Introduction To Marketing

Introduction to Marketing Good Marketing is not an accident but the result of careful planning and execution .

What is Marketing? • Social definition 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

What is Marketing? • Management definition It is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.

• Marketing is an art and science

• Finance, operations accounting , production and other functions will not really matter if there is no sufficient demand for the products and services.

What is Marketing? • Marketing is meeting the needs profitably both of marketers and customers. • The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. e.g. Waiting lines and customer full restaurants, waiting period for the vehicles etc.

Needs and Wants • Needs are basic human requirements. • Wants are needs directed to specific objects/services that might satisfy the need.

Demand • This is the wants for specific products backed by an ability to pay. • Marketers should try to shape the wants. Many customers don't know what they want when the product is new, concept or service is new. • So companies help the customers to learn what they want. • E.g. chips, soft drinks are the party food, chocolates for celebrations, diet food product, fitness and weight loss programs etc.

Exchange • Get something (product /service) by offering something in return. Eg. kind (barter) or money (value ) • Exchange is a value creating process because it leaves both parties better off (win – win situation)

Transaction • A transaction is an exchange between two things of value on agreed conditions and a time and place of agreement. • To make successful transaction a marketer should understand what each party expects from transction.

What is Marketed? • Goods • Services • Events • Experiences • Persons • Places • Properties • Organizations • Information • Ideas

Concepts under which firms conduct marketing activities • Production concept • Product Concept • Selling Concept • Marketing Concept • Holistic Marketing Concept • Societal marketing Concept

Production concept • Consumers will prefer products that are widely available and inexpensive. • Managers of production oriented businesses concentrate on achieving high production efficiency, low costs, mass distribution.

Product Concept • Consumers will favor those products that offer the most quality, performance, innovative features. • Managers in these organizations focus on making superior products and imporoving them over time.

Selling Concept • Consumers ,if left alone,will ordinarily not buy enough of the organization’s products. The organization must therefore, undertake and aggressive selling and promotion effort. • The aim is to sell what companies make rather that what the market wants.

Marketing Concept • Customer-centered, sense and response philosophy. • The job is to find right products for your customers. • The key to achieve organizational goals consists of the company being more effective than competitors in creating , delivering and communication superior customer value to its chosen target markers.

Holistic Marketing Concept • Based on development, design and implementation of marketing programs, processes and activities .(fig.1.3)

Four Themes of Holistic Marketing 1.Relationship Marketing • Building long term mutually satisfying relations with customers, suppliers, distributors in order to retain their long term preference and business1.

2.Integrated Marketing • It is the tools that an organization employs to pursue its marketing objectives in the target market • Product, Price, Place, Promotion • 4 C’s – Customer solution, Cost, Convenience, Communicatio n

3.Internal Marketing • Marketing Department • Senior Management • Other departments

4.Socially Responsible Marketing Cause and effect if marketing clearly extend beyond the company and the customers. • Ethics • Environment • Legal • Community

Societal marketing Concept • Organization’s tasks is to determine the needs, wants and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well being.

Marketing and Customer Value Value and Satisfaction • Value = Benefits/Costs • Benefits = Functional Benefits + Emotional benefits • Costs = Monetary costs + Time + Energy + Psychic costs Offer should contain value for the product.

Value Creation and Delivery sequence Choose the value- “homework” marketer must do before the product exists. 1. Customer segmentation 2. Market selection focus 3. Value positioning (fig 2.1)

Providing the value 1. Product development 2. Service development 3. Pricing 4. Distribution

Communicating the value 1. Sales force 2. Sales promotion 3. Advertising

The Value Chain • A tool for identifying ways to create more customer value . The primary activities i. Bringing materials to the business (inbound logistics) ii. Converting them into final products (operations) iii. Shipping out final products (outbound logistics) iv. Marketing them (marketing and sales) v. Provide services

The support activities i. Procurement ii. Technology development iii. Human resource management iv. Firm infrastructure

• Value exploration -How can a company identify new value opportunities? • Value creation- How can a company differently create more promising new value offerings? • Value delivery- How can a company use its capabilities and infrastructure to deliver the bew value offerings more efficiently?

Strategic Planning A game plan for achieving company’s long term objectives. Key areas • Managing company’s business as an investment portfolio • Assessing each business that market. • Establishing a strategy.

Planning, Implementation and Control Planning Implementing • Corporate planning • Organizing • Division planning • Implementing • Business planning • Product planning Control • Measuring results (fig.2.4) • Diagnosing results • Taking corrective actions

• A marketing plan is the central instrument for direction and coordination the marketing efforts. • The strategic marketing plan lays out the target markets and the value proposition that will be offered based on an analysis of the best market opportunities.

• The tactical marketing plan specifies the marketing tactics including product features, promotion, merchandising ,pricing ,sales channels and service.

Marketing Plan • It summarizes what the marketer has learned about the marketplace and indicated how the firm plans to reach its marketing objectives. • It contains tactical guidelines for marketing programs and financial allocations over the planning period.

Objectives of the marketing plan • Acts as a roadmap • Assist in management control and monitoring the implementation strategy • Informs new participants in the plan of their role and function • To obtain resources for implementation • To stimulate thinking and make better use of resources.

Contents of the Marketing Plan • Executive summary and table of content. Brief summary of main goals • Situation analysis Data on sales, costs, the market competitors and the various forces in the microenvironment. How is market defined, how big it is, how fast it is growing?

• Marketing strategy • Financial projections Sales forecast an expense forecast and break even analysis. • Implementation controls Review of each period’s results, steps to be taken in response to specific environmental developments such as price wars.

Implications of Marketing • 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 or service? • Why should customers buy from us?

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Introduction To Marketing

by Subin Babu

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