Principles of MarketingPrinciples of Marketing

Introduction-An overview of Introduction-An overview of marketingmarketing

Road map Road map

Today’s TopicsToday’s Topics

Introduction of Marketing Introduction of Marketing

Music to a Marketer’s Ears

“They’re the best.”

“I always eat there.”

“I only fly with that airline.”

“I buy my electronics at that store.”

“I will prefer to go in that school.”

What is What is Marketing, Marketing, anyway?anyway?

Advertising

Sales

Promotions

Public relations

SponsorshipsPricing

Retailing

Direct mail

Catalogues

Billboards

E-commerce

Shopping

channels

Packaging

Delivery

Research

Coupons

Service

Marketing:Marketing: DefinitionDefinition

The process of creating The process of creating consumer value in the consumer value in the form of goods, services, or form of goods, services, or ideas that can improve the ideas that can improve the consumer’s life.consumer’s life.

What is marketing ?What is marketing ?More than selling and advertisingMore than selling and advertising

Identifying and satisfying Identifying and satisfying customers needscustomers needs

Range of activities (marketing mix Range of activities (marketing mix – 4P– 4P’’s)s)

What is Marketing?What is Marketing?

Learning to make what you can sell vs. selling what you can

make.

Identifying and satisfying customer needs and wants.

Peter DruckerPeter Drucker Goal of all organizations is to Goal of all organizations is to

gain and retain customersgain and retain customers

Innovation and marketingInnovation and marketing are the only two are the only two ways to achieve the goalways to achieve the goal

““The rest only adds costThe rest only adds cost””

““Marketing is the process of planning and Marketing is the process of planning and executing the conception, pricing, promotion, executing the conception, pricing, promotion, and distribution of ideas, goods, and services and distribution of ideas, goods, and services to create exchanges that satisfy individual to create exchanges that satisfy individual and organizational objectives.and organizational objectives.””

The AMA managerial definition:The AMA managerial definition:

Marketing Involves having the Marketing Involves having the

Right ProductRight Product available in the available in the

Right PlaceRight Place at the at the Right TimeRight Time and and

making sure that the customer making sure that the customer

is Aware of the Productis Aware of the Product..

MarketingMarketing

Product Price

Placement Promotion

Macro Economic Conditions

Simple Marketing Simple Marketing SystemSystem

Producer/Seller Consumer

Communication

Product/Service

Money

Feedback

Marketing’s 4 P’s

ProductProduct PricePrice PlacementPlacement PromotionPromotion

Evolution of MarketingEvolution of Marketing Product Orientation:Product Orientation:

ProductProductPricePrice

Sales Orientation:Sales Orientation:PlacementPlacementPromotionPromotion

Marketing OrientationMarketing Orientation4 P’s of Marketing4 P’s of MarketingMacro Economic ConditionMacro Economic Condition

Marketing: Marketing: Comprehensive Comprehensive DefinationDefination

““Marketing is a continuous process of Marketing is a continuous process of assessment of needs & requirements of assessment of needs & requirements of customers, translating these requirements customers, translating these requirements into a product, deciding a reasonable price, into a product, deciding a reasonable price, placing in the right market to the right placing in the right market to the right customers, promoting as this is the best customers, promoting as this is the best choice amongst all, offering at a right time choice amongst all, offering at a right time of minimum political, legal & economic of minimum political, legal & economic crises for the value creation & satisfaction crises for the value creation & satisfaction of customers.” of customers.”

States that the public, the customer, and the client States that the public, the customer, and the client determine the marketing program.determine the marketing program.

Emphasizes creating and maintaining relationships Emphasizes creating and maintaining relationships with customers.with customers.

Finally applies for both non-profit organizations and Finally applies for both non-profit organizations and profit-oriented businesses.profit-oriented businesses.

Marketing FocusMarketing Focus

Marketing Includes...Marketing Includes...

Personal sellingPersonal sellingAdvertisingAdvertisingMaking products available in Making products available in storesstores

Maintaining inventories etcMaintaining inventories etc

What Can Be Marketed?What Can Be Marketed?GoodsGoodsServicesServicesExperiencesExperiencesEventsEventsPersonsPersons

PlacesPlacesPropertiesPropertiesOrganizationsOrganizationsInformationInformationIdeasIdeas

How Does an How Does an Organization Create a Organization Create a

Customer?Customer?

Identifying customer needsIdentifying customer needs

Designing goods and services that Designing goods and services that meet those needsmeet those needs

Communicating information about Communicating information about those goods and services to those goods and services to prospective buyersprospective buyers

Making the goods or services available at Making the goods or services available at times and places that meet customers’ times and places that meet customers’ needsneeds

Pricing goods and services to reflect costs, Pricing goods and services to reflect costs, competition, and customers’ ability to buycompetition, and customers’ ability to buy

Providing for the necessary service and Providing for the necessary service and follow-up to ensure customer satisfaction follow-up to ensure customer satisfaction after the purchaseafter the purchase

Cont…Cont…

How is Marketing How is Marketing Done?Done?

Marketers Develop and Implement a Marketing Plan Based on the

Following Information:

Organization’s Strengths and Weaknesses

Organization’s Strengths and Weaknesses

Organization’s Overall ObjectivesOrganization’s Overall Objectives

Opportunities and Threats to theOrganization in the Marketplace

Opportunities and Threats to theOrganization in the Marketplace

Peter F. Drucker Said:Peter F. Drucker Said:

If we want to know what a business is, we If we want to know what a business is, we have to start with its purpose. And its have to start with its purpose. And its purpose must lie outside the business itself. purpose must lie outside the business itself. In fact, it must lie in society since a business In fact, it must lie in society since a business enterprise is an organ of society. There is enterprise is an organ of society. There is one valid definition of business purpose: one valid definition of business purpose:

To create a customer.To create a customer.

Reasons for Reasons for Studying Marketing Studying Marketing

CostsAbout 50% of total product costs are marketing costs.

Contributions toIndividual OrganizationsCritical to the successof a firm.

CareersAbout 33 to 45% of the work force holdmarketing positions.

Contributions to SocietyMarketing decisions affect the lives of individualconsumers and society asa whole.

Why StudyMarketing ?

Why Study Marketing?Why Study Marketing?Plays an important role in Plays an important role in societysociety

Vital to business Vital to business Offers outstanding career Offers outstanding career opportunitiesopportunities

Affects your life every dayAffects your life every day

Marketing is Marketing is Everywhere in Your Everywhere in Your

LifeLife

What do Marketers What do Marketers Think About?Think About?

Is there a need?Is there a need?

Who is my target market? Who is my target market?

What is my product?What is my product?

How can I produce and deliver a “product” How can I produce and deliver a “product” better than my competitors?better than my competitors?

How will I promote my product?How will I promote my product?

How can I insure customer loyalty?How can I insure customer loyalty?

Ex: Open a Book shop in Ex: Open a Book shop in CampusCampus

Marketing is....Marketing is....Getting the right Getting the right products products to the right to the right peoplepeople at the right at the right price price and at the right and at the right place place with the rightwith the right promotion promotion & in the & in the rightright time. time.

Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others.

Kotler 1994

More simply: More simply:

Marketing is the delivery of Marketing is the delivery of customer satisfaction at a customer satisfaction at a profitprofit..

Simple Questions, Hard Simple Questions, Hard AnswersAnswers

•Who are our customers?

•What important & unique benefits do we provide?

•Are these benefits sustainable?

Let’s stop

it here

Recommended BooksRecommended Books

Fundamentals of MarketingFundamentals of Marketing by Stanton, by Stanton, Etzel and WalkerEtzel and Walker

Principles of MarketingPrinciples of Marketing by Philip Kotler by Philip Kotler and Gary Armstrong and Gary Armstrong

Marketing Marketing by Joel R. Evans and Barry by Joel R. Evans and Barry BermanBerman

ConclusionConclusion