Marketing Concepts What is Marketing Simple Definition Marketing

Marketing Concepts

What is Marketing § Simple Definition: Marketing is managing profitable customer relationships. Goals: § Attract new customers by promising superior value. § Keep and grow current customers by delivering satisfaction.

The AMA managerial definition: “Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. ”

Marketing Defined § Kotler’s social definition: “Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. ”

This is a Need § Needs - state of felt deprivation including physical, social, and individual needs.

Maslow’s Hierarchy of Needs

This is a Wants – Needs become wants when they are directed to specific objects that might satisfy the need.

This is Demand Wants Buying Power “Demand”

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.

What Satisfies Consumers’ Needs and Wants? Products Anything that can be Offered to a Market to Satisfy a Need or Want § Persons Places Information Experiences Organizations Ideas Events Services Properties Activity or Benefit Offered for Sale That is Essentially Intangible and Does Not Result in the Ownership of Anything

Core Marketing Concepts § Target markets & segmentation – Differences in needs, behavior, demographics or psychographics are used to identify segments. – The segment served by the firm is called the target market. – The market offering is customized to the needs of the target market.

Relationship Marketing § Relationship marketing aims to build long-term mutually satisfying relations with key parties, which ultimately results in marketing network between the company and its supporting stakeholders.

Relationship Marketing Four key constituents for marketing are: § Customer § Marketing Partners ( channel, suppliers, distributors, dealers and agencies) § Employee § Members of financial community (shareholders, investors) The development of strong relationships requires an understanding of the capabilities and resources of different groups, as well as their needs, goals and desires.

Marketing Mix

7 P’s in Services Marketing 3 additional P’s in services marketing § People: Any person coming into contact with customers can have an impact on overall satisfaction. § Process: Process(es) involved in providing a service and the behaviour of people, which can be crucial to customer satisfaction. § Physical evidence

Matching Mix Concepts (A & S) § 4 A’s Acceptability Affordable Accessible Awareness 4 S’s Solution Sense Spread Supports

Marketing Channels. To reach Target market § Communication channels § Distribution channels § Service channels Deliver messages to and receive messages from target buyers. Includes traditional media, non-verbal communication, and store atmospherics.

Marketing Channels § Communication channels § Distribution channels § Service channels Display or deliver the physical products or services to the buyer / user. n

Marketing Channels § Communication channels § Distribution channels § Service channels Carry out transactions with potential buyers by facilitating the transaction. n

Marketing Management Philosophies Societal Marketing Concept Selling Concept Production Concept

Production Concept § Consumers will favour those products that are widely available and low in cost. § Therefore increase production and cut down costs. § And build profit through volume.

The Production Concept A customer can have any colour he likes for his car so long as it's black’ Henry Ford

Product Concept § Consumers will favour those products that offer the most quality, performance, or innovative features. § Therefore, improve quality, performance and features. § This would lead to increased sales and profits.

Marketing Myopia § Management’s failure to recognize a company’s scope of business. § Sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products. § They focus on the “wants” and lose sight of the “needs. ”

The Selling Concept § Consumers , if left alone , will not buy enough of company’s products. § Therefore, promote sales aggressively. § And, build profit through quick turnover.

The Marketing Concept § The key to achieving organizational goals consist in determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors. § And build profit through customer satisfaction and loyalty.

The Societal Marketing Concept § The 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 satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well being. - It addresses conflicts between consumer’s and firm’s short run wants and long term welfare.

Societal Marketing Concept

The Holistic Marketing Concept § It is based on the development, design and implementation of marketing programmes, processes and activities that recognises their breadth and interdependencies. Four components are: § Relationship marketing § Integrated marketing § Internal marketing § Social responsibility marketing

Marketing deptt Senior Mgt Other Deptt Communications Products & Channels Services Internal Marketing Integrated marketing Holistic Marketing Social Responsibility Marketing Ethics Environment Relationship Marketing Community Legal Customers Partners Channels

Marketing System

Marketing System § Marketing is concerned with the flow of goods and services from the points of production to the points of consumption. There is a systematic arrangement of these functions of marketing to move the goods and services to the needy persons. § This system is essential to the creation of time, place and possession utilities.

Marketing System § A dynamic marketing system must be willing to undertake the following specific activities : 1. Define market area. 2. Research consumer wants and needs. 3. Develop and redevelop product / service. 4. Select, train, motivate and control human resources. 5. Develop sales approach and advertising support.