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AN OVERVIEW

OF

MARKETING

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What

isMarketing???

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Marketing

is an organizational function

and a set of processes for

creating, communicating anddeliveringvalue to customers

and formanaging customer

relationships

in ways that benefit

the organization and its stakeholdersAmerican

Marketi n

gAs

sociation

Satisfy

Attracti

ngand

retainin

g

custom

ers

Product

Promot

ion

Place

Price

Notaon

etimeac

tivity

butanong

oingpur

suitActivity

pervades

thewhole

organiza

tion

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For Need Satisfaction

There has to be an exchange between

the buyer and the seller.

The exchange is stimulated by an

attractive combination of

* Product * Price

* Promotion and * Place

( called the Marketing Mix )

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Product what does it extend to

Product Strategy Decision Areas

Product Strategy Decision Areas

Variety

Quality

Design

Features

Packaging

Brand name

Services

Warranties

Returns .etc., etc.,.

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What are the

characteristics of products

and

How can they be classified?

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What is a Product

A particular

bundle of benefits

which satisfies

particular needs and

wants.

Anything that can be offered to a

market to satisfy a want or need.

Ins

implew

ords

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Classification of Products

BASIS :Consumer

Use

Business

Durable

GoodsTangibility Non-durable

Services

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How do products fit into the

market placeOFFERINGS

Consumer Business to Business

Goods Services

Shopping

Convenience Specialty

Shopping

Convenience Specialty

Raw

Material

Process

Material

Manufactured

Components

Accessory

Equipment

Operating

Supplies

Services

Distribution Consulting

Financial Operational Marketing Personnel

Use

Tangibi

lity

How

consum

ers

buy

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Characteristics of Products and

Marketing Considerations (1/3)Convenience

productsShoppingproducts

Specialtyproducts

Characteristics Canned fruit Furniture Expensive suits

Time and effort devoted

to shopping

Very little Considerable As much as

necessary to finddesired brand

Time spent planningthe purchase

Very little Considerable Considerable

How soon is the want

satisfied after it arises

Immediately Relatively long

time

Relatively long time

Are price and qualitycompared?

No Yes No

Price Usually low Usually high Usually high

Purchase frequency Usually frequent Infrequent Infrequent

..2

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Characteristics of Products and

Marketing Considerations (2/3)Convenience

productsShoppingproducts

Specialtyproducts

MarketingConsiderations

Canned fruit Furniture Expensive suits

Length of channel Long Short Short to veryshort

Retailer Relativelyunimportant

Important Very important

Number of outlets As many aspossible

Few Few, often onlyone in a market

Stock turnover High Lower Lower

Gross margin Low High High

Responsibility foradvertising

Producer Joint Joint

..3

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Characteristics of Products and

Marketing Considerations (3/3)

Convenienceproducts

Shoppingproducts

Specialtyproducts

Marketing

Considerations

Canned fruit Furniture Expensive suits

Point of purchasedisplay

Very important Less important Less important

Brand or store name Brand name Store name Both

Packaging Very important Less important Less important

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Product Levels

Five Product Levels

Core benefit theprimary benefit

Basic product ageneric tangible product

Expected product setof attributes normally expected

Augmented product the additions the seller adds to

the product to make it attractive

Potential Product allpossible augmentations a product

might undergo in the future

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Product Levels - Bicycle

?

?

?

?

?

Augmented

Potential

Basic

Expected

Core

BICYCLELEVELS

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Product Levels - Bicycle

Light frame, gears, collapsible,

service

Open to creativity, endless

possibilities.

Strong frame, two wheels,pedal, brakes seat

Bell, carrier, chain guard,

tool kit

Cheap self powered

transportation

Augmented

Potential

Basic

Expected

Core

BICYCLELEVELS

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Product Levels Pressing

Iron

?

?

?

?

?

Augmented

Potential

Basic

Expected

Core

PRESSING IRONLEVELS

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Product Levels Pressing

Iron

Cordless, steam ironing,

light weight

Open to creativity, endless

possibilities.

Heavy base, heating coil,handle, power plug, power cord

Temperature control, low power

consumption

Removal of creases

from clothes

Augmented

Potential

Basic

Expected

Core

PRESSING IRONLEVELS

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What does the term Price extend to

Strategy Planning for PriceStrategy Planning for Price

Pricing objectives

Pricing Policies

List price

Discounts and allowances

Credit terms

Legal factors

Markup chain in channels

Costs

Demand (price sensitivity)

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Distribution Customer Convenience

Place Strategy Decision AreasPlace Strategy Decision Areas

Distribution Channels

Coverage

Locations

Inventory

Logistics

Roles of Middlemen

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Promotion

Promotion: Integrated Marketing CommunicationsPromotion: Integrated Marketing Communications

Personal Selling

Advertising

Publicity

Sales Promotion

Trade Promotion

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Companys Orientations

How Marketing became so Important

Marketing - orientationFocus :

Sales - orientation

Focus :

Product - orientation

Production - orientation

Focus:

Sell what is easy

to produce

Push customers to

buy

Long-run customer

satisfaction

Focus:

Focus: Manufacture product

of the highest quality

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Earlier Concepts were..

The Production concept holds thatconsumers will prefer products

that are widely available and inexpensive

The Product concept holds thatconsumers will favor those products

which offer the most quality, performance or

innovative features

The Selling concept holds that consumers

if left alone

will ordinarily not buy the companys products

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What is the

Marketing Concept?

Finding the

Right products for your customersand not the

Right customers for your product

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Components and Outcomes

of the Marketing Concept

Customer

Orientation

Organizations

performance

objectives

+

+

+

Coordinated

marketing

activities

Customer

Satisfaction

Organization

success

There is only one boss : the customer. Sam Walton, founder of Wal - Mart

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Marketings First Task : Discovering

Consumer Needs

Organizations

marketing department

Discover

consumer needs

Information about needs

Potential consumers :

The market

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Marketings Second Task :

Satisfying Consumer Needs

Organizations marketing department

Discover

consumer needs

Information about needs

Potential consumers : The market

Satisfy consumer needs by

finding right combination of :

1. Product 2. Price

3. Promotion 4. Place

Goods, services, ideas

Concepts for

products

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How do Customers Benefit?

Utilities Customers desire

Form

Task

Time

Possession

Place

Utility

Value that comes

from satisfyingcustomer

needs

Provided by Production

with guidance from

Marketing

Provided by Marketing

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THATS ALL FOR

TODAY!!!

End of Session 1