Unit1 introduction

Introduction to Marketing Unit 1: The Introduction Subhajit Sanyal

Defining Marketing Marketing The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers in a dynamic environment Customers The purchasers of organizations’ products; the focal point of all marketing activities

Marketing Focuses on Customers Target Market A specific group of customers on whom an organization focuses its marketing efforts Large or small customer groups Single or multiple product markets Single or multiple products Local to global markets

Marketing Deals with Products, Distribution, Promotion, and Price The Marketing Mix Four marketing activities — product, distribution, promotion, and pricing — that a firm can control to meet the needs of customers within its target market Product Distribution Promotion Pricing Target Market

Marketing Mix Variables Product Distribution Promotion Pricing Goods, services, or ideas that satisfy customer needs The ready, convenient, and timely availability of products Activities that inform customers about the organization and its products Decisions and actions that establish pricing objectives and policies and set product prices

MARKETING ENVIRONMENT The marketing environment consists of external forces that directly or indirectly influence an organisation’s acquisition of inputs and generation of outputs. The marketing environment consists of six categories of forces: political, legal, regulatory, societal/green, economic and competitive, and technological.

Figure 1.4 Components of the marketing mix and marketing environment Differential advantage / Competitive edge People Distribution (place) Price Product Promotion Legal forces Regulatory forces Societal / Political forces Technological forces Economic and competitive forces Buyer/ Consumer Product / Target forces Green Differential advantage/ Competitive edge Brand positioning selection market

Situation analysis Cultural & social influences,individual differences, decision processes Definition & identification of target groups Segmentation & positioning Competition S.W.O.T. 4 Ps & 4 Cs

SWOT analysis (source: Jobber 2001) Source Internal (controllable) External (uncontrollable ) Strengths Weakness Opportunities Threats

The 4Ps & 4Cs The product (C = Consumer) The price (C =Cost) Promotion (C = Communication) Place (C = Convenience )

Marketing Builds Satisfying Exchange Relationships Exchange The provision or transfer of goods, services, or ideas in return for something of value FIGURE 1.2

Marketing Builds Satisfying Exchange Relationships (cont’d) Exchange Conditions Two or more participants have something of value that the other party desires. Exchange provides mutual benefit/satisfaction. Each party has confidence in the exchange value of the other party’s offering. Each party must meet the expectations of the exchange to become trusted by the other parties.

Marketing Occurs in a Dynamic Environment Marketing Concept A philosophy that an organization should try to satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals Customer satisfaction Analysis of customers’ current and long-term needs Analysis of competitors’ capabilities Integration of firm’s resources

Evolution of the Marketing Concept Product Orientation Sales Orientation Marketing Orientation Late 19th century: efficient production of goods allowed firms to meet strong customer demand. Mid-1920s – early 1950s: weakened demand required that products would have to be “sold.” (personal selling, advertising, and distribution was the focus) Early 1950s –2000s : adopting a customer focus means a commitment to researching and responding to customer needs. FIGURE 1.3

Implementing the Marketing Concept Becoming marketing oriented requires establishing an information system to discover customers’ needs and using the information to create satisfying products. coordinating all marketing activities by restructuring the organization. obtaining the support of all managerial and staff levels in the organization.

Managing Customer Relationships Relationship Marketing Establishing long-term, mutually satisfying buyer-seller relationships allowing for cooperation and mutual dependency Increased value of customer (loyalty) over time results in increased profitability.

Managing Customer Relationships (cont’d) Customer Relationship Management (CRM) Using information about customers to create marketing strategies that develop and sustain desirable customer relationships Identifying buying-behavior patterns of customers Using behavioral information to focus on the most profitable customers

Value-Driven Marketing Value A customer’s subjective assessment of benefits relative to the costs in determining the worth of a product Customer value = customer benefits – customer costs Customer benefits Anything desired by the customer that is received in an exchange Customer costs Anything a customer gives up in an exchange for benefits Monetary price of the benefit Search costs (time and effort) to locate the product Risks associated with the exchange

Marketing Management Marketing Management The process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently Effectiveness The degree to which an exchange helps an organization achieve its objectives Efficiency The process of minimizing the resources an organization must spend to achieve a specific level of desired exchanges

Marketing Management (cont’d) Planning Assessing opportunities and resources Determining marketing objectives Developing a marketing strategy and plans for implementation and control How, when and by whom are marketing activities performed? Organising Developing the internal structure of the marketing unit Functions, products, regions, customer types

Marketing Management (cont’d) Implementation Coordinating marketing activities Motivating marketing personnel Developing effective internal communications within the unit Control Establishing performance standards Comparing actual performance to established standards Reducing the difference between desired and actual performance

Effective Marketing Control Process provides for quick detection of differences in planned and actual performance. accurately monitors activities and is flexible enough to accommodate changes. incurs low process costs relative to the costs of a “no-control” situation. is understandable by both managers and subordinates.

The Importance of Marketing in Our Global Economy Marketing Costs Consume a Sizable Portion of Buyers’ Dollars Marketing Is Used in Nonprofit Organizations Marketing Is Important to Business and the Economy Marketing Fuels Our Global Economy

The Importance of Marketing in Our Global Economy (cont’d) Marketing Knowledge Enhances Consumer Awareness Marketing Connects People Through Technology Socially Responsible Marketing Can Promote the Welfare of Customers and Society Marketing Offers Many Exciting Career Prospects

Important Terms Marketing The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers in a dynamic environment Customers The purchasers of organizations’ products; the focal point of all marketing activities Target Market A specific group of customers on whom an organization focuses its marketing efforts

Important Terms The Marketing Mix Four marketing activities—product, distribution, promotion, and pricing—that a firm can control to meet the needs of customers within its target market Product Goods, services, or ideas that satisfy customer needs Distribution The ready, convenient, and timely availability of products Promotion Activities that inform customers about the organization and its products

Important Terms Pricing Decisions and actions that establish pricing objectives and policies and set product prices Exchange The provision or transfer of goods, services, or ideas in return for something of value Marketing Concept A philosophy that an organization should try to satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals

Important Terms Relationship Marketing Establishing long-term, mutually satisfying buyer-seller relationships allowing for cooperation and mutual dependency Customer Relationship Management (CRM) Using information about customers to create marketing strategies that develop and sustain desirable customer relationships Value A customer’s subjective assessment of benefits relative to the costs in determining the worth of a product

Important Terms Customer Benefits Anything desired by the customer that is received in an exchange Customer Costs Anything a customer gives up in an exchange for benefits Marketing Management The process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently

Important Terms Effectiveness The degree to which an exchange helps an organization achieve its objectives Efficiency The process of minimizing the resources an organization must spend to achieve a specific level of desired exchanges

Unit1 introduction

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