unit-1-fundamentals-of-Marketing.mostpptx

Covers all the topics on the Fundamentals of marketing

1. Fundamentals of Marketing

2. What is Marketing? AMA formal definition of Marketing: Marketing is an organizational function and a set of processes for creating , communicating, and delivering value to customer and for managing customer relationships in ways that benefit the organization and its stakeholders. Marketing deals with identifying and meeting human and social needs profitably.

3. Definition by Philip Kotler “The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.”

4. C ore concepts of Marketing Needs: basic requirement that an individual wish to satisfy. Basic part of human make-up. M arketer cannot create need. D o not differ based on culture, status and personal factor. Wants: Desire for a specific product or service to satisfy the inderlying need. It is a specific satisfier of some needs. Differes from person to person. S haped by personal, economical, social and cultural forces.

5. Demand: when want is backed by willingness to pay and purchasing power , it is called demand. Marketers are interested in demand rather than just nees and wants. M arketing is all about demand management and as a marketer one need to create demand by using various marketing tools . Product: important element of marketing mix. C an be tangible and intangible. I t includes packaging, colour, price, quality, brand and even seller’s reputation.

6. Exchange: Obtaining somoting by giving something in return. It is a heart of marketing. I f exchange does ot take place, there will be inventory pile up badly affecting the whole mechanism of production. Transaction: deal between buyer and seller. May occur interms of cash or credit. Distribution: involves all the activities the company undertake to make the product accesible to the target customer. “The other half of marketing.” Fulfills the gap between producer and consumer. Marketing channel: Communication channel(newspaper, magazine, TV, radio,billboards, posters, mail, telephone etc.) Communication is also done through the look of the stores and web sites and other medias adding diaalogue channels such as email, blogs, text messages etc.

7. Relationship marketing Market: Where buying and selling takes place. Need to have need, demand, product, willing to pay, buyer and seller. Marketer: . A ny channel participant who tries to fulfill the gap between point of production to the point of consumption. C reates only place, time, owership and awareness utility. T hey are an intermediary between the manufacturers and final consumer. Prospects: Marketer are there because prospects are there. T hey are the one who are ready and willing to buy. Competition: all the actual and potential rivals offereing s and substitutes a buyer might consider.

8. Marketing Mix: termed by professor Neil Borden of Harvard Business School. It is a set of marketing tools that the firm uses to pursue its marketing objectives in the target market. It is a blend of 4Ps which as expanded to 7Ps for service. 3Ps were added by Philip Kotler and Kevin Lane Keller offereing modern marketing management. Marketing environment:

9. Marketing Process

10. Setting objectives: D esigning a successful marketing process is to ensure that the company’s mission and goals are clearly stated. M arketing team must connect their work with company’s overall success. Situation Analysis: Market analysis: obtain information about your total addressable market, potential growth and evolving trends. Competitive analysis: conducted to discover the products already available in the market. SWOT( Strength, Weakness, Opportunity, Threat ) analysis and 5C’s ( company, collaborators, competitions, climate, customers ) analysis. Steps of Marketing Process

11. Develop a marketing strategy Define target audience Set SMART marketing goals (Smart, Measurable, Attainable, Relevant, Time bound) Define marketing channels Develop a marketing mix Product Price Place Promotion Implement your marketing process I mplement marketing programs. R each out to the prospects with the marketing materials and converting them to the existing customers. Analyze the results A nalyze the result, take note of the progress, and make changes when necessary.

12. Evolution of Marketing concepts Production concept Product concept Holistic concept Selling concept Modern marketing concept Societal concept Consumers will buy products that are widely available and low in cost. Consumers will buy products that offer the best quality or performance. Organization must undertake aggressive selling efforts to make customer buy Focus on customer needs. The philosophy is “we make what we can sell. ” Marketing should act responsibly towards consumers and society. Integrates the new marketing concept with the societal marketing concept. Highlights relationship as well as internal marketing.

13. Holistic marketing concept

14. Internal marketing – Marketing between all the departments in an organization. Make all managers and employees customer oriented. Relationship marketing – Building a better relationship with your customers, internal as well as end customers is beneficial for holistic marketing. Integrated marketing – Products, services and marketing should work hand in hand towards to growth of the organization.

15. Marketing management The art of choosing target markets and building profitable relationship with them is marketing management. It simply is customer management and demand management . The aim of marketing manager is to find, attract, keep and grow target customer by creating, delivering and communicating superior customer value. What customer will we serve? How will we serve?

16. Marketing challenges of 21 st century Intense competition Empowered customers Changing habits of customer Changing media habit Creating customer database Adoption of relationship marketing Outsourcing Brand differentiation Holistic approach

17. Firms’ response to cope with the challenges Adoption of relationship marketing Integrated communication Innovative culture Mass customization Digital marketing

18. Relationship marketing It is a facet of customer relationship management(CRM) that focuses on customer loyalty and long term customer engagement rather than short term customer acquisition and individual sales. Extends communication beyond advertising and sales. With the growth of IT and mobile platform relationship marketing has become much easier for collaboration with customer.

19. Benefits of relationship marketing Long-term customers tend to be less inclined to switch, and also tend to be less price sensitive. Long-term customer may initiate free word of mouth promotions and referrals. They are more likely to purchase related product from you. Increased customer loyalty makes employee’s job easier and more satisfying.

20. Green/Eco marketing It is the marketing of product that are presumed to be environmentally preferable to others. Green marketing aims at focusing on sustainable development. i.e. meeting the need of present generation without compromising the ability of the future generation in meeting their needs. Reducing production waste, reducing energy cost, biodegradable food packaging, water conservation, recycling…

21. E- marketing Process of marketing a brand using the internet. Means to reach millions of people at a time.

22. Marketing Mix The set of controllable tactical marketing tools- Product, Price, Place, Promotion (4Ps) that firm blends to pursue its objective in the market.

23. Product Marketing Mix & Service Marketing Mix(7Ps)

24. Marketing mix 4Ps