Unit II Marketing

7/30/2019 Unit II Marketing

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Marketing


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What is Marketing??

Selling?

Advertising?

Promotions?

Making products available in stores? Maintaining inventories?

All of the above, plus much more!


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Marketing

Marketing is the delivery of customer satisfaction at a

profit.

Marketing, more than any other business function,deals with customers.

Creating customer value and satisfaction are at thevery heart of modern marketing thinking and

practice.

Some people believe that only large business

organizations operating in highly developed economiesuse marketing, but sound marketing is critical to thesuccess of every organizationwhether large or small,for profit or nonprofit, domestic or global


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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.

- American Marketing Association Definition


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Marketing is

The process of planning and executing theconception, pricing, promotion, and distribution of

ideas, goods, services, organizations, and events to

create and maintain relationships that will satisfy

individual and organizational objectives.

-Contemporary Marketing Wired (1998)by Boone and Kurtz


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Marketingmanagement

It is the art and science of choosing targetmarkets and getting, keeping, and growing

customers through creating, delivering, and

communicating superior customer value


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OLD view of marketing:

Making a saletelling and selling

NEW view of marketing:Satisfying

customer needs


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Simple Marketing System

Industry(a collection

of sellers)

Market(a collection

of Buyers)

Goods/services

Money

Communication

Information


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The Goal of Marketing is:

To attract new customer by promising superior value,

and to keep current customers by deliveringsatisfaction


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Marketing is the sum of all activities that take

you to a sales outlet. After that sales takes over.Marketing is all about creating a pull, sales is

all about push.

Marketing is all about managing the four Ps product

price

place

promotion


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Marketing

Mix

Product

Price Promotion

Place

Communication


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Difference Between - Sales & Marketing

Sales trying to get the customer to want what the

company produces

Marketing trying to get the company produce

what the customerwants


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Core Concepts of Marketing

Needs, wants

demands

Markets Marketing &

Marketers

Utility, Value &

Satisfaction

Xchange, Transaction

Relationships

Products


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To explain marketing definition, we examine

the following important terms :

Needs, wants, and demands Products and services

Value, satisfaction and quality

Exchange, transactions, and relationships

Markets


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Needs:

The most basic concept underlying marketing is that of human needs.

Human needs are states of felt deprivation.

Human have many complex needs:

Physical needs for food, clothing, warmth, and safety

Social needs or belonging and affection

Individual needs for knowledge and selfexpression

Wants:

Want are the form taken by human needs as they are shaped by culture andindividual personality.

People have almost unlimited wants but limited resources.

They want to choose products that provide the most value and satisfactionfor their money.

Demands: When backed by buying power, wants become demands.

Consumers view products as bundles of benefits and choose products thatgive them the best bundle for their money.


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Product:

Anything that can be offered to a market to satisfy a

need or want. The concept of product is not limited to physical

objectsanything capable of satisfying a need can becalled a product.

Services: In addition to tangible goods, products also include

services, which are activities or benefits offered forsale that are essentially intangible and do not result in

the ownership of anything.


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Values:

Customer value is the difference between the values the customergains from owning and using a product and the costs of obtaining the

products.

Customers often do not judge product value and costs accurately orobjectively. They act on perceived value.

Satisfaction:

Customer satisfaction depends on aproducts perceived performance

in delivering value relative to abuyers expectation. If the products performance falls short of the customers

expectations, the buyer is dissatisfied.

Quality:

Customer satisfaction is closely linked to quality.

Quality has a direct impact on product performance.

Quality can be defined as freedom from defects.

TQM programs designed to constantly improve the quality ofproducts, services, and marketing processes


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Exchange :

The act of obtaining a desired object from someone by

offering something in returnTransaction :

A trade between two parties that involves at least twothings of value, agreed upon conditions a time of

agreement, and a place of agreement.Relationship marketing :

The process of creating, maintaining, and enhancingstrong, valueladen relationships with customers and

other stakeholders


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Marketing Triangle

Customers

CompetitionCompany


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CUSTOMERAnyone who is in the market looking at a product /

service for attention, acquisition, use or consumptionthatsatisfies a want or a need


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International Marketing

International marketing means marketing across

national frontiers


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Differences between domestic and international

marketing

Domestic InternationalResearch data is available in a

single language and is usually easily

accessed

Research data is generally in foreign

languages and may be extremely

difficult to obtain and interpret

Business is transacted in a single

currency

Many currencies are involved, with

wide exchange rate fluctuationsHead office employees will normally

possess detailed knowledge of the

home market

Head office employees might only

possess and outline knowledge of the

characteristic foreign markets

Promotional messages need to

consider just a single nationalculture

Numerous cultural differences must be

taken into account

Market segmentation occurs within

a single country

Market segments might be defined

across the same type of consumer in

many different countries.


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Domestic InternationalCommunication and control are

immediate and direct

International communication and

control might be difficult

Business laws and regulations are

clearly understood

Foreign laws and regulations might

not be clear

Business is conducted in a single

language

Multilingual communication is

requires

Business risks can usually identified

and assessed

Environments may be so unstable

that it is extremely difficult to identify

and assess risks

Planning and organizational control

systems can be simple and direct

The complexity of international trade

often necessitates the adoption of

complex and sophisticated planning,

organization and control systems


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International marketing is more than exporting,because it involves:

Marketing products that have beenmanufactured or assembled in the target

country Establishing a permanents presence in the

foreign country

Licensing and franchising

Sourcing components from foreign states


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Reasons for marketing abroad

Economies of scale and scope

Existence of lucrative markets in foreigncountries

Saturated markets in the home countryHigh R&D costs

International opportunities

Less competitionNew trade agreements


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Exporting

It means the sale in a foreign market of an item

produced, stored or processed in the supplyingfirms home country.

Two kinds of exporting:

Passive and

Active


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Sources of foreign demand (passive exporting):

Non-availability of appropriate products from

domestic producers Price differentials between imported and locally

supplied items;

Exotic images attaching to foreign products; Inefficiency of local distribution systems,

political disruptions, industrial action, or otherfactors that prevent local firms from supplying

goods.


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Reasons for active exporting:

The product has reached the end of its lifecycle at home

Less competition

Easy access to major customers Export increases turnover.

Documents

Unit II Marketing