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Unit 1 Marketing Fundammentals 2023
Unit 1 Marketing Fundammentals 2023
Unit 1 Marketing Fundammentals 2023
Marketing Fundamentals 1
Why Study Marketing?
Important
Important Important
Important
to
to to
to
Society
Society Business
Business
Good
Good Role
Roleinin
Career
Career Everyday
Everyday
Opportunities
Opportunities Life
Life
+
Marketing affects you every day!
What is Marketing
Marketing is about identifying and meeting human and social needs in a way that
harmonizes with the goals of the organization.
The process of delivering the right products or services at the right place, right
time, and right price.
Marketing Fundamentals 3
• Selling is not the most important part of marketing! Selling is
only the tip of the marketing iceberg.
• But the aim of marketing is to make selling superfluous.
• The aim of marketing is to know and understand the customer
so well that the product or service fits and sells itself.
• Ideally, marketing should result in a customer who is ready to
buy.
Marketing Fundamentals 5
What is Marketed? Market Offerings
10 main types of entities
• Goods • Places
• Services • Properties
• Events • Organizations
• Experiences • Information
• Persons • Ideas
6
Marketing System
• Example: Many people want a Rolls Royce but are they able to buy the
one.
• Value is the difference between the benefits that the customer gains from owning
or using a product and the costs of obtaining the product.
• Conditions of exchange
a) There must be at least two parties.
b) Each party has something that might be of value to the other party.
c) Each party is free to accept or reject the exchange offer.
d) Each party believes it is appropriate or desirable to deal with the other party.
Production Concept:
•One of the oldest concepts in business
•It holds that consumers prefer products that are widely available and inexpensive.
•Managers of production-oriented businesses concentrate on achieving high
production efficiency, low costs, and mass distribution.
•Focus on producing great volumes at low cost, sell at low cost
•Focuses on internal capabilities of a firm rather than the desire and needs of market
place.
•Useful in some situations but it can lead to marketing myopia
•Company loose sight of real objectives- satisfying customer needs and building
customer relationships.
May 24, 2024 Marketing Fundamentals 17
Marketing Philosophy
Product Concepts:
•Product excellence is supreme thing.
•Obsessed with quality and features of product more the consumers and their needs.
•It holds the consumer will favor products that offer the most in quality, performance
and innovative features.
•Focus on making continuous product improvements.
•It can also lead to marketing myopia.
•Product should be properly priced, be customer oriented and properly marketed.
Selling Concept:
•It holds that consumers will not buy enough of the firm’s product unless it undertakes
a large scale selling and promotion efforts.
•This concept is typically practiced with unsought goods which buyers do not normally
think of buying, like insurance, umbrella, encyclopedias, fire extinguisher, reference
book etc.
•It focuses on creating sales transactions rather than building long term profitable
customer relationships.
•The aim is often to sell what company make rather than making what the market
wants.
Marketing Concepts:
•This concepts holds that achieving organizational goals depends on knowing the
needs and wants of target markets and delivering the desired satisfactions better
than competitors do.
•Under this concept customer focus and value are paths to sales and profits.
Social Marketing concept holds that the organization should deliver the desired
satisfaction in a way that improves consumers’ and society’s well being.
Examples:
“ Say no to drugs” or “ Exercise more and eat better for good health”.
Family planning campaign in India
Stop smoking /Alcohol, Pulse Polio campaign, Preservation of environment, etc.
Sunfeast promotion for girl child , CRY efforts for poor children.
• Marketers must create prosperity (wealth) among all these constituents and balance
the returns to all key stakeholders.
• A marketer might selectively employ television, radio, and print advertising, public
relations events, and website communications etc., so that each contributes on its
own and improves the effectiveness of the others.
• Smart marketers recognize that marketing activities within the company can be as
important—or even more important— than those directed outside the company.
• It makes no sense to promise excellent service before the company’s staff is ready to
provide it.
• Top marketers are increasingly going beyond sales revenue to examine the marketing
scorecard and interpret what is happening to market share, customer loss rate,
customer satisfaction, product quality, and other measures.
• They are also considering the legal, ethical, social, and environmental effects of
marketing activities and programs.
• Sales refers to the exchange of goods or services for an amount of money or its
equivalent in kind.
Sales Versus Marketing
33
Marketing Myopia
Business Vision
Vision guides a business and its intentions for the future. A vision is
where a company expect to be in future.
“Our vision is to create a better every-day life for many people.” IKEA
• A mission statement is a short statement of why an organization exists, what
its overall goal is, what kind of product or service it provides, its primary
customers or market, and its geographical region of operation.
39
Conducting a Situation Analysis
Strengths
Strengths--things
thingsthe
thecompany
companydoes
doeswell.
well. Eg,
Eg,
production
productioncost,
cost,marketing
marketingskills,
skills,financial
financialresources,
resources,
SS company
companyor orbrand
brandimage,
image, employee
employeecapability
capabilityand
and
available
availabletechnology
technology. .
Internal
Weaknesses
Weaknesses--things
thingsthe
thecompany
company
W
W does
doesnot
notdo
dowell.
well.
Opportunities
Opportunities--conditions
conditionsininthe
theexternal
external
OO environment
environmentthat
thatfavor
favorstrengths.
strengths.
External
Threats
Threats--conditions
conditionsininthe
theexternal
external
TT environment
environmentthatthatdo
donot
notrelate
relateto
toexisting
existing
strengths
strengthsororfavor
favorareas
areasofofcurrent
current
weakness.
weakness.
Components of a SWOT Analysis
Examining internal strengths and weaknesses.
Focus on organizational resources:
• Production costs
• Marketing skills
• Financial resources
• Company or brand image
• Employee capabilities
• Technology
Environmental Scanning
Helps identify opportunities and threats.
Designing a marketing strategy is based on six major
environmental forces:
• Social
• Demographic
• Economic
© AP IMAGES/PRNEWSFOTO/PEPSICO
• Technological
• Political/Legal
LO3 • Competitive
Identifying and Evaluating opportunities
Identify growth potential
Evaluate opportunities for increasing sales and profit
Determine which segments to target and positioning accordingly
• Example: Coke has Diet Coke, Cheery Coke, Minute Maid, Kinley,
Georgia Coffee etc.
• For this reason it is a low risk strategy, as the firm is not risking
developing new products or venturing into new markets.
Low
58
Criticism of the 4Ps Model