Nature and Scope of Marketing Presentation 1

By Jyoti Sikka, S.S.C.B.S.

The Importance of Marketing in Our Global EconomyMarketing costs consume a sizable portion of buyers’ dollars

Marketing is used in nonprofit organizations

Marketing is important to businessMarketing fuels our global economy

The Importance of Marketing in Our Global Economy (cont’d)

Marketing knowledge enhances consumer awareness

Marketing connects people through technology

Socially responsible marketing can promote the welfare of customers and society

Marketing offers many exciting career prospects

Important to every consumer!Important to every consumer!

Important to your job!Important to your job!

Affects economic growth and standard of living!

Marketing Is Important to You!

DefinitionMarketing: “The (1) process of (2) planning and (3) executing the (4) conception, (5) pricing, (6) promotion, and (7) distribution of (8) ideas, (9) goods, and (10) services to create (11) exchanges that (12) satisfy (13) individual and (14) organizational (15) objectives.” (American Marketing Association “official” old definition [numbering added].)

Definition: AMA new 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.

Marketing: the big picture

Product

Price

Place

Promotion

ExchangeExchangeA BA B

DeliveringValue

CommunicatingValue

CreatingValue

Marketing Management: Definitions

Marketing management is theart and science

of choosing target markets and getting, keeping, and growing

customers throughcreating, delivering, and communicating

superior customer value.

The Scope Of MarketingMarketers are involved with marketing ten types of entities:1. Physical Goods2. Services3. Experiences4. Events

5. Persons6. Places7. Properties8. Organizations9. Information10. Ideas

Key terms Marketer Prospect

Demand StatesNegativeNonexistentLatentDeclining

IrregularUnwholesomeFullOverfull

Exchange and Marketing

In very basic economic systems, each seller must meet directly with each buyer in order to exchange something of value. As needs increase, the number of exchanges can soon become unmanageable for one person.

Ten exchanges requiredwithout central market

Pots

BasketsHats

KnivesHoes

Exchange and Marketing

Centralmarket

middleman

Pots

BasketsHats

KnivesHoes

Five exchanges requiredwith central market

In a centralized market, a buyer can go to one location to find many different products from many different sellers. By reducing the time both buyers and sellers must spend to complete an exchange, prices can be lowered.

Satisfying Exchange RelationshipsExchange

The provision or transfer of goods, services, or ideas in return for something of value

The Concept of Exchange

Necessary Conditions for

Exchange

At Least Two Parties

Something of Value

Communication and Delivery

Freedom to Accept or Reject

Desire to Deal With Other Party

Key Customer MarketsConsumer marketsBusiness marketsGlobal marketsNonprofit/Government marketsMarketplaceMarket spaceMeta markets- cluster of

complementary products and services

A Simple Marketing System

INDUSTRYINDUSTRY(A collection(A collectionof sellers)of sellers)

MARKETMARKET(A collection(A collectionof buyers)of buyers)

COMMUNICATIONCOMMUNICATION

INFORMATIONINFORMATION

GOODS & SERVICESGOODS & SERVICES

MONEYMONEY

Structure Of Flows In A Modern Exchange Economy

ResourceResourceMarketsMarkets

ConsumerConsumerMarketsMarkets

IntermediaryIntermediaryMarketsMarkets

ManufacturerManufacturerMarketsMarkets

GovernmentGovernmentMarketsMarkets

MoneyMoney

ResourcesResources

MoneyMoney

ResourcesResources

MoneyMoney MoneyMoney

Goods & ServicesGoods & Services Goods & ServicesGoods & Services

Taxes &Taxes &GoodsGoods

ServicesServices& Money & Money

S&mS&m

Taxes &Taxes &GoodsGoods

ServicesServices

TaxesTaxes

S&mS&m T&gT&g

The marketplace isn’t what it used to be….Changing

technologyGlobalizationDeregulationPrivatization

EmpowermentCustomizationConvergenceDisintermediation

QUESTIONS ??????