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Ch 1 Basics Of Marketing


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Published in: Business, Career

Ch 1 Basics Of Marketing

  1. 1. Introduction Of Marketing  Definition and Functions of Marketing  Markets  Company Orientation towards Marketplace
  2. 2. Company Orientation towards Marketplace  Product  Production  Sales  Marketing  Societal  Transactional  Relational  Holistic Marketing Orientation  Selling v/s Marketing  Marketing Myopia
  3. 3. Product  A good or service that meets the requirements of a particular market and yields enough profit.  Management philosophy that consumer prefer those products in the market which are best in terms of quality and price.
  4. 4. Basis of concept of product 1. Quality 2. Comparing quality 3. Meeting overall needs and not a specific need.
  5. 5. Production  Started in 17th century.  No research, no survey  The processes and methods used to transform tangible inputs (raw materials, semi-finished goods) and intangible inputs (ideas, information, knowledge) into goods or services.
  6. 6. Sales  A transaction between two parties where the buyer receives goods, services and/or assets in exchange for money.  An agreement between a buyer and seller on the price of a security.
  7. 7. Marketing  Marketing is the activity, set of institutions, and process for communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.  Marketing is a skillset used to create awareness of a product within the market or a consumer.
  8. 8. Modes of Marketing 1. Television 2. Radio 3. Internet 4. Pamphlets 5. Hoarding
  9. 9. Consumer Survey Research And Analysis Products And Markets Production Distribution Marketing Sales
  10. 10. Societal  Application of commercial marketing concepts, knowledge, and techniques to non-commercial ends (such as campaigns against smoking and drunken driving) for the society's welfare.
  11. 11. Examples 1. Ariel: Ariel is a detergent manufactured by Procter and Gamble (P&G). Ariel runs special fund raising campaigns for deprived classes of the world specifically the developing countries. It also contributes part of its profits from every bag sold to the development of the society. 2. Body Shop: Body Shop is a cosmetic company found by Anita Roddick. The company uses only vegetable based materials for its products. It is also against Animal testing, supports community trade, activate Self Esteem, Defend Human Rights, and overall protection of the planet. Thus it is completely following the concept of Societal Marketing.
  12. 12. Transactional  Transaction oriented marketing is a strategy that focuses on the increase of overall sales and nothing else. Small businesses who engage in transaction oriented marketing shift every possible resource and marketing initiative away from things like customer relations and onto creating more points of sale, ways to buy and purchase rewards for the customer.
  13. 13. Relational  In relationship marketing, customer profile, buying patterns, and history of contacts are maintained in a sales database, and an account executive is assigned to one or more major customers to fulfill their needs and maintain the relationship.
  14. 14. Difference between Transactional and Relational • Primary focus on achieving organisational objectives • Single purchase • Limited customer service • Short term goal of customer satisfaction • Quality a manufacturing responsibility • Eg – Mobile Shoppe • Focus on customer retention • Repeated sales • Close/frequent customer contact • Goal of delighting the customer • Quality at total organsation responsibility • Emphasis on longer-term activities • High level of customer service • Eg – 5* Hotels
  15. 15. Holistic  A marketing strategy that is developed by thinking about the business as a whole, its place in the broader economy and society, and in the lives of its customers. It attempts to develop and maintain multiple perspectives on the company’s commercial activities.
  16. 16. Selling v/s Marketing Pull Marketing shows how to reach to the Customers Longer term Push Usually one to one Sales is the ultimate result of marketing One to many Short termHorizon Process Priority Strategy Concept Marketing is a wider conceptSales is a narrower concept
  17. 17. 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.  Failure to see and adjust to the rapid changes in their markets.
  18. 18. Example of Marketing Myopia  Kodak Digital Film  Maruti Gypse