Introduction to Marketing Final.ppt

Mini MBA in Marketing – Introduction To Marketing
Course Outline
 Define the Term Marketing
 Business orientation towards marketing
 The difference between sales & Marketing
 The Marketing Mix
 Reasons for studying marketing

“There is only one Boss. The
customer. And he fire everyone,
simply by spending his money
somewhere else.”
-Sam Walton,
Founder of Wal-Mart

Why Business Exists?
 Get More Customers
 Keep them Longer
 Grow them into bigger customers
BUSINESS = PRODUCT x CUSTOMER*
Product = R&D & Manufacturing
Customer = Sales + Marketing + Customer Support
*Harvard Business Review

What is a 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”
(Philip Kotler)

What is the Scope of Marketing?
 Marketing Research
 Product Planning
 Branding
 Pricing
 Channels of Distribution
 Promotions: Selling, Advertising, Sales
promotion.
 Servicing: customer Service, After sales.

What is Marketing?
 Personal Selling?
 Advertising?
 Making Products available in Stores?
 Maintain Inventories
All of the above, plus much more!

What is Marketing?
A Philosophy
An Attitude
A Perspective
A Management
Orientation
A Set of Activities:
Products
Pricing
Promotion
Distribution (Place)

What is Marketing?
 Marketing is the Management process responsible
for:
 Identifying
 Anticipating and …
 Satisfying Consumer requirements Profitably.
 The essence of Marketing is that a firm will make
what it can sell rather then sell what it makes.
 Marketing requires an assessment of human needs
and the orientation of all the firm’s resources
towards the satisfaction of those needs.

Definitions of Marketing
 Marketing is a social and management process by
which individuals and groups obtain what they want
through creating, offerings and exchanging products
of value with others (kotler) Marketing is concerned
with meeting business objectives by providing
customer satisfaction.
 “Achieving organization goals depends on
determining the needs & wants of target markets
and delivering the desired satisfactions more
effectively and efficiently than competitors”
(Kotler).

Definitions of Marketing
‘The right product, in the
right place, at the right
time, and at the right price’
Satisfying Needs Profitably

Organizational Value Chain
Support
Activities
Main
Activities
Human resources Management
Finance Department
Procurement
Technical
Or
Production
Logistics Sales
Customer
Services
Infra structure
Profits
Marketing

THE BIG PICTURE:
marketing
objective
source of
volume
evaluate
business
objective
place
price
promotion
execute
product
service
position
segment
target
STP

Why have a marketing mindset?
 If marketing is providing the best overall
solution using your gifts and talents, to
problems and opportunities faced by those
you serve, then you need to know those you
serve well
 You have more value to your organization if
you are providing the right solution to the
right problem

Do you “do” marketing? If so, to who?
 Your Boss.
 Have you ever went to a job interview or asked for a
promotion?
 Your Wife/Husband
 How did you propose? How did you plan your wedding?
 Your Friends
 What do you want your friends to say about you?
 Whomever you come in contact with

The Concept of Exchange
The idea that people give up
something in order to
receive something they
would rather have.

Necessary
Conditions
for Exchange
At Least Two Parties
Something of Value
Communication and Delivery
Freedom to Accept or Reject
Desire to Deal With Other Party

 Exchange may not take place
even if conditions are met
 An agreement must be reached
 Marketing occurs even if
exchange does not take place

Needs, Wants, & Demand
 Need
 State of felt deprivation
 Example: Need food
 Wants
 The form of needs as shaped by culture and the
individual
 Example: Want a Big Mac
 Demands
 Wants which are backed by buying power

What Can we Market?
 Goods
 Services
 Experiences
 Events
 Personal
 Shared Believes
 Places
 Properties
 Organizations
 Information
 Ideas
 Behavior

Different Orientations
Sales Orientated Business
Product Oriented Business
Production Oriented Business
Marketing Oriented Business

Sales Orientation
 The selling function is dominant
 The organization sells what it makes rather than
vice-versa
 Capacity exceeds demand.
 Existing products made by the firm.
 Stimulate demand by energetic selling and
promotion.
 Profitability through sales volume

Product Orientation
 Concentrates on the product-quality, performance,
features.
 The product will sell itself.
 “Trust us, we know best”.
 “We will sell what we produce”.
 Emphasis on product improvement.
 Profitability through competitive product quality

Traditional Product Management
Marketing
Vice President
Brand A Brand B
Product 4
Product 3
Product 2
Product 1

Production Orientated
 Focus on product availability and affordability.
 Aim to improve production and distribution
efficiency.
 Profitability through efficiency in production.

Production & Marketing Orientation
 Production Orientation:
 Marketing Orientation

Market Orientated Business
 Determine what customer wants and then
sets about providing it.
 Make extensive use of market research.
 Monitor and responds to changing fashion.
 Realize the importance of customer
satisfaction
 Place the customer at the heart of business
 Build relationships
 Stress customer service

Customer Management Organization
Marketing
Vice President
Portfolio B
Segment 1 Segment 2 Segment 3 Segment 4
Portfolio A

Features of a Market Oriented Business
 Concern for customers.
 An interest in the business environment
 A focus on competitors
 A curiosity about the future
 An entrepreneurial spirit
 A passion for action
 Emphasis on research
 importance of customer satisfaction

Marketing Is Not The Same Like Selling
Starting Point Focus Means Ends
Factory Products Selling &
Promoting
Profits through
Sales volume
Target
Market
Customer
needs
Integrated
Marketing
Profits
through
Customer
Satisfaction
Marketing
Selling
Make-Sell Philosophy
Sense-Respond Philosophy
Right Customers for your products
Right Products for your customers

Marketing Orientation Vs
Sales/Production orientation
 Marketing
 Identify customer needs
 Invest to develop
products (services) that
meet those needs
 Make the product
 Market the product
 Reflect customer
feedback into improved
product (service)
 Sales/Production
 Decides whether a
product or service can be
made/provided
 Invest to develop the
product (service)
 Sell the product (service)

Advantages of a Marketing Orientation
 Better understanding of customer needs and
wants
 Better customer relations
 Better reputation in the market place
 More new customers
 More repeat purchases
 Improved customer loyalty
 More motivated staff
 Competitive edge

The Marketing Concept
 Is founded on the belief that profit can be best achieved by
identifying, anticipating and satisfying customer needs and
wants.
 A company which has adopted this concept and philosophy
places the customer at the centre of all business decisions.
 Customer needs permeate all levels of functions in the
organization.
 Co-ordinate and integrate all marketing activities that might
affect customers.

The Marketing Concept
Marketing Concept
The achievement of
goals through meeting
and exceeding
customer needs better
than rivals
Customer
Orientation
Integrated Efforts
Achievement of
goals by satisfying
customers

The Marketing Concept Evolved
1) Catering to the customer
2) Anticipating the customer
3) Leading the customer

Marketing Mix
 The set of controllable,
tactical marketing tools
that the firm blends to
produce the response it
wants in the target
market.
 Consists of the 4 Ps
1. Product
2. Price
3. Place
4. Promotion

Product
 Not just the product but how the customer
sees your solution
 Features, advantages, benefits (FAB)
 Quality, attributes, design, support
 You may have the best mousetrap but it’s not
the best if the customer doesn’t want it,
doesn’t know about it (promotion), can’t find it
(place), or can’t afford it (price)

Place
 How you conveniently put the product before
the customer
 Channels, locations, distribution

Price
 What is the total price paid from your
viewpoint and the customer’s
 Price + terms + means
 Adapt the words to fit your situation
 Price based on markup or based on customer
benefit and competition

Promotion
 How do you communicate your solution to the
customer’s needs?
 How does the customer listen for answers to
his problems? What is his preferred means
of communication (vs. yours)?
 Advertising, sales call (read personal visit)

Target
Customers
Intended
Positioning
Product
Variety
Quality
Design
Features
Brand Name
Packaging
Services
Promotion
Advertising
Personal Selling
Sales Promotion
Public Relations
Price
List Price
Discounts
Allowances
Payment Period
Credit Terms
Place
Channels
Coverage
Assortments
Locations
Inventory
Transportation
Logistics

The 4 P’s & the 4 C’s of the
Marketing Mix
 4 P’s - Seller’s View
 Product
 Price
 Place
 Promotion
 4 C’s - Buyer’s View
 Customer Solution
 Customer Cost
 Convenience
 Communication

Marketing and the other Functional
areas of business
Production
Purchasing
Finance

Marketing & Production Management
 Emphasis of POM
 Long order lead times
 Inflexible schedules
 Long runs with few
models.
 No model changes
 Standardization
 Ease of fabrication
 Functional features
 Long design lead time
 Emphasis of Marketing
 Short lead times
 Flexibility
 Frequent model changes
 Customer orders
 Sales features
 Many model components

Marketing and Purchasing
 Emphasis of Purchasing
 Standard Parts
 Price of materials
 Economic lot sizes
 Purchasing at infrequent
intervals
 Economic stock levels
 Fast moving items
 Narrow production line
 Non-standard parts
 Quality of materials
 Large lot sizes to avoid
stock outs.
 Immediate purchasing for
customer needs.
 Broad product range
 Large level of stocks

Marketing and Finance
 Emphasis of accounting
and finance
 Standard transactions
 Strict rational for
spending
 Hard and fast budgets
 Pricing to cover costs
 Flexible budgets to meet
changing needs
 Special terms and
discounts.
 Pricing to further market
development

A final thought
 “ marketing takes a day to learn.
unfortunately it takes lifetime to master”
(Philip Kotler)

Why Study Marketing?
 Plays an important role in society
 Vital to business survival, profits and growth
 Offers career opportunities
 Affects your life every day

“Marketing is far too important
to be left only to the
marketing department.”
--David Packard
Hewlett-Packard

 25% to 33% of the
civilian workforce
in the U.S. performs
marketing activities
 Fast route up the
corporate ladder
• Professional Selling
• Marketing Research
• Advertising
• Retail Buying
• Distribution Management
• Product Management
• Product Development
• Wholesaling

 Half of every dollar spent pays for
marketing costs.
 Better-informed consumers
 Demand for customer satisfaction

Introduction to Marketing Final.ppt

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