What are some core marketing concepts

What are some CORE MARKETING

concepts?

To understand

the marketing function, we

need to understand

some core set of concepts.

NEEDS ARE THE BASIC HUMAN REQUIREMENTS.

NEEDS BECOME WANTS WHEN THEY ARE DIRECTED TO SPECIFIC OBJECTS THAT MIGHT SATISFY THE NEED.

A person in INDIA:NEEDs Foods.

But,WANTS

Chapatti Rice Curry

DEMANDS ARE WANTS FOR SPECIFIC PRODUCTS BACKED BY AN ABILITY TO PAY.

Many people WANTs

Mercedes Only a few are able to

buy one.

Companies measure how many people want their product, & how many are willing and able to buy it.

Not everyone likes the same cereal, restaurant, college or movies.

Marketers identify and profile distinct group of buyers who might prefer or require varying product and service mixes by examining buyer’s behaviour.

After identifying market segments, the TARGET MARKETs are identified.

For each of its Targets the firm develops a market offering that it

POSITIONs in the minds of the target buyers.

Companies provide value proposition to its customers by an OFFERING, which can be a

combination of products, services, information, & experiences.

BRAND is an offering from a known source.

McDonald’s make up its

image by providing: Burgers,

cleanliness, convenience,

courteous service, golden

arches.

VALUE IS A CENTRAL MARKETING CONCEPT CONSISTING OF :

SATISFACTION reflects a person’s

judgement of a product’s

performance with

expectations.

MARKETING CHANNELS:

Communication channels.

Distribution channels.

Service channels.

COMMUNICATION Delivers & Receives message from target

buyers.

Newspaper Magazine

Billboard

DISTRIBUTION Sell, display, or deliver the product to buyers.

Wholesalers

Agents

Mails

SERVICECarries out transaction with potential buyers.

Warehouses Insurance Company

Banks

SUPPLY CHAIN

Raw Material

ComponentsFinished Products

Buyers

Each intermediary captures only a certain percent of the whole value generated by the

system.

CASHEW SUPPLY CHAIN

Harvesting

Selling to agents

Processing

Sell by Brands

COMPETITION

It includes all the actual and potential rival offerings and substitute a buyer

might consider.

MARKETING ENVIRONMENTIt consists of:

Task Environment

Broad Environment

TASK ENVIRONMENT Include the actors engaged in

Producing, Distributing, & Promoting the Offering.

COMPRISES

Company

SuppliersDistributors

Dealers

Target Customers

BROAD ENVIRONMENTDemographic EnvironmentEconomic Environment

Socio-Cultural EnvironmentNatural Environment

Technological Environment

Political-Legal Environment

“Marketers must pay

close attention to

these emerging trends and adjust their

strategy accordingly.”

These slides were created by-

Biswajit Biswas IIT(BHU), Varanasi During a Marketing

Internship by Prof. Sameer Mathur

IIM(Lucknow) www.IIMInternship.com