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PresenterName

Naveed ShahzadEducational Achievements

M.B.A Hill Degree England Mathematics UoP

Professional Achievements Shell Dutch Hiegene England AML Toyota U.N.O AIBM

Principles of Marketing

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Introduction to

Marketing Management

4AMA Board 1985

“Marketing is the process of

planning and executing the

conception, pricing, promotion,

and distribution of ideas, goods

and services to create exchanges

that satisfy individual and

Organizational objectives.”

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The Scope of Marketing

Goods Food, Commodities, Clothing and HousingServices Air Lines, Hotels, Barbers, BeauticiansExperiences Walt Disney World’s Magic Kingdom,

Climbing Mount EverestEvents Olympics, Trade Shows, Artistic

PerformancesPersons Artists, Musicians, CEOs, PhysiciansPlaces Stratford, Ontario-Canada, IrelandProperties Real Estate, Stocks and BondsOrganizations Companies, Museums, UniversitiesInformation Magazines, CDs, Non Fiction BooksIdeas Every market offering includes a basic

idea at its core

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Organizations using Marketing All!! Corporations: Pepsi, Coke, GM etc. Government: promoting the health plan,

politicians during elections Hospitals: Hospitals, in an effort to attract

physicians, have installed services such as chauffeurs and private tennis courts.

Universities: University of Kardan DBA / BBA programs

Army: A marketing plan to attract recruits. Postal Service: 1993 launch of the Elvis Presley

stamp was a major media event. Fans in Nashville lined up at midnight, postmasters warned that sales were "first come first served, no limit“.

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Who is the Customer? A customer is the most important person ever

in the office, in person or by mail. A customer is not dependent on us, we are

dependent on him. A customer is not an interruption of our work,

he is the purpose of it. We are not doing a favor by serving him, he is doing us a favor by giving us the opportunity to do so.

A customer is not someone to argue or match wits with. Nobody ever won an argument with a customer.

A customer is a person who brings us his wants. It is our job to handle them profitably to him and to ourselves.

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Needs

Needs describe basic human requirements. Biogenic

Needs risen due to Physiological states of tension. Hunger Thirst Discomfort

Psychogenic Needs risen due to Psychological states of tension.

Recognition Esteem Belonging

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Maslow’s Hierarchy of Needs

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WantsNeeds becomes Wants when they are

directed towards specific objects that

might satisfy that need. Need: Hunger Want:

An American wants a hamburger and French fries.

A Mauritian wants a mango, rice, lentils and beans.

A Ugandan wants bananas, rice, corn floor and a plate of beans.

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Satisfaction

Satisfaction is a person’s feelings of

Pleasure or disappointment resulting from

comparing a product’s perceived

performance (or outcome) in relation to

his / her expectations.

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In how many ways a person can get something?

The person can self produce it Hunting

The person can use force to get it Holdup or Burglary

The person can beg A homeless person asks for food

The person can trade something of value to get it

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Conditions for an Exchange

1. There are at least two parties.

2. Each party has something that might be of value to the other party.

3. Each party is capable of communication and delivery.

4. Each party is free to accept or reject the exchange offer.

5. Each party believes it is appropriate or desirable to deal with the other party.

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Utility

Utility is the satisfaction, value, or usefulness a user receives from a good or a service.

Example: When you purchase an automobile, you give up less (in $s) than the value of the car (to you)...the ability to get you from home to office safely in a timely manner.

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Types of Utility

Form--production of the good, driven by the marketing function.

EXAMPLE?? Baskin Robbins turns cream, sugar and milk into ice cream.

Place--make product available where customers will buy the product.

EXAMPLE?? Food truck at a construction site. Time--make product available when customers want to

buy the product. EXAMPLE?? A hospital or clinic open 24 hours a day, 365 days

a year. Possession--once you own the product, do what you

want with it, i.e. eat it

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Product providing all types of utility

24 hours pizza delivery service

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The Marketing Mix

Product Price Place Promotion

Customer Solution Customer Cost Convenience Communication

Past: MM Present: MM

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Value and Satisfaction

Value = Benefits

Costs= Functional Benefits +Emotional Benefits

Monitory Costs + Time Costs + Energy Costs + Psychic Costs

The product or offering is successful if it delivers

value and satisfaction to the target buyers. The buyer

Chooses between different offerings on the basis of

which is perceived to deliver the most value.

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Marketing TermsIndustry

Sellers constitute Industry Steel Industry Movie Industry

Market Buyers constitute Market

Consumer Markets Business Markets Institutional / Government Markets Global / International Markets

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The Marketing Management Philosophies

There are a number of different

philosophies that guide a marketing effort.

Like,The Production ConceptThe Product ConceptThe Selling ConceptThe Marketing ConceptThe Social Marketing Concept

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The Production ConceptThe production concept holds that consumerwill prefer products that are widely availableand inexpensive.

Dominant Era: Mid 19th Century to early 20th Century

Quote: "Doesn't matter what color car you want, as long as it is black." Henry Ford

Example:6.5 ounce bottle packing of Coca

Cola.

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The Product Concept

The Product Concept holds that

consumer will favor those products that

offer the most quality, performance, or

innovative features.

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The Selling Concept

The selling concept holds that consumers

and businesses, if left alone, will ordinarily

not buy enough of the organization’s

products.

The organization must, therefore, undertake

an aggressive selling and promotion effort.

Dominant Era: 1920's to Mid 1930's WWII to early 1950's.

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The Marketing Concept

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 customer value to its chosen

target markets.

Dominant Era: 1930's to WWII 1950's to the present day.

Quote: Putting people firstBritish Air Ways

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What era are we in now?

We are still essentially in theMarketing era, since that is thedominant concept, but increasingpressure is being put on tocompanies to adopt the societal

concept.