The document provides an overview of key marketing concepts and terms, including definitions of marketing, the marketing mix (4Ps and 4Cs), differences between sales and marketing, the scope of what can be marketed, core concepts like customer needs and wants, and factors that influence marketing strategy like the external environment. It also discusses topics like target markets, the marketing plan, the marketing process, product types and product mix, customers and understanding customer value.

1. MARKETING CONCEPTS & ITS ENVIRONMENT

2. What is Marketing…?? Selling? Advertising? Promotions? Making products available in stores? Maintaining inventories? All of the above, plus much more!

3. Marketing = ? Marketing 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 American Marketing Association

4. Marketing = ? Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

5. Simple Marketing System Goods/services Money Information Industry (a collection of sellers) Market (a collection of Buyers) Communication

6. Marketing = ? Marketing is the sum of all activities that take you to a sales outlet. After that sales takes over. Marketing is all about creating a pull, sales is all about push. Marketing is all about managing the four P’s – product price place promotion

7. The 4 Ps & 4Cs Marketing Mix Customer Solution Customer Cost Communication Convenience Product Price Promotion Place

8. Difference Between - Sales & Marketing ? Sales trying to get the customer to want what the company produces Marketing trying to get the company produce what the customer wants

9. Scope – What do we market Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts

10. Core Concepts of Marketing Based on : Needs, Wants, Desires / demand Products, Utility, Value & Satisfaction Exchange, Transactions & Relationships Markets, Marketing & Marketers.

11. Core Concepts of Marketing Needs, wants demands Markets Marketing & Marketers Utility, Value & Satisfaction Xchange, Transaction Relationships Products

12. In order to understand Marketing let us begin with the Marketing Triangle Customers Competition Company

13. Who is a Customer ?? Anyone who is in the market looking at a product / service for attention, acquisition, use or consumption that satisfies a want or a need CUSTOMER IS . . . . .

14. Customer – CUSTOMER has needs, wants, demands and desires Understanding these needs is starting point of the entire marketing These needs, wants …… arise within a framework or an ecosystem Understanding both the needs and the ecosystem is the starting point of a long term relationship

15. How Do Consumers Choose Among Products & Services? Value - the value or benefits the customers gain from using the product versus the cost of obtaining the product. Satisfaction - Based on a comparison of performance and expectations. Performance > Expectations => Satisfaction Performance < Expectations => Dissatisfaction

16. Customers - Problem Solution As a priority , we must bring to our customers “ WHAT THEY NEED ” We must be in a position to UNDERSTAND their problems Or in a new situation to give them a chance to AVOID the problems

17. Customer looks for Value Value = Benefit / Cost Benefit = Functional Benefit + Emotional Benefit Cost = Monetary Cost + Time Cost + Energy Cost + Psychic Cost

18. The Marketing Plan A written document that acts as a guidebook of marketing activities for the marketing manager

19. CONTENTS of MARKETING PLAN Business Mission Statement Objectives Situation Analysis (SWOT) Marketing Strategy Target Market Strategy Marketing Mix Positioning Product Promotion Price Place – Distribution People Process Implementation, Evaluation and Control

20. The Marketing Process Target Market Strategy Marketing Strategy Product Promotion Place/Distribution Price Marketing Mix Business Mission Statement Objectives Situation or SWOT Analysis Implementation Evaluation, Control

21. Factors Influencing Company’s Marketing Strategy

22. External Marketing Environment Physical / Natural Demographics Social Change Economic Conditions Political & Legal Factors Technology Competition Environmental Scanning Target Market Product Distribution Promotion Price External Environment is not controllable Ever-Changing Marketplace

23. The macro-environment is the assessment of the external forces that act upon the firm and its customers, that create threats & opportunities

24. P r o d u c t

25. Anything that is offered to the market for attention, acquisition, use or consumption that satisfies a want or a need Product is . . . . .

26. Types of Products Consumer Products Industrial Products PRODUCTS Services

27. Product Items, Lines, and Mixes Product Item Product Line Product Mix A specific version of a product that can be designated as a distinct offering among an organization’s products. A group of closely-related product items. All products that an organization sells.

28. Product Mix Width – how many product lines a company has Length – how many products are there in a product line Depth – how many variants of each product exist within a product line Consistency – how closely related the product lines are in end use

29. The Marketing Mix The conventional view of the marketing mix consisted of four components (4 Ps): Product, Price, Place/ distribution and Promotion . Generally acknowledged that this is too narrow today; now includes , P rocesses , P roductivity [technology ] P eople [employees], P hysical evidence Marketers today are focused on virtually all aspects of the firm’s operations that have the potential to affect the relationship with customers.

30. The “8Ps” of Integrated Service Management vs. the Traditional “4Ps” Product elements Place, cyberspace, and time Process Productivity and quality People Promotion and education Physical evidence Price and other user outlays

31. The Give and Get of Marketing

32. Great Words on Marketing “ The purpose of a company is ‘to create a customer…The only profit center is the customer.’” “ A business has two—and only two—basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs.” “ The aim of marketing is to make selling unnecessary.” “ While great devices are invented in the Laboratory, great products are invented in the Marketing department.” “ Marketing is too important to be left to the marketing department.”

33. Drivers of Customer Satisfaction Many aspects of the firm’s value proposition contribute to customer satisfaction: The core product or service offered Support services and systems The technical performance of the firm Interaction with the firm and it employees The emotional connection with customers Ability to add value and to differentiate as a firm focuses more on the top levels

34. Marketers and Markets Marketers are focused on stimulating exchanges with customers who make up markets – B2C or B2B. The market is comprised of people who play a series of roles: decision makers, consumers, purchasers, and influencers. It is absolutely essential that marketers have a detailed understanding of consumers, their needs and wants . Much happens before and after the sale to affect customer satisfaction

35. Stages of Customer Interaction

36. What Changed in Marketing… Organize by product units Focus on profitable transactions Look primarily at financial scorecard Focus on shareholders Marketing does the marketing Build brands through advertising Focus on customer acquisition No customer satisfaction measurement Over-promise, under-deliver Organize by customer segments Focus on customer lifetime value Look also at marketing scorecard Focus on stakeholders Everyone does the marketing Build brands through performance Focus on customer retention Measure customer satisfaction and retention rate Under-promise, over-deliver Old Economy New Economy

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