unit - ii fundamentals

8/12/2019 Unit - II Fundamentals

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Introduction to Marketing


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Marketing

Is about identifying and meeting human andsocial needs.


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Marketing

Marketing is the activity, set of institutions, andprocesses for creating, communicating,delivering, and exchanging offerings that have

value for customers, clients, partners, andsociety at large. (Approved October 2007)


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Marketing is the science and art ofexploring, creating and delivering value tosatisfy the needs and wants of a targetmarket maintaining loyalty at a profit. Prof.Philip Kotler


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What ismarketed?

GOODS

Cars Trucks Television sets Machine tools Machines Industrial

Chemicals Watches Cosmetics

SERVICES

Airlines Hotels Car Rental

Firms Barbers Beauticians Bankers Lawyers Engineers Doctors Software

Programmers

EVENTS

Trade Shows Artistic

Performance Company

anniversaries Olympics World Cup

EXPERIENCES

AmusementParks(experientialmarketing)

ThemeRestaurant

PERSONS

Artists Musicians CEOs Physicians High Profile

Lawyers Financiers

PLACES

Gods OwnCountry

Silicon Valley ofIndia

PROPERTIES

Real Estate Stocks and

Bonds

INFORMATION

Health CareInformation

Information onLab Test,Pathology anddrugs

IDEAS

Awarenessabout AIDS

EncouragingFamily Planning

DiscouragingSmoking(SocialMarketing)


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Who Markets?

MARKETERS AND PROSPECTS AMarketer is someone who seeks a response attention, a purchase, a vote , a donation

from another party , called the prospect


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Evolution of Marketing

Oldest Concepts in BusinessHolds Consumers will prefer products are widely available and inexpensiveConcentrate on achieving high production efficiency , low cost and massdistribution.

Eg: China PC manufacturer Lenovo and domestic appliances giant Haiertake advantage of the countrys huge and inexpensive labor poll to dominatethe market.

Production Concept(Make-and-sell)

Proposes that Consumer favors product that offer the most qualityperformance or innovative features.

Focus on making superior products and improving tem over time.

Product Concept

To sell what they make , rather than make what the market WantsPracticed most aggressively with unsought goods, goods that buyersnormally do not think of buying, insurance, encyclopedias,,,

Selling Concept


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Evolution of Marketing

Emerged in 1950s The right product for your Customers(Reactive Marketing Orientation, Proactive Marketing Orientation,Total market orientation)

Marketing Concept(sense and

respond)

Recognize that everything matters in Marketing

Holistic MarketingConcept

Customers , Employees, Marketing Partners(Channels, Suppliers,Distributors, dealers, agencies), Members of the FinancialCommunity (Shareholders, Investors, Analysts)

Marketing NetworkRelationship

Marketing


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Holistic Marketing Dimensions


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IntegratedMarketing


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The task ofHiring ,trainingand motivatingableemployees

who want toservecustomers well

InternalMarketing


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Objectives of Marketing

To increase sales revenueTo improve and maintain image of the productor the businessTo increase market shareTo target a new marketTo target a new market segment


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Understandingthe return ofbusiness frommarketingactivities andprogrammes

(cost per Mille,Cost per click,Cost per Lead)

PerformanceMarketing


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Importance of Marketing


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I. IMPORTANCE OF MARKETING TO THESOCIETY

Helps to achieve, maintain and raise the standard of living of the

Society.

Increases employment opportunities.

Helps to increase the national income.

Helps to maintain the economy marketing is a connecting links

between the customer and the producers.

Marketing helps in creating of utilities.


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II. IMPORTANCE OF MARKETING TO THE BUSINESSFIRMS

Marketing generates revenue to the firm.

Marketing acts as a basis for marketing

decisions.

Marketing helps the top management to

manage innovation and changes.


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Demand States

Consumer dislike the product and even pay priceto avoid it.Negative Demand

Consumers may be unaware of or uninterested inthe product.Nonexistent Demand

Consumers may share a strong need that cannotbe satisfied by an existing product.Latent Demand

Consumers begin to buy the product lessfrequently or not at all.Declining Demand

Consumers Purchases vary on a seasonal,monthly, weekly, daily or even hourly basisIrregular Demand

Consumers are adequately buying all products putinto the market placeFull Demand

More Consumers would like to buy the productthan can be satisfiedOverfull Demand

Consumers may be attracted to products that haveundesirable social consequences.Unwholesome Demand


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KEY CUSTOMER MARKETSCONSUMER MARKETSCompanies selling mass consumer goods and servicesSoft drinks, Cosmetics, air travel, athletic shoes etc.

BUSINESS MARKETSCompanies selling business goods and service often face well-trainer and well-informed professionalbuyers who are skilled in evaluating competitive offerings.

GLOBAL MARKETSCompanies Selling goods and services in the global market placeDifferent culture, language, legal and political system , currencies that might fluctuate in value.

Non Profit and Governmental MarketsCompanies selling their goods to non profit organizations such as churches, universities, charitableorganizations and government agencies need to price carefully , because these buyers have limitedpurchasing power.

Calls for bids and buyers often favor the lowest bid in the absence of extenuating factors.


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Core Marketing Concepts

Needs basic human requirements (air, food,water, clothing and shelter). People havestrong need for recreation, education and

entertainment.Wants - directed to specific objects that mightsatisfy the need ( wants are shaped by oursociety)Demand wants for specific products backedby an ability to pay. (Many people want aMercedes ; only few are willing and able to buy

one)


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Target market After identifying marketsegments, the marketer then decides whichpresent the greatest opportunity.


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Difference betweenSelling and Marketing

Selling Marketing

Emphasizes on the Product Emphasizes on Customer wants

Sales are the primary motive Satisfaction of the Customer is primary

First Production, then selling takesplace at a profit without knowingcustomer's needs

First Customers need is known andproduction takes place; then theproduct sold at a profit.

Internal, Company Orientation External, Market Orientation

Companys need is the motive Buyers need is the motive

Cost determines price Consumer determines price; pricedetermines cost.

Selling views the customers as thelast link in the business.

Marketing views the customers as thevery purpose of the business.

It is an activity that converts the good

into cash

It is a function that converts the

consumer needs into products.


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Features of Modern Marketing

Consumer OrientationBegins with the CustomersMarketing begins before ProductionMarketing is a Guiding Element


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unit - ii fundamentals

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