HISTORY OF MARKETING

Marketing emerged as a separate technical field only in the late 19th century Traditional authorities on marketing concentrated on products and on the sale and purchase of goods and services. They paid little attention to areas like after sales service, and devoted even less attention to social responsibility .

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Timeline of innovation

1450: mass-production of flyers and brochures 1730s: emergence of magazines (a future vector of niche marketing) 1836: first paid advertising in a newspaper (in France) 1839: posters on private property banned in London 1864: earliest recorded use of the telegraph for mass unsolicited spam 1867: earliest recorded billboard rentals 1880s: early examples of trademarks as branding 1905: University offered a course in "The Marketing of Products"[4] 1908: Harvard Business School opens 1922: radio advertising commences 1940s: electronic computers developed 1941: first recorded use of television advertising

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Timeline of innovation

1950s: systematization of telemarketing 1970s: E-commerce invented 1980s: development of database marketing 1980s: emergence of relationship marketing 1980s: emergence of computer-oriented spam 1984: introduction of guerrilla marketing 1985: desktop publishing 1991: IMC gains academic status 1990s CRM gain dominance in promotions and marketing planning. 1995-2001: the Dot-com bubble temporarily redefines the future of marketing 1996: identification of viral marketing 2000s: Integrated marketing gains acceptance and in 2002 its first dedicated academic research centre
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QUICK GLANCE AT THE OBJECTIVES

Managing Profitable Customer Relationship Company and Marketing Strategy. Managing Marketing Information. Consumer Market & Consumer Buyer Behavior. Segmentation, Targeting and Positioning. New Product Development. Pricing Products: Strategies. Creating Competitive Advantage.

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Principles of Marketing

Student groups formation ( 2 students each ) for midterm project

The team must be prepared to share their work in class on the assigned date.

What is marketing? Market any product/service of your interest. Make a 10 mins Video to explain your idea to the class! Submit a report of not more then 12 pages along with your video Originality and Creativity is a MUST!!

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Principles of Marketing
Contents of the contract are limited to one page and must include:

*all submissions should be PRINTED & properly

Name and email addresses of the team members Identify your product /service and potential segment Describe the role and responsibilities of each member Describe a plan to manage intra-team conflict To be acceptable, the contract must be timely and complete.

aligned

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Marketing: Managing Profitable Customer Relationships

What is Marketing?
Marketing is managing profitable customer relationships. Goals: 1. Attract new customers by promising superior value. 2. Keep and grow current customers by delivering satisfaction.
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Principles of Marketing

What is Marketing

Marketing is a process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.

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Marketing Defined
A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and
value with others.

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Needs, Wants, & Demands

Need: State of felt deprivation including physical, social, and individual needs. Physical: Social:
Food, clothing, shelter, safety
Belonging, affection Learning, knowledge, self-expression
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Individual:

Needs, Wants, & Demands

Wants: Form that a human need takes, as shaped by culture and individual personality. Demand: Wants + Buying Power = Demand

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Need / Want Fulfillment

Needs and Wants Fulfilled through a Marketing Offer :

Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

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Need / Want Satisfiers

Products:

Services

Persons Places Organizations Information Ideas

Activity or benefit offered for sale that is essentially intangible and does not result in the ownership of anything.

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Marketing Myopia

Sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products. They focus on the wants and lose sight of the needs

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Value & Satisfaction

If performance is lower than expectations, satisfaction is low If performance is higher than expectations, satisfaction is high As a marketer our job is to not only meet the customer expectation but to exceed the expectation ,hence creating delighted customers.

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Exchange vs. Transaction

Exchange:

Act of obtaining a desired object from someone by offering something in return.

Transaction:

A trade of values between two parties. One party gives X to another party and gets Y in return. Can include cash, credit, or check.
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What is a Market?

The set of actual and potential buyers of a product. These people share a need or want that can be satisfied through exchange relationships.

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Marketing Management

The art and science of choosing target markets and building profitable relationships with them.

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Marketing Management
1. 2.

Questions to ask: What customers will we serve?

What is our target market?

How can we best serve these customers?

What is our value proposition?

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Segmentation & Target Marketing

Market Segmentation:

Divide the market into segments of customers

Target Marketing:

Select the segment to cultivate

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Marketing Management

Demand Management

Demarketing

Finding and increasing demand, also changing or reducing demand, such as in demarketing.

Temporarily or permanently reducing the number of customers or shifting their demand

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Marketing Management Philosophies

Production Concept Product Concept Selling Concept Marketing Concept Societal Marketing Concept

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Value Proposition

The set of benefits or values a company promises to deliver to consumers to satisfy their needs.

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Customer Relationship Management

The process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

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Customer Perceived Value

Customers evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

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Customer Satisfaction

Dependent on the products perceived performance relative to a buyers expectations.

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Loyalty & Retention

Financial Benefits Social Benefits Focus on profitable customers

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Partner Relationship Marketing

Partners inside the firm

All employees customer focused Teams coordinate efforts toward customers

Supply chain management Strategic alliances

Partners outside the firm

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Customer Loyalty & Retention

Customer

Lifetime Value

Share

The entire stream of purchases that the customer would make over a lifetime of patronage.

of Customer

The share a company gets of the customers purchasing in their product categories.
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Customer Equity
Customer

equity is the total combined customer lifetime values of all the companys customers.

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The Marketing Mix

The tools available to a business to gain the reaction it is seeking from its target market in relation to its marketing objectives 7Ps Price, Product, Promotion, Place, People, Process, Physical Environment Traditional 4Ps extended to encompass growth of service industry

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The Marketing Mix

Product Price Distribution (Place) Promotion

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The Marketing Mix

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Price

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Price

Pricing Strategy Importance of:

knowing the market elasticity keeping an eye on rivals

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Product

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Product

Methods used to improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage e.g. Extension strategies Specialised versions New editions Improvements real or otherwise! Changed packaging Technology, etc.

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Promotion

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Promotion

Strategies to make the consumer aware of the existence of a product or service NOT just advertising

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Place

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Place

The means by which products and services get from producer to consumer and where they can be accessed by the consumer

The more places to buy the product and the easier it is made to buy it, the better for the business (and the consumer?)

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People

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People

People represent the business

The image they present can be important First contact often human what is the lasting image they provide to the customer? Extent of training and knowledge of the product/service concerned Mission statement how relevant? Do staff represent the desired culture of the business?

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Process

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Process

How do people consume services? What processes do they have to go through to acquire the services? Where do they find the availability of the service?

Contact Reminders Registration Subscription Form filling Degree of technology

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Physical Environment

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Physical Environment

The ambience, mood or physical presentation of the environment

Smart/shabby? Trendy/retro/modern/old fashioned? Light/dark/bright/subdued? Romantic/chic/loud? Clean/dirty/unkempt/neat? Music? Smell?

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The Marketing Mix

Blend of the mix depends upon: Marketing objectives Type of product Target market Market structure Rivals behaviour Global issues culture/religion, etc. Marketing position

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Principles of Marketing
What is Marketing? Mantra of Marketing CC DV TP

Create Communicate Deliver Value Target market Profit

Product management Brand management Customer management

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