Needs and Wants Fulfilled through a Marketing Offer : Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.Value and SatisfactionIf performance is lower than expectations, satisfaction is low.
Segmentation and Target MarketingMarket Segmentation:Divide the market into segments of customersTarget Marketing:Select the segment to cultivateThe Company’s Macroenvironment
Actors in the MicroenvironmentMarketing shapes consumer needs and wants versusmarketing reflects the needs and wants of consumers.Marketing shapes consumer needs and wants versus marketing reflects the needs and wants of consumers.
Customers Front-line people Middle management C us Top to m s manage- er er s m ment to us CEvolving Views of Marketing’s Role Production Marketing Customer e Hu urc re nc so a ma es n Fi n e. The customer as the controlling function and marketing as the integrative function
Marketing Management TasksMarketing strategiesBuilding strong brandsConnecting with customersDelivering valueCommunicating valueCreating long term growth