The Field of MarketingChapter 1 Mrs. Saira Sajad
What is Marketing, anyway? Promotions Catalogues Advertising Coupons Billboards Sales Public relations E-commerce Service Delivery Shopping channels Retailing Sponsorships Pricing Direct mail Research Packaging
Definitions of Marketing “Marketing is the management process that identifies and satisfies customer requirements profitably”. The Chartered Institute of Marketing
Cont... “The process of creating consumer value in the form of goods, services, or ideas that can improve the consumer’s life.”
“The right product, in the right place, at the right time and at the right price”Adcock et al
“Marketing is the human activity directed at satisfying human needs and wants through an exchange process”Kotler 1980
“Marketing is a social and managerial process by which individuals and groups obtain what they want and need through creating, offering and exchanging products of value with others.”Kotler 1991
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.”
What is Marketing Marketing consists of the strategies and tactics used to identify, create and maintainsatisfying relationships with customers that result in value for both the customer and the marketer.
Definition Explanation... • Let’s examine the definition of marketing in a little more detail by looking at the key terms. • Strategies and Tactics- Strategies are best explained as the direction the marketing effort takes over some period of time while tactics are actionable steps or decisions made in order to follow the strategies established. For instance, if a company’s strategy is to begin selling its products in a new country, the tactics may involve the marketing decisions made to carry this out. • Identify - The most important marketing function involves efforts needed to gain knowledge of customers, competitors, and markets.
Cont… • Create- When marketers begin new ventures, such as building a new company, it is often based around something that is new (e.g., a new product, a new way of getting products to customers, a new advertising approach, etc.). But once something new is launched innovation does not end. Competitive pressure is continually felt by the marketer, who must respond by making new strategies and tactics that help the organization remain successful. For marketers, the cycle of creating something new never ends. • Maintain - Today’s marketers work hard to insure their customers return to purchase from them again and again.
Cont… • Satisfying Relationships - A key objective of marketing is to provide products and services that customers really want AND to make customers feel their contact with the marketer is helping build a good relationship between the two. In this way the customer becomes a partner in the transaction, not just a source of revenue for the marketer. • Value for Both Customer and Marketer - Value refers to the perception of benefits received for what someone must give up. For customers, value is most often measured by how much benefit they feel they are getting for their money. On the other side of the transaction, the marketer for a for-profit organization may measure value in terms of how much profit they make for the marketing efforts and resources expended. For a successful marketing effort to take place both the customer and the marketer must feel they are receiving something worth while in return for their efforts.
Marketing Involves having the Right Product available in the Right Place at the Right Time and making sure that the customer is Aware of the Product.
Simple Marketing System Communication Product/Service Producer/Seller Consumer Money Feedback
Price Product Macro Economic Conditions Promotion Placement
Marketing Mix (Marketing’s 4 P’s) • Product • Price • Placement • Promotion
Marketing Mix Constructing an effective marketing program consist the 4 P’s of marketing (Marketing Mix). • Product- It consists features, design, finishing, packaging and labeling etc. • Price- • Give a reasonable price to your product by checking the price of competitor’s products. • Price strategies may be value based pricing or cost based pricing.
Cont… • Placement- • Make the easy availability of your product possible to your target customers. • Distribution strategies may be direct distribution or indirect distribution etc • Promotion- Communication your product by selecting an effective means from promotional mix, which is directly accessing target customers like advertisement, personal selling etc.
Evolution of Marketing • Product Orientation: • Quality of a Product • Reasonable Price • Sales Orientation: • Proper Placement • Effective Promotion • Marketing Orientation: • Focus on all 4 P’s of Marketing • Also consider Macro Economic Conditions important for the success of marketing mix.
Marketing Management Orientation • Marketing management wants to design strategies that will build profitable relationships • There are five alternative concepts under which organization designs and carry out marketing strategies in different stages of evolution of marketing. • The production concept • The product concept • The selling concept • The marketing concept • The social marketing concept
Cont... • The production concept The idea that consumers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency.
Cont... • The product concept The idea that consumers will favor products that offer the most quality, performance, features and that the organization should therefore devote its energy to making continuous product improvement.
Cont... • The selling concept The idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort.
Cont... • Marketing Concept The marketing management philosophy that achieving organizational goal depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do.
Cont... • The social marketing concept The company should make good marketing decisions by considering consumers long run interests, and society long run interests.
Goods Services Experiences Events Persons Places Properties Organizations Information Ideas What Can Be Marketed?
Costs About 50% of total product costs are marketing costs. Careers About 33 to 45% of the work force hold marketing positions. Why Study Marketing ? Contributions to Society Marketing decisions affect the lives of individual consumers and society as a whole. Contributions to Individual Organizations Critical to the success of a firm.