What is Marketing ?We use the word Marketing to describe such things as analyzing the needs of the people trying to guess what types of products they want estimate how much they will buy predict when they will want to buy determine where they go to buy the stuff
What is Marketing ?…. And, figure out the best price to sell it at - and can you still make a profit selling it at that price decide on promotional things to create awareness about the product look at the competition to see what they are doing with pricing, features etc.
Introduction “Marketing is concerned with anticipating customer demand and directing the flow of goods from producers to consumers” Marketing has to do with matching producer’s outputs to consumer’s activities (wants, needs)
Serving the needs of customers is what business should be all about … Marketing is the business function that interprets customer needs to the rest of the organization.Marketing should begin with the customer needs - NOT with the production process. Mktg should anticipate needs.
Definitions of marketing Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. AMERICAN MARKETING ASSOCIATION
Dr. Philip Kotler the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures and quantifies the size of the identified market and the profit potential. It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services.”
Marketing is traditionally the means by which anJulie Barile organization communicates to, connects with, and engages its target audience to convey the value of and ultimately sell its products and services. However, since the emergence of digital media, in particular social media and technology innovations, it has increasingly become more about companies building deeper, more meaningful and lasting relationships with the people that they want to buy their products and services. The ever-increasingly fragmented world of media complicates marketers’ ability connect and, at the same, time presents incredible opportunity to forge new territory.
Marketing - the formal definition Process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individuals and organizational objectives.
Process of ……………. Marketing - the formal definitionPlanning and executing N = carrying out actionsthe conception, = (creation of the idea)pricing, promotion, anddistribution of “STUFF” stuff = ideas, goods, and servicesto create exchanges = customer gets the product, mfg. gets the $$that satisfy J peoplepeople = individuals and organizational objectives.
Marketing = ? Marketing is the sum of all activities that take you to a sales outlet. After that sales takes over. Marketing is all about creating a pull, sales is all about push. Marketing is all about managing the four P’s – product price place promotion •12
Difference Between - Sales& Marketing ? Sales trying to get the customer to want what the company produces Marketing trying to get the company produce what the customer wants
BUYING people have the the opportunity to buy products that they want.
Selling producers function within a free market to sell products to consumers.
Financing banks and other financial institutions provide money for the productionand marketing of products.
Storage products must be stored and protected until they are needed. This function is especially important for perishable products such as fruits and vegetables.
Transportation Products must be physically relocated to the locations where consumers can buy them. This is a very important function. Transportation includes rail road, ship, airplane, truck, and telecommunications for non-tangible products such as market information.
Processing Processing involves turning a raw product, like wheat, into something the consumer can use -- for example, bread.
Risk-Taking insurance companies provide coverage to protect producers and marketers from loss due to fire, theft, or natural disasters.
Market Information Information from around the world about market conditions, weather, price movements, and political changes, can affect the marketing process. Market information is provided by all forms of telecommunication, such as television, the internet, and phone.
Grading and Standardizing Many products are graded in order to conform to previously determined standards of quality. For example, when you purchase gold with hallmark, you know you are buying the best Gold in the market.
Core Concepts of Marketing Based on : Needs, Wants, Desires / demand Products, Utility, Value & Satisfaction Exchange, Transactions & Relationships Markets, Marketing & Marketers. •25
Core Concepts of Marketing Need – food ( is a must ) Want – Pizza, parotha, butter Nan ( translation of a need as per our experience ) Demand – Pizza ( translation of a want as per our willingness and ability to buy ) Desire – Have a Pizza in a Domino’s Pizza or Pizza hut. •27
Drivers of Customer Satisfaction Many aspects of the firm’s value proposition contribute to customer satisfaction: The core product or service offered Support services and systems The technical performance of the firm Interaction with the firm and it employees The emotional connection with customers Ability to add value and to differentiate as a firm focuses more on the top levels •30
Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals."In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a customer satisfaction metric very useful in managing and monitoring their businesses.
Customer Delight What is Customer Delight ? Its creating a feeling of "WOW" ! Delighted customers are those where you anticipate their needs, provide solutions to them before they ask and where you are observing to see if new and/or additional expectations are about ready to be required.
Customer delight When you create "WOW" you have planted a very special hook in the memory of the customer that is easy to recall. It creates the possibility of the customer telling the story about their "WOW" experience to many friends, associates and strangers. It creates the free advertising that you cant place a momentary value to.
Customer Delight Customer delight brings customers coming back for more. It causes new customers to come. It takes to out of the realm of being the same as all the others and places you clearly at the top. It distinguishes you from the rest. It allows you to sell your product or service for more money than the competition. It allows you to make more return on your investment. It allows you to reward your employees.
Difference between customerdelight and customer satisfaction Customer satisfaction is giving the customer something they expect and it makes them happy. Customer delight is giving the customer something they never expected but they value it highly once they have it.
Approaches to marketing Production Product Sales marketing
Production approach Profit driver : Production methods Timeframe: until the 1950sA firm focusing on a production orientation specializes in producing as much as possible of a given product or service. Thus, this signifies a firm exploiting economies of scale until the minimum efficient scale is reached. A production orientation may be deployed when a high demand for a product or service exists, coupled with a good certainty that consumer tastes will not rapidly alter (similar to the sales orientation).
Product Approach Profit driver : Quality of the product Timeframe: until the 1960s A firm employing a product orientation is chiefly concerned with the quality of its own product. A firm would also assume that as long as its product was of a high standard, people would buy and consume the product.
Selling Approach Profit driver : Selling methods Timeframe: 1950s and 1960s A firm using a sales orientation focuses primarily on the selling/promotion of a particular product, and not determining new consumer desires as such. Consequently, this entails simply selling an already existing product, and using promotion techniques to attain the highest sales possible. Such an orientation may suit scenarios in which a firm holds dead stock, or otherwise sells a product that is in high demand, with little likelihood of changes in consumer tastes that would diminish demand.
Marketing Approach Profit driver : Needs and wants of customers Timeframe: 1970 to present day The marketing orientation is perhaps the most common orientation used in contemporary marketing. It involves a firm essentially basing its marketing plans around the marketing concept, and thus supplying products to suit new consumer tastes. As an example, a firm would employ market research to gauge consumer desires, use R&D to develop a product attuned to the revealed information, and then utilize promotion techniques to ensure persons know the product exists.
Societal approach The societal marketing concept holds that the organization’s task is to determine the needs, wants, and interests of a target market 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.
objectives of societal marketing "Social responsibility implies that a business decision maker... is obliged to take actions that also protect and enhance societys interests. "Business has the responsibility to help [the consumer] .... It s the duty of business to promote proper consumption values. "Business leaders are mandated to adopt roles of leadership in the advancement of our society to new levels of moral conduct.
Relationship marketing Relationship Marketing uses the event-driven tactics of customer retention marketing, but treats marketing as a process over time rather than single unconnected events. By molding the marketing message and tactics to the LifeCycle of the customer, the Relationship Marketing approach achieves very high customer satisfaction and is highly profitable.
The relationship marketing process is usually defined as a series of stages, and there are many different names given to these stages, depending on the marketing perspective and the type of business. For example, working from the relationship beginning to the end: Interaction > Communication > Valuation > Termination Awareness > Comparison > Transaction > Reinforcement > Advocacy Suspect > Prospect > Customer > Partner > Advocate > Former Customer
Relationship marketing A simple example of this would be sending new customers a "Welcome Kit," which might have an incentive to make a second purchase. If 60 days pass and the customer has not made a second purchase, you would follow up with an e-mailed discount. You are using customer behavior over time (the customer LifeCycle) to trigger the marketing approach.
Marketing Myopia A short-sighted and inward looking approach to marketing that focuses on the needs of the company instead of defining the company and its products in terms of the customers needs and wants. It results in the failure to see and adjust to the rapid changes in their markets.
Marketing myopia is a term used in marketing as well as the title of an important marketing paper written by Theodore Levitt. he Myopic culture, Levitt postulated, would pave the way for a business to fail, due to the short-sighted mindset and illusion that a firm is in a so-called growth industry. This belief leads to complacency and a loss of sight of what customers want.
A HOLISTIC MARKETING ORIENTATION ANDCUSTOMER VALUE A holistic marketing orientation can also provide insight into the process of capturing customer value. One conception of holistic marketing views it as integrating the value exploration, value creation, and value delivery activities with the purposes of building long-term, mutually satisfying relationships and co- property among key stakeholders. According, to this view, holistic marketers succeed by managing a superior value chain that delivers a high level of product quality, service, and speed. Holistic marketers achieve profitable growth by expanding customer share, building customer loyalty, and capturing customer lifetime value.
The holistic marketing framework is designed to address three key management questions: 1. Value exploration How can a company identify new value opportunities? 2. Value creation How can a company efficiently create more promising new value offerings? 3. Value delivery How can a company use its capabilities and infrastructure to deliver the new value offerings more efficiently?
The Importance of Marketing Why study Marketing - „cause you can get a JOB in Marketing !! Canada is a very multi-cultural country We can buy products from all over the world Selling new products to Canadians requires new marketing approaches - THEREFORE there will be many new job opportunities
The Importance of Marketing Marketing is a core business discipline The study of marketing is important to the basics of running a business, big or small When you buy a product - the cost of marketing amounts to 40 ~ 60% of the total eg. If we buy shoes for $70, $35 of that 70 has been spent on marketing (including advertising, market research, development etc.)
The Importance of MarketingGetting a JOB in Marketing !! Personal selling Advertising Package Design Transportation Storage Marketing Research Product Development Wholesaling Retailing
The Importance of MarketingImportance to Companies When you work in the marketing department of a company you are part of LINE personnel LINE personnel are always more critical than STAFF personnel because LINE personnel “bring in the money” - therefore your job is revenue earning, not revenue spending