2. Concept
The history of marketing is old as human civilization. Since people started
forming society, their needs increased rapidly. This increase in need gave rise
to production of necessary goods. Then they started exchanging surplus goods
with other goods they need.
This exchange led to barter system.
3. Cont..
The invention of money facilitated the exchange system.
From that phase to present Marketing has seen significant
transformation.
Present marketing is
A Philosophy
An Attitude
A Perspective
A Management orientation
And more………
4. WHAT IS MARKETING ?
ANY INTERPERSONALAND
INTERORGANISATIONAL
RELATIONSHIP INVOLVING AN
EXCHANGE IS MARKETING .
WILLIAM J.STANTON
5. WHAT IS MARKETING ?
The essence of Marketing is a transaction -
an exchange- intended to satisfy human needs and
wants.There are three elements in the marketing
process :
(A) MARKETERS
(B)WHAT IS BEING MARKETED
(C) TARGET MARKET
6. WHAT IS MARKETING ?
Marketing is a social process by which
individuals and groups obtain what they need
and want through creating and exchanging
products and value with others
PHILIP KOTLER
This definition includes following core concepts :
NEEDS ,WANTS and DEMANDS ---
PRODUCTS------VALUE & SATISFACTION---
EXCHANGE & TRANSACTION---MARKETS
& MARKETERS
7. Simple definition:
Marketing is the management process responsible for identifying,
anticipating, and satisfying customer requirements profitably.”
(CIM,2001)
Goals:
1. Attract new customers by promising superior value.
2. Keep and grow current customers by delivering satisfaction.
8. NEED : A state of felt deprivation of
some basic satisfaction ( Food,
Clothing, Shelter, Belonging etc. )
WANTS : Wants are desires for specific
satisfiers of the deeper needs. Needs are
few and wants are many .
DEMANDS : are wants backed by ability to
buy and Willingness to buy
NEEDS,WANTS AND
DEMANDS
9. PRODUCTS / OFFERS / SATISFIERS /
RESOURCES
Anything that can be offered to someone
to satisfy a need or want is a product .
Product refers to physical object
Services refer to intangible object
10. Value is the customers’ estimate of the
Product’s capacity to satisfy a set of
goals
Value is the ratio between what the
customer gets and what he gives
(V=B/C)
Customer gets benefits & assume costs
WHEN :Customer Expectance=Performance (satisfied)
Customer Expectance>Performance (dis-satisfied)
VALUE AND SATISFACTION
11. EXCHANGE AND TRANSACTION
Exchange is the act of obtaining a desired
product by offering something in return .
Exchange takes place when 5 conditions are satisfied:
(a) Two parties should be there
(b) Each party must have something of value to the other
(c) Each party is capable of communication & delivery
(d) Each party is free to accept or reject the offer
(e) Each party believes that it is appropriate to deal with
the other party
12. EXCHANGE AND TRANSACTION
Exchange is a process rather than event.
It is a value creating process because it
normally leaves both parties better off.
A transaction is a trade of values between
two or more parties ( A BARTER
TRANSACTION OR A MONETARY
TRANSACTION ).
13. WHAT IS MARKET ?
A market consists of all the potential
customers sharing a particular need or
want who might be willing and able to
engage in exchange to satisfy that need or
want.
14. WHAT IS MARKETING ?
Marketing is the management process
which identifies, anticipates, and
supplies customer requirements
efficiently and profitably.
In other words, it is the process of
understanding, creating, and delivering
profitable value to targeted customers
better than the competition.
15. WHAT IS MARKETING ?
Its aim is to establish, maintain, enhance
long term relationship with customers at a
profit so that the objectives of the parties
involved are met.
In short marketing consists of attracting,
developing, and retaining profitable
customers.
16. BUSINESS IS MARKETING
Marketing can not be considered as a
separate function , it is the whole
business, seen from the point of view of
its final results.................that is
profit,through customer satisfaction
PETER DRUCKER
17. A SIMPLE MARKETING SYSTEM
Industry Market
Communication
Goods & Services
Money
Information/Feedback
18. WHAT IS MARKETING MANAGEMENT?
Marketing Management is the analysis,
planning, implementation and control of
programs designed to create, build and
maintain beneficial exchanges and
relationships with target markets for the
purpose of achieving Organisational
objectives.
19. WHAT IS MARKETING MANAGEMENT?
Marketing management is demand
management or it involves the task of
influencing the level, timing and
composition of demand. At times the
actual demand level may be below,
equal to, or above the desired demand
level and the major task of marketing
management is to regulate the level of
demand.
20. EVOLUTION OF MARKETING
MANAGEMENT
Marketing management has evolved
through following stages :
(1) Production Orientation Stage
(2) Sales Orientation Stage
(3) Marketing Orientation Stage
(4) Social Responsibility & Human Orientation Stage.
21. COMPANY ORIENTATION FOR
MARKETING ACTIVITIES
Marketing Management can be defined as the
effort to achieve desired EXCHANGE
outcomes with TARGET MARKETS.
Now the question arises :
(1)What philosophy should guide the
marketing activities?
(2)What weights should be given to the
interests of the organisation,the customers
and the society?
22. MARKETING CONCEPTS
There are FIVE competing concepts under
which organizations conduct their
marketing activities:
The Production Concept
The Product Concept
The Selling Concept
The Marketing Concept
The Societal Marketing Concept
23. (1) THE PRODUCTION CONCEPT
Produce
Sell
Consumers
Company
Produce more & more
Practically sells itself
24. THE PRODUCTION CONCEPT
Consumers will favour those products
that are widely available and low in cost.
Therefore increase production and cut
down costs.
And build profit through volume.
25. (2) THE PRODUCT CONCEPT
Produce
Quality
Products
Sell
Consumers
Practically sells itself,if
it gives most quality
for money
Buyers admire well-made products and can
appraise product quality and performance.
26. THE PRODUCT CONCEPT
Consumers will favour those products
that offer the most quality, performance,
or innovative features.
Therefore, improve quality, performance
and features.
This would lead to increased sales and
profits.
27. (3) SELLING CONCEPT
Consumers have normal tendency to resist.
Produce
Sell it Consumers
Aggressive selling &
promotion efforts
Making sales becomes primary function and
consumer satisfaction secondary .
28. THE SELLING CONCEPT
Consumers , if left alone , will not buy
enough of company’s products.
Therefore, promote sales aggressively.
And,build profit through quick turnover.
29. (4) MARKETING CONCEPT
“ LOVE THE CUSTOMER , NOT THE
PRODUCT ”
Consumers
Produce it
Market it
Learn what they
want
Sell what they want(Satisfy
needs of customers)
30. THE MARKETING CONCEPT
The key to achieving organizational goals
consist in determining the needs and
wants of target markets and delivering the
desired satisfactions more effectively and
efficiently than competitors.
And build profit through customer
satisfaction and loyalty.
31. (5) THE SOCIETAL MARKETING CONCEPT
It is Marketing Concept (+) Society’s well
being.
Balancing of following three considerations
while setting marketing policies :
-Customer’s want satisfaction
-Society’s well being
-Company’s profits
32. THE SOCIETAL MARKETING CONCEPT
The societal marketing concept holds that the
organization’s task is to determine the needs,
wants, and interests of target markets 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.
- It addresses conflicts between
consumer’s and firm’s short run wants and
long term welfare.
33. STRATEGIC CONCEPT OF MARKETING
Shifted the focus of Marketing from Product
or customer to the CUSTOMER IN THE
CONTEXT OF THE BROADER EXTERNAL
ENVIRONMENT .
To succeed, marketers must know the
customer in a context including the
competition, Govt. Policy& regulation and the
broader economic, social and political macro
forces that shape the evolution of market.
34. STRATEGIC CONCEPT OF MARKETING
Shifted the Marketing Objectives from
PROFIT TO STAKEHOLDER
BENEFITS.
Stakeholders are individuals or groups who
have an interest in the activity of a company .
They include-----The employees and management,
Customers, Society, Shareholders, Financiers/ Bankers,
Government etc.
35. STRATEGIC CONCEPT OF MARKETING
Strategic Marketing Concept is Strategic
Management, which integrates marketing
with the other management functions. (
Major task is Profit for Stakeholders’
benefits ).
36. MARKETING SYSTEM
Marketing is concerned with the flow of
goods and services from the points of
production to the points of
consumption. There is a systematic
arrangement of these functions of
marketing to move the goods and
services to the needy persons. This
system is essential to the creation of
time, place and possession utilities.
37. GOALS OF THE MARKETING SYSTEM
(1) MAXIMIZE CONSUMPTION
(2) MAXIMIZE CONSUMER SATISFACTION
(3) MAXIMIZE CHOICE
(4) MAXIMIZE LIFE QUALITY
38. THREE BASIC PRINCIPLES OF MARKETING
The essence of marketing can be
summarized in three great principles.
The first identifies the purpose and
task of marketing, the second the
competitive reality of marketing and
third the principal means for
achieving the first two.
39. THREE BASIC PRINCIPLES OF MARKETING
(1) . The Customer Value and Value
Equation :
V=B/P Where; V=Value
B= Perceived Benefits
P= Price
(Value is increased by increasing the numerator
and/or reducing the denominator)
40. THREE BASIC PRINCIPLES OF MARKETING
(2).Competitive or Differential Advantage :
The total offer must be more attractive than that
of the competition in order to create a
competitive advantage.
(3).Focus or the Concentration of
Attention : The task of creating
Customer Value at a Competitive advantage.
41. CUSTOMER AS THE CONTROLLING FUNCTION
Marketing Personnel
Production Finance
CUSTOMER
42. MARKETING AS THE INTEGRATIVE FUNCTION
Personnel Finance
Production
Marketing
CUSTOMER
43. THREE LEVELS OF MARKETING
Responsive Marketing
Anticipative Marketing
Need Shaping Marketing
44. RESPONSIVE MARKETING
It is the form of marketing when some
company defines an existing clear need
and prepare an affordable solution.
(Recognizing that women wanted to spend
less time for cooking and cleaning, led to
the invention of modern washing
machine, microwave oven etc.)
45. ANTICIPATIVE MARKETING
It is a form of marketing when a company
recognize an emergent or latent need, and
come out with an affordable solution.
Eg.. Pyuesh, Aqua… anticipated growing
market for bottled drinking water as the
quality of water deteriorated in many places.
Anticipative marketing is more risky than
responsive marketing;companies may come
into market too early or too late,or may even
be totally wrong about thinking that such a
market would develop.(eg. Dish washers in
Nepal)
46. NEED SHAPED MARKETING
•The broadest level of marketing occurs when a company
introduces product that nobody asked for and often
could not even conceive of.
(e.g. Sony Walkman, Sony Compact Disc )
•Late Akio Morita, founder and chairman of Sony,
who introduced these and many other new
products, summarized his marketing philosophy in
these words:“ I don’t serve markets. I create them.”
