Basic concepts of_marketing

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Basic concepts of_marketing

  1. 1. Basic concepts of Marketing Dr M.Meher Karuna
  2. 2. DEFINING MARKETING <ul><li>Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging product and services of value with others </li></ul><ul><li>Marketing M anagement is the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering, and communicating superior customer value. </li></ul>
  3. 3. Definition by AMA <ul><li>Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. </li></ul>
  4. 4. THE SCOPE OF MARKETING <ul><li>GOODS </li></ul><ul><li>Physical goods constitute the bulk of most countries productions and marketing effort </li></ul><ul><li>SERVICES </li></ul><ul><li>As economics advance, a growing proportion of their activities are focused on the production of service </li></ul><ul><li>EXPERIENCES </li></ul><ul><li>By orchestrating several service and goods, one can create, stage and market experiences </li></ul><ul><li>EVENT </li></ul><ul><li>Marketers promote time-based events, such as the Olympics, company anniversaries, major trade shows, sports event and artistic performances </li></ul><ul><li>PERSONS </li></ul><ul><li>Celebrity marketing has become a major business </li></ul>
  5. 5. <ul><li>PLACES </li></ul><ul><li>Places (cities, states, regions and whole nations) compete actively to attract tourist, factories, company, headquarters and new residents </li></ul><ul><li>PROPERTIES </li></ul><ul><li>Properties are intangible right of ownership of either re a l property (real estate) or financial property (stocks and bonds) </li></ul><ul><li>ORGANIZATIONS </li></ul><ul><li>Organizations actively work to build a strong, favorable image in the mind of their publics </li></ul><ul><li>INFORMATIONS </li></ul><ul><li>Information can be produced and marketed as a product </li></ul><ul><li>IDEAS </li></ul><ul><li>Every market offering includes a basic idea at its core </li></ul>
  6. 6. Structure of Flows in a Modern Exchange Economy Manufacturer Markets Government Markets Consumer Markets Intermediary Markets Resource Markets Resources Money Resources Money Money Goods and services Money Goods and services Service, Money Service, Money Taxes, goods Taxes, goods Service, Money Taxes, goods Taxes goods
  7. 7. CORE MARKETING CONCEPTS <ul><li>Target Markets and Segmentations </li></ul><ul><li>Marketers and Prospects </li></ul><ul><li>Needs, wants and demand </li></ul><ul><li>Product or Offering </li></ul><ul><li>Value and Satisfication </li></ul><ul><li>Exchange and Transactions </li></ul><ul><li>Relationship and Networks </li></ul><ul><li>Marketing Channels </li></ul><ul><li>Supply Chain </li></ul><ul><li>Competition </li></ul><ul><li>Marketing Environment </li></ul><ul><li>Marketing Mix </li></ul>
  8. 8. <ul><li>Target Markets and Segmentation </li></ul><ul><li>Market Place, Market Space, Metamarket </li></ul><ul><li>Market Place : Physical Shopping </li></ul><ul><li>Market Space : Digital Shopping </li></ul><ul><li>Metamarket : Cluster of complementary Products. </li></ul><ul><li>Mohan Sawhney proposed a concept of metamarket. </li></ul><ul><li>Metamediaries to assist buyers to move through these groups. </li></ul>
  9. 9. <ul><li>3. Marketers and Prospects : A marketer is someone who seeks a response from another party, called the prospect . </li></ul><ul><li>4. Needs, Wants, and Demand : A need can be defined as a felt state of deprivation of some basic satisfaction. </li></ul><ul><li>Primary needs/physiological or biogenic needs. </li></ul><ul><li>Secondary / acquired needs. </li></ul><ul><li>Demand: ability and willingness to buy. </li></ul>
  10. 10. <ul><li>5. Product, Offering, and Brand: </li></ul><ul><li>Product is a set of benefits companies offer to satisfy needs. </li></ul><ul><li>Offering: A combination of products, services, information and experiences. </li></ul><ul><li>Brand: an offering from a known source. </li></ul><ul><li>6. Value and Satisfaction: </li></ul><ul><li>Value: ratio between what the customer gets and what he gives. </li></ul><ul><li>Customer value triad: quality, service and price (QSP). </li></ul>
  11. 11. <ul><li>Raise benefits </li></ul><ul><li>Reduce costs </li></ul><ul><li>Raise benefits and reduce costs </li></ul><ul><li>Raise benefits by more than the raise in costs. </li></ul><ul><li>Lower benefits by less than reduction in costs. </li></ul>VALUE AND SATISFICATION
  12. 12. <ul><li>7.Exchange and Transactions </li></ul><ul><li>Exchange is the process of obtaining a desired product from someone by offering something in return. </li></ul><ul><li>Transaction is a trade of values between two or more parties. </li></ul>
  13. 13. <ul><li>8.Relationships and Networks </li></ul><ul><li>Relationship marketing is building mutually satisfying long-term relationship with key parties. (customers, suppliers, distributors) </li></ul><ul><li>Marketing network consists of the company and its supporting stakeholders (customers, employees, suppliers, distributors, retailers, ad agencies, university scientists and others) with whom it has built mutually profitable business relationships. </li></ul>
  14. 14. <ul><li>9. Marketing Channels: To reach the target market. </li></ul><ul><li>Communication channels: deliver and receive messages. </li></ul><ul><li>Distribution channels: display, sell, or deliver physical goods. </li></ul><ul><li>Service channels: to carry out transactions with potential buyers. Ex: warehouses, banks, transport, insurance etc. </li></ul>
  15. 15. <ul><li>10.Supply Chain: Longer chain from raw materials to components to final products that are carried to final buyers. </li></ul><ul><li>11.Competition: all the actual and potential rival offerings and substitutes that a buyer might consider. </li></ul><ul><li>Brand competition </li></ul><ul><li>Industry Competition </li></ul><ul><li>Form Competition </li></ul><ul><li>Generic Competition </li></ul>
  16. 16. MARKETING ENVIRONMENT <ul><li>Competition represent only one force inthe environment in which the marketer operates. The marketing environment consist of the task environment and the broad environment </li></ul><ul><li>The broad environment consist of six component : demographic environment, economic environment, natural environment, technological environment, political-legal environment and social cultural environment </li></ul>MARKETING MIX <ul><li>Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market </li></ul><ul><li>Four P : Product, Price, Place, Promotion </li></ul><ul><li>Four C : Customer Solution, Customer Cost, Convenience, Communication </li></ul>
  17. 18. COMPANY ORIENTATIONS TOWARD THE MARKETPLACE <ul><li>THE PRODUCTION CONCEPT </li></ul><ul><ul><li>Holds that consumers will prefers product that are widely available and inexpensive </li></ul></ul><ul><li>THE PRODUCT CONCEPT </li></ul><ul><ul><li>Holds thats consumers will favor those product that offer the most quality, performance, or innovative features </li></ul></ul><ul><li>THE SELLING CONCEPT </li></ul><ul><ul><li>Holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization’s products. The organization must, therefore, undertake an aggressive selling and promotion effort </li></ul></ul><ul><li>THE MARKETING CONCEPT </li></ul><ul><ul><li>Holds that the key to achieving its organizational goals consist of the company being more effective than competitors in creating, delivering, and communicating customer value to its chosen target markets </li></ul></ul>
  18. 19. Determinants of Customer Delivered Value Factory Product Selling and Profits through Promoting sales volume Target Customer Integrated Profits through market needs Marketing customer saticfaction A. The Selling Concept B. The Marketing Concept Starting Point Focus Means Ends
  19. 20. THE SOCIETAL MARKETING CONCEPT <ul><li>The societal marketing concept hold s that the organization’s task is to determine the needs, wants and interest of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enchances the customer’s and the society’s well-being. </li></ul>
  20. 21. HOLISTIC MARKETING CONCEPT <ul><li>Companies have new capabilities that can transform the way they have been doing marketing. </li></ul><ul><li>Companies can operate a powerful new information and sales channel. </li></ul><ul><li>Companies can collect fuller and richer information. </li></ul><ul><li>Companies can facilitate and speed up internal communication. </li></ul>
  21. 22. FOUR COMPONENTS <ul><li>Relationship Marketing. </li></ul><ul><li>Integrated Marketing. </li></ul><ul><li>Internal Marketing. </li></ul><ul><li>Social Responsibility Marketing. </li></ul><ul><li>An approach to marketing that attempts to recognize and reconcile the scope and complexities of marketing activities. </li></ul>
  22. 24. INTERNAL MARKETING <ul><li>Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. </li></ul><ul><li>It must take place at two levels </li></ul><ul><li>1. Various marketing functions must be integrated </li></ul><ul><li>2.Marketing thinking must be so pervasive throughout the company. </li></ul>
  23. 25. SOCIAL RESPONSIBILITY MARKETING <ul><li>The cause and effects of marketing extend beyond the company and the customer to society. </li></ul><ul><li>Social responsibility also requires that marketers carefully consider the role that they are playing and could play in terms of social welfare. </li></ul><ul><li>Different names for this situation are humanistic marketing, ecological marketing and societal marketing concept. Also called as cause-related marketing. </li></ul>
  24. 26. HOW BUSINESS AND MARKETING ARE CHANGING <ul><li>Company responses and adjustments </li></ul><ul><ul><li>Reengineering </li></ul></ul><ul><ul><li>Outsourcing </li></ul></ul><ul><ul><li>E-commerce </li></ul></ul><ul><ul><li>Benchmarking </li></ul></ul><ul><ul><li>Alliances </li></ul></ul><ul><ul><li>Partner-suppliers </li></ul></ul><ul><ul><li>Market Centered </li></ul></ul><ul><ul><li>Global and local </li></ul></ul><ul><ul><li>Decentralized </li></ul></ul>
  25. 27. <ul><li>Marketers responses and adjustment </li></ul><ul><ul><li>Relationship marketing </li></ul></ul><ul><ul><li>Customer lifetime value </li></ul></ul><ul><ul><li>Customer share </li></ul></ul><ul><ul><li>Target marketing </li></ul></ul><ul><ul><li>Individualization </li></ul></ul><ul><ul><li>Customer database </li></ul></ul><ul><ul><li>Integrated marketing communications </li></ul></ul><ul><ul><li>Every employee a marketer </li></ul></ul>

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