1. Changing Economy & Marketing Scenario.ppt

Copyright 2004 © Pearson Education Canada Inc

Changing Economy & Marketing Scenario

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Prof. G.M. ChowdhuryIBA, DU

February 2013

04/08/23


• Marketing takes a day to learn. Unfortunately it takes

a lifetime to master.

Philip Kotler, Marketing Guru

• Business has only two functions – marketing and innovation.

Milan Kundera, writer of Czech origin

• CREATIVITY is thinking up new things. INNOVATION is

doing new things

Theodore Levitt, Marketing Guru

• The aim of marketing is to know and understand the

customer so well the product or service fits him and sells

itself.

Peter Drucker, Marketing Guru

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Objectives

• In this session we will address the

following questions:▫ What is the new economy like?

▫ What are the tasks of marketing?

▫ What are the major concepts and tools of

marketing?

▫ What orientations do companies exhibit in the

marketplace?

▫ How are companies and marketers responding

to the new challenges?

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Three Certainties have to be observed by successful companies

• Global forces will continue to affect everyone’s

business and personal life.

• Technology will continue to advance and amaze

us.

• There will be a continuing push toward

deregulation of the economic sector.

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•Globalization

•Technological advances and

•Deregulation

But what is marketing and what does

it have to do with these issues?

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Three developments that spell endless opportunities

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Marketing Defined

Marketing deals with identifying and

meeting human and social needs. One of

the shortest definitions of marketing is

“meeting needs profitably.”

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• According to a social definition, “marketing is a societal

process by which individuals and groups obtain what they

need and want through creating, offering, and exchanging

products and services of value freely with others.”

• As a managerial definition, marketing has often been

described as “the art of selling products.”

• Peter Drucker, a leading management theorist, says that

“The aim of marketing is to make selling superfluous. The

aim of marketing is to know and understand the customer

so well that the product or service fits him and sells itself.

Ideally, marketing should result in a customer who is ready

to buy.”

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Marketing Defined…..Contd.04/08/23


The New Economy

• Substantial increase in buying power

• A greater variety of goods and services

• A greater amount of information about practically

anything

• A greater ease in interacting and placing and

receiving orders

• Companies can facilitate and speed up

communications among employees.

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The New Economy …..Contd.

• Companies can have 2-way communication

with customers and prospects

• Companies can customize offerings and

services to individual customers.

• The Internet can be used as a communication

channel for purchasing, training, and

recruiting.

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Marketing Task• Rules of radical marketing

▫ The CEO must own the marketing function.

▫ Make sure the marketing department starts small

and flat and stays small and flat.

▫ Get face to face with the people who matter most

– the customers.

▫ Love and respect your customers.

▫ Create a community of consumers.

▫ Rethink the marketing mix.

▫ Be true to the brand.

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Marketing Task …..Contd.

•Three stages of marketing practice:

▫Entrepreneurial Marketing

▫Formulated Marketing

▫Intrepreneurial Marketing

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The Scope of Marketing

• Places

• Properties

• Organizations

• Information

• Ideas

•Goods

•Services

•Experiences

•Events

•Persons

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Core Marketing Concepts

▫Marketplace, Marketspace, and

Metamarket

▫Marketers and Prospects

▫Needs, Wants, and Demands

▫Product, Offering, and Brand

▫Value and Satisfaction

▫Competition

▫Marketing Environment

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Marketing mix

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Marketing Approaches

•production concept

•product concept

•selling concept

•marketing concept

•and societal marketing concept.

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Marketing Approaches – Production Concept

One of the oldest, which holds that consumers

prefer products that are widely available and

inexpensive.

• Managers concentrate on achieving high production

efficiency, low costs, and mass distribution.

• Makes sense in developing countries, where consumers are

more interested in obtaining the product than in its

features.

• Also used when a company wants to expand the market.

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Marketing Approaches- Product Concept

Holds that consumers favor those products that offer the most quality, performance, or innovative features.

• The focus is on making superior products and improving them over time, assuming that buyers can appraise quality and performance.

• Companies design their products with little or no customer input

• Can lead to marketing myopia.

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Marketing Approaches- Selling ConceptHolds 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.

• As consumers must be coaxed into buying, the company has a battery of selling and promotion tools to stimulate buying.

• Practiced most aggressively with unsought goods—goods that buyers normally do not think of buying, such as insurance and funeral plots.

• Also practiced when firms have overcapacity. Their aim is to sell what they make rather than make what the market wants.

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Marketing ConceptHolds that the key to achieving organizational goals consists of the company being more effective than its competitors in creating, delivering, and communicating customer value to its chosen target markets.

Rests on four pillars: ▫ target market▫ customer needs▫ integrated marketing and ▫ profitability.

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Marketing Approaches1-20

Selling•focuses on the needs of the seller

•preoccupied with the seller’s need to convert his product into cash•takes an inside-out perspective.

•takes an inside-out perspective - starts with the factory, focuses on existing products, and calls for heavy selling and promoting to produce profitable sales.

Marketing •focuses on the needs of the buyer.

•preoccupied with the idea of satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating, delivering and finally consuming it.

•takes an outside-in perspective - starts with a well-defined market, focuses on customer needs, coordinates activities that affect customers, and produces profits by satisfying customers.

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Societal Marketing Concept

The societal marketing concept

calls upon marketers to build

social and ethical

considerations into their

marketing practices

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How Business and Marketing are Changing

•Company responses and adjustments

▫Reengineering

▫Outsourcing

▫E-commerce

▫Benchmarking

▫Alliances

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Partner-suppliers

Market-centered

Global and local

Decentralized

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How Business and Marketing are Changing

▫ Customer relationship marketing

▫ Customer lifetime value

▫ Customer share

▫ Target marketing

▫ Customization

▫ Customer database

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Integrated marketing

communications

Channels as partners

Every employee a

marketer

•Marketer Responses and Adjustments

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Documents

1. Changing Economy & Marketing Scenario.ppt