Introduction to Marketing By Philp Kotler Lecture No 1.0

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Introduction to Marketing By Philp Kotler Lecture No 1.0

  1. 1. Lecture No: 1 Introduction to Marketing Course Facilitator: Khurshid Alam Swati Email your query to: Khurshidalamswati@yahoo.com
  2. 2. 1 st Week Objectives     Definition of Marketing Importance and scope of Marketing Nature and Concept of Marketing Marketing and the society 2
  3. 3. The New Economy Trends      Extensive increase in buying power A greater variety of goods and services A greater amount of information about practically anything A greater ease in interacting and placing and receiving orders An ability to compare notes on products and services 3
  4. 4. What is Marketing…??? 4
  5. 5. Kotler on Marketing The future is not ahead of us. It has already happened. Unfortunately, it is unequally distributed among companies, industries and nations 5
  6. 6. Important Terminologies To explain marketing definition, we examine the following important terms:      Needs, wants, and demands Products and services Value, satisfaction and quality Exchange, transactions, and relationships Markets 6
  7. 7. Needs, Wants, and Demands Needs:  The most basic concept underlying marketing is that of human needs.  Human have many complex needs:  Physical needs for food, clothing, warmth, and safety  Social needs or belonging and affection  Individual needs for knowledge and self – expression  E.g. Basic Needs- Hunger, Thirst. Such type product don’t need pushing 7
  8. 8. Wants    (Cont’d) Want are the form taken by human needs as they are shaped by culture and individual personality People have almost unlimited wants but limited resources They want to choose products that provide the most value and satisfaction for their money   E.g. Thirst – Water, Milk, Cold Drink, Coffee etc E.g. Baby Need is milk but he/she want CANDY etc Only Desire  Create value and image of some product  8
  9. 9. Demands    (Cont’d) When backed by buying power, wants become demands Consumers view products as bundles of benefits and choose products that give them the best bundle for their money Wants converts to demand when you have purchasing power    E.g. Buying BMW, Stay in 7 star hotel Desire plus Purchasing power Such Type products need Pushing by attracting potential buyers 9
  10. 10. Needs, Wants and Demands 10
  11. 11. Products and Services Product:     Anything that can be offered to a market to satisfy a need or want Tangible - building, vehicle, gadget, or clothing Intangible- insurance policy, JPG and MP3 files Result ownership of some thing 11
  12. 12. Services   Which are activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything Service it will not be uniform and will vary according to who is performing, where it is performed and on whom/what it is being performed   Hotel Service, Rescue Service Should be efficient 12
  13. 13. Values, Satisfaction, and Quality Value:    Sum total of benefits which a vendor promises a customer Perception about a product and its price The difference between what a customer gets from a product, and what he or she has to give in order to get it Satisfaction:  Customer satisfaction depends on a product’s perceived performance in delivering value relative to a buyer’s expectation  If the product’s performance falls short of the customer’s expectations, the buyer is dissatisfied 13
  14. 14. Quality     (Cont’d) Customer satisfaction is closely linked to quality Quality has a direct impact on product performance Quality can be defined as “freedom from defects” TQM programs designed to constantly improve the quality of products, services, and marketing processes 14
  15. 15. Exchange, Transactions, and Relationships Exchange :  The act of obtaining a desired object from someone by offering something in return Transaction :  A trade between two parties that involves at least two things agreed – upon conditions a time of agreement, and a place of agreement  Cash involvement Relationship marketing :  The process of creating, maintaining, and enhancing strong, value – laden relationships with customers and other stakeholders 15
  16. 16. Markets The set of all actual and potential buyers of a product or service Communication Industry (a collection of sellers) Products / Services Money Market (a collection of buyers) Information A simple marketing system 16
  17. 17. What is a Market ?  According to Kotler (2004), “a market consist of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want” Source: Kotler, P. (2004), Marketing Management, Prentice-Hall, Englewood Cliff, NJ 17
  18. 18. What is Marketing?  Marketing is the human activity directed at satisfying human needs and wants through an exchange process OLD view of marketing: (Kotler 1980) NEW view of marketing: Making a sale — “Telling and selling” Satisfying customer needs 18
  19. 19. “The right product, in the right place, at the right time, and at the right price” Adcock et al •Managing Profitable customer relationships •The process by which company create value for customers and build strong customer relationships in order to capture value from customers in return. •E.g. Wall Mart- Always Low Price. Always •Dell: Be Direct- Door Step Service
  20. 20. Marketing Defined - Importance     Many people think of marketing only as selling and advertising Selling and advertising are only the tip of the marketing ice-berg Marketing is one of three key core functions that are central to all organizations Marketers act as the customers’ voice within the firm and marketers are responsible for many more decisions than just advertising or sales: 1. Analyze industries to identify emerging trends 2. Determine which national and international markets to enter or exit 3. Conduct research to understand consumer behavior 4. Design integrated marketing mixes – products, prices, channels of distribution, and promotion programs 20
  21. 21. What is Marketed?          Goods – Laptops, Mobiles, Printers Services – Hotel, Hospital, Repairing Events - Sports event, music festival, fair or concert Experiences – Sharing ideas and plans Persons – Cultivate attention towards a person Places – Swat, Pakistan Monument Organizations- Dell, Apple, Nokia, Q Mobile Information – Media , Advertising and publicity Ideas – Research & Development 21
  22. 22. Marketing Process Understand the market place and customer need and wants Design customer driven and attractive marketing strategy 1. 2.   Ads, Publicity, Sampling etc Mufti Ihsan Scandal - Religious oriented strategies Construct integrated marketing program that delivers superior value 1.   Create image of company and product or service Personal marketing, E marketing etc Build profitable relationship and create customer happiness 1.   Take feedback after some time Long term customer relationship Capture value from customer in return 1.  Tell to family, friends and society 22
  23. 23. CONTROLLABLE FACTORS AFFECTING MARKETING DECISIONS The Four P’s -the “arrow” Price Price Promotion Promotion Place Place Product Product 23
  24. 24. UNCONTROLLABLE FACTORS AFFECTING MARKETING DECISIONS Social Social Natural Natural Economic Economic External External Environmental Environmental Factors Factors Technologic Technologic Political and Legal Political and Legal Competitive Competitive Helps identify market opportunities 24
  25. 25. The Goal of Marketing is:     To attract new customer by promising superior value, and to keep current customers by delivering satisfaction Marketing, more than any other business function, deals with customers Creating customer value and satisfaction are at the very heart of modern marketing thinking and practice Some people believe that only large business organizations operating in highly developed economies use marketing, but sound marketing is critical to the success of every organization – whether large or small, for profit or non – profit, domestic or global 25
  26. 26. The Goal of Marketing is: (Cont’d)    Who are our existing / potential customers? What are their current / future needs? How can we satisfy these needs?     Can we offer a product/ service that the customer would value? Can we communicate with our customers? Can we deliver a competitive product of service? Why should customers buy from us? 26
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