MKT Week 2 Introduction Cont

Welcome
www.bothouniversity.com
WEEK 2
INTRODUCTION TO
MARKETING
“ Cont”
CHAPTER ONE
Objectives
• At the end of the lesson we will be able to

• Identify the different marketing concepts
• Analyze the new marketing realities
• Explore capabilities created by current societal forces.
• Explain marketing management tasks
Marketing mix
Marketing mix is the set of controllable tactical marketing tools—product, price, place, and promotion—
that the firm blends to produce the response it wants in the target market
• 7Ps – Price, Product, Promotion, Place, People, Process, Physical Environment
• Traditional 4Ps were extended to 7Ps encompass growth of service industry
Marketing mix elements
Marketing Mix and the Customer
Four Ps Four Cs
 Product  Customer solution
 Price  Customer cost
 Place  Convenience
 Promotion  Communication
Traditional 4Ps
Pricing Strategy
Importance of:
Product
• knowing the market Methods used to
• elasticity improve/differentiate
• keeping an eye the product and increase sales or
on rivals target sales more effectively to gain
a competitive advantage
Promotion Place
The means by which products and services get from producer
Strategies to consumer and where they can be accessed by the consumer
to make the consumer aware of the
existence of a product
or service
NOT just advertising
Additional 3Ps
Determinants of the Marketing Mix
•Blend of the mix depends upon:

•Marketing objectives
•Type of product
•Target market
•Market structure
•Rivals’ behaviour
•Global issues – culture/religion, etc.
•Marketing position
•Product portfolio
• Product lifecycle
• Boston Matrix
NEW MARKETING REALITIES
The marketplace isn’t what it used to be because of:
 Changing technology
 Globalization
 Deregulation
 Privatization
 Empowerment
 Customization
 Convergence
 Disintermediation
Capabilities created by societal forces
• Marketers can use the Internet as a powerful information and sales channel
• Marketers can collect fuller and richer information about markets, customers, prospects and competitors
• Marketers can tap into social media to amplify their brand message
• Marketers can facilitate and speed external communication among customers
Capabilities created by societal Forces (Cont)
• Companies can make and sell individually differentiated goods

• Companies can improve purchasing, recruiting, training, and internal and external
communications
• Marketers can send ads, coupons, samples, and information to customers who have requested
them or given the company permission to send them
• Companies can improve their cost efficiency by skillful use of the
Internet
Core Marketing Concepts
The company orientation towards marketplace deals with the concepts which a company may apply while
targeting a market. These are:
• Production
• Product
• Selling
• Marketing
• Societal marketing concepts
Production Concept
The philosophy that holds that

consumers will favor products
that are available and highly
affordable and that management
should therefore focus on
improving production and
distribution efficiency.
Features of production concept
•
1. Production Oriented
The production concept gives emphasis to mass production and mass selling.
2. High Production Efficiency

The production concept believes that high production efficiency can be achieved through the use of
modern technology, standardization and large-scale production.
3. Low Price
The production concept believes that price of products should be cut down to attract customers.
4. Wide Distribution
Arrangement for wide sales and distribution should be made to make the product available everywhere.
Product Concept
• The philosophy that consumers will favor products that offer the most quality, performance, and
innovative features.
•
This approach works best in a seller’s market , where demand is greater than
supply.
•May lead to marketing myopia.
features of product orientation
Emphasis On Product Quality

Product concept of marketing gives emphasis to produce quality goods in large quantity.
2. Reasonable Price
The product concept believes that no hard effort needs to sell quality products at reasonable price.
3. No Concern With Customers' Need

The product concept does not care for customers' needs, wants or interest, preference etc. rather it focuses
attention on producing quality and durable goods at lower cost.
4. Quality Improvement
The product concept believes that quality product may lead to marketing myopia
Selling Concept
• The idea that consumers will not buy enough of the organization’s products unless the organization
undertakes a large – scale selling and promotion effort.
•
Also known as the hard sell, this approach is necessary in times of a buyer’s
market , where product availability exceeds demand.
features of selling orientaion
Characteristics
Output “Sold” to Consumers
Looks at Individual, Single Consumer
Seeks Sales Rather than Profit
Short-Term Goal Orientation
Concerned with Current Inventory Reduction
Narrower View of Consumer Needs
Little Adaptation to Environment
Informal Planning and Feedback
Marketing Concept
• Holds that achieving organizational goals depends on determining the needs and wants of target markets
and delivering the desired satisfactions more effectively and efficiently than competitors do.
features of Marketing Concept
• Consumer-Oriented
• Stresses Research and Consumer Analysis
• Looks at Groups of Consumers
• Profit-Oriented
• Directed to Long-Range Goals
• Two-Way Interactive
Process
• Appropriate Adaptation to Marketing Environment
• Broad View of Consumer Needs
• Integrated Planning and Feedback
The selling and Marketing Concepts Contrasted
Profits through
Market Customer Integrated customer
needs marketing
satisfaction
The marketing concept
Societal Marketing Concept
• The idea that the organization 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 the consumer’s and society’s well – being.
Characteristics of Societal Marketing Concept
• Social Responsibility Orientation

A business firm should bear social responsibility to increase consumers' interest and social welfare.
2. Customer Need Satisfaction

The societal marketing concept believes in supplying better quality goods than those of competitors to
satisfy the needs of target customers.
3. Integrated Marketing Efforts

The societal marketing concept gives emphasis to integration and coordination among all the
organizational activities and efforts.
4. Profit Through Social Well-being And Consumers' Welfare

Proper harmony is compulsory among social well-being, supply of customers' needs, profit earning and
other objectives of any business organization. In other words, societal marketing concept believes that
profit can be earned only through proper care for the interest and well being of the society, consumers
and firm itself
Three Considerations Underlying The Societal Marketing
Marketing Management Tasks
 Shaping market
offerings
 Delivering value
 Communicating
value
 Creating long-term
growth
BLACKBOARD QUESTIONS
• With the aid of examples in Botswana, compare and the traditional marketing concepts and the 21st
century marketing concepts .
• Explain why it is necessary for marketers to pursue marketing orientation rather than product
orientation.,
• In line with the product concept, discuss the concept of marketing myopia.

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Welcome

• At the end of the lesson we will be able to

•Blend of the mix depends upon:

The marketplace isn’t what it used to be because of:

• Companies can make and sell individually differentiated goods

The philosophy that holds that

2. High Production Efficiency

•May lead to marketing myopia.

Emphasis On Product Quality

3. No Concern With Customers' Need

The marketing concept

• Social Responsibility Orientation

2. Customer Need Satisfaction

3. Integrated Marketing Efforts

4. Profit Through Social Well-being And Consumers' Welfare

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