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Introduction to Marketing
Objectives of Study..
Understand the new economy. Learn the tasks of marketing. Become familiar with the major concepts and tools of marketing. Understand the orientations exhibited by companies. Learn how companies and marketers are responding to new challenges.
Marketing Defined..
Kotlers Social Definition: Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. The AMA Managerial Definition: Marketing is a organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships that benefits organizations and its stakeholders. Marketing is Meeting Human Needs Profitably Marketing is the delivering customer satisfaction at a profit.
Examples
Toothpaste, clothes Banking, Insurance Scuba Diving, River Rafting, Movies Drama, Trade Shows, Sports Miss Universe, World, Politicians Country, Tourist Place Real Estates, Bonds and Stocks MNCs, non profit organizations Universities, Schools, Encyclopedias Harmful effects of Tobacco, Alcohol. Child Labor
Functions of Marketing
Competition
Competition includes all actual and potential rival offerings and substitutes that the buyer might consider. Marketers have to constantly watch on the new substitutes that may replace its own business and try to mould its marketing plans accordingly. Four levels of competition can be distinguished by the level of product substitutability: Brand competition Form competition Industry competition Generic competition
Marketing Orientations
The orientation or philosophy of the firm typically guides marketing efforts. Several competing orientations exist: Production Concept Product Concept Selling Concept Marketing Concept Holistic Marketing Concept
Marketing Orientations
Production Concept
Oldest Concept Believes that consumers will prefer products that are available and inexpensive. The management of Production concept focuses on achieving high production efficiency, low costs and mass distribution. This concept runs well in developing countries which has inexpensive labor pool and where people prefer to buy products which are cheaper. Cos following this concept has production team as its core team while marketing dept is an appendage. Lower costs does not always attract customers and hence this concept fails when customers require more quality or variety.
Marketing Orientations
Product Concept
This concept gives utmost importance to the product quality and features. Marketers think that the consumers will favor those products that offer most quality, performance and innovation. Success of the business is aimed to be achieved through product attributes. Managers focus on making superior quality products and improve them over time. Cos invest lot of money in R n D and new product development. Since marketers fail to understand customer needs this concept fails to great marketing success.
Marketing Orientations
Selling Concept:
The concept believes that consumers will not buy the products unless the co undertakes a aggressive selling and promotion efforts. The purpose of marketing is to sell more stuff to more people to make more profit. The products sold under selling concept are the ones which the consumers do not think of buying. Hard core selling also involves bigger risks as if the customer feels he is pressed into buying he may bad mouth the co.
Marketing Orientations
Marketing Concept:
The philosophy shifted from the Product centered Make n Sell concept to Sense and Respond Customer centric approach. The job of marketer is to find customer needs and design a suitable product to satisfy the need. Concept holds that the key to achieve organizational goals is to be more effective than competitors in creating, delivering and communicating superior customer value to the target market. Customers needs, wants and satisfaction is of foremost importance to all departments of Organization and not just restricted to marketing. Cos that follow both Reactive and Proactive Marketing Orientation achieve more success.
Marketing Orientations
ey Attributes of Marketing Concept:
Unflinching Consumer Orientation Integrated management action with marketing as a function Emphasis on generating consumer satisfaction Emphasis on profit Attaining all Corporate goals through customer satisfaction.
Marketing Orientations
Holistic Marketing Concept: Everything Matters in Marketing
4 Dimensions of Holistic Marketing Concept are: Relationship Marketing Integrated Marketing Internal Marketing Social Responsible Marketing
Marketing Orientations
Holistic Marketing Dimension:
Marketing Orientations
Relationship Marketing: CRM and PRM
The key goal of marketing is to develop deep rooted, enduring relationships with all people or organizations that could directly or indirectly affect the success of firms marketing activities. The concept is Build a effective network of relationships with key stakeholders and profits will follow. RM involves in building strong ties with its 4 core constituents Customers, Employees, Marketing Partners and Members of Financial Community. Key Stakeholders / Marketing Network = Customers, Employees, Suppliers, Distributors, Retailers, Ad agencies, Shareholders, Investors,
Hotel Industry, Tanishq
Marketing Orientations
Integrated Marketing
Marketers activity is to design marketing tasks and assemble fully integrated marketing program to create, communicate and deliver value for consumers. Marketing activities are designed on the basis of Marketing Mix and each component of marketing mix delivers a customer benefit. 4Ps Product Price Place Promotion 4Cs Customer Solution Cost to Customer Convenience of buying Communication
Marketing Orientations
4 Ps Elaborated
Marketing Orientations
Two key themes of Integrated Marketing are: Marketers opt for different marketing activities to communicate and deliver value. All marketing activities are coordinated to maximize their joint effect.
Marketing Orientations
Internal Marketing
Internal marketing aims at ensuring everyone in the organization enhances the right marketing principles. Internal marketing is a task of hiring, training and motivating able employees to serve customers well. Customer orientation should be the goal of each department and employee. Internal Marketing should happen at 2 levels. 1. Various marketing functions should work together Sales, Advertising, Customer Service, Product Management and Marketing research. 2. Marketing approach must be embraced by all other depts. of the Co. Eg: Purchase, Manufacturing, Finance, Accounting, Public Relations
Marketing Orientations
Social Responsibility Marketing
SRM includes Ethical, Environmental, Legal and Social context of marketing activities and programs. Organizations should realize that along with satisfying customer needs it should also focus on delivering social welfare. SRM calls for marketers to build social and ethical considerations into marketing plans and practices. SRM is often called as Cause Related Marketing and Cos. see it as an opportunity to enhance their corporate reputation, raise brand awareness, increase customer loyalty, increase sales and press coverage.
2. Share of Customer:
Share of customers purchase in a product category. Achieved through offering greater variety, cross-sell and up-sell strategies.
3. Customer Equity:
The combined customer lifetime values of all current and potential customers. Measures a firms performance, but in a manner that looks to the future. Choosing the best customers is key
Marketing
Marketing starts with buyer and focuses constantly on the needs of buyer. Buyer is the center of business Universe. Emphasis is on understanding and fulfilling client needs. Emphasizes on Value Satisfaction. Buyer decides the marketing mix. Emphasis on innovation and providing value to client through new technology. Distribution function is designed keeping client's convenience in focus. Buyer determines the price and price determines cost. Emphasis is on integrated marketing, covering all Ps Customer is the very purpose of Business.
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