Undertaking The Marketing Process (BBA III Sambalpur University)

Understanding the Marketing
Process
http://durgeshsatpathy.com
By: Durgesh Satpathy
Lecturer in Management, Imperial College

What is Marketing??

The committee of Marketing Teacher’s Association of the
U.S.A. defines Marketing as:
"Marketing consists of the performance of business activities
that direct the flow of goods and services from producer to
consumer or user.“
The Chartered Institute of Marketing defines marketing as:
"the management process responsible for identifying,
anticipating and satisfying customer requirements profitably.
Definition:

Concept of Marketing:
The marketing concept is the strategy that
firms implement to satisfy customers needs,
increase sales, maximize profit and beat the
competition.

Production Concept:
“Consumers will favor products that are available and
highly affordable”
Organization should therefore focus on improving
production & distribution efficiency.
Example:
Lenovo in China or HP with UP Govt. “Laptop
Distribution Scheme”

Product Concept
• The product concept holds that the consumers will
favor products that offer the most in quality,
performance and innovative features.
• Apple is a well known company for its gadgets &
technology
• In order to follow the product concept, they evolve
themselves from i-phone 3g (2009) to the i-phone 7s

Apple
• Very User Friendly
• Follows what customers
demands
• Amazing new features
with every new models
• Follow product concept
diligently.
Blackberry
• Not User Friendly
• Doesn’t meet customer
demands
• Only have limited
features
• Doesn’t follow the
product concept

Drawbacks of product concept

Selling Concept
“consumers will not buy enough of the firm’s
products unless it undertakes a large-scale
selling and promotion effort”.
Example:
Life Insurance Companies, Encyclopedia
(Aggressive marketing….. bye bye )

Marketing Concept
“achieving organizational goals depends on knowing
the needs and wants of target markets and delivering
the desired satisfactions better than competitors do”.
Example
Toyota Motors:
Market Research & Understanding consumer needs
Providing value to customer
Profit through customer loyalty in long run

• Societal Marketing Concept
“Marketing strategy should deliver value to
customers in a way that maintains or improves both
the consumer’s and society’s well-being”.
Example:
Tata Motors
Ariel by P&G
Imperial College
Nihar Coconut Oil
Social
Marketing
Concept
Societal
(Human
Welfare)
Company
Profits
Consumers
(Wants)

• Difference between Selling & Marketing
Concept
• Traditional Vs Modern Concept of Marketing
(How they effect Marketing Decision
Making)
• How Societal Marketing Concept influence
the Organization
• Various functions of Marketing
Assignments:

Marketing Environment

Organisation as a system :
A system is a set of objects, elements or components
that are interrelated and interact with one another.
These elements operate on inputs such as physical
resources, human resources and information to
accomplish common objectives such as productivity,
and satisfaction.
A system consists of inputs, processor, output and
feedback.

Inputs & Outputs:
It has its own environment from where it draws its inputs. It
offers output in the form of products, services, information
and ideas to satisfy environment demands.

Environment provides resources and opportunities
It also puts limits and constraints on the
organization, and influences its survival and growth.

• Microenviroment:
– Forces close to the company
– That affect directly its ability to serve customers
• Macroenvironment:
– Larger, societal forces that affect the
organization’s microenvironment

• The company:
– Management, finance, research & development, purchasing,
manufacturing, accounting, and human resources
• Suppliers
• Marketing intermediaries:
– Resellers
– Physical
distribution firms
– Marketing service
agencies
– Financial
intermediaries
The Company’s Microenvironment

The Company’s Microenvironment
• Customers:
– Consumer, business, reseller, government, and international
markets
• Competitors
• Publics:
– Financial
– Media
– Government
– Citizen-action groups
– General

The Company’s Macroenvironment
• Demographic environment:
– Study of human population
– Size, density, location, age, race, sex, occupation, and education
• Trends of interest:
– World population
growth
– Increased diversity
– Changing households
– Education
– Geographic shifts

• Economic environment:
– Factors that affect consumer buying power and spending patterns
• Trends of interest:
– Changes in income, continued spending by consumers
– Consumer debt levels
rising, savings down
– Changing spending
patterns

• Natural environment:
– Growing shortages of raw materials
– Increased pollution
– Increased government intervention
– Environmental Protection Act
– Green movement
– Focus on environmental sustainability strategies

• Technological environment:
– New technology creates new markets and opportunities
– Replaces existing products and services
– Research and development activity drives this sector
– Government programs to
encourage more
– Government agencies to
regulate new product
safety

• Political environment:
– Laws, government agencies, and pressure groups
– Influence and limit organizations and individuals within a society
– Increasing legislation
– Increased emphasis on ethics and social responsibility

• Cultural environment:
– Institutions and other forces that influence
– Society’s basic values, perceptions, preferences, and behaviours
– Core beliefs passed on through family, reinforced by institutions
– People’s views of:
• Themselves
• Others
• Organizations
• Society
• Nature
• The universe

Responding to the Marketing Environment
• Passive approach:
– Companies react to uncontrollable factors within their
environments
• Environmental management perspective:
– Proactive approach to influence and affect forces within their
environment
– Use lobbyists to influence legislation
– Media events, advertorials to shape public opinion
– Use legal action when necessary

In Conclusion…
• The learning objectives for this chapter were:
– Describe the environmental forces that affect the company’s
ability to serve its customers
– Explain how changes in the demographic and economic
environments affect marketing decisions
– Identify the major trends in the firm’s natural and
technological environments
– Discuss how companies can react to the marketing
environment

Role of Marketing in modern organization

Characteristics of Modern Marketers:
Basic Business Skills
• Problem analysis and decision-making
• Oral and written communication
• Basic quantitative skills
• Working well with others

Understanding Marketing’s Impact:
Marketing decisions shall not be taken in isolation
• For example, making a decision to run a special sale that
significantly lowers the price of a product could present
supply problems if the production area is not informed well in
advance of the sale.

Technology Savvy:
Marketers must be skilled in using technology as part of their
everyday activities.
Marketers must understand emerging technology and
applications in order to spot potential business opportunities as
well as potential threats.

The Need for a Global Perspective:
• Need to understand international trade and cultural
differences

Information Seeker
• The field of marketing is dynamic.

Efficiency and Effectiveness
Ineffective
Goes out of
business quickly
Dies Slowly
Survives
Does well
Thrives
Effective
Efficient
Inefficient

The Marketing Concept:
• Customer orientation
• Customer focused
• Customer driven
• Customer centric
• Customer satisfaction
• Market driven
• Exceed customer expectations

Creating Customer Value
Product benefits
Service benefits
Relational benefits
Image benefits
Monetary costs
Time costs
Energy costs
Psychological costs

Creating Customer Satisfaction
Delight
Neutral
Dissatisfaction
Absent Fulfilled
Presence of the characteristic
Customersatisfaction
‘Delighters’
‘More is better’
‘Must be’

Thanks

Undertaking The Marketing Process (BBA III Sambalpur University)

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Undertaking The Marketing Process (BBA III Sambalpur University)

Similar to Undertaking The Marketing Process (BBA III Sambalpur University) (20)

More from Durgesh S

More from Durgesh S (18)

Recently uploaded

Recently uploaded (20)

Undertaking The Marketing Process (BBA III Sambalpur University)