PRINCIPLES OF MARKETING

WHAT IS MARKETING

DEFINITION…….

Marketing is a system of business activities designed to plan, price, promote, and distribute want-satisfying products, services and ideas to target markets in order to achieve organizational objectives.

Marketing Definition Dissected

MARKETING ISa system: of business activities

designed to: plan, price, promote, distribute

something of value: want-satisfying products, services, and ideas

for the benefit of: the target market – present and potential users

to achieve: the organization’s objectives.

A SMART DEFINITION

IDENTIFYING Needs and Wants and FULFILL those Needs and Wants

Nature and Scope of Marketing

Nature and Scope of Marketing

Organization

Consumers Products

Nature

of

Marketing

NATURE AND SCOPE OF MARKETINGOrganizations are the entities that produce and sell products for profits. •Engro Ltd•Dell Corp•Pepsi Co•UN

Products refer to commodities that we purchase from markets to satisfy personal needs.•Grocery•Computers •Beverages•Peace and Security

A consumer is the one for whom the product is made and marketed.•Families•Personal users and organizations•Families, students ets.•Governments or countries

BROAD DIMENSION OF MARKETING

BROAD DIMENSION OF MARKETING Marketing is not limited to profit making businesses only Whenever you try to persuade somebody to do something, you are

involved in the act of marketing You are marketing when you ask someone to …………….

……stay quiet because you are preparing for exams.

……fasten seat belt because it can save one’s life.

……vote for a candidate in the next election.

BROAD DIMENSION OF MARKETING

Broadly, scope of marketing is not limited to traditional organizations.

If a woman ask her daughter to fasten the seatbelt, the woman would be the seller who is selling an idea.

The idea of safety in this example is the product that is being offered.

The daughter is the consumer to whom the idea is being communicated.

BUSINESS DIMENSIONS OF MARKETING

WHAT DOES A MARKETER DO?

Why Bicycle? Bicycle Type?

Which People? What Quantity?

Where to Sell? What to Charge?

What and How to Inform? Who all will compete?

Analyze Wants Product Plan

Segment Demand Forecasting

Distribute Price

Promote Analyze Competitors

IMPORTANCE OF MARKETING

Consumers get an opportunity to know about various products that are available in the market.

Marketing fosters healthy competition among brands and this increases the level of competence among firms.

Consumers are able to enjoy better products and they are at affordable prices.

Gives chance to companies of all sizes to survive Precise identification of what consumers demand Saves cost for organization

EVOLUTION OF MARKETING

Production ConceptSelling ConceptMarketing Concept

1. Product Orientation A concept…

focused on quality products that could be produced efficiently

believed that supply creates its own demand

Intensive Distribution Strategy and Economies of Scale

Key Questions 1. Can we produce the product efficiently?2. Can we produce enough of it ?

PRODUCTIONMARKETS/

CONSUMERS

2. Sales Orientation A concept…

focused to sell the resulting output based on the belief that if

consumers are left to themselves, they will not make the effort to buy a company's products.

substantial post-production effort is required

Key Questions Can we sell the product? Can we charge enough for it?

MARKETS/

CONSUMERSPRODUCTION

SALES/ PROMOTION

3. Market Orientation

A concept…. customer’s want satisfaction is

the sole justification for the existence of any enterprise.

make what people demand Key Questions

What do customers want? How can we keep our customers

satisfied and create long-term relationships

MARKETS/

CONSUMERSPRODUCTION SALES/

PROMOTIONMARKETING

IMPLEMENTING THE MARKETING CONCEPT

Implementing the Marketing Concept

As managers have come to recognize that marketing is vitally important to the success of an enterprise, they have laid down the basic principles that help them achieve organization success.

Implementing the Marketing Concept

Customer Orientation

Co-ordinated Marketing Activities

Organizational Objectives

Marketing Concept

Successful Business

Implementing the Marketing Concept1. Customer-OrientationCustomer-orientation focuses on meeting the specific wants and building long-term relationships with the customers. A truly customer oriented business takes all their important decisions (not only marketing related) while keeping customer satisfaction in mind. For example: before upgrading the IT software for a company, the executives must consider its implication on customer service and satisfaction. The software might be good for the organization’s internal operation – it might make the data more secure and readily available to managers – but might take long to process information which can cause customer dissatisfaction.

Two important components of customer orientation are long term relations and mass customization.

Implementing the Marketing Concepta. Long-Term Relationships: Today, organizations are able to build long-term relations with customers because organizations have…access to a huge quantity of information through research, consumer reports which can keep organizations abreast with changing trends and patterns in the market.Customer Relationship Management System (CRMS) is a software that help organizations store valuable information about customer’s specific wants as their professional relationship progresses. For example: a multinational hotel can store specific data on a valued customer as what type/location of room the customer prefers, the cuisine usually ordered, and specific services that he/she is interested in.Trust and mutual commitment is also a key in developing strong relationships.

Implementing the Marketing Conceptb. Mass Customization means to develop, produce, and distribute affordable products with enough variety and uniqueness that nearly every potential customer can have exactly what he or she wants.

For mass customization, we need the following three key factors:

1.Information on specific customer needs and wants.

2.Communication channels to advertise to specific audience

3.Flexible & cost effective manufacturing capability to make a good variety of products while keeping per unit cost low.

Implementing the Marketing Concept2. Coordinated Marketing ActivitiesCoordinated marketing is the planning and execution of all your company’s marketing activities (designing product, distribution, research, promotion, web presence etc.) in a way that is consistent across all of your customer contacts and creates more value than when those activities are performed separately.

Implementing the Marketing Concept3. Organizational ObjectivesThere are three major dimensions of an organizational objectives.

1.Performance objectives refer to the growth and financial success of an organization. It may include increasing profits, market share, presence in several geographic markets, reducing costs etc.

2. Societal Responsibility is another important objective which focuses on an organization’s role in safeguarding and improving the quality of life of the society while satisfying consumer wants. For example: Nike has been criticized for years for its sweatshops in Vietnam and Pakistan where their factories exploit low wage workers and force people to work under unwholesome working conditions.