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UNIT 401 pRogram MARKETING

cbs mba

TOPIC 1: THE DISCIPLINE OF MARKETING

Click to edit Master subtitle style Business has only two functions: marketing and innovation - Milan Kundera, author of The Unbearable Lightness of Being

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INTRODUCTION
v Marketing is a process that matches the wants

& needs of customers with an organization's ability to meet them by providing appropriate goods & services

v Does this through exchange of value between

the organization & customer

v Provides important interface between the

organization & its customers

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UNIT OUTLINE
v Meaning of Marketing Philosophy v How marketing is a process of matching

organization's resources with customer needs & creating value for both

v Role of each of the elements of Marketing Mix v Marketing strategy & planning process v Apply various Marketing Analysis Tools &

Techniques to develop marketing objectives

How to conduct Marketing Audit

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UNIT OUTLINE
vImportance of developing
.contd

& sustaining competitive advantage

vApproaches to

segmenting markets, identifying target markets

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Objectives (Topic 1)
vMeaning of marketing as a philosophy vWhat is marketing & why it is needed vKey differences between marketing

concept & other business orientations

vFour characteristics of marketing-

oriented organization

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Objectives (Topic 1)
contd
vElements of marketing mix vKey differences between marketing

tangible goods & services

vKey differences between business-to-

business (B2B) & business-toconsumer (B2C) marketing

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Marketing Trends
Three key trends that have triggered the increased of marketing are:
Increasing Competition

Increasing consumer choice & consumer

power

Technology & access to information

Marketing: A Philosophy
vAccording to Philip Kotler:

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the 21st century marketing must be understood not in the old sense of making a sale telling & selling but in the new sense of creating value through interacting & working with the vA marketing philosophy is achieved through customer. a balanced, planned & integrated use of the marketing mix.

In

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What is Marketing?
vMarketing

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. Kotler

vExchange of value is

an important concept

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What is Marketing? contd

vTo be successful the organization

needs to:
Create Communicate Deliver Sustain

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What gets Marketed?

v Goods v Services v Events v Experiences v People v Places v Properties v Organizations v Information v Ideas

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What do Marketers do?

vBasic activities that marketers

engage in are:
Segmenting the market Targeting the various segments job Creating & communicating value The of marketing is to make sales superfluous - Peter Drucker

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Why do we need marketing?

v Shifting business paradigms

Buyers markets

Sellers markets

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Business Orientations in Marketing

vProduction Orientation or Production Concept vProduct Orientation or Product Concept vSales Orientation or Sales Concept vMarketing Orientation or Marketing Concept vSocietal Orientation or Societal Marketing

Concept

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Characteristics of MarketingOriented Organization

Customer Satisfaction is

a central focus
Products are defined by

customer needs
Marketing is integrated

Drill Bit

across the organization

Marketing Intelligence is

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Marketing as a matching process

THE MARKETING ENVIRONMENT

ORGANIZATION RESOURCES

MATCHING

CUSTOMER WANTS & NEEDS

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Marketing as a matching process

v Customer Wants & Needs Customer is the controlling factor in the process Customers buy things they perceive that they

contd

need or want

Need: A state of felt deprivation Want : The form that a human

need takes as shaped by culture and individual personality. People have narrow basic needs but almost unlimited wants.

Demands: Human wants that

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Marketing as a matching process

contd
vThe Organizations Resources Organizations ability to identify & satisfy

a particular consumer need by creating an offer

Resources include its skills, knowledge &

creative capacity, its reputation, tangible & intangible assets

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Marketing as a matching process

contd
vThe Marketing Environment
Economic Political Socio-cultural Technological Legal Natural environmental

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Marketing as a matching process

contd
vThe Matching Process

Includes all those activities that lead to customer purchases of the organizations products or take-up of its offerings For Profit & Not-For-Profit marketing A nonprofit organization markets the work it does or the cause it supports, instead of a product or service

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The marketing mix

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The marketing mix contd

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The marketing mix contd

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MARKETING GOODS
vGoods Marketing relates to selling physical

products.

Durable goods are physical goods used

over an extended time.

Nondurable goods are consumable

products made from materials other than metal, wood, and hard plastics.

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MARKETING SERVICES
vServices Marketing includes rented-goods

services, owned-goods services, and nongoods services.

Rented-Goods Services: leasing auto,

hotel room, office space, wedding items

Owned Goods Services: auto or

computer repairs, lawn care & home care

Non-goods Services: personal advice,

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MARKETING to consumers & businesses

v Business-to-business (B2B) market is

significantly larger than the consumer market.

v Business-to-business (B2B) marketing

Organizational sales and purchases of goods and services to support production of other products, to facilitate daily company operations, or for resale.
v Example: Caterpillar, which makes

construction and mining equipment.

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