Principles of Marketing Fall 2013 Lecture 2

1. Principles of Marketing Fall 2013 Lecture 2 Instructor : RAZA ILLAHE Lahore Leads University

2. Definition of Marketing • American Marketing Association “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offering that have value for customers, clients, partners, and society at large.” (A.M.A,2007)

3. Definition of Marketing Chartered Institute of Marketing (CIM) "Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably" (CIM,2008) It lasted for around 30 years ,until…..

4. New Definition by CIM • 'The strategic business function that creates value by stimulating, facilitating and fulfilling customer demand. It does this by building brands, nurturing innovation, developing relationships, creating good customer service and communicating benefits. By operating customer-centrically, marketing brings positive return on investment, satisfies shareholders and stake-holders from business and the community, and contributes to positive behavioural change and a sustainable business future.'

5. Evolution of Marketing • 1. Production Era -------late 1800s • 2. Sales era 1930s------1950s • 3. Marketing era 1950s------1970s • 4. Societal era 1970s------1990s • 5. The future --------------?

6. Marketing Management Philosophies • Production Concept The production concept holds that consumer will favour products that are available and highly affordable, and that management should therefore focus on improving production and distribution efficiency. This concept is one of the oldest philosophies that guide sellers. Example : Ford Model – T

7. . • The Product Concept The idea that consumers will favour products that offer the most quality, performance and features, and that the organisation should therefore devote its energy to making continuous product improvements. Example : Marketing Myopia

8. . • The Selling Concept The idea that consumers will not buy enough of the organisation’s products unless the organisation undertakes a large-scale selling and promotion effort. Example : Sales promotion,price reductions,Buy one get one free

9. . • The Marketing Concept The marketing management philosophy which holds that achieving organisational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do.

10. Comparing Selling and Marketing Concepts .

11. . • The Societal Concept The idea that the organisation should determine the needs, wants and interests of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves both the consumer’s and society’s well-being. Examples : Natwest- Community Bond Capital Radio –Floodlight magazine – Further and Part- time education opportunities

12. Needs,Wants and Demans • Human Need ‘A state of felt deprivation’ • look for an object that will satisfy it; or • Try to reduce the need.

13. Human Want The form that a human need takes as shaped by culture and individual personality.

14. Demand Human wants that are backed by buying power.

15. Creating Demand • Sony’s Example of Innovation • Mobile Phones • Apple – Ipod, Ipad • Telling them that they need it !

16. What do we Market? • Goods • Services • Events • Experiences • Persons • Places • Properties • Organisation • Information • Ideas EXAMPLES !