INTRODUCTION TO MARKETING “The future isn’t ahead of us. It has already happened.”To accompany A Framework for Marketing Management GODAV nd ARI
To accompany A Framework for Marketing Management, 2nd EditionMARKETING DEFINED Kotler‟s social definition: “Marketing is 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.” GODAV ARI
DEFINITION OF MARKETING “marketing is the management process that identifies, anticipates and satisfies customer requirements profitably” By The charted institute of Marketing
DEFINITION OF MARKETING „marketing is the human activity directed at satisfying human needs and wants through an exchange process‟ kotler 1980
DEFINITION OF MARKETING Marketing is a social and managerial process by which individuals and groups obtain what they want and need through creating, offering and exchanging product of value with others‟ kotler 1991
To accompany A Framework for Marketing Management, 2nd EditionMARKETING DEFINED The AMA managerial definition: “Marketing 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 objectives.” GODAV ARI
IMPLICATION OF MARKETING Who are our existing/potential costumers? What are there current and future need ? How can we satisfy this needs ? Can we offer a product /sarvise that the costumer would value ? Can we communicate with our custmor ? Can we diliver a compentitve product os service? Why should costumer by from us ?
THE MARKETING CONCEPT Choosing and targeting appropriate costumers Positioning your offering Intracting with thos costumer Controlling with those costmere Controlling the market effort Continuity of performance
4 P’S OF MARKETING Product: It is the tangible object or an intangible service that is getting marketed through the program. Tangible products may be items like consumer goods (Toothpaste, Soaps, Shampoos) or consumer durables (Watches, IPods). Intangible products are service based like the tourism industry and information technology based services or codes-based products like cellphone load and credits. Product design which leads to the product attributes is the most important factor. However packaging also needs to be taken into consideration while deciding this factor. Every product is subject to a life-cycle including a growth phase followed by an eventual period of decline as the product approaches market saturation. To retain its competitiveness in the market, continuous product extensions though innovation and thus differentiation is required and is one of the strategies to differentiate a product from its competitors. Price: The price is the simply amount a customer pays for the product. If the price outweigh the perceived benefits for an individual, the perceived value of the offering will be low and it will be unlikely to be adopted, but if the benefits are perceived as greater than their costs, chances of trial and adoption of the product is much greater.
4 P’S OF MARKETING Place: Place represents the location where a product can be purchased. It is often referred to as the distribution channel. This may include any physical store (supermarket, departmental stores) as well as virtual stores (e-markets and e-malls) on the Internet. This is crucial as this provides the place utility to the consumer, which often becomes a deciding factor for the purchase of many products across multiple product categories. Promotion: This represents all of the communications that a marketer may use in the marketplace to increase awareness about the product and its benefits to the target segment. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together (e.g in film promotion). Sales staff often play a major role in promotion of a product.
CUSTOMER A product is something you make which people come and buy. However, today, you can no longer succeed by making what you want and must instead find out what customers want. Focusing on Customer Value allows you to reset your perceptions around what it is you are creating and bringing to the market, be it a product, service or some other value. Everything begins and ends with your customer and you exist to serve their needs. Value is what your customer is concerned about, not you, your fabulous product or anything else you do. Value is how you define marketing mix “products” and what you should seek to engage your customer with. It is the value you provide that defines you in the marketplace.
COST (NOT PRICE!) Instead of thinking of price as something you charge, think of cost as something customers pay. This simple adjustment once again opens up a whole new way of thinking about sales and marketing. When you define marketing mix cost you tune into the customer dilemma of deciding how to spend limited money to satisfy unlimited wants. Are you providing enough capital to compete effectively? Your motivation in going to market should not be to maximize your gain but to maximize customer value. Therefore, you should ask how you can provide more for the same cost to the customer instead of asking to make more profit from a product.
CONVENIENCE (NOT PLACE!) The day is not far off when the majority of shopping will not take place in shops or through the traditional distribution channels of business. Your customers today are governed by purchase when, where and how it is convenient to them. Thinking about convenience not only allows you to open up to newer ways of connecting with customers and distributing products, but helps you shift into the mindset of providing an optimum overall experience for customers. To define marketing mix in terms of convenience reminds you that customers today are very busy and have many choices. It is no longer your right as a business owner but a privilege when customers choose you. Make it as easy as possible for them to do so.
COMMUNICATION (NOT PROMOTION!) The final new market mix definition replaces the traditional notion of “Promotion” with Communication. This final concept of how you define marketing mix from the customers perspective ties into creating Interactive Marketing Communication. “Promotion” hearkens back to the days of mass marketing which does not work anymore. Just like you cannot simply build a “good product” and expect people to buy it, so customers no longer believe everything you say at face value. Instead of virtuous pronouncement about how good your product or service is, customers today seek to be engaged and have meaningful interactions with you. You must therefore strive for two-way communication and building relationships
E-COMMERCE B2B (Business-to-Business) Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable. B2C (Business-to-Consumer) Businesses selling to the general public typically through catalogs utilizing shopping cart software. By dollar volume, B2B takes the prize, however B2C is really what the average Joe has in mind with regards to ecommerce as a whole. Having a hard time finding a book? Need to purchase a custom, high-end computer system? How about a first class, all-inclusive trip to a tropical island? With the advent ecommerce, all three things can be purchased literally in minutes without human interaction. Oh how far weve come! C2B (Consumer-to-Business) A consumer posts his project with a set budget online and within hours companies review the consumers requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. Elance empowers consumers around the world by providing the meeting ground and platform for such transactions. C2C (Consumer-to-Consumer) There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease. eBays auction service is a great example of where person-to-person transactions take place everyday since 1995
To accompany A Framework for Marketing Management, 2nd EditionSIMPLE MARKETING SYSTEM GODAV ARI
To accompany A Framework for Marketing Management, 2nd EditionMODERN MARKETING SYSTEM GODAV ARI
To accompany A Framework for Marketing Management, 2nd EditionCOMPANY ORIENTATIONS GODAV ARI
To accompany A Framework for Marketing Management, 2nd EditionTHE MARKETING CONCEPT GODAV ARI
To accompany A Framework for Marketing Management, 2nd EditionCHANGES IN THE MARKETPLACE Globalization, technological advances, and deregulation have created many challenges: Customers Brand manufacturers Store-based retailers Both companies and marketers have been forced to respond and adjust. GODAV ARI