chap01-mtg concepts1

8/12/2019 Chap01-Mtg Concepts1

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Marketing Concepts

Objectives

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.

What is

marketing?

Marketings Role within the Organization and

the Global Economy

Marketing

Strategic

Planning

The Marketing

Concept

The 4Ps Target vs. mass

marketing

Marketing

Functions

The New Economy

Consumerbenefitsfrom the digital revolution

include:

Increased buying power.

Greater variety of goods and services.

Increased information.

Enhanced shopping convenience.

Greater opportunities to compare productinformation with others.

The New Economy

Firmbenefitsfrom the digital revolution

include:

New promotional medium.

Access to richer research data.

Enhanced employee and customer

communication.

Ability to customize promotions.

Marketing Tasks

Marketing practices may pass through three

stages:

Entrepreneurial marketing

Formulated marketing

Intrepreneurial marketing


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BRANDS

Brands just dont exist.they are an integral

part of our lives!

Core Concept Of Marketing

Need,Want and Demand

PRODUCTS(GOOD, SERVICES, IDEAS)

VALUE, COST & SATISFACTION

EXCHANGE & TRANSACTIONS

RELATIONSHIPS AND NETWORKS

MARKETS

MARKETERS AND PROSPECTS
http://coke.net/home/index.html


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Demand States and Marketing Tasks

1. Negative Demand(Vaccination,dentalWork)

2. No Demand(Foreign Language)

3. Latent Demand(Harmless Cigarettes)

4. Declining Demand

5. Irregular Demand(Synchromarketing)

6. Full Demand

7. Ovearfull Demand(Demarketing)

8. Unwholesome Demand

What Can Be Marketed?

Goods

Services

Experiences

Events

Persons

Places

Properties

Organizations

Information

Ideas

A Premium Quality Pure & Gentle Soap

to give a Soft Skin


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Industry

(a collection

of sellers)

Market

(a collection

of Buyers)

Goods/services

Money

Communication

Information

Simple Marketing System

Manufacturermarkets

Services,money

Governmentmarkets

Services,money

Services

Services,

money

Taxes

Taxes,

goods

Taxes,goods

Taxes,goods

Money Money

Consumermarkets

IntermediarymarketsGoods, services Goods, services

Resources Resources

Resourcemarkets

Money Money

Structure of Flows

Price Promotion

Cost Communication

Marketing

Mix

ProductPlace

Customer

Solution

Convenience

The Four Ps vs. The Four Cs

Production Concept

Product Concept

Selling Concept

Marketing Concept

Consumers prefer products that are

widely available and inexpensive

Consumers favor products thatoffer the most quality, performance,

or innovative features

Consumers will buy products only ifthe company aggressively

promotes/sells these products

Focuses on needs/ wants of targetmarkets & delivering value

better than competitors

Company Orientations Towards the

Marketplace


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MarketIntegratedmarketing

Profits throughcustomer

satisfaction

Customerneeds

(b) The marketing concept

Factory ExistingproductsSelling andpromotion

Profits throughsales volume

Startingpoint Focus Means Ends

(a) The selling concept

Marketing Vs Selling

Customers

Front-line people

Middle Management

Top

Management

Traditional Organization

Chart

Customers

Front-line people

Middle management

Top

manage-ment

Customer-Oriented Organization Chart

a. Marketing as anequal function

FinanceProduction

Marketing Humanresources

b. Marketing as a moreimportant function

Finance

Humanresources

Marketing

Production

Evolving Views of Marketings Role

c. Marketing as themajor function

Marketing

Production

d. The customer as thecontrolling factor

Customer

Evolving Views of Marketings

Role

e. The customer as the controllingfunction and marketing as the

integrative function

Customer

Marketing

Production

Evolving Views of Marketings

Role


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The Production Concept:

The production concept holds that

consumers will favour those productsthat are widely available and low in cost.

Manager in the production oriented

organisation concentrate on achieving

high production efficiency and wide

distribution.

The Product Concept:

The product concept holds that

consumers will favour those products

that offer the most quality performance

or innovative features. Manager in

product oriented organization focus their

energy on making superior products and

improving them over times.

The Selling Concept:

The selling concept holds that the consumers if

left alone, will ordinarily not buy enough of the

organizations products. The organization must

therefore undertake an aggressive selling and

promotional effort.

Most companies practice the selling concept

when they have overcapacity. Their aim is to

sell what they make rather than what the

market wants

Marketing Concept:

The marketing concept holds that the key

to achieving organizational goals consists

of being more effective than competitors

in integrated marketing activities toward

determining and satisfying needs and

wants of target market.

The Societal Marketing Concept:

The societal marketing concept holds that theorganizations task is to determine the needs,

wants and interest of target markets and to

deliver the desired satisfaction more effectively

and efficiently than competitors in away that

preserves or enhance the consumers and

societyswell-being.

Humanistic marketing

Ecological marketing


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Profit

Customer

SatisfactionTotal Company

Effort

TheMarketingConcept

DEFINITIONS OF

MARKETING

MARKETING IS THE MANAGERIAL

PROCESS THAT IDENTIFIES, ANTICIPATESAND SATISFIES CUSTOMER REQUIREMENTS

PROFITABLY

THE CHARTERED INSTITUTE OF

MARKETING

MARKETING IS THE HUMAN

ACTIVITY DIRECTED AT

SATISFYING HUMAN NEEDS AND

WANTS THROUGH AN EXCHANGE

PROCESS

KOTLER 1980

MARKETING IS A SOCIAL AND

MANAGERIAL PROCESS BY WHICH

INDIVIDUALS AND GROUPS OBTAIN

WHAT THEY WANT AND NEED

THROUGH CREATING, OFFERING AND

EXCHANGING PRODUCTS OF VALUE

WITH OTHERSKOTLER 1991

Marketing Management:

MM is the process of planning and execution

the conception, pricing, promotion and

distribution of ideas, goods and services to

create exchanges that satisfy individual and

organizational goals.

Implications of marketing

Who are our existing / potential customers?

What are their current / future needs?

How can we satisfy these needs? Can we offer a product/ service that the customer

would value?

Can we communicate with our customers?

Can we deliver a competitive product of service?

Why should customers buy from us?


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1960 1970 1980 1990 2000

Reemergence of

Competition

Globalization

Rise of Quality

Price

Competition

Cost-cutting

Reengineering

Logistics/

Digitalization

Information

Technology

Evolving

Marketplace

Evolution of the Marketing

Discipline

Consumer Centric focus

New categories

innovating for the consumer

New product lines identifying consumer needs

and translating these into products

Extensions - offering the same assurance

across variants

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