<ul><li>CHAPTER TWO </li></ul><ul><li>Fundamentals Of Marketing </li></ul>Chapter 2 / Slide
Marketing – An Introduction <ul><li>An Ancient Art, an Omnipresent Entity, a Vital Function of Business </li></ul><ul><ul>...
What is Marketing? Chapter 2 / Slide  <ul><li>None of these definitions bring out the full meaning of marketing. </li></ul...
Understand Marketing by Checking ‘What does it do’ <ul><li>Meeting Human/Customer Needs </li></ul><ul><ul><li>Marketing mu...
Understand Marketing by Checking ‘What does it do’ <ul><li>Being Empathetic to Customers </li></ul><ul><ul><li>Generating ...
Understand Marketing by Checking ‘What does it do’ <ul><li>What Else is Embedded in Marketing? </li></ul><ul><ul><li>Deman...
Understand Marketing by Checking ‘What does it do’ <ul><li>What is Meant by ‘Market’? </li></ul><ul><ul><li>People/consume...
Perspectives on Marketing Already in Vogue <ul><li>Exchange Concept </li></ul><ul><ul><li>Holds that Quality and Features ...
Difference Between Selling and Marketing <ul><li>Selling revolves around the needs and interests of the seller. </li></ul>...
Chapter 2 / Slide  Difference Between Selling and Marketing Chapter 2 :   Fundamentals of Marketing <ul><li>Is not ‘sellin...
How does the ‘ Marketing Concept’ Conceive Marketing? <ul><li>Key Attributes of ‘ Marketing Concept’ </li></ul><ul><ul><li...
Difference in Orientation – the Separating Factor Between One Concept and the Other <ul><li>Contrast the Sales concept and...
Need for the ‘Value Perspective’ <ul><li>A need for a new perspective revolving around value and providing practical direc...
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Ch2 fundamentals of_marketing

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  • J. K. Sharma
  • Ch2 fundamentals of_marketing

    1. 1. <ul><li>CHAPTER TWO </li></ul><ul><li>Fundamentals Of Marketing </li></ul>Chapter 2 / Slide
    2. 2. Marketing – An Introduction <ul><li>An Ancient Art, an Omnipresent Entity, a Vital Function of Business </li></ul><ul><ul><li>Business = Marketing </li></ul></ul><ul><ul><ul><li>Business has just two basic functions: marketing and innovation ’. – Peter Drucker </li></ul></ul></ul><ul><ul><li>Entrepreneurial part of business </li></ul></ul><ul><ul><ul><li>‘ Marketing is the logic of business’. - Peter Drucker </li></ul></ul></ul><ul><ul><li>Strategic part of business </li></ul></ul><ul><ul><ul><li>Represents the real strategic activity in a business and the real strategic function of management. </li></ul></ul></ul><ul><ul><li>Intricate for practice </li></ul></ul><ul><ul><ul><li>‘ Marketing is fast-paced and dynamic; it is highly visible; it is </li></ul></ul></ul><ul><ul><ul><li>essential to the survival of organisations; it is rewarding to its successful practitioners’. - Stanton et al. </li></ul></ul></ul>Chapter 2 / Slide
    3. 3. What is Marketing? Chapter 2 / Slide <ul><li>None of these definitions bring out the full meaning of marketing. </li></ul><ul><li>Art/Science/System/Business Function etc. </li></ul><ul><li>Understand Marketing through select definitions </li></ul>
    4. 4. Understand Marketing by Checking ‘What does it do’ <ul><li>Meeting Human/Customer Needs </li></ul><ul><ul><li>Marketing must know </li></ul></ul><ul><ul><ul><li>Who are our customers? </li></ul></ul></ul><ul><ul><ul><li>What are their needs? </li></ul></ul></ul><ul><ul><ul><li>What must we do to meet their needs? </li></ul></ul></ul><ul><ul><li>Meeting latent and future needs </li></ul></ul><ul><ul><ul><li>Marketing searches/spots/visualises the latent and future needs of customers. </li></ul></ul></ul><ul><ul><li>Meeting needs at a profit </li></ul></ul><ul><ul><ul><li>Marketing meets customer needs at a profit. </li></ul></ul></ul>Chapter 2 / Slide
    5. 5. Understand Marketing by Checking ‘What does it do’ <ul><li>Being Empathetic to Customers </li></ul><ul><ul><li>Generating customer satisfaction </li></ul></ul><ul><ul><ul><li>Product/Service </li></ul></ul></ul><ul><ul><ul><li>Ambience associated with product/service </li></ul></ul></ul><ul><ul><ul><li>Peripheral things </li></ul></ul></ul><ul><ul><ul><li>Speed of response </li></ul></ul></ul><ul><ul><li>Measuring customer satisfaction </li></ul></ul><ul><ul><ul><li>Satisfaction generated may fall short of or match or exceed the expectations of customers. </li></ul></ul></ul><ul><ul><li>Is it then correct to assume Marketing = Customers? </li></ul></ul>Chapter 2 / Slide Chapter 2 : Fundamentals of Marketing
    6. 6. Understand Marketing by Checking ‘What does it do’ <ul><li>What Else is Embedded in Marketing? </li></ul><ul><ul><li>Demand </li></ul></ul><ul><ul><ul><li>Generating the demand </li></ul></ul></ul><ul><ul><ul><li>Meeting the demand </li></ul></ul></ul><ul><ul><li>Competition </li></ul></ul><ul><ul><ul><li>Understand objectives and strategies of competitors. </li></ul></ul></ul><ul><ul><ul><li>Anticipate actions and reaction patterns of competitors. </li></ul></ul></ul><ul><li>What is marketed? </li></ul><ul><ul><li>Customers buy benefits/services/solutions, not products . </li></ul></ul><ul><ul><li>Customers seek Value in benefits/services/solutions. </li></ul></ul><ul><li>(Example: Channa/Channa-Batura/TCS Certainty) </li></ul>Chapter 2 / Slide Chapter 2 : Fundamentals of Marketing
    7. 7. Understand Marketing by Checking ‘What does it do’ <ul><li>What is Meant by ‘Market’? </li></ul><ul><ul><li>People/consumers with purchasing power </li></ul></ul><ul><ul><li>Demand </li></ul></ul><ul><li>Marketing as a Process </li></ul><ul><ul><li>Is a process of exchange </li></ul></ul><ul><ul><li>Means offering something and getting something in return </li></ul></ul><ul><ul><li>Involves a buyer and a seller. </li></ul></ul><ul><ul><li>The transaction takes place as per agreed upon conditions </li></ul></ul><ul><ul><li>The transaction succeeds when both parties are satisfied. </li></ul></ul><ul><li>Marketing, a Dynamic and Complex Idea </li></ul><ul><ul><li>Increased levels of competition </li></ul></ul><ul><ul><li>More sophisticated consumer. </li></ul></ul>Chapter 2 / Slide
    8. 8. Perspectives on Marketing Already in Vogue <ul><li>Exchange Concept </li></ul><ul><ul><li>Holds that Quality and Features of the Product is the main thing. </li></ul></ul><ul><ul><li>Covers the physical aspect and the price mechanism. </li></ul></ul><ul><li>The Production Concept </li></ul><ul><ul><li>Maximise output, achieve a lower unit cost; and sell at a lower price. </li></ul></ul><ul><li>The Product Concept </li></ul><ul><ul><li>Quality and features of the product. </li></ul></ul><ul><ul><li>Marketing Myopia </li></ul></ul><ul><ul><ul><li>‘ A coloured or crooked perception of marketing and a shortsighted view of business’. - Theodore Levitt. </li></ul></ul></ul><ul><ul><li>The right thing is to Focus on the basic human needs the product satisfies. </li></ul></ul><ul><li>The Sales Concept </li></ul><ul><ul><li>Aggressively promote and push products. </li></ul></ul><ul><li>The Marketing Concept </li></ul><ul><ul><li>Customer is central to business. </li></ul></ul>Chapter 2 / Slide
    9. 9. Difference Between Selling and Marketing <ul><li>Selling revolves around the needs and interests of the seller. </li></ul><ul><ul><li>The purpose of selling is to sell what is made rather than make what the customer wants. </li></ul></ul><ul><ul><li>Views business as a task of somehow disposing off existing products. </li></ul></ul><ul><li>Marketing revolves around the needs and interests of the buyer </li></ul><ul><ul><li>Marketing starts with the customers. </li></ul></ul><ul><ul><li>Views business as a task of meeting the needs of the customers. </li></ul></ul>Chapter 2 / Slide Chapter 2 : Fundamentals of Marketing
    10. 10. Chapter 2 / Slide Difference Between Selling and Marketing Chapter 2 : Fundamentals of Marketing <ul><li>Is not ‘selling’ a part of ‘marketing’? </li></ul><ul><li>Does not marketing seek profit just as selling does? </li></ul>
    11. 11. How does the ‘ Marketing Concept’ Conceive Marketing? <ul><li>Key Attributes of ‘ Marketing Concept’ </li></ul><ul><ul><li>Unflinching consumer orientation </li></ul></ul><ul><ul><ul><li>Overwhelming emphasis on the consumer and his needs </li></ul></ul></ul><ul><ul><ul><li>The customer, not the corporation, has to be the centre of the business universe. </li></ul></ul></ul><ul><ul><li>Integrated management action with marketing as the fulcrum </li></ul></ul><ul><ul><ul><li>All the limbs of the business are tightly integrated with each other, keeping marketing as the pivot. </li></ul></ul></ul><ul><ul><li>Emphasis on generating consumer satisfaction </li></ul></ul><ul><ul><ul><li>It is essential that consumer orientation leads to/translates into consumer satisfaction. </li></ul></ul></ul><ul><ul><li>Emphasis on profit </li></ul></ul><ul><ul><ul><li>Creation of profits or surpluses as an essential requirement . </li></ul></ul></ul><ul><ul><li>Attaining all the goals of the corporation through customer satisfaction </li></ul></ul><ul><ul><ul><li>All goals must be realised through consumer orientation and generation of consumer satisfaction. </li></ul></ul></ul>Chapter 2 / Slide Chapter 2 : Fundamentals of Marketing
    12. 12. Difference in Orientation – the Separating Factor Between One Concept and the Other <ul><li>Contrast the Sales concept and the Marketing concept. A difference in orientation towards the market/conduct of business is the real differentiating factor between the two concepts. </li></ul><ul><li>Why the Existing Perspectives are Not Sufficient for Interpreting Marketing </li></ul><ul><li>Do Not provide the Needed Practical Direction </li></ul><ul><li>Do Not explicitly project Value </li></ul><ul><li>‘ Customer Orientation’ and ‘Value Delivery’ are Not the same </li></ul>Chapter 2 / Slide Chapter 2 : Fundamentals of Marketing
    13. 13. Need for the ‘Value Perspective’ <ul><li>A need for a new perspective revolving around value and providing practical direction. </li></ul><ul><li>Delivering value to the customer is marketing’s basic job. </li></ul><ul><li>Exchange, Production, Product, Place, Price, Promotion and everything else are incidental. </li></ul><ul><li>Emphasize the application aspect of marketing that corresponds to a new orientation resting on value. </li></ul>Chapter 2 / Slide Chapter 2 : Fundamentals of Marketing

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