DEFINITION…….Marketing is a system of businessactivities designed to plan, price, promote,and distribute want-satisfying products,services and ideas to target markets inorder to achieve organizational objectives.
Marketing Definition DissectedMARKETING ISa system: of business activitiesdesigned to: plan, price, promote, distributesomething of value: want-satisfying products, services, and ideasfor the benefit of: the target market – present and potential usersto achieve: the organization’s objectives.
A SMART DEFINITIONIDENTIFYING Needs and Wants and FULFILL those Needs and Wants
Nature and Scope of Marketing Organization Nature of Marketing Consumers Products
NATURE AND SCOPE OF MARKETING Organizations are the entities that produce and sell products for profits. •Engro Ltd •Dell Corp •Pepsi Co •UNProducts refer to commodities that we purchase from marketsto satisfy personal needs.•Grocery•Computers•Beverages•Peace and Security A consumer is the one for whom the product is made and marketed. •Families •Personal users and organizations •Families, students ets. •Governments or countries
BROAD DIMENSION OF MARKETING Marketing is not limited to profit making businesses only Whenever you try to persuade somebody to do something, you are involved in the act of marketing You are marketing when you ask someone to …………….……stay quiet because ……fasten seat belt ……vote for a candidate inyou are preparing for because it can save one’s the next election.exams. life.
BROAD DIMENSION OF MARKETINGBroadly, scope of marketing is not limitedto traditional organizations.If a woman ask her daughter to fasten theseatbelt, the woman would be the seller who isselling an idea.The idea of safety in this example is theproduct that is being offered.The daughter is the consumer to whom theidea is being communicated.
Why Bicycle? Bicycle Type?Analyze Wants Product PlanWhich People? What Quantity?Segment Demand ForecastingWhere to Sell? What to Charge?Distribute PriceWhat and How to Inform? Who all will compete?Promote Analyze Competitors
IMPORTANCE OF MARKETING Consumers get an opportunity to know about various products that are available in the market. Marketing fosters healthy competition among brands and this increases the level of competence among firms. Consumers are able to enjoy better products and they are at affordable prices. Gives chance to companies of all sizes to survive Precise identification of what consumers demand Saves cost for organization
EVOLUTION OF MARKETING Production Concept Selling Concept Marketing Concept
1. Product Orientation A concept… focused on quality products that could be produced efficiently believed that supply creates its own demand Intensive Distribution Strategy and Economies of Scale Key Questions 1. Can we produce the product efficiently? 2. Can we produce enough of it ? MARKETS/ PRODUCTION CONSUMERS
2. Sales Orientation A concept… focused to sell the resulting output based on the belief that if consumers are left to themselves, they will not make the effort to buy a companys products. substantial post-production effort is required Key Questions Can we sell the product? Can we charge enough for it? SALES/ MARKETS/ PRODUCTION PROMOTION CONSUMERS
3. Market Orientation A concept…. customer’s want satisfaction is the sole justification for the existence of any enterprise. make what people demand Key Questions What do customers want? How can we keep our customers satisfied and create long-term relationships MARKETS/MARKETING PRODUCTION SALES/ PROMOTION CONSUMERS
Implementing the Marketing Concept As managers have come to recognize that marketing is vitally important to the success of an enterprise, they have laid down the basic principles that help them achieve organization success.
Implementing the Marketing Concept Successful Business Marketing Concept Co-ordinated Customer Organizational Marketing Orientation Objectives Activities
Implementing the Marketing Concept1. Customer-OrientationCustomer-orientation focuses on meeting the specific wantsand building long-term relationships with the customers. A trulycustomer oriented business takes all their important decisions(not only marketing related) while keeping customer satisfactionin mind. For example: before upgrading the IT software for acompany, the executives must consider its implication oncustomer service and satisfaction. The software might be goodfor the organization’s internal operation – it might make the datamore secure and readily available to managers – but might takelong to process information which can cause customerdissatisfaction.Two important components of customer orientation are long termrelations and mass customization.
Implementing the Marketing Concepta. Long-Term Relationships:Today, organizations are able to build long-term relations withcustomers because organizations have…access to a huge quantity of information through research, consumerreports which can keep organizations abreast with changing trends andpatterns in the market.Customer Relationship Management System (CRMS) is a softwarethat help organizations store valuable information about customer’sspecific wants as their professional relationship progresses. Forexample: a multinational hotel can store specific data on a valuedcustomer as what type/location of room the customer prefers, thecuisine usually ordered, and specific services that he/she is interestedin.Trust and mutual commitment is also a key in developing strongrelationships.
Implementing the Marketing Conceptb. Mass Customization means to develop, produce, anddistribute affordable products with enough variety anduniqueness that nearly every potential customer can haveexactly what he or she wants.For mass customization, we need the following three key factors:1.Information on specific customer needs and wants.2.Communication channels to advertise to specific audience3.Flexible& cost effective manufacturing capability to make agood variety of products while keeping per unit cost low.
Implementing the Marketing Concept2. Coordinated Marketing ActivitiesCoordinated marketing is the planning and execution of all yourcompany’s marketing activities (designing product, distribution,research, promotion, web presence etc.) in a way that isconsistent across all of your customer contacts and createsmore value than when those activities are performed separately.
Implementing the Marketing Concept3. Organizational ObjectivesThere are three major dimensions of an organizational objectives.1.Performance objectives refer to the growth and financial successof an organization. It may include increasing profits, market share,presence in several geographic markets, reducing costs etc.2. Societal Responsibility is another important objective whichfocuses on an organization’s role in safeguarding and improving thequality of life of the society while satisfying consumer wants. Forexample: Nike has been criticized for years for its sweatshops inVietnam and Pakistan where their factories exploit low wage workersand force people to work under unwholesome working conditions.