presentation -marketing specific2

8/11/2019 Presentation -Marketing Specific2

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Basic Terms of Marketing

Dr.Manish Singh


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NEED:

A human need is a state of felt

deprivation of some basic satisfaction.

People require foods, clothing, shelter,

safety, belonging, esteem etc. these

needs exist in the very nature of human

beings.


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This is a Need

Needs - state of felt

deprivation including

physical, social, and

individual needs


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Wants

Needs become wants they are

directed to specific objects that might

satisfy their needs.


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This is a Want

WantsNeedsbecome wants

when they aredirected to specific

objects that might

satisfy the need.


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Demand:

Demands are wants for specific

products that are backed up by anability and willingness to buy them.

Wants become demands when

backed up by purchasing power.


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This is Demand

Buying PowerWants

Demand


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Product:

Products are defined as anything that

can be offered to some one to satisfy a

need or want.


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Product as an idea

Products do not have to

be physical objects.

Here the product is an

ideaprotectinganimals.


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Available Market (who have interest, income andaccess to a particular offer)

Target Market or Served Market (a company cango for serving whole available market or canconcentrate on certain segments)

Penetrated Market (set of buyers who are buyingthe companys product)


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Value and Satisfaction:

Consumers choose among the products,

a particular product that give them

maximum value and satisfaction.

Value is the consumers estimate of the

products capacity to satisfy their

requirements.


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Exchange:

Exchange is the act of obtaining a

desired product from someone byoffering something in return.


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Transaction:

A transaction is a trade of values

between two or more parties ( A BARTER

TRANSACTION OR A MONETARYTRANSACTION ).

A transaction involves at least two thing of

value, conditions that are agreed to, a time ofagreement and a place of agreement.


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Concept of Marketing


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Marketing is an economic process by

which goods and services are exchanged

between the producers and consumersand their values is determined in terms of

money prices.


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GOODS
http://images.google.co.in/imgres?imgurl=http://www.samstores.com/_images/products/Braun%20BC1400%20Grey%20Travel%20Hair%20Dryer.jpg&imgrefurl=http://www.samstores.com/Store.asp?CtgID=167&h=400&w=400&sz=14&hl=en&start=2&usg=__kcztGBDIUH-Xs4vBrTA53TkGv3s=&tbnid=Fo5hf9EZovYFHM:&tbnh=124&tbnw=124&prev=/images?q=HAIR+DRYERS&gbv=2&hl=enhttp://images.google.co.in/imgres?imgurl=http://upload.wikimedia.org/wikipedia/commons/0/01/Hunter_gatherer_food_products.jpg&imgrefurl=http://commons.wikimedia.org/wiki/Image:Hunter_gatherer_food_products.jpg&h=1067&w=1600&sz=327&hl=en&start=8&usg=__qjA4hA3EIU6AWGs-d7yuIPDXkTk=&tbnid=g4Znx4gKeMUVjM:&tbnh=100&tbnw=150&prev=/images?q=FOOD+PRODUCTS&gbv=2&hl=enhttp://images.google.co.in/imgres?imgurl=http://www.spectrum.ieee.org/images/apr08/images/cars01b.jpg&imgrefurl=http://www.spectrum.ieee.org/apr08/6078&h=536&w=400&sz=63&hl=en&start=14&usg=__GCOrXTwXKeVU7EZjAKosLR3-G7E=&tbnid=KZWpBXgMd4KOHM:&tbnh=132&tbnw=99&prev=/images?q=CARS&gbv=2&hl=en


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SERVICES
http://images.google.co.in/imgres?imgurl=http://www.petersoulsby.org/june2006/hospital2.jpg&imgrefurl=http://www.petersoulsby.org/peter-soulsby-news-archive2007.html&h=290&w=340&sz=41&hl=en&start=4&usg=__W5cWTBQHzmFXAY1IvblK5jcTSQc=&tbnid=-WGDSI_A6d8dNM:&tbnh=102&tbnw=119&prev=/images?q=HOSPITALS&gbv=2&hl=en&sa=Xhttp://images.google.co.in/imgres?imgurl=http://www.carltongrandcanal.com/img/venice_hotels.jpg&imgrefurl=http://www.carltongrandcanal.com/&h=370&w=450&sz=48&hl=en&start=7&usg=__Vkp0xAbP75DlUk5mfT9rf9VmOpQ=&tbnid=XoC4phbt5jkX8M:&tbnh=104&tbnw=127&prev=/images?q=HOTELS&gbv=2&hl=en


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SERVICES
http://images.google.co.in/imgres?imgurl=http://www.flightline.co.uk/travelnews/wp-content/uploads/2008/02/american-airlines-boeing-767-300er-transportation-aircraft-29013.jpg&imgrefurl=http://www.flightline.co.uk/travelnews/american-airlines-switch-to-heathrow/&h=437&w=600&sz=58&hl=en&start=14&usg=__j3aB6cABKclj-VEBmra2_4k_9Tg=&tbnid=6eoSBkHagg45OM:&tbnh=98&tbnw=135&prev=/images?q=AIRLINES&gbv=2&hl=enhttp://images.google.co.in/imgres?imgurl=http://blog.wired.com/cars/images/2008/04/04/airline.jpg&imgrefurl=http://blog.wired.com/cars/2008/04/airlines-try-to.html&h=388&w=620&sz=86&hl=en&start=11&usg=__tcll5Bsg1TlPkB6dWXaJxvw9Faw=&tbnid=OWq6X_3n6LWXZM:&tbnh=85&tbnw=136&prev=/images?q=AIRLINES&gbv=2&hl=enhttp://images.google.co.in/imgres?imgurl=http://www.elmarine.com/images/rm-elegant-yacht-beauty.jpg&imgrefurl=http://www.elmarine.com/rm-elegant-yacht-charter.html&h=263&w=350&sz=34&hl=en&start=7&usg=__yC7o6vRPLfXGplL0A0-KNaKTS44=&tbnid=pCH-ZvX2PpuQKM:&tbnh=90&tbnw=120&prev=/images?q=BEAUTY+SALOONS&gbv=2&hl=enhttp://images.google.co.in/imgres?imgurl=http://keralanext.tolshop.com/v1/product_images/gv92_large.jpg&imgrefurl=http://keralanext.tolshop.com/v1/indian/gifts.php?code=ICSPL59&h=360&w=300&sz=31&hl=en&start=2&usg=__YX4MZhXwaExnk5KuiryHwbjt6eQ=&tbnid=43tijJTs-SntMM:&tbnh=121&tbnw=101&prev=/images?q=VLCC&gbv=2&hl=en


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IDEAS
http://images.google.co.in/imgres?imgurl=http://lh4.ggpht.com/_ypPPgQ3YtHk/Rw3hue4ddyI/AAAAAAAAAL0/6f8Amd1facM/_MG_7535.jpg&imgrefurl=http://picasaweb.google.com/lh/photo/kgo1r0aH418PiH6n-eEN3w&h=1385&w=1600&sz=21&hl=en&start=10&usg=__xRqB3x_TloKsMUnltG5Tj1WVCfg=&tbnid=Yvay5ZGfPLt8JM:&tbnh=130&tbnw=150&prev=/images?q=save+forest&gbv=2&hl=en


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Marketing is the performance ofbusiness activities that direct the

flow of goods and services fromproducer to consumer or user.


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Marketing is getting the rightgoods and services to the right

people at the right place at theright time at the right price with

the right communication and

promotion.


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Marketing is the management processwhich identifies, anticipates, and suppliescustomer requirements efficiently and

profitably.In other words, it is the process of

understanding, creating, and deliveringprofitable value to targeted customers

better than the competition.


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Its aim is to establish, maintain,enhance long term relationship withcustomers at a profit so that the

objectives of the parties involved aremet.

In short marketing consists ofattracting, developing, and retaining

profitable customers.


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Definition of Marketing

In the words of Philip Kotler-Marketing is a social process by

which individuals and groups obtain

what they need and want through

creating and exchanging products of

values.


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Definition of Marketing

According to Eldridge (1970) - "Marketing is the combination of

activities designed to produce profit

through ascertaining, creating,stimulating, and satisfying the needs

and/or wants of a selected segment

of the market."


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Definition- Marketing

Dibb, Simkin,Pride and FerrelMarketing Consists of individual andorganizational activities that facilitate andexpedite satisfying exchange relationships in

dynamic environment through the creation,distribution, promotion and pricing of goods,services and ideas


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Definition- Marketing

Chartered Institute of MarketingUK

Marketing is a management process,which is responsible in identifying,

anticipating and satisfying customerneeds and wants at a profit

Iceberg Theory


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Iceberg Theory

Iceberg- underwater

Selling &

advertising

M

A

R

K

E

T

I

N

G

Water


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Real Iceberg


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Nature of Marketing1. Marketing is an integrated process :

Marketing is not a single activity. It is rather acoordination of several inter-related activities. The

interaction between different activities gives a unique

character to marketing.

Marketing is a managerial process in so far as it

involves the functions of planning and control.

Marketing is also a social process as it is concerned

with the satisfaction of human needs and this is one

of the most important Characteristics of Marketing.


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Nature of Marketing

2. Marketing is customer oriented-Marketing exists to identify and satisfy the

wants of present and potential consumers.

Customer is the focus of all marketing

activities.

3.Marketing is a system- Another important

characteristic of marketing is its function as a

system. Marketing is a system comprisingseveral sub systems. Under marketing, inputs

are drawn from the society and converted into

out uts which are su lied to the societ .


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Nature of Marketing

4. Marketing is a part of total environment-Marketing operates within the framework of

total environment which comprises economic,

social, legal, political, international and other

forces. Changes in the environment influence

marketing activities. Marketing is, therefore, a

dynamic process as it keeps on adjusting to

the changing environment.


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Nature of Marketing

5. Marketing is creative- Marketing createstime, place and possession utilities. Time

utility is created by preserving goods for use in

future. Place utility is created by carrying

goods to places where they are needed the

most. Marketing creates possession utility by

transferring products and services from

producer to customer. Exchange processbetween buyer and seller is the essential

element in marketing.

N f M k i


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Nature of Marketing

6. Marketing is goal -oriented- Of the manyimportant characteristics of marketing; one

very important aspect is it is goal-oriented.

Marketing seeks to achieve benefits, for both

buyer and seller. It results in mutually

beneficial relationship by satisfying wants of

customers and by generating revenues for

marketers.

N t f M k ti


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Nature of Marketing

7. Marketing is pervasive- marketing isrequired in business as well in social and

other organizations. In other organizations,

marketing is necessary for spreading socially

useful ideas and programs family planning,

adult education, communal harmony, national

integration, environmental protection, etc.

Such marketing is called social marketing.


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Objectives of marketing

Marketing activities are organized to achieve the following objectives:

1. Consumer satisfaction : Marketing activities are organized with

the objective of ensuring that consumers get maximum satisfaction

from the use of the product. Consumer satisfaction ensures steady

and growing demand for firms products.2. Product development : This objective aims at developing new

and better products, which may provide greater satisfaction to

consumers. Product development is necessary for the survival

and growth of the firm.


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3. Sustaining Customer loyalty : If customers

continue to makerepeated purchases of goods andservices, it is possible to sustain the demand for the

products of the firm.

4.Earning profits : Business must earn sufficient

profit. Marketingactivities are organized with the

objective of earning adequate profits for the firm.


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5. To secure competitive advantage : This objective of

marketing ensures that a firms products are preferred overcompetitorsproduct. Competitive advantage is achieved through

cost efficiency and quality improvements of the products.

6. Growth in Sales : Marketing aims at increasing the sale of

firms products. This is necessary to maintain or increase the

market share of the firm. Market share means percentage demand

satisfied by the firm for a particular product. Growth in sales

ensures survival of the firm in the long run.


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7. Creation of goodwill : This objective ofmarketing ensures that a business firm is regarded

as a useful part of society engaged in satisfying

consumer needs. This help business firms to

survive and grow.

F nctions of Marketing


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Functions of Marketing

Functions of Exchange: Buying: - Buying involves planning o f

purchase search for the seller selecting of

goods to be purchased enabling of goods tosuit the requirement of the buyer.

Selling:-Selling functions involves location of

the buyer negotiation of the terms of sale,price, quantity, quality. Etc.


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Pricing:-Price is the most important element

determining the market share andprofitabilityof the company. The firm has to decide the

price of commodity by considering many

factors of a price policy of a pro duct such as

determining demand, estimating the cost,analyzing, competitors cost price and

selecting pricing method.


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Advertising :- In the aim of advertising is a

creation of awareness, interest and finally of

purchase of goods and services

Sales promotion:-Sales promotion stimulate

greater purchase after particular product or

service b y a consumer, consumer salespromotion activities include samples, cash

refund offers, prices off, premium, prices,

discounts etc


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Functions on basis of facilitating orservices:

Risk taking:-It is the primary function of a

marketing activity and profit is the reward fortaking such risk marketing. Risk can be

classified into insurable and non-insurable

risks. Risk arising out of theft fire and natural

calamites are insurable risk. Non-insurablerisk are change in demand, change in

consumer preference, increasing competition

Marketing information: Marketing


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Marketing information:-Marketing

information is an essential function as it gives

information about the products, demand,supply, price competition etc.

Marketing research:-It is a systematic

gathering, recording and analyzing of data

about problems relating to marketing goodsand services. It is a generation of primary data

analyzing of information and recommendation,

implementations of findings.

Standardization:-It is mental process of


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Standardization: It is mental process of

setting standard norms criteria for the goods

and services. It determines the basis of color,

weight, quality, and other special features.E.g.

ISI Mark.

Packing:-Packing and packaging are the two

side of a coin. Packaging is a part of productplanning, it refers to inner wrapping of a

product. Packing refers to outer casting, which

is used to transport number of units of aproduct.


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Branding:-Branding is done on a product oron the package of the product. It is the name ,

mark, symbol, design or distinctive number of

letters given to a product for distinguishing it

from other products.



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Customer is the center of all Marketing

activities.Marketing focuses on the needs and wants of

customers.

Identifying favorable emerging marketopportunities

It is concerned about satisfying customersthrough supply of goods and services



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Marketing involves analysis, planning andcontrol

Marketing is concerned about staying aheadwith competition and making profits

Marketing has a heavy emphasis onrelationships

Creating value to both the customer and

organization

Development of Marketing


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Development of Marketing

Marketing as an exchange process exchange is the act of obtaining something by

offering something in return ( money, services, goodsor a combination)

For an exchange to take place following conditionsmust exists:

1. Two parties2. Each party must possess something of value thatthe other party likes

3. The parties must be involved voluntarily

4. Parties must be able to communicate about theirvalue proposition

Evolution of Marketing


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Evolution of Marketing

The Production Concept

Product Concept

The Selling Concept

The Marketing Concept

The Societal Marketing Concept

DISTINCT MARKETING CONCEPTS


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DISTINCT MARKETING CONCEPTS

Studies have revealed that different organisations have

different perceptions of marketing and it has lead to the

formation of different concepts of marketing such as:

1.The Exchange concept:a)Exchange of product between seller and buyer.

b)marketing is much more broader than exchange and exchange is only a

part of it.c)it does not cover other aspects of marketing like :

1.concern for the customer

2.creative selling

3.generation of value satisfactions

4.integrated action for serving the customer


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2.The Production concept:

a)All the focus is on the production.

b)Concentrate on achieving high production efficiency, low cost& massdistribution.

c)This concept also fail to understand the needs of the customer as they

believe that the steep decline in the unit cost arising from the maximization

of output would bring them all the customers and the profit they need but

this will not give them the customer support as the customers are motivated

by the variety of considerations in their purchases.

d)As a result ,the production concept also fails to serve the right marketing

philosophy.

e.g.Inexpensive Toys,electronics


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3.The Product concept:a)This concept is based on product excellence-improved products,new

products and ideally designed and engineered products.

b)It also places the emphasis on quality assurance.

c)They spend considerable time and money on research and development

and bring in new variety of products yet they fail in the market.d)They do not bother to study the market and the consumer in depth.

e)they get so engrossed in their product that they forget to find out what the

customer actually need and what they would gladly accept.

f)It leads to marketing myopia.

Marketing Myopia


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a)marketing myopia means crooked perception of marketing and short

sightedness about business.

b)Excessive attention to the production or product or selling aspects at thecost of customer and his actual needs,creates a myopia.

c)it leads to wrong or inadequate understanding of the market and hence

failure in the market place.

d)It also leads to a wrong understanding or inadequate understanding of the

very nature of the business thereby affecting its future.e)Since The business keep changing with times but the basic fundamental

characteristics related to human need which business seek to serve amd

satisfy through its products should be maintained.

f)they should define their business according to their fundamentals and not

in the terms of the products and services manufactures at given point oftime.

E.g. movie makers should define their business as entertainment.


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4.The Selling concept:

a)The selling concept maintains that a company cannot expects its product

to get picked up automatically by the customers.

b)The company has to consciously push its products.

c)Aggressive advertising , high power personal selling , large scale

promotion , heavy price discounts , strong publicity and public relations arethe normal tools that rely on this concept.

d)In this kind of concept companies believed that selling is synonymous

with marketing but in reality there is a great deal of difference between

selling and marketing.

Marketing Selling1.Marketing starts with the customer ,present and

potential and focuses constantly on the need of the

b er B er is the centre of the b siness

1.Selling starts with the seller.It focuses on the need of the

need.Seller is the centre of the business universe.activities

starts ith sellers e isting prod cts


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buyer.Buyer is the centre of the business

universe.activities follow the buyer and his needs.

starts with sellers existing products.

2.Emphasis on identification of a market opportunity and

fulfilling the needs of the customer.

2.Emphasis on saleable surpluses available within the

corporation.

3.Seeks to convert customer needs into products. 3.Seeks to convert productintocash,concernsitself with

the tricks and techniques of getting the customers to buy

the product available with the salesman in exchange of

cash.

4.View business as customer satisfying process. 4.View business as a goods producing process.

5.It is concern with the value satisfaction customershould get from the exchange.

5.Overemphasis the exchangeaspectwithout caring forthe value satisfaction inherent in the exchange.

6.The firm makes a total product offeringthatwould

match and satisfy the identified needs of the customers.

6.The firm makes the product first and then figure out how

to sell it and make profit.

7.Adopting more innovative technology to provide better

value to the customer.

7.Emphasis on staying with the existing technology and

reducing the cost of production.

8.If the enterprise has a customer orientation-concerned

more about his needs,and make genuine efforts to satisfy

those needs ,then it is practising Marketing.

8.If the enterprise has internal orientation concerned more

about itself and its products and the need to dispose off its

products,then it is practicing Selling.

Marketing Selling

9 Consumer determines price ; price 9 Costs determine price


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9.Consumer determines price ; price

determines cost.

9.Costs determine price.

10.They are seen as vital services to be

provided to the customers keeping in mind

their convenience.

10.Transportation,storage and other

distribution functions are merely a part of

production function.

11.In firms practicing marketing,marketing

is the central function of the business;the

entire company is organised around the

marketing function.

11.In firms practising selling,productionis

the central function of the business.

12.Marketingviews the customer as the

very purpose of the business;sees business

from point of view of the customer.

12.Selling views the customer as the last

link in the business.

Features of Marketing Concept


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1.Consumer Orientation ; Consumer orientation places consumer at the

beginning as well as at the end of the business cycle.Consumer becomesthe

focal point of the business.Organisations should strive,adapt and alter

products to keep pace with the ever changing customer preferences and

desires.

2.Long term profitability ; Customer satisfaction,which is a major themeof the marketing concept does not preach that a firm must generate

consumer and forget the other goals of the organisation.Instead it should

treat customer as a pathway to the attainment of all the goals of the

organisation.And ,inthis process,the Organisational goals including profits

are automatically realised.The Market Concept never suggests that profit isunimportant to the firm but are essential for the survival and growth of any

business.


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Who benefits from the Marketing Concept


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1.The Organisation;The organisation keep itself in the pace with the times

and through contineous marketing audit,market research and consumer

testing.It is quick to respond to changes in the buyer behaviour,rectify itsproducts and give great importance to planning,research and innovation.

2.The Consumer;As the organisation improve its products,it benefits its

consumers as they get better quality,low price,improved/new products and

ready stocks at convinient places.

3.The Society;Since the Organisations are producing products as per the

consumers so it ensures that the societys economic resources are

channelised in the right direction.It also creates entrepreneurs and managers

in the given society.It improves the standard of living of the people and

accelerates economic development of the society as a whole.


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Ford T Model


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Product Concept


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Consumers will favor those products that offermost quality, performance or innovative features

Just making superior products will makecustomers seek and buy them

More focus on Productin the M. Mix.

Ex-Better mouse trap of Woolworth Co. Made a

very effective reusable mousetrap that the existingones but price was more than double. It did notsell well. People did not want to spend twice asthey used to throw the mousetrap also with thecatch.

Marketing Myopia- shortsightedness of notconsidering customer needs and behavior

Woolverths mouse trap


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The Selling Concept


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The Selling Concept

Consumers , if left alone , will not buyenough of companys products.

Therefore, promote sales aggressively.

And,build profit through quick turnover.



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The key to achieving organizational goals

consist in determining the needs and wants of

target markets and delivering the desired

satisfactions more effectively and efficientlythan competitors.

And build profit through customer satisfaction

and loyalty.

4 PILLARS


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S

The marketing concept rests on 4 pillars,

namely

1. Target Market

2. Customer Needs

3. Integrated marketing

4. Profitability

Marketing and Sales Concepts Contrasted


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The Societal Marketing Concept


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g p

The societal marketing concept holds that theorganizationstask is to determine the needs, wants, andinterests of target markets and to deliver the desiredsatisfactions more effectively and efficiently thancompetitors in a way that preserves or enhances theconsumersand the societyswell being.

Societal Marketing =

Consumer Satisfaction + Company s Profits + Societys wellbeing.

What is Green Marketing?


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This stems from how marketer responds to theenvironment. The marketers have been practicingvery environmental destructive activities.

Resource depletion and degradation - Geneticengineering- Pollution- Harmful emissions and

products- health hazards Barriers to Green M- Cost- Technological problems-

less innovation -less commitment and ignorance-considering world as bundle of raw materials for the

benefit of the current generation.

What is ethical Marketing?


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Ethical Marketing are the rules of conduct and moral

principals regulating marketing.

- The limit of Claims/Promises that can be made as to

product benefits

- Discriminating competing products

- Marketing of products like cigarettes, alcohol

- Limitations in Marketing products to children

- Religious/racially susceptible Brand names and images

- Unaccepted Promotional methods

- Using women in unaccepted manner

- Purposeful deception

-

Relationship Marketing


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Customer retention has

become a major problem inthe competitive world ofbusiness

Relationship Marketing isthe process of creating,building and managing longterm relationship withcustomers, distributors andsuppliers. Life Time Value ofa customer is emphasizedmore than a value of asingle transaction


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Traditional Marketing is

concerned with theexchanges with customers.

The emphasis was todevelop products that willsatisfy customers and focuswas basically on (single)transaction.

Not much effort was kept onkeeping the customer for along time and Life TimeValue was not considered

much.


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Types and Levels of Relationship

Transactional approach-Marketer concludes a

transaction of selling a product. The marketer, in

offering the product, is looking for a response.

Transaction based marketing is on individualtransaction

Relationship approach-The concluded transaction is

not the end of a process, but start of a long term

relationship with the customer.


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Benefits of relationship marketing Retaining existing customers is cheaper than getting new

ones

Repeat customers are costing less to service as they arefamiliar with the company

Reduce customer deflection and bad word of mouth

Keep customer databases and service more effectively Small changes in retention rates have large effects on

revenue

Identify and explain the anticipated benefits of

introducing marketing orientation to an organisation.


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If a company to be successful in the long run themost important philosophy they should follow is themarketing orientation/ concept

The mere survival of a company in the modernglobalised world depends on how much of customer

satisfaction that it can offer. Therefore the customer focus should be an integral

part of the organisation

All the departments in the company should have an

integrated approach towards satisfying customers

Further it would be able to reduce the


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number of dissatisfied customers.

Dissatisfied customers will tell others

Research confirms it takes six times of

effort and cost to make anew customer

than keeping the existing ones. It would make the organisation gain a

competitive advantage

If an organisation can adopt a marketing


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oriented approach it would be able to get

Increased customer satisfaction Increased customer loyalty

Increased reputation

Increased motivation among staff

Increased market share

Reduction of waste

Combat threats from competitors

presentation -marketing specific2

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