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- 2. © 2009 2 vasantkothari@gmail.com ©Copy Righted Material
- 3. Session #01 Syllabus ► Marketing :An Introduction ■ Dimensions of Marketing Activities ■ Marketing Mix ■ Selling Vs Marketing ■ Marketing Environment ■ Functions of Marketing vasantkothari@gmail.com 3 © 2009 01 02 03 04 05
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- 5. Session #01 vasantkothari@gmail.com 5 © 2009 Whatis Marketing? ► A series of activities and experiences designed to create, plan, price, promote, and distribute need-satisfying products, services, and ideas to selected customer groups in order to achieve the objectives of both the customer and the organization.
- 6. Session #01 Marketing ► Marketing isthe process by which companies create value for customers and build strong customer relationships to capture value from customers in return vasantkothari@gmail.com 6 © 2009
- 7. Session #01 Key Concepts ► Need:Recognition of any difference between a consumer’s actual state and some ideal state ► Want: Desire to satisfy needs in specific ways that are culturally and socially influenced vasantkothari@gmail.com 7 © 2009
- 8. Session #01 Key Concepts ► Whendesire is coupled with buying power or resources to satisfy a want, the result is a DEMAND vasantkothari@gmail.com 8 © 2009
- 9. Session #01 Key Concepts ► Product:goods / service / idea that (or some combo), through the exchange process, satisfies a consumers want or need vasantkothari@gmail.com 9 © 2009
- 10. Session #01 Key Concepts vasantkothari@gmail.com 10 ©2009 ► Markets: All the potential customers sharing a particular need or want, who are willing & able to engage in exchange to satisfy that need or want ■ Comprised of people who play a series of roles: decision makers, consumers, purchasers, and influencers.
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- 12. Session #01 The Focus ofMarketing So… ► Focus of marketing today is on the creation of value for customers ■ Those who are best at creating value earn customer loyalty. vasantkothari@gmail.com 12 © 2009
- 13. Session #01 The Marketing Process ►Understand the marketplace and customer wants and needs ► Design a customer-driven marketing strategy ► Construct a marketing plan that delivers superior value vasantkothari@gmail.com 13 © 2009
- 14. Session #01 The Marketing Process ►Build profitable relationships and create customer satisfaction ► Capture value from customers to create profit and customer equity vasantkothari@gmail.com 14 © 2009
- 15. Session #01 What Can BeMarketed? ► Goods ► Services ► Places ► Ideas ► Events ► Persons ► Properties ► Organizations ► Information ► Experiences vasantkothari@gmail.com 15 © 2009
- 16. Session #01 Evolution of MarketingThinking vasantkothari@gmail.com 16 © 2009
- 17. Session #01 Marketing Relationships with Customers ►Exchange: The transfer of goods, services, or ideas in return for something of value vasantkothari@gmail.com 17 © 2009
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- 20. Session #02 The Marketing Mix ►These are the tools of marketing management employed by marketers. ► They are areas where marketing managers need to make decisions. vasantkothari@gmail.com 20 © 2009
- 21. Session #02 The Marketing Mix ►These decisions affect the nature of the offering or package of benefits that the organisation offers to customers. vasantkothari@gmail.com 21 © 2009
- 22. Session #02 The Marketing Mix ►The term “mix” is used to explain the point that at any one time the marketer will select a set of tools from the marketing toolbox or the marketing mix in specific proportions to solve specific problems – in the same way one selects spanners and other tools for a specific job OR ingredients to bake a particular type of cake. vasantkothari@gmail.com 22 © 2009
- 23. Session #02 vasantkothari@gmail.com 23 © 2009 TheMarketing Mix ► The marketing mix is the set of tools (four Ps) the firm uses to implement its marketing strategy ■ Product ■ Price ■ Promotion ■ Place
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- 25. Session #02 The Marketing Mix ►Traditional 4Ps extended to encompass growth of service industry ► 7Ps – Price, Product, Promotion, Place, People, Process, Physical Environment vasantkothari@gmail.com 25 © 2009
- 26. Session #02 The Seven P’s ►Booms and Bitner extended the traditional 4P (McCarthy) framework to seven to reflect a predominantly service economy. ► Extended mix: ■ People ■ Process ■ Physical evidence vasantkothari@gmail.com 26 © 2009
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- 29. Session #02 The Seven P’s vasantkothari@gmail.com29 © 2009 Do Not Copy
- 30. Session #02 The Seven P’s vasantkothari@gmail.com30 © 2009 Session #02 Do Not Copy
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- 32. Session #02 Price © 2009 32 vasantkothari@gmail.com ►Pricing Strategy ■ Importance of: ● knowing the market ● elasticity ● keeping an eye on rivals
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- 34. Session #02 Product ► Methods usedto improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage ► E.g. © 2009 34 vasantkothari@gmail.com
- 35. Session #02 Product © 2009 35 vasantkothari@gmail.com ■Extension strategies ■ Improvements – real or otherwise! ■ Specialised versions ■ New editions ■ Changed packaging ■ Technology, etc.
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- 37. Session #02 Promotion ► Strategies tomake the consumer aware of the existence of a product or service ► NOT just advertising © 2009 37 vasantkothari@gmail.com
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- 39. Session #02 Place ► The meansby which products and services get from producer to consumer and where they can be accessed by the consumer ► The more places to buy the product and the easier it is made to buy it, the better for the business (and the consumer?) © 2009 39 vasantkothari@gmail.com
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- 41. Session #02 People ► People representthe business ► The image they present can be important ► First contact often human – what is the lasting image they provide to the customer? © 2009 41 vasantkothari@gmail.com
- 42. Session #02 People ► Extent oftraining and knowledge of the product/service concerned ► Mission statement – how relevant? ► Do staff represent the desired culture of the business? © 2009 42 vasantkothari@gmail.com
- 43. Session #02 People ► The attitudesof staff ► Training of staff ► Internal relations ► The observable Behaviour of staff vasantkothari@gmail.com 43 © 2009
- 44. Session #02 People ► The levelof service-mindedness in the organization ► The consistency of appearance of staff ► The accessibility of people ► Customer-customer contacts vasantkothari@gmail.com 44 © 2009
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- 46. Session #02 Process ► The mannerin which the service is delivered ► Degree of customer contact ► Quality control standards ► Quality assurance vasantkothari@gmail.com 46 © 2009
- 47. Session #02 Process ► Payment methods(degree of convenience) ► Queuing systems for customers ► Waiting times vasantkothari@gmail.com 47 © 2009
- 48. Session #02 Physical Environment © 200948 vasantkothari@gmail.com Do Not Copy
- 49. Session #02 Physical Environment ► The“environment” or atmosphere in which the service is delivered ■ Buildings ■ Furnishings/décor ■ Layout vasantkothari@gmail.com 49 © 2009
- 50. Session #02 Physical Environment ► Goodsassociated with the service e.g. carrier bags, tickets, brochures ► All the above can help shape customers’ perceptions of the service vasantkothari@gmail.com 50 © 2009
- 51. Session #02 Combining the Mix ►This is the essence of marketing: identifying, anticipating, and satisfying customer needs in the most profitable way possible: delivering profits to the organization and value to customers at the same time! vasantkothari@gmail.com 51 © 2009
- 52. Session #02 The Marketing Mix ►Blendof the mix depends upon: ■ Marketing objectives ■ Type of product ■ Target market ■ Market structure ■ Rivals’ behaviour © 2009 52 vasantkothari@gmail.com
- 53. Session #02 The Marketing Mix ■Global issues – culture/religion, etc. ■ Marketing position ■ Product portfolio ■ Product lifecycle ■ Boston Matrix © 2009 53 vasantkothari@gmail.com
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- 55. Session #03 Selling Vs Marketing vasantkothari@gmail.com55 © 2009 •What and how to sell Marketing Marketing •moving the product Selling Selling
- 56. Session #03 vasantkothari@gmail.com 56 © 2009 SellingVs Marketing ► Selling is getting rid of something you have. ► Marketing is having something that you can get rid of
- 57. Session #03 Selling Vs Marketing ►Selling emphasizes its products (or services) with the main objective of maximizing sales. ► Marketing begins by examining the needs of the potential users with the objective of maximizing customer satisfaction. vasantkothari@gmail.com 57 © 2009
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- 64. Session #03 Selling Vs Marketing vasantkothari@gmail.com64 © 2009 PROCESS FOCUS ON MEANS END GOAL SELLING Products Promoting Hyping Profits from sales volume MARKETING User needs Planning Marketing Mix (the 4 P’s) Profits from Satisfied customers
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- 67. Session #03 Selling vs Marketing vasantkothari@gmail.com67 © 2009 ► Selling ■ Emphasis on product ■ Make product, then sell it ■ Sales volume orientated ■ Short-run orientated ■ Focus on seller’s needs
- 68. Session #03 Selling vs Marketing ►Marketing ■ Emphasis on customer ■ Determine customer wants, then make product ■ Profit orientated ■ Long-run orientated ■ Focus on buyer’s needs vasantkothari@gmail.com 68 © 2009
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- 70. Session #04 vasantkothari@gmail.com 70 © 2009 MarketingEnvironment ► Successful companies take an outside-inside view of their business. ► They recognize that the marketing environment is constantly spinning new opportunities & threats & understand the importance of continuously monitoring & adapting to that environment.
- 71. Session #04 Marketing Environment ► Themarketing environment surrounds and impacts upon the organization. ► There are three key perspectives on the marketing environment, namely ■ the 'macro-environment,‘ ■ the 'micro-environment' and ■ the 'internal environment'. vasantkothari@gmail.com 71 © 2009
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- 73. Session #04 Macro Environment ► Thisincludes all factors that can influence and organization, but that are out of their direct control. vasantkothari@gmail.com 73 © 2009
- 74. Session #04 Macro Environment ► Acompany does not generally influence any laws. ► It is continuously changing, and the company needs to be flexible to adapt. ► There may be aggressive competition and rivalry in a market. vasantkothari@gmail.com 74 © 2009
- 75. Session #04 Macro Environment ► Globalizationmeans that there is always the threat of substitute products and new entrants. ► The wider environment is also ever changing, and the marketer needs to compensate for changes in culture, politics, economics and technology. vasantkothari@gmail.com 75 © 2009
- 76. Session #04 Micro-environment ► This environmentinfluences the organization directly. ► It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. vasantkothari@gmail.com 76 © 2009
- 77. Session #04 Micro-environment ► In thiscontext, micro describes the relationship between firms and the driving forces that control this relationship. ► It is a more local relationship, and the firm may exercise a degree of influence. vasantkothari@gmail.com 77 © 2009
- 78. Session #04 External Micro-Environment ► Market ■People or organizations with wants to satisfy, money to spend, and the willingness to spend it vasantkothari@gmail.com 78 © 2009
- 79. Session #04 External Micro-Environment ► Suppliers ■Provide goods and/or services and affect the prices a marketer must charge as well as their ability to satisfy their customers vasantkothari@gmail.com 79 © 2009
- 80. Session #04 External Micro-Environment ► Marketingintermediaries ■ Firms that aid in the flow of products from the marketing company to its markets vasantkothari@gmail.com 80 © 2009
- 81. Session #04 Internal Environment ► Controllableby management vasantkothari@gmail.com 81 © 2009
- 82. Session #04 Internal Environment ► Allfactors that are internal to the organization are known as the 'internal environment'. ► They are generally audited by applying the 'Five Ms' which are Men, Money, Machinery, Materials and Markets. vasantkothari@gmail.com 82 © 2009
- 83. Session #04 Internal Environment vasantkothari@gmail.com 83 ©2009 Session #04
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- 85. Session #05 vasantkothari@gmail.com 85 © 2009 Functionsof Marketing ► The mission of marketing is satisfying customer needs. ► Marketing has a connective function in society.
- 86. Session #05 vasantkothari@gmail.com 86 © 2009 Functionsof Marketing ► It connects supply and demand or production and consumption. ► At micro-level, marketing builds and maintains the relationship between producer and consumer.
- 87. Session #05 vasantkothari@gmail.com 87 © 2009 Functionsof Marketing ► At business unit level, marketing can have an integrative function. ► It integrates all the functions and parts of a company to serve the markets.
- 88. Session #05 vasantkothari@gmail.com 88 © 2009 Functionsof Marketing ► The narrowest definition is to see marketing as a function of a business enterprise between production and markets taking care that products move smoothly from production to customers.
- 89. Session #05 vasantkothari@gmail.com 89 © 2009 SocietalFunction of Marketing ► In modern society production and consumption are apart from each other. Marketing connects them. ► From the societal point of view, marketing is a philosophy which shows how to create effective production systems & consequently prosperity.
- 90. Session #05 Societal Function ofMarketing ► Business is a subsystem of society, which has both a social and an economic role. Thus, a company must operate in a way that will make possible the production of benefits for society and, at the same time, produce profits for the company itself. vasantkothari@gmail.com 90 © 2009
- 91. Session #05 Societal Function ofMarketing ► The role of marketing in society means also responsibilities. In addition to economic and social responsibility, ecological responsibility is nowadays emphasized. vasantkothari@gmail.com 91 © 2009
- 92. Session #05 Traditional & Integrating FunctionsOf Marketing vasantkothari@gmail.com 92 © 2009
- 93. Session #05 Functions Of Marketing ►Traditionally, marketing has been seen as a link between production and customer. ► The situation could be captured better by using the term selling. vasantkothari@gmail.com 93 © 2009
- 94. Session #05 Traditional Functions Of Marketing vasantkothari@gmail.com94 © 2009 Traditional Management
- 95. Session #05 Integrating Functions Of Marketing vasantkothari@gmail.com95 © 2009 Marketing Oriented Management
- 96. Session #05 Marketing Functions ► Marketingwas born out of a need to take better into consideration the demand factors in production planning. ► The function of marketing is to channel information of consumer needs to production & satisfaction of needs to consumers. vasantkothari@gmail.com 96 © 2009
- 97. Session #05 Marketing Functions ► Thebasic power of marketing is the aspiration to produce and sell only that kind of products which have demand. ► Marketing integrates the whole company to serve this demand. vasantkothari@gmail.com 97 © 2009
- 98. Session #05 Marketing Functions ► Marketingaims at effective production systems, where information is transmitted effectively between production and consumption. vasantkothari@gmail.com 98 © 2009