Introduction to Marketing and Marketing philosophies Dr Bandara

Introduction to Marketing and Marketing philosophies Dr. Bandara Wanninayake Ph. D (TBU – Czech), MBA (Colombo), Bsc. Mktg (Sp) – USJ, Dip. In mktg (UK), Dip. In. Acco. Senior Lecturer Dept. of Marketing Management University of Kelaniya

Outline of Course Content

What is Marketing ?

Definitions of marketing • Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others (Kotler)

Definitions of marketing ‘The right product, in the right place, at the right time, and at the right price’ (Adcock et al) • Marketing is essentially about marshalling the resources of an organization so that they meet the changing needs of the customer on whom the organization depends (Palmer)

Definitions of marketing ‘Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably’ The Chartered Institute of Marketing

Miss conceptions • Selling vs. Marketing – Ice burg theory – Selling is superfluous

Selling vs. Marketing Selling 1. Broader process of creating, delivering and communicating customer values. 2. focus on developing and maintaining customer relationship 3. Focused on customer needs and wants. 4. Involving large no. of parties. 1. Process of transfer the ownership of products under predetermined financial value. 2. No such a relationship. 3. Focused on seller needs and wants. 4. Involving one buyer and seller

Marketing vs. Advertising • What • Why

Role of marketing • Marketing as a Philosophy – Focus on the effectiveness – Relating to the strategic management

Role of marketing • Marketing as a Business Function – Involve with different function of marketing – Focus on efficiency – Relating to operational management

Combination Operational Management Strategic Management Effective Ineffective Efficiency Thrive Die slowly In efficiency Survive Die quickly

Marketing Management is a process of planning, executing the conception, Pricing, promotion and distribution of ideas, goods, services to create exchangers that satisfy individual and organizational goals. - Philip Kotler -

The Marketing Management Process Whole-Company Strategic Management Planning Adjust Plans as Needed Control Marketing Plan(s) and Program Marketing Planning Implement Marketing Plan(s) and Program

Marketable Entities • • • Goods Services Experience Events Persons Places Properties Information Organization Ideas

Markets • What ? Marketing Communication Industry (Collection of Marketers) Market offerings Money Marketing Information Market (Collection of Buyers)

Markets • Types of Markets according to needs and characteristics of customers – Consumer market – Business market – Global market – Non profit and governmental market

Markets • Types of market according to customer commitment to purchase products – Potential Market – sufficient level of interest – Available Market – interest, income, access – Qualified Available Market- interest, income, access, qualification – Target Market- all the above conditions and company has selected to serve – Actual Market – people who purchase product continuously.

Core Concepts of Marketing 1. Segmentation and target market – What is segmentation – What is target market 2. Market place, space and meta market 3. Marketers and prospects

Core Concepts of Marketing 4. Needs, wants and demand Needs Wants 1. Common to all people 2. Limited 3. Primary 4. Naturally created 5. Cannot be changed from social forces 1. Different one person to another 2. Unlimited 3. Secondary 4. Created by marketers 5. Can be changed from social forces - Conditions to convert wants into demand

Core Concepts of Marketing 5. Products, bands and offerings 6. Value and Satisfaction - What is value What is Satisfaction

Core Concepts of Marketing 7. Exchange and transaction – Methods of satisfying needs – Necessary conditions for effective exchange 8. Relationship and network 9. Marketing Channels

Core Concepts of Marketing 10. Supply Chain 11. Competition 12. Marketing Environment 13. Marketing Programme

Marketing Programme • Marketing Program consists of numerous decisions on the mix of marketing tools to use • Marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in the target market. • Marketing mix is product level marketing strategy

Product level Marketing Strategy The Marketing Mix C

The Four Ps of the Marketing Mix Product Place C Price Promotion

Strategy Decision Areas Organized by the Four Ps Product variety Features design Quality Accessories size Instructions Warranty Packaging Branding Service Price List price Discounts Allowances Payment Period Credit terms Geographic Terms Place Channel coverage Assortments Locations Inventory Transporting and Storing Locations of Stores Promotion Advertising Sales Promotion Personal Selling Public Relations Direct Marketing Events and Experience

Elements of a Firm’s Marketing Program STP + Marketing Mix = Marketing Strategy + = Time-Related Details and Control Procedures Marketing Plan + Other Marketing Plans = A Firm’s Marketing Program

Marketing Philosophies • Production Concept • Product concept • Selling Concept • Marketing Concept • Societal Marketing Concept • Customer Marketing Concept • Holistic Marketing Concept

Production Concept • Assumption – customers will prefer products that are widely available and inexpensive • Appropriate in excess demand condition • Homogeneous products • Large volume and high availability • Focus on production efficiency Why production concept become failure

• Henry Ford, "Doesn't matter what color car you want, as long as it is black. ". . . • Dominant era: From mid C 19 th to early C 20 th, industrial revolution etc H e n r y F o r d

Product concept • Assumption – customers will favor to products that offer most quality, performance and innovative features. • Continues improvements of product quality and features • Differentiated products • High cost Why product concept become failure

Selling Concept Assumption - Customers will not buy enough of the organizational products without push them to buy organizational products. Therefore, Organization undertake aggressive selling and promotions

Marketing Concept Key to achieve organizational goals consists of the company being more effective than competitors in creating, delivering and communicating superior customer value to its chosen target market

Four Pillars of Marketing Concept • Target Market • Customer Needs – – – Stated needs Real needs Unstated needs Delight needs Secret needs • Integrated marketing • Profitability

Societal Marketing Concept • Societal Marketing Concept holds that the organization’s task is to determine the needs, wants and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in the way that preserves or enhances the consumers and societies well being.

Customer Concept Starting point Focus Starting point Means. Ends Focus Ends Individual Customer One to One Profitability through Customer Needs Marketing capturing customer share Wants loyalty and lifetime value

Total market orientation • A reactive market orientation • A proactive market orientation

Holistic Marketing Concept

Model for marketing Philosophies • Self Oriented – production, product and selling • Competitor Oriented – more attention on competitors and less attention on customers • Customer Oriented – customer concept • Market oriented – marketing concept – Customer orientation – Competitor orientation – Inter functional coordination

Customer orientation Model for marketing Philosophies Competitor orientation Low High Self Oriented Competitor Oriented Customer Oriented Market oriented

Evolving Views of Marketing’s Role in the Company • • • Marketing as an equal function Marketing as a more important function Marketing as the major function Customer as the controlling function and marketing as the integrative function.

Questions and Discussion