Marketing Overview - PowerPoint PPT Presentation

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Marketing Overview

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Title: Marketing Overview


1
CONCEPTS IN MARKETING
  • OVERVIEW OF CONTEMPORARY MARKETING
  • Prof P.C.Mehra
  • Professor of Marketing
  • International Management Institute

2
What is marketing ?
Nothing but organized common sense !!
3
EVOLUTION OF MARKETING
  • Science of Marketing as old as mankind
  • Barter of goods
  • Concept of exchange
  • Industrial revolution resulted in spurt in
    production
  • Post war era resulted in manifold increase in
    availability
  • Emerged concepts of todays marketing

4
MARKETING IN THE LAST 50 YEARS
Era of the 50s Production driven What is made will be sold
60s to mid 80s Sales driven Somehow sell
Mid 80s to late 90s Customer Orientation Make what will satisfy customer needs wants
Now Customization Focus on the Individual as a customer
5
The New Economy
  • Substantial increase in buying power
  • A greater variety of goods and services
  • A greater amount of information about practically
    anything
  • A greater ease in interacting and placing and
    receiving orders
  • An ability to compare notes on products and
    services

6
The New Economy
  • Websites can provide companies with powerful new
    information and sales channels.
  • Companies can collect fuller and richer
    information about markets, customers, prospects
    and competitors.
  • Companies can facilitate and speed up
    communications among employees.
  • Companies can have 2-way communication with
    customers and prospects

7
The New Economy
  • Companies can send ads, coupons, samples,
    information to targeted customers.
  • Companies can customize offerings and services to
    individual customers.
  • The Internet can be used as a communication
    channel for purchasing, training, and recruiting.
  • Companies can improve logistics and operations
    for cost savings while improving accuracy and
    service quality.

8
Adapting Marketing to the New Economy
  • How Business Practices are Changing
  • From organizing by product units to organizing by
    customer segments
  • Shift focus from profitable transactions to
    customer lifetime value
  • Shift focus from financial scorecard to also
    focusing on the marketing scorecard
  • Shift focus from shareholders to stakeholders

9
Adapting Marketing to the New Economy
  • Everyone does the marketing
  • Build brands through performance, not just
    advertising
  • Customer retention rather than customer
    acquisition
  • From none, to in-depth customer satisfaction
    measurement
  • From over-promise, under-deliver to
    under-promise, over-deliver

10
Adapting Marketing to the New Economy
  • How Marketing Practices are Changing Customer
    Relationship Marketing
  • Reduce rate of customer defection
  • Increase longevity of customer relationship
  • Enhance growth potential through cross-selling
    and up-selling
  • Make low profit customers more profitable or
    terminate them

11
Defining marketing
  • Peter Drucker. the only valid purpose of
    business is the creation of a customer.
  • Peter Doyle. Selling is making people want what
    youve got, while marketing is selling people
    what they want.
  • Theodore Levitt.People buy solutions to
    problems, not products, and successful marketers
    are problem solvers.

12
MARKETING Marketing is a societal process
by which individuals and groups obtain what they
need and want through creating, offering and
freely exchanging products and services of value
with others. -Philip Kotler
13
MARKETING
  • Marketing is getting the right goods services
    to the right people at the right time, at the
    right place, at the right price with the right
    communications promotions
  • -- American Marketing Association

14
The Scope of Marketing
Marketing of any or all of the following
  • Places
  • Properties
  • Organizations
  • Information
  • Ideas
  • Goods
  • Services
  • Experiences
  • Events
  • Persons

15
IMPLICATIONS OF MARKETING
  • Understanding consumer buying behaviour
  • Designing products to satisfy customer needs
  • Understanding the customers price sensitivity /
    threshold level
  • Understanding planning for competition
  • Identifying the relevant customer group(s)
  • Creating visibility availability
  • Constantly remaining in touch with the market

16
Company orientations towards the market place
17
PRODUCTION CONCEPT
  • The production Concept holds that consumers will
    prefer products that are widely available and
    inexpensive
  • Usually applicable in situations where demand
    outstrips supply
  • Concentration on high production and low costs as
    also mass distribution

18
PRODUCT CONCEPT
  • The Product Concept holds that consumers will
    favour those products that offer the most
    quality, performance or innovative features.
  • Indicates an obsession with the product
  • Believes a good product will sell automatically
  • Referred to as Marketing Myopia

19
SELLING CONCEPT
  • The Selling Concept holds that consumers
    businesses, if left alone, will ordinarily not
    buy enough of the organization's products. The
    organisation, must therefore, undertake
    aggressive selling and promotion.
  • Companies aim to sell what they make rather than
    make what they sell
  • Usually adopted by companies having excess
    capacity or unsought products.

20
THE MARKETING CONCEPT
  • The Marketing Concept holds that the key to
    achieving organisational goals depends on
    determining the needs wants of target markets
    and delivering the desired satisfactions more
    effectively and efficiently than competitors do.
  • The Marketing Concept thus focuses on the
    customer - begins with the customer ( determining
    needs wants) and ends with the customer
    (ensuring customer satisfaction)

21
SOCIETAL MARKETING CONCEPT
  • The Societal Marketing Concept holds that
    organisational task is to determine needs, wants
    and interests of the target markets and to
    deliver the desired satisfaction more effectively
    efficiently than competitors in a way that
    preserves or enhances the consumers societys
    well being.

Society (Human welfare)
Company (Profits)
Consumers (want satisfaction)
22
MARKETING PHILOSOPHIES a comparative analysis
Concept Focus Means End
Production Production Wide distribution Profit through low cost, high volume
Product Product Quality Profit through superior product
Selling Product Selling promotion Profit through volumes
Marketing Customer needs Integrated marketing Profit through customer satisfaction
23
Product vs Market orientationMarketing is a
function which adds value to a business
Product Orientation Marketing Orientation
AVON We sell cosmetics We sell hope
XEROX We sell copiers We help improve office productivity
COLUMBIA PICTURES We make movies We market entertainment
24
Marketing Myopia--Theodore Levitt
  • There is no such thing as a growth industry.
    Companies are organized operated to create
    capitalize on growth opportunities. Companies
    must respond to market requirements must think
    of themselves as creators and satisfiers of
    customers rather than a producer of goods and
    services. The firm must adopt a broad and dynamic
    view of market opportunity.

25
Selling Marketinga comparative analysis
  • Theodore Levitt in his classic article Marketing
    Myopia says
  • Selling focuses on the needs of the seller while
    marketing focuses on the needs of the buyer
  • Selling is pre-occupied with the sellers need to
    convert his product into cash, while marketing is
    satisfying the needs of the customer by
    delivering value through a product
  • In selling costs determine price, whereas in
    marketing customer determines price
  • Selling has a short term orientation towards
    todays products markets, while marketing has a
    long term orientation with focus on emerging
    trends opportunities besides new products
    markets.
  • The aim of Marketing is to make Selling
    superfluous .Peter Drucker

26
Contrasts between the Selling concept and the
Marketing concept
27
Traditional Organization Chart
28
Customer-Oriented Organization Chart
29
Core Concepts of Marketing
Target Markets Segmentation
Needs, Wants, and Demands
Product or Offering
Value and Satisfaction
Exchange TransactionsRelationships Networks
Marketing Channels
Supply Chain
Competition
Marketing Environment
30
Evolving views of Marketings role
Production
Marketing
Customer
Human resources
Finance
The customer as the controlling function and
marketing as the integrative function
31
Some core Marketing concepts
  • Target market..implying market focus
  • Customer needs.implying customer orientation
  • Profitabilityimplying profit through customer
    satisfaction
  • Integrated marketing.the entire organization
    THINKS customer first
  • Marketing is far too important to be left
    only to the Marketing department..David
    Packard, Hewlett-Packard

32
Assignment
  • Think of your own organization from which you
    come from, and answer the following
  • Was your organization marketing
    orientedillustrate ?
  • Did it need to be ?
  • If it was marketing oriented, how customer
    focused was itillustrate ?
  • What was the effect of its marketing
    orientation.illustrate?
  • If it was not, in retrospect, how could it have
    changed its orientation and to what effect?
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