P RINCIPLES O F M ARKETING

P RINCIPLES

Fundamental norms, rules or values

That represent

What is desirable and positive for a person, group, organization or community. It helps in identifying what is right or what is wrong

ATTITUDE
# 1

Alphabet A

T T
I T U D E Total

20 20
9 20 22 4 5 100

BE POSITIVE

WINNER DONT DO DIFFERENT THINGS

THEY DO THINGS DIFFERNTLY

M ARKETING C ONCEPT & E VOLUTION

C ONTENTS
Marketing Concept Needs, Wants & Demand Product & Services Value Cost & Satisfaction Exchange & Transaction Market Marketing Evolution of Marketing

M ARKETING C ONCEPTS
What you can learn

The marketing concept The difference between customers and consumers What a market is and how it can be described The four Ps of the marketing mix

I MPORTANCE OF M ARKETING C ONCEPT

How To Focus On Needs And Wants Improve Product

Be Competitive

Increase Sales

B ASIC C ONCEPT

Satisfy Needs and Wants

Get More Profit

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N EEDS & WANTS

Need- something you have to have .This is basic human requirement

Phy Need

Sec Need

Want -Something you would like to have that satisfy your need
Soc Need

Marketers do not create need they influence wants

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D EMAND
Describes a consumers desire and willingness to pay a price for a specific good or service Wants for specific product backed by an ability to pay Businesses often spend a considerable amount of money in order to determine the amount of demand that the public has for its products and services. Incorrect estimations will either result in heavy losses

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C USTOMER & C ONSUMER /U SERS

Customers buy a product. Consumers/users use the product.

Example: Parents who buy video games from retailers are customers. The kids who play the video games are the consumers.

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T YPES OF C ONSUMERS /U SERS

Current Users with high frequency( Keep them associates) Current user with low frequency ( Make them regular users) Laps Users ( Make them users again) Non Users ( Make them aware/Induce trail)

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I NDUSTRY
Industry

Manufacturing

Services

Concept

Product

Services

Product/Service

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P RODUCTS /S ERVICES /C ONCEPT

Product is defined as a "thing produced by labor or effort In Marketing a product is anything that can be offered to a market that might satisfy a want or need
Having physical entity can be touched Computer, Soft drink, Soap etc

Tangible

Intangible/ Services

Non Physical product Insurance policy, Bank, Marketing research companies, education

Concept

Latin word means combination of ideas. Ideas is a Greek word means a Unique thought

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P RODUCT

Product

FMCG

Non FMCG

Tea, Soap, Shampoo, Cream, Detergent

Electronic Appliances, Auto, Mobile, Computer, Paint

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P RODUCT (G OOD SERVICES & I DEAS )

Three main components of Product

Good
Car Microwave

Services
Transportation Cooking Communication

Ideas
To move speedily/secure Save time Quick flow of communication

Goods Services/Benefits
Cell Phone

Ideas

Marketing Myopia: Emphasize more on the benefits instead of concentrating on the physical features of the product as people own product to enjoy the benefits of the products

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P RODUCT C ATEGORY
Category Oral Care Types Toothpaste, Toothpowder, Mouth Wash etc

S. No 1

2
3 4 5 6

Oil & Fat

Fuel Detergent Milk

Oil, Ghee, Butter, Margarine, cheese

CNG, Diesel, Petrol Washing powder, Soap/Bar, Liquid, flakes Powder, Pasteurized Milk, Tetra pack milk, flavored milk

Shoe Polish Liquid, Cream, Shiner, Spray

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VALUE , C OST & S ATISFACTION

Value: The capacity of product to satisfy the needs & wants

Product Bi Cycle Car Capacity Less safe More Safe Satisfaction Economical Less economical

Customer has to decide which product will deliver the most total satisfaction

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E XCHANGE & R ELATIONSHIP

To develop long term relationship with the customers, suppliers, distributors etc
A. B. C. D. Customer Quality product Fair price On time delivery After sale services

Company
A. B. C. Company Good price of good sold On time payment Good word of mouth

Customer

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M ARKET

A public place where buyers and sellers make transaction directly or via intermediaries Market is a place where exchange take place between buyers and sellers where buyers are willing to buy and seller are willing to sell their product over a price

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M ARKETING
Marketing has been defined by the AMA as an organizational function and a set of processes for

Creating Communicating Delivering Values

To customers and for managing customer relationships in ways that benefit the organization and its stakeholders

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M ARKETING
Marketing is a social and managerial process by which individuals and groups obtain

What they need & want through

creating, offering and exchange products of value with others

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T HINGS I N

THE

M ARKET

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T HE M ARKETING M IX
o

The marketing mix comprises four basic marketing strategies known as the four Ps:

Product

o
o

Place
Price

Promotion

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T HE M ARKETING M IX

Product strategies include what product to make, how to package it, what brand name to use, and what image to project.

Place strategies deal with how and where a product will be distributed.

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T HE M ARKETING M IX

Price strategies should reflect what customers are willing and able to pay. Promotion strategies deal with how potential customers will be told about the new product, what the message will be, when and where it will be delivered, and with what inducements to buy.

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TARGET M ARKET

Target marketing is focusing all marketing mix decisions on the specific group of people you want to reach Based upon different factors Gender, Age, Education, Income, SEC etc

TARGET M ARKET 1

Young Adults 15 to 18 Years College going

TARGET M ARKET 2

Young executives Often 18 to 30 Having new Job

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TARGET M ARKET 3

Middle Age Adults Married 30+ Children 3+ years SEC A-E

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M ARKETING C ONCEPT
The Marketing Concept

Marketing Research

Marketing Segmentation

Product

Price

Place

Promotion

Consumers

Graphic Organizer

H ISTORY

OF

M ARKETING

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P RODUCTION

CONCEPT

A production concepts holds that consumer will favor products that are widely available and low in cost. If somebody makes a product, somebody else will want to buy it". This orientation rose to prominence in an environment which had a shortage of manufactured goods relative to demand, so goods sold easily.

Effective where demand is high than the supply

Need to reduce the cost to expand market

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PRODUCTION

C ONCEPT

Implications of this orientation include

Narrow product-line(s) Pricing based on the cost of production and distribution Packaging designed primarily to protect product Minimal Promotion and advertising, limited to raising awareness of the existence of the product Consumers more interested in simply obtaining the product, and less in its quality

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P RODUCT C ONCEPT

A product concepts holds that consumer will favor products that offer the high quality, performance or innovative features

The drawback of this concept is that sometimes company launch the product without taking the opinion of customers as they thought they can understand customer needs better

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S ELLING C ONCEPT / S ALES C ONCEPT

The Selling Concept holds that customers showed resistance in buying the things. Company should aggressively go for effective selling and promotional tools to stimulate more buying More related where people are not very interested to buy like insurance, More concentrate on selling rather than building a long term relationship Company interested in selling concept if they have over capacity production

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M ARKETING C ONCEPT

Marketing concept hold that to achieve the organization goals company should be more effective than its competitors in marketing activities and to satisfy the needs and wants of target market 4 Pillars of Marketing concept are
Profitability

Find out the right product for the customers rather than find the right customer for your product

Integrated Marketing
Customers Needs

Target Market

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M ARKETING CONCEPT P ILLARS

Target Market Target Market Male, Female, age, education, occupation, health, income, SEC

Customer Needs Integrated Market

Focus on the needs Different department work together or the customer satisfaction
Ultimate objective of an organization

Profitability

T HANK YOU FOR YOUR

PARTICIPATION

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