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1. “Marketing is the creation and delivery of a standard of living”.
2. “Marketing is a managerial and societal process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products and services of value with others”.
The SELLING CONCEPT holds that consumers and businesses, will ordinarily not buy enough of the organization’s products. The organization must therefore, undertake an aggressive selling and promotion effort.
The MARKETING CONCEPT holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its chosen target markets.
The SOCIETAL MARKETING concept holds that the organization’s task is to determine the needs, wants, and interests of the target markets and to deliver the desired satisfactions more effectively than competitors in a way that preserves the consumers’ and society’s well-being.
Ref: Chapter 1 of Core Text
MARKETING CONCEPTS-II The Core Concepts of Marketing Needs Wants Demands Products Value Cost Satisfaction Exchanges Transactions Relationships Markets Marketing Marketers 1 2 3 4 5 6
CUSTOMER RELATIONSHIPS Ref: Chapter 2 of Core Text
Customer Satisfaction: Whether a customer is satisfied after purchase depends on the offer’s performance in relation to the buyer’s expectations. We may define it as:
“ Customer satisfaction or dissatisfaction is a person’s feeling of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to the person’s expectations”.
Ref: Chapter 2 of Core Text
THE NATURE OF HIGH PERFORMANCE BUSINESSES STAKEHOLDERS PROCESSES RESOURCES ORGANIZATION Set strategies to satisfy key stakeholders … … by improving critical business processes … … and aligning resources and organization.
MARKET-ORIENTED STRATEGIC PLANNING Ref: Chapter 4 of Core Text
Large companies normally manage different businesses, each requiring its own strategy. These are termed as Strategic Business Units (SBUs). An SBU has three characteristics:
It is a single business or a collection of related businesses that can be planned separately from the rest of the company.
It has its own set of competitors.
It has a manager who is responsible for strategic planning and profit performance and who controls most of the factors affecting profit.
Ref: Chapter 4 of Core Text
ASSIGNING RESOURCES TO SBUs (THE BCG GROWTH-SHARE MATRIX)
The Boston Consulting Group (BCG), a leading management consulting firm, popularized the growth-share matrix. It is divided into four cells, each indicating a different type of business. The market-growth rate on the vertical axis indicates the annual growth rate of the market in which the business operates. The relative market share , measured on the horizontal axis, refers to the SBUs market share relative to that of the largest competitor in the segment.