Scope of Marketing and types of demands slides

Scope of Marketing and types of demands class slides

1. SCOPE OF MARKETING Marketing plays role in building strong brands and a loyal customer base , intangible assets that contribute heavily to the value of a firm. Marketing is all about identifying and meeting human and social needs. “meeting needs profitably.”

2. Scope of Marketing Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers , clients, partners, and society at large. Marketing management i s the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

3. What is marketed Marketers market 10 main types of entities: goods, services, events, experiences, persons, places, properties, organizations, information, and ideas

4. Who Markets A marketer is someone who seeks a response, attention , a purchase, a vote, a donation—from another party, called the prospect . If two parties are seeking to sell something to each other, we call them both marketers.

5. Demands Marketers are skilled at stimulating demand for their products. They seek demand to meet the organization’s objectives. Eight demand states are possible: Negative demand —Consumers dislike the product and may even pay to avoid it. The  product  might be beneficial but the  customer  does not want it. (doctors, pathology) try to create awareness rather than promotion Nonexistent demand —Consumers may be unaware of or uninterested in the product.(family planning, insurance for people in rural areas) Latent demand — Customers are not satisfied with the existing products, you need to know what actually they want or in near future what would be the expectations of the customers from that product, Latent demand is, as the name suggests, a demand which the customer realizes later. Thus, while buying the product, he might not desire some  features . But later on, he might think about those features and buy the product. (smart phone) always get feedback Reason of latent demand: not having enough money; lack of availability, lack of knowledge

6. 4. Declining demand —Consumers begin to buy the product less frequently or not at all. 5. Irregular demand —Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis. 6. Full demand —Consumers are adequately buying all products put into the marketplace. Full demand shows that the  demand  is meeting the  supply  potential of the company. The marketing challenge in this type of demand is to maintain the same level of interest in the product and the company.

7. 7. Overfull demand —Overfull demands happen when the companies manufacturing capacity is limited but the demand is more than the supply. This can be observed in the cement industry occasionally. Many companies use de-marketing techniques to counter act overfull demands. This is because if the company keeps marketing, but it is not able to supply the material, then the company might suffer badly in  brand equity . 8. Unwholesome demand —Consumers may be attracted to products that have undesirable social consequences. So they unable to meet it.

8. Whom to market Traditionally, a market was a physical place where buyers and sellers gathered to buy and sell goods. Economists describe a market as a collection of buyers and sellers who transact over a particular product. Five basic economic markets and their connecting flows are shown in Figure . Manufacturers go to resource markets (raw material markets, labor markets, money markets) , buy resources and turn them into goods and services, and sell finished products to intermediaries , who sell them to consumers . Consumers sell their labor and receive money with which they pay for goods and services. The government collects tax revenues to buy goods from resource, manufacturer, and intermediary markets and uses these goods and services to provide public services. Each nation’s economy, and the global economy, consists of interacting sets of markets linked through exchange processes.

9. Structure of flow in a modern exchange economy

10. Marketing system for flow of goods. In Marketing ; Marketers use the term market to cover various groupings of customers. They view sellers as constituting the industry and buyers as constituting the market . Sellers and buyers are connected by four flows. Sellers send goods and services and communications such as ads and direct mail to the market; in return they receive money and information such as customer attitudes and sales data. The inner loop shows an exchange of money for goods and services; the outer loop shows an exchange of information .

11. Simple Marketing System

12. Key customer Markets Consumer Markets Companies selling mass consumer goods and services such as juices, cosmetics. They spend a great deal of time and establishing a strong brand image by developing a superior product and packaging, ensuring its availability, and backing it with engaging communications and reliable service to end consumers ( who consume them). Business Markets Companies selling business goods and services often face well-informed professional buyers skilled at evaluating competitive offerings . Business buyers buy goods to make or resell a product to others at a profit. Business marketers must demonstrate how their products will help achieve higher revenue or lower costs. Advertising and the sales force can play a role, but the price , and the company’s reputation may play a greater one.

13. Key Customer Markets Global Markets Companies in the global marketplace must decide which countries to enter; how to enter each as an exporter, licenser, joint venture partner (A joint venture is a temporary partnership that two companies form to gain mutual benefits by sharing costs, risks and rewards. You can use a joint venture partnership to speed up the expansion of your business by gaining access to scarce skills or entry into new markets) contract manufacturer. how to adapt product and service features to each country; how to price products in different countries; and how to design communications for different cultures. How to advertise; They face different requirements for buying and advertising their products such as cultural, language, legal and political differences; and currency fluctuations.

14. Merger: A merger is an arrangement to join two existing organizations into one new organization. Most mergers join two existing organizations into one named organization. Mergers are connected where the ownership of organization are exchanged or consolidated. From a legitimate perspective, a merger is a lawful union of two companies into one company. (Al- baraqa bank + Burj Bank = Al- baraqa bank) Merger implies the combination of at least two organizations to frame another organization. Acquisition : A takeover or acquisition is the buy of one organization or business by another organization or different business entity. Acquisition implies that one organization buys a business of other organization . Mobilink+warid Joint venture: A joint venture is an entity made by at least two gatherings, by and large described by shared possession, returns, risk and administration. Organizations normally seek after joint ventures for the given four reasons: to get to another market, especially developing markets; to pick up scale efficiencies by consolidating resources; to low risk for real speculations; or to get to skills. In a joint venture, the two organizations will independently exist all alone, and another different entity might be shaped for the specific objective.

15. Nonprofit and Governmental Market: Markets Companies selling to nonprofit organizations with limited purchasing power such as churches, hospitals, universities, charitable organizations, and government agencies need to price carefully .