L1 introduction to marketing mm i


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L1 introduction to marketing mm i

  1. 1. Introduction to Marketing<br />Dr. Ajay Pandit<br />December 01, 2009<br />
  2. 2. What is marketing?<br />
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  7. 7. The Incredible India campaign was launched in the wake of the events of September 11, 2001 and the consequent impact on tourism. The campaign differentiated India from the competing destinations by developing a unique market position and image. The campaign was built around the brand proposition of – India : the voyage to the land of Ananda, the bliss. <br />
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  9. 9. What is Marketing?<br />Social definition<br /> A societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others<br />
  10. 10. What is Marketing?<br />AMA definition<br /> Marketing is an organizational function and a set of processes for creating, communicating and delivering value to the customers and for managing customer relationships in ways that benefit the organizations and its stakeholders.<br />
  11. 11. What is Marketing?<br />Marketing is a transaction or exchange through activities designed to generate and facilitate exchanges intended to satisfy human or organizational needs and wants. <br />
  12. 12. What is Marketing?<br />Marketing is a total system of business activities designed to plan, price, promote and distribute want-satisfying products to target markets in order to achieve organizational objectives.<br />
  13. 13. Needs and Wants<br />Needs are basic human requirements<br />Wants are needs directed to specific objects/services that might satisfy the need<br />
  14. 14. Five Types of Needs<br />Stated Need (Consumer wants inexpensive Car)<br />Real Needs (Car with low operating cost)<br />Unstated Need (Expects good service from the dealer)<br />Delight Need (Extras)<br />Secret Need (Wants to be seen by friends as a savvy customer)<br />
  15. 15. Exchange<br />Get something (product /service) by offering something in return.<br /> Eg. kind (barter) or money (value )<br />Exchange is a value creating process because it leaves both parties better off<br /> (win – win situation)<br />
  16. 16. Transaction and Transfer<br />A transaction is an exchange between two things of value on agreed conditions and a time and place of agreement.<br />A transfer is a one way exchange without receiving anything in return.<br />
  17. 17. Exchange<br />Five conditions must be satisfied:<br />There are at least two parties<br />Each party has something that might be of value to the other party<br />Each party is capable of communication and delivery<br />Each party is free to accept or reject the exchange offer.<br />Each party believes it is appropriate or desirable to deal with the other party<br />
  18. 18. What is marketed?<br />Goods / Products <br />Services<br />Events<br />Experiences<br />Persons<br />Places<br />Properties<br />Organizations<br />Information<br />Ideas<br />
  19. 19. “Commodities”<br />Water<br />Salt<br />
  20. 20. Demand<br />This is the want for specific products backed by an ability to pay.<br />
  21. 21. Target Market<br />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.<br />
  22. 22. Value and Satisfaction<br />Value = Benefits/Costs<br />Benefits = Functional Benefits + Emotional benefits<br />Costs = Monetary costs + Time + Energy + <br /> Psychic costs<br />
  23. 23. Relationship Marketing<br />Building long term mutually satisfying relations with customers, suppliers, distributors in order to retain their long term preference and business<br />
  24. 24. Marketing Network<br />A marketing network is the relationships built with its stakeholders. Effective relationships make up an effective and strong network.<br />
  25. 25. Marketing Channels<br />Marketing channels are used to reach the target segment.<br />Communication channels<br /> eg. Advertising, telephone enquiry system<br />Distribution channels – trade, direct sales<br />
  26. 26. Supply Chain<br />The supply chain represents a value delivery chain – from procurement of raw materials to final delivery of product to consumer.<br />
  27. 27. Competition<br />Potential and rival substitutes and offerings a buyer might consider.<br />Competition can be viewed in various perspectives – brand, industry, form,generic<br />
  28. 28. Marketing Environment<br />Competition<br />Customers<br />Govt. policies<br />Suppliers<br />Trade<br />Product<br />Import tariffs<br />Trends<br />Technology<br />Politics<br />
  29. 29. Marketing Mix<br />It is the tools that an organization employs to pursue its marketing objectives in the target market<br />Product, Price, Place, Promotion<br />4 C’s – Customer solution, Cost, Convenience, Communication<br />
  30. 30. The 4 Ps of Marketing<br />Product: is that which you trade for cash – your customers want your product and you want their cash<br />Price: The amount of money charged for a product or service<br />Promotion: How you will promote and create awareness of your product in the market place<br />Place: How you bring your product together with your customer - distribution<br />
  31. 31. Traditional Marketing Model<br />Kotler, <br />
  32. 32. 4Ps in Action – The Marketing Mix<br />Sales Volume Rs<br />Product <br />Price<br />Promotion<br />Place<br />Current economics<br />Legislation/Regulation<br />Political environment<br />Social trends<br />Cultural trends<br />Consumer confidence<br />Competition<br /><ul><li>New technology
  33. 33. Their 4 Ps</li></ul>Your Business<br />Market place<br />Control of 4 independent variables (Marketing Mix)<br />Uncontrollable<br />
  34. 34. Evolution of Marketing<br />
  35. 35. Marketing philosophy<br />Production concept<br />Product Concept<br />Selling Concept<br />Marketing Concept<br />Societal marketing Concept<br />
  36. 36. 1. Production Orientation<br />Focuses on internal capabilities of firm.<br />“ Field of Dreams” strategy<br />“If we build it, they will come”<br />Best used when <br />competition is weak <br />demand exceeds supply<br />generic products competing solely on price<br />Problem is that they don’t understand wants/needs of marketplace.<br />
  37. 37. 2. Sales Orientation<br />People will buy more goods/services if aggressive sales techniques are used.<br />High sales will result in high profits.<br />Used with unsought products <br />life insurance<br />encyclopedias<br />Problem is that they don’t understand wants/needs of marketplace.<br />
  38. 38. 3. Marketing Orientation<br />Marketing concept:<br />The social and economic justification for an organization’s existence is the satisfaction of customer wants and needs, while meeting organizational objectives.<br />
  39. 39. 3. Marketing Orientation . . .<br />Focusing on customer wants so the organization can distinguish its products from competitors’ .<br />Integrating all the organization’s activities, including promotion, to satisfy these wants.<br />Achieving long term goals for the organization by satisfying customer wants and needs legally and responsibly.<br />
  40. 40. 3. Marketing Orientation . . .<br />Requires:<br />Top management leadership<br />A customer focus<br />Competitor intelligence<br />strengths<br />weaknesses<br />Interfunctional coordination to meet customer wants/needs and deliver superior values.<br />
  41. 41. 4. Societal Marketing Orientation<br />Organization exists not only to satisfy customer wants/needs and to meet organizational objectives, but also to preserve and enhance individuals’ and society’s long-term best interests.<br />Extends marketing concept to serve one more customer - society as a whole.<br />
  42. 42.   <br />ITC – Promoting Heritage India<br />
  43. 43. Social Marketing<br />www.environment.delhigovt.nic.in<br />
  44. 44. Differences between Sales & Marketing Orientations<br />Sales Focus<br />Organization’s needs<br />Selling goods/services<br />Everybody<br />Profit through max. sales volume<br />Intensive promotion<br />Marketing Focus<br />Customer’s needs<br />Satisfying customer wants/needs<br />Specific groups of people<br />Profit through customer satisfaction<br />Coordinated mktg. activities (4 p’s)<br />
  45. 45. Global Perspective<br />
  46. 46. Questions<br />Answers<br />