Marketing Basics

Coverage : 1 Coverage Different Concepts of Marketing Distinguishing Features of Marketing Concept Marketing Concept and Customer Value Value Delivery Tool Kit – Marketing Mix Marketing Mix and Environment Variables Jugglery of Marketing Mix

Slide 2 : 2 What is Marketing? Marketing Defined: “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others” Marketing is about managing profitable customer relationships Attracting new customers Retaining and growing current customers

Slide 3 : 3 Understanding the Marketplace Needs, wants, and demands Need State of felt deprivation Example: Need food Wants The form of needs as shaped by culture and the individual Example: Want a Big Mac Demands Wants which are backed by buying power Core Concepts

Slide 4 : 4 Understanding the Marketplace Marketing offers: including products, services and experiences Core Concepts Marketing offer Combination of products, services, information or experiences that satisfy a need or want Offer may include services, activities, people, places, information or ideas

Slide 5 : 5 Understanding the Marketplace Value and satisfaction Value Customers form expectations regarding value Marketers must deliver value to consumers Satisfaction A satisfied customer will buy again and tell others about their good experience Core Concepts

Slide 6 : 6 Understanding the Marketplace Exchange and relationships Exchange The act of obtaining a desired object from someone by offering something in return One exchange is not the goal, relationships with several exchanges are the goal Relationships are built through delivering value and satisfaction Core Concepts

Different Concepts of Marketing : 7 Different Concepts of Marketing The Production Concept The Product Concept The Sales Concept Marketing Myopia The Marketing Concept The Societal Marketing Concept

Distinguishing Features of Marketing Concept : 8 Distinguishing Features of Marketing Concept Consumer Orientation Integrated Management Consumer Satisfaction Realization of Organizational Goals

DISTINCTION : 9 DISTINCTION SELLING Seller Centric Emphasis on ‘Exchange’ aspect Cost Determines Price Focus on getting rid of product MARKETING Buyer Centric Emphasis on ‘Value’ aspect Customer Determines Price Focus on getting customer patronage

Marketing Concept and Customer Value : 10 Marketing Concept and Customer Value Creating and delivering better Customer Value is the only route by which firms implement the marketing concept

Slide 11 : 11 Customer Satisfaction Customer Satisfaction Customer Satisfaction Results When a Company’s Performance Has Fulfilled a Buyer’s Expectations. Product’s Actual Performance Performance Exceeds Expectations- Customer is Delighted Performance Below Expectations - Customer is Dissatisfied

Slide 12 : 12 Total Customer Satisfaction Highly satisfied (delighted) customers produce benefits: They are less price sensitive, They remain customers longer, They talk favorably about the company and products to others. Delighted customers have emotional and rational preferences for products, and this creates high customer loyalty.

Slide 13 : 13 The Need for Customer Retention The Key to Customer Retention is Superior Customer Value and Satisfaction. Companies Must Consider:

Slide 14 : 14 Defining Customer Value

Slide 15 : 15 Value Chain Firm Infrastructure Human Resource Management Technology Development Procurement Inbound Logistics Operations Outbound Logistics Marketing and Sales Service Margin Support Activities Primary Activities

Marketing Mix and Environment Variables : 16 Marketing Mix and Environment Variables Marketing – An Interaction Between Non-controllable And Controllable Variables Marketing Manager Uses Marketing Mix to Tackle Environment Variables

Slide 17 : 17

Marketing Mix : 18 Marketing Mix Product (Design, Feature, Packaging, Service etc) Price (Margins, payment terms, Credit Terms etc) Place (Channel Distribution, inventory, location etc) Promotion (Advertising, public relation, Sales promotion etc)