Marketing ? Identifying and meeting human and social needs. Meeting needs profitably. Flow of goods and services from producers to customers.
The term was first academically defined in 1937 when the newly born American Marketing Association (AMA) asserted: ± ³Marketing consists of those activities involved in the flow of goods and services from the point of production to the point of consumption."
Adding to Kotlers and Norris definitions, the Chartered Institute of Marketings (CIM) definition claims marketing to be the "...management process of anticipating, identifying and satisfying customer requirements profitably .
For a marketing plan to be successful, the mix of the four "Ps" must reflect the desires of the consumers in the target market
Types of markets Consumer markets. Business markets. Global markets. Non-profit and governmental markets.
People: all people that are directly or indirectly involved in the consumption of a service. e.g.: knowledge workers, employees ,management. process : procedures ,mechanisms and flow of activities by which the flow of services is consumed physical evidence the ability and environment in which service is delivered.
Segmentation based on demographic, physiographic and behavioral differences among buyers. Market place is physical ± shopping in a store. Market space is digital ± shopping on the internet. Meta market ± is a cluster of complementary goods and services. e.g.: automobile ±insurance ,loan ,accessories, dealers.
Needs become wants when they are directed to specific objects that satisfy the need. Wants are shaped by the one¶s society. Demands are wants for specific products backed by an ability to pay. E.g.: many people want mercedez .
Competition- Brand competition. Industry competition. Form competition. Generic competition. Offering ± combination of products, services, information, experience. E.g. :offer from the Mercedes Benz
Brand competition :a company sees its competitors as other companies that offer similar products and services to the same customers at similar prices. E.g.: wagon r from Maruti and santro from Hyundai. Industry competition : a company sees its competitors as all companies that make the same product or class of products. MARUTI AGAINST HYUNDAI
Form competition : a company sees its competitors as all companies that manufacture products that supply the same service.
Generic competition: a company sees its competitors as all companies that compete for the same consumer group. e.g. :Volkswagen would see itself competing with companies that sell major consumer durables , foreign vocations, new homes.
Stages in marketing .Entrepreneurial marketing.Formulated marketing.Intrepreneurial marketing.
Marketing management ? Is the process of planning and executing the conception, pricing , promotion and distribution of ideas , goods ,services , to create exchanges that satisfy individual and organizational goals.
The stage of barter.The stage of money economy. e.g. :pricingThe stage of industrial revolution.The stage of competition .The emergence of marketing .
Three stages in the evolution of marketing.Product ± orientation stage.Sales ± orientation stage.Market ± orientation stage.
Product orientation stage. Focused on the quality, design and quantity of the product.sales orientation stage. consumer had limited resources and selling equipped more place through advertisement efforts.
Market orientation stage. In this stage companies identify what the customers want and accordingly they will shape their products.
Selling revolves around the interests of seller whereas marketing around the buyer. Views as a goods producing process. Whereas mktg views as a customer satisfying process. Firm must make the product and figures how to sell it whereas mktg shape its products on the customers demand.
The key to achieve the organizational goals consists of the company being more effective than its competitors in creating , delivering and communicating customer value to its chosen target markets.
Meeting needs profitably. ³You¶re the boss´ (united airlines). ³putting people first ´ (British airways). ³Have it your way´ . (burger king )
The marketing concept Target Integrated Customer market marketing needs Profits through Customer satisfaction
Integrated marketing. when all the company¶s department work together to serve the customer¶s interests the result is integrated marketing. e.g. :sales dept, advertising , customer service , product mgmt, marketing research.
Top Traditional management organization chart Middle management Front-line people customers
customers Modern customer ± oriented organization chart Front line people Middle management Top management
E.g. of companies practice marketing concept.. Mc Donalds, PG , Wal- Mart
Value driven marketing is an orientation for achieving objectives by developing superior value to customers. An extension of marketing orientation that attempts to overcome the problems of marketing orientation refers to value driven marketing. Six principles lies for value driven marketing.
Customer principle: focus marketing activities on creating and delivering customer value. (direct indirect ) Competitor principle: offers customers superior value to competitive alternatives. (icici bank ). Proactive principle : change environments to improve the chances for success when appropriate.
Cross-functional principle :.use cross functional teams (bring people from other business functions i.e. finance , rd ) when they improve efficiency and effectiveness of marketing activities. Continuous improvement principle: continuously improve marketing planning , implementation and control.
Stakeholder principle : Stakeholders are individuals and groups who are influenced and can influence marketing decisions. e.g. : customers, employees, suppliers ,