The right product, in the right place, at the right time, and at the right price

Marketing is the human activity directed at satisfying human needs and wants through an exchange process
Kotler

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

FOUR ERAS IN THE HISTORY OF MARKETING

Exchange process Activity in which two or more parties give something of value to each other to satisfy perceived need.

Origins of Marketing

1850-1925 Production Era 1925-1952 Sales Era 1952-1990 Marketing Era 1990- today Relationship Era

Marketing in the new milenium

Substantial increase in buying power A greater variety of goods and services A greater amount of information about practically anything A greater ease in interacting and placing and receiving orders An ability to compare notes on products and services

Marketing in the new milenium

Business at the speed of thought

Consumer a coproducer of product and serices

Virtual Enterprise
The role of distribution channe Enviornmentakl Protection Customer a warehouse of informationl

Marketing in The New Millenium

Websites can provide companies with powerful new information and sales channels. Companies can collect fuller and richer information about markets, customers, prospects and competitors. Companies can facilitate and speed up communications among employees. Companies can have 2-way communication with customers and prospects

Implications of marketing
Who are our existing / potential customers? What are their current / future needs? How can we satisfy these needs?
Can we offer a product/ service that the customer would value? Can we communicate with our customers?

Can we deliver a competitive product of service?

Why should customers buy from us?

Marketing as Concept
Marketing meens under satanding the customers need and responding to it It ia matter of orientation

Consumer Orientation

Integrated Approach to exploiting m,arket Opportunities

Futuristic Approaches
Marketing System

Marketing Culture

The Marketing Concept

Consumer Orientation Marketing Concept Market-Driven Approach Value-Based Philosophy Integrated Marketing Focus Goal Orientation

The Concepts in Marketing

Marketing Sedmentation and target market

market place,market space and meta market

Marketers and prospects

needs wants and demand value and satisfaction Exchange and transactions

Marketing Concepts

Compitition
Product and brand

marketing enviornment
relationships and networks marketing channels suplu chain

Thus marketing is Analysing customer needs.

Obtaining the information necessary for design and production that match buyer expectations.
Satisfying customer preferences.

Creating and maintaining relationships with customers and suppliers.

TODAYS GLOBAL MARKETPLACE Growing importance because of international agreements, growth of electronic business, and economic interdependence. United States size and affluence make it an attractive market for foreign companies.

The concepts of Marketing

CONVERTING NEEDS TO WANTS
Effective marketing focuses on the benefits resulting from goods and services.

Companies must pay attention to what consumers want.

Example: Demand for cell phones and wireless services.

Emergence of the Marketing Concept

Consumer orientation Business philosophy incorporating the marketing concept that emphasizes first determining unmet consumer needs and then designing a system for satisfying them.
Marketing concept Company-wide consumer orientation for achieving long-term success.

Relationship marketing Developing and maintaining of long-term, cost-effective relationships with individual customers, suppliers, employees, and other partners for mutual benefit.

The marketing concept

choosing and targeting appropriate customers positioning your offering interacting with those customers controlling the marketing effort continuity of performance

Marketing and Sales Concepts Contrasted

Focus of Selling Philosophy

Production

Selling

Consumption

Focus of Marketing Philosophy

Consumer Need Evaluation

Integrated

Consumer
Satisfaction

Marketing
Effort

Achievement of Organizational Goals

Feedback

Selling Philosophy

Output Sold to Consumers

Looks at Individual, Single Consumer

Seeks Sales Rather than Profit Short-Term Goal Orientation Concerned with Current Inventory Reduction Narrower View of Consumer Needs Little Adaptation to Environment Informal Planning and Feedback

Marketing Philosophy

Consumer-Oriented Stresses Research and Consumer Analysis Looks at Groups of Consumers Profit-Oriented Directed to LongRange Goals

Two-Way Interactive Process Appropriate Adaptation to Mkting Environment Broad View of Consumer Needs Integrated Planning and Feedback

Factors That Affect Customer Satisfaction

Friendly Employees Courteous Employees

Helpful Employees Overall Customer Satisfaction

Knowledgeable Employees

Quick Service

Accuracy of Billing

Billing Clarity Courteous Employees Good Value

Billing Timeliness

Competitive Pricing

Relationship Marketing
Through Relationship Marketing, companies build customer satisfaction and increase long-term customer loyalty.

Successful marketing requires:

Profitable Offensive (rather than defensive) Integrated Strategic (is future orientated) Effective (gets results) Hugh Davidson 1972

The Marketing process

Marketing is a process of transaction between a buyer and a seller Both must gain It must resuly in a long lasting relationship and satisfying relationship among both between

Marketing management process

Analysis/Audit - where are we now? Objectives - where do we want to be? Strategies - which way is best? Tactics - how do we get there? (Implementation - Getting there!) Control - Ensuring arrival

Marketing Task
Ten rules of radical marketing
The CEO must own the marketing function. Make sure the marketing department starts small and flat and stays small and flat. Get face to face with the people who matter most the customers. Use market research cautiously. Hire only passionate missionaries.

Marketing Task
Love and respect your customers. Create a community of consumers. Rethink the marketing mix. Celebrate common sense. Be true to the brand.

Three stages of marketing practice

Entrepreneurial Marketing Formulated Marketing Intrepreneurial Marketing

The Scope of Marketing

Marketing: typically seen as the task of creating, promoting, and delivering goods and services to consumers and businesses.

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1. Negative demand

Table 1.1 Demand States and Marketing Tasks

A major part of the market dislikes the product and may even pay a price to avoid it vaccinations, dental work, vasectomies, and gallbladder operations, for instance. Employers have a negative demand for ex-convicts and alcoholics as employees. The marketing task is to analyze why the market dislikes the product and whether a marketing program consisting of product redesign, lower prices, and more positive promotion can change beliefs and attitudes.

2. No demand

Target consumers may be unaware of or uninterested in the product. Farmers may not be interested in a new farming method, and college students may not be interested in foreignlanguage courses. The marketing task is to find ways to connect the benefits of the product with peoples natural needs and interests.

See text for complete table

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The Scope of Marketing

Places Properties Organizations Information Ideas Goods Services Experiences Events Persons

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Why is marketing planning necessary?

Systematic futuristic thinking by management better co-ordination of a companys efforts development of performance standards for control sharpening of objectives and policies better prepare for sudden developments

This Is a Need

Needs - state of felt deprivation including physical, social, and individual needs.

This Is a Want
Wants - form that a human need takes, as shaped by culture and individual personality.

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.

This Is Demand
Wants Buying Power

Demand

What is a Market? Markets,virtual and meta markets

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

8 Marketing Functions
Environmental analysis and marketing research:
Monitoring and adapting to external factors that affect success or failure, such as the economy and competition; and collecting data to resolve specific marketing issues.

Broadening the Scope of Marketing:

Deciding on the emphasis to place, as well as the approach to take, on societal issues, global marketing, and the Web.

Consumer analysis:
Examining and evaluating consumer characteristics, needs and purchase processes; and selecting the group(s) of consumers at which to aim marketing efforts.

8 Marketing Functions continued

Product planning (including goods, services, organizations, people,
places, ideas): Developing and maintaining products, product assortments, product images, brands, packaging, and optional features, and deleting faltering products.

Distribution planning:
Forming logistical relationships with intermediaries, physical distribution, inventory management, warehousing, transportation, allocating goods and services, wholesaling, and retailing.

Promotion planning:
Communicating with customers, the general public, and others through some type of advertising, public relations, personal selling, and/or sales promotion.

Customer Service

Customer Service tends to be intangible, but quite meaningful, to many customers. In todays highly competitive, global marketplace, the level of customer service a firm provides can affect its ability to attract and retain customers more than ever before.

Marketing Performers
Final Consumer Manufacturer or Service Provider Organizational Consumer

Basic Marketing Performers Marketing Specialist Retailer

Wholesaler

Marketing Performers
Include: Consumers Manufacturers Service Providers Wholesalers Retailers Marketing Specialists

What is Marketing Myopia?

Marketing nearsightedness managements failure to recognize the scope of its business.

Endangers future growth because the company is focusing on a product rather than customer Companys are usually to narrowly defined.

AVOIDING MARKETING MYOPIA

Marketing myopia Managements failure to recognize the scope of its business.

Avoiding Marketing Myopia

Broadly define company goals toward customer needs.

MCI: We are a telephone company. or We are a communications company. Northwest Airlines: We are in the airline business. or We are in the transportation business.