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Introduction to Marketing
Market Oriented Approach
What is Marketing?What is 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 to serve both buyers and sellers.
Needs Eat, Dress, Move
Wants Cheeseburger, Tuxedo, Car
Marketer
Needs & WantsNeeds & Wants
A need occurs when a person feels physiologically deprived of basic necessities such as food, clothing, and shelter.
A want is a felt need that is shaped by a person’s knowledge, culture, and personality.
What are the legal, ethical, and moral.implications of satisfying wants and needs?
Factors that influence marketing activities
• Organization itself (mission and goals)• Customers• Suppliers
• Shareholders• Competitors
• Environmental forces• Society
Summary of factors that affect an organization’s Summary of factors that affect an organization’s marketing marketing
programprogram
Pro
mo
tion
Competitive fo
rces
Reg
ulato
ry forces S
oci
al f
orc
es
Economic forces
PlacePrice
Pro
du
ct
Environmental forces
Consumer
Marketingprogram
Technological forces
Requirements for Marketing to Requirements for Marketing to OccurOccur
For marketing to occur, at least 4 factors are required:
1. Two or more parties (individuals or organizations) with unsatisfied needs,
2. a desire and ability on their part to be satisfied,
3. a way for the parties to communicate, and
4. something to exchange.
First Task: Detect Needs
Organization’smarketing department
Discover consumer needs
Information about needs
Potential consumers: The market
Marketing’s first task: discovering Marketing’s first task: discovering consumer needsconsumer needs
What is a Market?What is a Market?
Potential consumers make up a market, which is:
1. People
2. with the Desire and
3. with the Ability to Buy a
specific product.
Organization’s marketing departmentConcepts
forproducts
Discover consumer needs
Information about needs
Potential consumers: The market
Satisfy consumer needsFind the right combination of:
• Product• Price• Promotion• Place
Goods, services, ideas
Marketing’s Second Task: Satisfying Marketing’s Second Task: Satisfying Consumer NeedsConsumer Needs
The Target MarketThe Target Market Because the organization
obviously can’t satisfy all
consumer needs, it must
concentrate its efforts on
certain needs of a specific
group of potential consumers. This is the target market -- one or more specific groups of potential consumers toward which an organization directs its marketing program.
The Four Ps: Controllable The Four Ps: Controllable Marketing Mix FactorsMarketing Mix Factors
ProductPricePromotion
Place
Building Customer Relationships
Customer value is. . . . Customer value is. . . .
the unique combination of benefits received by target buyers that includes quality
priceconvenienceon-time deliverybefore & after-sale service
the unique combination of benefits received by target buyers that includes quality
priceconvenienceon-time deliverybefore & after-sale service
Relationship MarketingRelationship MarketingRelationship marketing is linking the
organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits.
Mutual long-term benefits between the organization and its customers require links to other vital stakeholders-- including suppliers, employees, and “partners” such as wholesalers or retailers in a manufacturer’s channel of distribution.
A marketing program is. . .A marketing program is. . .
a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.
a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.
How Marketing became so important?
Production era
Sales era
Marketing concept era
Market orientation era
18601880 190019201940 196019802000
Four different orientations in the history of Four different orientations in the history of North American businessNorth American business
Definition of Market OrientationDefinition of Market Orientation
An organization that has a market orientation focuses its efforts on . . . .
An organization that has a market orientation focuses its efforts on . . . .
(1) Continuously collecting information about customers’ needs and competitors’ capabilities,
(2) sharing this information across departments, and
(3) using the information to create customer value.
(1) Continuously collecting information about customers’ needs and competitors’ capabilities,
(2) sharing this information across departments, and
(3) using the information to create customer value.
Old Marketing ContextOld Marketing Context
Ethics & Social ResponsibilityEthics & Social Responsibility
• Ethics
• Social responsibility. Decisions should
consider the well-being of society as a whole.
• Societal marketing concept. An organization
should satisfy customers’ needs while
providing for society’s well-being.
• Macromarketing
• Micromarketing
The Breadth & Depth of MarketingThe Breadth & Depth of Marketing
Marketing affects every person and organizationMarketing affects every person and organization
Who markets?Who markets?
What do they market?What do they market?
Who buys and uses what is marketed?Who buys and uses what is marketed?
Who benefits from these marketing activities?Who benefits from these marketing activities?
How do they benefit?How do they benefit?
Who buys and uses what Who buys and uses what is marketed?is marketed?
Ultimate Consumers
Organizational Buyers(B to B)
UtilityUtility
Form
Place
Time
Possession
Form
Place
Time
Possession
Examples of Marketing Actionsthat Create Utility
Examples of Marketing Actionsthat Create Utility
Product design, packaging
Distribution, store location
Inventory management, warehouses, delivery
Transactions, transfer of ownership
Product design, packaging
Distribution, store location
Inventory management, warehouses, delivery
Transactions, transfer of ownership
How Do Consumers Benefit?