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naushad r lecturer in PACE mangalore
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Module 1
1-2
IntroductionMarketing occupies an important position
in the organization of business unit.Any business is likely to be successful
when a strong marketing viewpoint or philosophy permeates the thinking and guides the decision and actions of everyone in the business.
A business exists only to serve people, and marketing is the function that primarily determines -
1-3
IntroductionWhat the product or services shall beHow it shall be presented, promoted and
distributedHow it shall be priced.
1-4
What is Marketing?
Classical Definitions ( Product Oriented View)“ The performance of business activities that
directs the flow of goods and services from producer to consumer or user”
“ Marketing consists of those efforts which affect transfers in the ownership of goods and services and provide for their physical distribution”
1-5
What is Marketing? Modern Definitions ( Customer Oriented View)“ Marketing is a social and managerial process
by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others”
According to American Marketing association-“ Marketing is the process of planning and
executing the conception, pricing, promotion and distribution of ideas and services to create exchanges that satisfy individual and organizational goals”
MM1:Session 1 6
Evolution of Marketing1. Barter stage
•In the pre-industrial revolution area. People bartered for things not produced by them.
•No elaborate distribution systems.
2. Stage of Money economy
•No changes except money system replaced the barter system.
•Pricing became the mechanism of exchange process.
3. Stage of Industrial Revolution
•Introduced new systems of manufacturing. Sweeping changes.
•Mass production became the order of the day.
•Provided disposable incomes and generated new ideas.
MM1:Session 1 7
4. Stage of competition
Mass production and distribution by the industrial revolution led the stage of competition.
Focus on how to make the products as customer’s first preferred choice.
5. Emergence of Marketing
In 50’s and 60’s, rapid industrialisation.
More manufacturers leading to competition.
Right type of product, availability, attending to customers complaint.
1-8
Evolution Of Marketing
Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal MKTG concept
Late 1800
Early 1900
Early 1930
Mid 1950
1990
1-9
PRODUCTION CONCEPT
PRODUCTION CONCEPT
• Consumers prefer products that are widely available and inexpensive
• Managers of production – oriented businesses concentrate on achieving high production efficiency, Low costs, and mass distribution.
• The production era can be divided into four phases Subsistence phase Made to order phase Early production for market phase Mass production for market phase
1-10
PRODUCT
CONCEPT
PRODUCT
CONCEPT
Consumers favor products that offer the most quality, performance, or innovative features.
Managers in product oriented organizations focus their energy on making superior products and improving them over time.
To improve quality and innovation companies gave importance to product engineering. Some times the product concept leads to marketing myopia.
Marketing myopia means – focus on the product rather than customers need
1-11
SELLING
CONCEPT
SELLING
CONCEPT
The selling concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organizational products.
Consumers will buy products only if the company aggressively promotes/sells these products.
forms practice the selling concept when they have over capacity.
It gives more importance to seller needs
1-12
FactoryExistingproducts
Selling andpromotion
Profits throughsales volume
Startingpoint Focus Means Ends
The selling concept
1-13
MARKETING
CONCEPT
MARKETING
CONCEPT
Focuses on needs/ wants of target markets & delivering value better than competitors.
The Marketing concept holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating delivering and communicating superior customer value to its chosen target markets.
The Marketing concept rests on four pillars Target Market Customer needsIntegrated marketing Profitability
1-14
MarketCustomer
NeedsIntegrated Marketing
Profits throughCustomer
satisfaction
Startingpoint Focus Means Ends
The Marketing concept
1-15
SOCIETAL
MKTG
CONCEPT
SOCIETAL
MKTG
CONCEPT
The Societal Marketing concept holds that organization’s task is to determine the needs , wants and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in way that preserve the customers and society’s well being.
It calls upon marketers to build social and ethical considerations into their marketing practices.
There should be balance between company profits, customer satisfaction, and public interest.
1-16
Societal Marketing
Concept
Company(Profits)
Consumers(Want Satisfaction)
Society(Human Welfare)
1-17
MarketIntegratedmarketing
Profits throughcustomer
satisfactionCustomer
needs
(b) The marketing concept
FactoryExistingproducts
Selling andpromotion
Profits throughsales volume
Startingpoint Focus Means Ends
(a) The selling concept
1-18
Selling V/S Marketing ConceptFocuses on the needs of
sellerProfit through sales
volumePlanning is short term
orientedMarketer first makes the
product and then figures out how to sell it.
Focuses on the needs of buyer
Profit through customer satisfaction
Planning is long term oriented
Marketer first determines the needs and wants of the customers and then delivers the product to satisfy those needs and wants.
1-19
Selling V/S Marketing ConceptImportance to
aggressive sellingImportance integrated
marketing