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MARKETING
LEARNING OBJECTIVES
The marketing concept: An understanding of the
nature of marketing, its key components and
limitations.
The difference between production orientation and
marketing orientation
Service concept of marketing
Experience concept of marketing
Differing roles of efficiency and effectiveness in
achieving corporate success
Differences between market-driven and internally
driven businesses
UNDERSTANDING
MARKETING
Process of finding out customer needs and
serving those needs profitably
Profit is a legitimate goal of a business
organization
Essence of marketing is providing desired
value to customers
Marketing should be considered a central
business function
What is marketing?
Marketing is building profitable customer relationships. The
aim of marketing is to create value for customers and to
capture value in return. Companies know if they take care of
their customers ( delivering on their promises) , market share
and profits will follow.
Definition:
We define marketing as a social and managerial process by
which individuals and groups obtain what they need and want
through creating and exchanging value with others.
Marketing process
Construct a
Marketing program
That delivers
Superior value
Design a
Customer-driven
Marketing strategy
Understand
The marketplace
And customer needs
And wants
Social needs:
Belonging, affection.
Individual needs:
Learning, knowledge, self-expression
Marketing Myopia
Sellers pay more attention to the specific products they offer
than to the benefits and experiences produced by the
products. They focus on the wants and lose sight of the
needs.
An article published by Harvard Business school defined the
term marketing Myopia;
- Marketing myopia is true for all companies who define their
markets too narrowly. urging organizations to define their
industries broadly to take advantage of growth opportunities.
Experience shows that when a business has redefined its
market, it has continued to grow as new targets are set .
Transaction
- consists of a trade values between two parties.
The goal of marketers is to build solid relationship with
customers and retaining them by delivering superior
value.
Dr. Rosebloom
Relationship
Marketing Era
Production Era
Orientation:
Business philosophy
focusing on manufacturing
efficiency; demand exceeds
supply = sellers market
Prior to the
Dominant 1920s
time period:
Dr. Rosebloom
Sales Era
Orientation:
Business philosophy
focusing on selling existing
products; supply exceeds
demand = buyers market
Prior to the
Dominant 1950s
time period:
Dr. Rosebloom
Marketing Era
Orientation:
Business philosophy
focusing on consumer
wants and needs; any
supply/demand situation
time period:
Dr. Rosebloom
Orientation:
Business philosophy
focusing on reinforcing the
customer-oriented focus of
the marketing era
Last decade of
Dominant 20th century
time period:
Dr. Rosebloom
THE MARKETING
CONCEPT
All activities are focused upon providing
customer satisfaction
Every employee in an organization is a
marketer
Internal communication
PRODUCTION CONCEPT
SELLING CONCEPT
Product or service is not designed and made
according to customers requirements
Customer has to be persuaded to believe
that the product or the service meets his
requirements
Customer dissatisfied and bad-mouths
company
Marketing makes selling redundant
PRODUCT CONCEPT
Companies become centered on constantly
improving the product
Myopic focus on the product
No attention on the other ways in which
customers can fulfill their needs
MARKETING MYOPIA
Customer does not buy a product, he buys
an offering that fulfills his needs
SERVICE CONCEPT
Customers buy services, not products
Service model of marketing instead of
selling the title to the products
Hindrance: Mindset of the customer and
marketer, and their unwillingness to
experiment with this model
Can be easily applied in businesses like
automobiles, carpeting, furnishing, and for
most consumer durable items
EXPERIENCE CONCEPT
Create an experience around the product to
make it memorable
Reaffirm it with cues at every customer
interaction point
Experiences are inherently personal for a
customer
An experience should be built around a well
defined theme
EFFICIENCY VERSUS
EFFECTIVENESS
An efficient company produces its products
and services economically
An effective company serves the needs of
the customers
No inherent conflict between being efficient
and effective
INTERNALLY DRIVEN
BUSINESS
Expenditure on marketing
research is an investment
Understand competitors
objectives and strategies, and
anticipate competitive actions
Marketing spend is an
investment that has long term
consequences
Marketing expenditure Is
superfluous that never appears to
produce benefits
MARKET DRIVEN
BUSINESS
INTERNALLY DRIVEN
BUSINESS
LIMITATIONS OF THE
MARKETING CONCEPT
Marketing concept as an ideology
Marketing and society
Marketing as a constraint to innovation
MARKETING MIX
PRODUCT
PRICE
PLACE
PROMOTION
CRITICISM OF THE 4Ps APPROACH TO
MARKETING
CHARACTERISTICS OF AN
EFFECTIVE MARKETING MIX
Marketing mix should match customer
needs
True source of competitive advantage
Well blended to form a consistent theme
Match corporate resources