Principles of marketing mba 1st sem by babasab patil (karrisatte)

Principles of Marketing
Presented By:-
Babasab Patil
2/13/2014Babasabpatilfreepptmba.com1

Module : I
Introduction to Marketing
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What is Marketing?
Marketing is a social and managerial process by
which individuals and groups obtain what they
need and want through creating and
exchanging products and value with others

In other words:
Marketing is creating, Developing, Communicating and
Delivering goods and services to the ultimate customer
to satisfy their need and reaching organizational goal
profitably

Definition
According To AMA:
“Marketing is an organizational function and a
set of processes for creating, communicating,
and delivering value to customers and for
managing customer relationship in ways that
benefit the organization and stake-holders”

Importance of Marketing
“Change or Die”

Ex:

Ex:
 Sony Walkman, - completely changed the
way people listened to music.
 Gillette Mach III

Ex:
Tile: Search My Stuffs

Ex:
Apple iphone 5S and 5C

Ex:
Ford Ecosportz

What is Marketed?
 Goods--------------- ?
 Services------------- ?
 Events---------------
 Experiences ------- (Wonder la)
 Persons-------------- ?
 Places---------------- (Tourism)
 Properties----------- ?
 Organizations------ ? (ads in the CSR sense, Philips‟ tagline, „let‟s make things better‟
 Information---------- ?
 Ideas (Eg Charles Revson of Revlon said : in the
factories we make cosmetics, in the shops we sell hope)2/13/2014 Babasabpatilfreepptmba.com 13

Who Markets?
Marketers and Prospects

Who are the Key Customer Markets
 Consumer Market
 Business market
 Global Market
 Non Profit Organizations and
 Governmental Markets

How Business And Marketing Are Changing
Changing Technology
Globalization
Deregulation
Privatization
Customer Empowerment
Customization
Heightened Competition
Industry Convergence
Retail Transformation Disintermediation-Flipkart, eBay etc2/13/2014 Babasabpatilfreepptmba.com 16

Core Marketing Concepts
1. Needs, Wants, and Demands
2. Products and Services
3. Segmentation, Target Markets, and Positioning
4. Offerings and Brands
5. Value and Satisfaction
6. Marketing Channels
7. Supply Chain
8. Competition
9. Market Environment
10. Marketing Planning

Company Orientation Towards the
Marketplace
The Production Concept
The Product Concept
The Selling Concept
The Marketing Concept
The Societal Concept

Production concept :
 Concentration on high production efficiency and wide
distribution coverage
 Demand is assumed
 Sales taken for granted if product is made available
cheaply
 Seller‟s market – manufacturing takes precedence
over marketing

Product concept
 Focus on quality, performance, features
 Company concentrates on making good quality
products and improving them over time
 Emphasis changed from price to features or
value Still passive

Selling concept
 Left to itself, no sale, so aggressive selling
required
 Active engagement with the market
 Both soft sell and hard sell

Marketing concept :
 Key to achieving organizational goal is
matching needs between needs of target
market and effective and efficient delivery
 Satisfactory transaction

Holistic Marketing concept
 „Everything matters with marketing‟
 Development, design and implementation
of marketing programs, processes and
activities, their scope and interdependency

Holistic Marketing

Social Responsibility Marketing
 Marketing responsibility beyond the customer
to encompass society as a whole

What is
 Marketplaces
 Marketspaces
 Metamarkets

Shifts in Marketing Management
 Successful companies- change marketing with
changes in marketplace/ Marketspace
 From, „Marketing does Marketing‟ to „everyone does
Marketing‟
 From product to customer segmentation
 From in-house manufacturing to outsourcing
 Many vendors to a few biz partners
 From old marketing positions to discovering new
ones

 From tangible assets to intangible properties
 From brand-building thru advertising to brand-
building thru performance, value creation and
integrated communication
 From physical to online
 From mass to niche
 From profit to customer lifetime value

 From market share to customer share
 From local to „global‟
 From financial scorecard to marketing
scorecard
 From share-holders to stake-holders

Marketing Management Tasks
 Development Marketing Strategies and Plans
 Capturing Marketing Insights
 Connecting With Customer
 Building The Market Offering
 Delivering Value
 Commutation Value
 Creating Long-Term Growth

32
Selling Versus Marketing
Production
Capacities
Manufacturing
Products
Aggressive
Sales Efforts
Aim at
Customer
as a Target
Potential
Marketing
Opportunities
Production
Capabilities
Market
Products/
Services
Actual Wants/
Needs of
Potential
Customers
Marketing
Program
Customer
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33
Marketing Orientation
 Customer Focus - Understand needs, create value,
and serve to assure customer satisfaction, with
inter-functional teamwork
 Competitor Focus - Seek advantages relative to
competitors, monitor behavior and respond to
strategic moves (foes or friends)
 Profit Focus - Manage to assure short- and long-
term profitability

34
Marketing Process
Define
Problem
Analyze
Market
(Environment,
Competition,
Strength,
Weakness,
Needs/Interests
of Defining
Segments
Select Segment (s):
Profitability, Fit with
Company/Product/Market
Develop
Marketing
Program
(Set strategies
for Product,
Pricing,
Promotion and
Distribution)
Improve
Program
Evaluate
Program

Industry
(a collection
of sellers)
Market
(a collection
of Buyers)
Goods/services
Money
Communication
Information2/13/2014Babasabpatilfreepptmba.com 36

Customers
Front-line people
Middle Management
Top
Management
Traditional Organization Chart

Customer-Oriented Organization Chart
Customers
Front-line people
Middle management
Top
manage-
ment

Relationship marketing
Enduring relationships with all key parties,- suppliers,
customers, distributors and other partners
Not just CRM but PRM
Objective,- to build a unique asset called marketing
network, profits will follow

Supply chain
1.Raw materials to components to finished product to buyer
2. Supply chain represents a value delivery system
3. Each company on the value chain captures only a small portion
of the value generated by the supply chain

Competition
1. Others with similar rival offerings
2. Substitutes

Marketing Environment

Common Marketing Problems

How can we measure the effectiveness of an add
campaign, of Public Relations, of a promotion, etc…?

How can we satisfy our customers and build brand loyalty?

Babasabpatilfreepptm
ba.com
How can differentiate our offer from our
competition?
2/13/2014 46

How should we react to competitors?

How can we identify and choose profitable market
segments?

Maslow’s Hierarchy of needs

Thank you

Principles of marketing mba 1st sem by babasab patil (karrisatte)

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