MM - 1 Fundamentals- Definition

8/7/2019 MM - 1 Fundamentals- Definition

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Marketing Management

P.Sivarajadhanavel

Lecturer, School of Management

Kongu Engineering College, Perundurai


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What is Marketing?

Needs,Wants, and Demands

Products (Goods, Services and Ideas)

A Product is anything that can be offered to satisfy a need or

want

Its offering or solution to the needs of the customers

It can be of any form Physical, services, Ideas

Value, Cost and Satisfaction

Exchange and Transaction

Relationships and Networks

Markets A Market consists of all the potential customers

sharing a particular need or want who might be willing and

able to engage in exchange to satisfy that need or want


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Core Concept Marketing

Needs,Wants and Demands

Products (goods, Services, and Ideas

Value, Cost and Satisfaction

Exchange, and transaction

Relationships and networks

Markets

Marketers and prospects


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What is Marketing?

An Art

A Business Function

A Process

A Science A Practice

A Relationship

A System

A Philosophy


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Marketing Definition

Marketing is an organizational function and a set of

processes for creating, communicating, and delivering value

to customers and for managing customer relationships in

ways that benefit the organization and its stakeholders. -AMA

The Chartered Institute of Marketing defines Marketing as -

Marketing is the management process for identifying,

anticipating & satisfying customer requirements profitably.

Marketing management is the art and science of choosing

target markets and getting, keeping, and growing customers

through creating, delivering, and communicating superior

customer value.


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Marketing Definition

One of the shortest definitions of marketing is meetingneed profitably.

Marketing is the economic process by which goods andservices are exchanged between the producer and theconsumer and their values determined in terms of moneyprices.

Marketing is a societal process by which individuals andgroups obtain what they need and want through creating,

offering and freely exchanging products and services of valuewith others - Philip Kotler.

American Marketing Association It is the process ofplanning & executing the conception, pricing, promotion &distribution of ideas, goods & services to create exchangethat satisfy individual & organizational goals


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7

Industry

(a collection

of sellers)

Market

(a collection

of Buyers)

Goods/services

Money

Communication

Information

Simple Marketing System


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What is Marketed?

Goods

Services

Events

Experience

Persons

Places

Properties Organizations

Information

Ideas


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Core Concepts of Marketing

Based on :

Needs, Wants, Desires / demand Products, Utility, Value & Satisfaction

Exchange, Transactions & Relationships

Markets, Marketing & Marketers.


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Needs, wantsdemands

Markets Marketing &

Marketers

Utility, Value &Satisfaction

Xchange, Transaction

Relationships

Products


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Need food ( is a must )

Want Pizza, Burger, French fry's ( translation of a need asper our experience )

Demand Burger ( translation of a want as per our willingness

and ability to buy )

Desire Have a Burger in a five star hotel


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Who is a Customer ?

CUSTOMER IS . . . . .

Anyone who is in the market looking at a product / service for

attention, acquisition, use or consumption that satisfies a

want or a needCUSTOMER has needs, wants, demands and desires

Understanding these needs is starting point of the entire marketing

These needs, wants arise within a framework or an ecosystem

Understanding both the needs and the ecosystem is the startingpoint of a long term relationship


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How Do Consumers Choose AmongProducts & Services?

Value - the value or benefits the customers gain from using

the product versus the cost of obtaining the product.

Satisfaction - Based on a comparison of performance andexpectations.

Performance > Expectations => Satisfaction

Performance < Expectations => Dissatisfaction


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Customers - Problem Solution

As a priority , we must bring to our customers WHAT THEY

NEED

We must be in a position to UNDERSTAND their problems

Or in a new situation to give them a chance to AVOID the

problems


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Customer looks for Value

Value = Benefit / CostBenefit = FunctionalBenefit + EmotionalBenefit

Cost = Monetary Cost + Time Cost + Energy Cost + Psychic Cost


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Demand States

Negativedislike

Non Existentunaware/uninterested

Latentnot satisfied by existing product

Declining

Irregular

Fullbuying all products put into market place

OverfullMore consumer like to buy

Unwholesome


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5 Basis of Marketing


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Key Customer Markets

Consumer markets

Business markets

Global markets Non-profit and governmental markets

Market place: Physical

Marketspace:digital


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Business/Marketing: Changing

Changing technology

Globalization

Deregulation

Privatization

Customer empowerment

Customization

Heightened competition Industry convergence

Retail transformation

Disintermediation


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Company orientations towards the market place

The Exchange concept

The production concept

The product concept Marketing Myopia Professor Theodore Levitt a shortsighted view of business

The Sales or selling concept

The marketing concept

The holistic marketing concept Relationship marketing

Societal marketing: Social responsibility marketing: humanisticmarketing: Ecological marketing

Cause-related marketing- Pringle and Thompson

Integrated marketing

Internal marketing


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Selling Vs Marketing

Selling

1 Emphasis is on the product2 Company Manufactures the product first3 Management is sales volume oriented

4 Planning is short-run-oriented in terms of todaysproducts and markets5 Stresses needs of seller6 Views business as a good producing process7 Emphasis on staying with existing technology andreducing costs8 Different departments work as in a highly separatewater tight compartments9 Cost determines Price

10 Selling views customer as a last link in business


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Selling Vs Marketing

Marketing

1 Emphasis on consumer needs wants2 Company first determines customers needs and wants and thendecides out how to deliver a product to satisfy these wants3 Management is profit oriented4 Planning is long-run-oriented in todays products and terms ofnew products, tomorrows markets and future growth5 Stresses needs and wants of buyers6 Views business as consumer producing process satisfying process7 Emphasis on innovation on every existing technology and

reducing every sphere, on providing better costs value to thecustomer by adopting a superior technology8 All departments of the business integrated manner, the solepurpose being generation of consumer satisfaction9. Consumer determine price, price determines cost10. Marketing views the customer last link in business as the verypurpose of the business


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Societal Marketing

The societal marketing concept is an

enlightened marketing concept that holds that a company

should make good marketing decisions by considering

consumers' wants, the company's requirements, and society's

long-term interests. It is closely linked with the principles

of corporate social responsibility and of sustainable

development.

The concept has an emphasis on social responsibility and

suggests that for a company to only focus on exchange

relationship with customers might not be suitable in order to

sustain long term success. Rather, marketing strategy should

deliver value to customers in a way that maintains or improves

both the consumer's and the society's well-being


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Core Concepts

Needs, wants, and demands

Target markets, positioning, segmentation

Offerings and brands

Value and satisfaction Marketing channels

Communication, distribution and service channels

Supply chain

Competition Marketing environment

Task environment

Broad environment

Marketing planning


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Types of Needs

Stated needs the customer wants an inexpensive car

Real needs the customer wants car whose operating cost, not its initialprice, is low

Unstated needs the customer expects good service from the dealer Delight needs the customer buys the car and receives a complimentary

products

Secret needs the customer wants to be seen by friends as a value-

oriented savvy consumer


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Learning.

s

The concept of 4Ps of a marketing mix was introducedby Jerome McCarthy- developed by Philip Kotler


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Shifts in Marketing Management

From marketing does the marketing to everyone does

the marketing

From organizing by product units to organizing by

customer segments From managing everything to buying more goods and

services from outside

From using many suppliers to working with fewer

suppliers in a partnership

From relying on old market positions to uncovering new

ones


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Continues

From emphasizing tangible assets to emphasizing

intangible assets

From building brands through advertising to building

brands through performance and integratedcommunication.

From attracting customers through stores and sales

people to making products available online

From selling to everyone to trying to be the best firm

serving well defined target market

From focusing on profitable transactions to focusing

customer life time value


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Continues

From a focus on gaining market share to a focus on

building customer share

From being local to being Glocal- Both global and local

From focusing on the financial scorecard to focusing onthe marketing scorecard

From focusing on shareholders to focusing on

stakeholders


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Marketing Management Tasks

Developing marketing strategies

Capturing marketing insights

Connecting with customers

Building strong brands

Shaping market offerings

Delivering value

Communicating value Creating long-term growth


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The 4 Ps & 4Cs

Marketing

Mix

Product

Price Promotion

Place

Customer

Solution

Customer

Cost

Communication

Convenience


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Product Price

Place Promotion

Marketing Mix (4ps)

The marketing mix principles are controllable variables

which have to be carefully managed and must meet the

needs of the defined target group. All elements of the mix are

Linked and must support each other.


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Marketing Mix (4ps)

Product Decisions

Branding Quality Features

We must remember that Marketing is fundamentally about providing the correct bundle of

benefits to the end user, hence the saying Marketing is not about providing products or

services it is essentially about providing changing benefits to the changing needs and

demands of the customer (P.Tailor 7/00)

Benefits offered


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Marketing Mix (4ps)

Pricing Strategies

Penetration

Skimming

Competition

Product Line

Bundle

Psychological

Pricing is the only mix which generates a turnoverfor the organisation. The remaining 3ps are the

variable cost for the organisation. It costs to

produce and design a product, it costs to

distribute a product and costs to promote it. Price

must support these elements of the mix. Pricing is

difficult and must reflect supply and demand

relationship.


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Marketing Mix (4ps)

Promotional Mix

Advertising

PublicRelations

Sales

Promotion

Personal

Selling

Direct

Mail

Internet/

E-commerce

A successful product or service means nothing

unless the benefit of such a service can be

communicated clearly to the target market. An

organisations promotional mix can consist of:


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Marketing Mix (4ps)

Manufacturer

Consumer

Manufacturer

Retailer

Consumer

Direct Distribution Indirect Distribution


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What is Marketing all about do you think?

Value Creation

Value Delivery

Documents

MM - 1 Fundamentals- Definition