MARKETING MANAGEMENT BASIC CONCEPTS WHAT IS MARKETING Marketing

MARKETING MANAGEMENT BASIC CONCEPTS

WHAT IS MARKETING ? Marketing is a economic process by which goods and services are exchanged between the producers and consumers and their values is determined in terms of money prices.

Needs , wants and demands Needs are basic human requirements people need food , air, water clothing and shelter. Marketing do not create the needs. Infact they influence the demand by making the product appropriate , attractive, affordable.

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

Wants Needs become wants they are directed to specific objects that might satisfy their needs.

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

Demands are wants for products that are bagged by an ability and willingness to buy them.

This is Demand Wants Buying Power “Demand”

Products “A product is anything that can be offered to satisfy a need or want”

Product as an idea Products do not have to be physical objects. Here the “product” is an idea—protecting animals.

Markets Consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy the need or want.

Marketplace, Marketspace The Marketplace is physical, as when one goes for shopping in a store. Marketspace is digital, as when one goes shopping on the internet.

Available Market (who have interest, income and access to a particular offer) Target Market or Served Market (a co. can go for serving whole available market or can concentrate on certain segments) Penetrated Market (set of buyers who are buying the co. ’s product)

Marketing is a economic process by which goods and services are exchanged between the producers and consumers and their values is determined in terms of money prices. “Marketing is managing profitable customer relationship”

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.

Relationship Marketing The practice of building long-term satisfying relations with key parties-such as customers, suppliers , distributors- in order to retain their long term preference and business

Imp Note If you are in marketing field then you have to see from the point of view of final result. i. e, from the point of view of customer.

Selling vs. Marketing Selling focuses on the needs of the seller, marketing on the needs of the buyer. “Selling is nothing but converting product into cash”. Marketing includes creating , delivering & finally consuming it. Selling is “push”, Marketing is “pull”.

FIVE CONCEPTS The Production Concept Product Concept The Selling Concept The Marketing Concept The Societal Marketing Concept

Production Concept Consumers will favour those products that are widely available and low in cost. Therefore increase production and cut down costs.

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.

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.

4 PILLARS The marketing concept rests on 4 pillars, namely 1. Target Market 2. Customer Needs 3. Integrated marketing 4. Profitability

Marketing and Sales Concepts Contrasted

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. Societal Marketing = Consumer Satisfaction + Company ‘ s Profits + Society’s well being.

MARKETING MIX It is defined as the set of marketing tools that the firm uses to pursue its marketing objectives in the target market. Which includes Product Price Promotion Place All these are also known as 4 p’s of marketing.

PRODUCT Variety Quality Design Features Brand name Packaging Sizes Warranties

PRICE List price Discounts Allowances Payment period Credit terms

PROMOTION Sales promotion Advertersing

PLACE Channels Coverage Locations Invertory transport

4 C’s We also have 4 c’s they are Customer needs/wants Cost to customer Convenience communication

4 P’s vs. 4 C’s Product – Customer needs/wants Price – Cost to customer Place – Convenience Promotion – communication.

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