#1 Marketing Management-1.pptx marketing introduction

marketing management introduction simple language

2. Chapter Questions
Why is marketing important?
What is the scope of marketing?
What are some fundamental marketing
concepts?
How has marketing management changed?
What are the tasks necessary for successful
marketing management?

3. What Is Marketing?
Marketingis 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.

4. What Is Marketing
Management?
Marketingmanagementis the
art and science
of choosing target markets
and getting, keeping, and growing
customers through
creating, delivering, and communicating
superior customer value.

5. What Is Marketed?
•Goods
•Services
•Events
•Experiences
•Places

6. What Is Marketed?
•Persons
•Properties
•Organizations
•Information
•Ideas

7. 7
Simple Marketing System
Industry
(a collection
of sellers)
Market
(a collection
of Buyers)
Goods/services
Money
Communication
Information

8. Core Marketing Concepts
Needs, wants, and
demands
Target markets,
positioning,
segmentation
Offerings and
brands
Value and
satisfaction
Marketing channels
Supply chain
Competition
Marketing
environment

9. 9
Needs, Wants, and Demands
Needs:
Themostbasicconceptunderlyingmarketingisthatofhumanneeds.
Humanneedsarestatesoffeltdeprivation.
Human have many complex needs:
Physicalneedsforfood,clothing,warmth,andsafety
Socialneedsorbelongingandaffection
Individual needs for knowledge and self –expression
Wants:
Wantaretheformtakenbyhumanneedsastheyareshapedbycultureand
individualpersonality.
Peoplehavealmostunlimitedwantsbutlimitedresources.
Theywanttochooseproductsthatprovidethemostvalueandsatisfactionfor
theirmoney.
Demands:
Whenbackedbybuyingpower,wantsbecomedemands.
Consumersviewproductsasbundlesofbenefitsandchooseproductsthatgive
themthebestbundlefortheirmoney.

10. 10
Core Concepts of Marketing
Need –food ( is a must )
Want –Pizza, Burger, French fry's ( translation of a need
as per 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

11. Value and Satisfaction
Quality
Service
Price

12. 12
How Do Consumers Choose Among
Products & 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
and expectations.
Performance >Expectations => Satisfaction
Performance < Expectations => Dissatisfaction

13. Marketing Channels
Communication
Distribution
Service

14. Marketing Environment
Demographic Economic
Socio-cultural
Natural
Technological
Political-legal

15. Company Orientations
Production
Product
Selling
Marketing

16. The Production Concept
Consumers will prefer products that are
widely available and inexpensive.
Focus: achieving high production efficiency,
low costs, and mass distribution.
It is useful when (1) the demand for a product
exceeds the supply; (2) the product’s cost is
too high.
Examples: Standard Raw Materials and
Components, CD, LCD.

17. The Product Concept
Consumers will favor those products that
offer the most quality, performance, or
innovative features.
Focus: making superior products and
improving them over time.
Examples: Digital Camera, CPU.

18. The Selling Concept
Consumers and businesses, if left alone, will
ordinarily not buy enough of organization’s
products.
Focus: undertake an aggressive selling and
promotion effort.
Examples: Insurance policies, saving bank
accounts, encyclopedias,

19. The Marketing Concept
The key to achieving its organizational goals
consists of the company being more effective than
competitors in creating, delivering, and
communicating superior customer value to its
chosen target markets.
Four pillars: target market, customer needs,
integrated marketing and profitability.

20. Figure 1.3: Contrasts Between the Sales Concept
and the Marketing Concept

21. Holistic Marketing

22. Relationship Marketing
Customers
Employees
Marketing Partners
Financial Community

23. Integrated Marketing
Key themes:
(1)many different marketing activities can
create, communicate, and deliver value, and
(2)marketers should design and implement
any one marketing activity with all other
activities in mind.

24. Internal Marketing
Internal marketingis the task of
hiring, training, and motivating able
employees
who want to serve customers well.

25. Performance Marketing
Financial
Accountability
Social Responsibility
Marketing

26. Difference Between Selling &
Marketing
1.Emphasis is on the
product
2.Company Manufactures
the product first
3.Management is sales
volume oriented
4.Planning is short-run-
oriented
5.Views business as a
good producing process
1.Emphasis on consumer
needs & wants
2.Company first determines
customers needs and
wants and then decides
out how to deliver a
product tosatisfy these
wants
3.Management is profit
oriented
4.Planning is long-run-
oriented
5.Views business as
consumer producing
SELLING MARKETING

27. 6. Emphasis on staying with
existing technology and
reducing costs
7. Cost determines Price
8. Selling views customer as a
last link in business
6. Emphasis on innovation
on every existing
technology and reducing
every sphere, on providing
bettercosts value to the
customer by adopting a
superior technology
7. Consumer determine price,
price determines cost
8. Marketing views the
customer last link in
business as the very
purpose of the business
SELLING MARKETING

28. The Marketing Mix (4Ps of Marketing)
E.J. McCarthy gave this concept in 1960.

29. The New Three Ps
Boom and Bitnerdeveloped the extended marketing mix
model over the years which they called “7Ps of marketing”
Processes
People
Physical Evidence

30. 30
The 4 Ps & 4Cs
Marketing
Mix
Product
Price Promotion
Place
Customer
Solution
Customer
Cost
Communication
Convenience
Product

31. 4Cs of Marketing
Lauterborn developed this concept.
This concept was developed from buyers’ perspective .
4Cs 4Ps
Customer needs and wants - Product
Cost - Price
Convenience - Place
Communication - Promotion