Introduction to Business & Marketing

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Introduction to Business Marketing

• Created Presented by
• Peter Tan

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Outline

• Marketing Definition
• Core marketing Concept
• Marketing Management
• Marketing Philosophies
• Marketing Ethics
• Marketing Process
• Business

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Definition of Marketing

• 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
• Philip Kotler

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Definition of Marketing

• Marketing is the process of planning and
  executing the conception, pricing, promotion and
  distribution of ideas, goods and services to
  create exchanges that satisfy individual and
  organizational objectives American Marketing
  Association, United States of America

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Core Marketing Concept
Needs, Wants Demands
Value, Satisfaction, Quality
Products
Exchanges, Transactions Relationships
Markets
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Core Marketing Concept

• Needs
• States of felt deprivation
• Wants
• The form taken by human needs as they are shaped
  by culture and individual personality
• Demands
• Human wants that are backed with buying power
• Demand Want willingness to buy ability to
  buy
• Demand is brand specific (Burger King, Ford)
• Marketers cannot influence needs, but can
  influence wants and demand

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Customer Value

• Customer Value
• is the difference between the values the customer
  gains from owing and using a product and the
  costs of obtaining the product. Customers do not
  judge product values and costs accurately or
  objectively. They act on perceived value.

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Customer Satisfaction

• Customer Satisfaction
• The extent to which a products perceived
  (seeming, apparent) performance matches a buyers
  expectation. If the products performance falls
  short of expectations, the buyer is dissatisfied.
  If the performance matches or exceeds
  expectations, the buyer is satisfied or
  delighted.
• Satisfied customers make repeat purchases and
  spread the good experience through word of mouth.

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Core Marketing Concept

• Exchanges
• The act of obtaining a desired object from
  someone by offering something in return
• Transactions
• A trade between 2 parties that involves at least
  2 things of value, agreed upon conditions, a time
  of agreement, and a place of agreement
• Relationship Marketing
• The process of creating, maintaining and
  enhancing strong , value laden relationships with
  customers and other stakeholders
• Markets
• The set of all actual and potential buyers of a
  product or service

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Products

• Anything that can be offered to a market for
  attention, acquisition, or consumption including
  physical objects, services, personalities,
  organisations and desires American Marketing
  Association
• Basic product plus added features and services
• Product attributes,
• Styling, features, quality, packaging, brand name
• Product benefits,
• Product performance, image
• Marketing support services
• Delivery credit terms, guarantees, after sales
  service, installation service

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Simple Marketing System
Communication
Industry (a collection of sellers)
Market (a collection of buyers)
Products/Services
Money
Information
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Marketing Management

• The analysis, planning, implementation and
  control of programs designed to create, build and
  maintain beneficial exchanges with target buyers
  for the purpose of achieving organisational
  objectives.

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Marketing management

• Marketing management can be considered demand
  management,
• Marketing management seeks to affect the level of
  timing and nature of demand in a way that helps
  the organisation achieve its objectives.
• It is concerned with not only finding and
  increasing demand, but also changing or even
  reducing it.
• At any point in time there may be no demand,
  adequate demand, irregular demand or too much
  demand and marketing management find ways to deal
  with these different demand states.

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Managing Demand

• Managing Demand means managing customers, new and
  repeat customers. Marketing management carry out
  tasks to achieve desired exchanges with target
  markets with different philosophies guiding these
  marketing efforts.

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Marketing management philosophies

• The production concept
• The philosophy that consumers will favour
  products that are available and highly affordable
  and that management should focus on improving
  production and distribution efficiency.
• Narrow focus on Operations

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Product Concept

• The idea that consumers will favour products that
  offer the most quality, performance and features
  and that the organisation should devout its
  energy to making continuous product improvements.
• Narrow focus on its products

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Selling Concept

• The idea that consumers will not buy enough of
  the organisations products unless the
  organisation undertakes a large scale selling and
  promotion effort
• Aim to sell what they make rather than what the
  customer wants
• Do you think that customers will likely spread
  positive word of mouth?

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Marketing Concept

• The marketing management philosophy that holds
  that achieving organisational goals depends on
  determining the needs and wants of target markets
  and delivering the desired satisfaction more
  effectively and efficiently than competitors do.

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Marketing and Selling Contrasted

• Selling
• Selling existing products than adapting existing
  products
• Marketing
• Know how to serve people well and adapt to
  changing consumer wants

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Marketing and Selling Contrasted
Starting Point
Focus
Ends
Factory - Existing Product - Selling Promotion
Profits thru sales volumes
Means
The Selling Concept
Starting Point
Focus
Ends
Market Customers Needs Integrated Marketing
Profits thru customer satisfaction
Means
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Marketing Concept What it means?

• What is a customer? A customer is the most
  important person ever in this company in person
  or by mail. A customer is not dependent on us, we
  are dependent on him. A customer is not an
  interruption of our work, he is the purpose of
  it. We are not doing a favour by serving him, he
  is doing a favour by giving us the opportunity to
  do so. A customer is not someone to argue or
  match wits with noboby ever won an argument
  with a customer. A customer is a person who
  brings us his wants it is our job to handle
  them profitably to him and to ourselves
• LL BEAN (Catalogue retailer of clothing and
  sporting equipment)
• In 1912 he made a notice I do not consider a
  sale complete until goods are worn out and the
  customer still satisfied. We will thank anyone to
  return goods that are not perfectly
  satisfactorilyAbove all things we wish to avoid
  having a dissatisfied customer

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Societal Marketing Concept

• The idea that the organisation should determine
  the needs, wants, and interest of target markets
  and deliver satisfactioins more effectively and
  efficiently than competitors in a way that
  maintains or improves the consumers and
  societys well being

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• The societal marketing concept calls upon
  marketers to balance 3 considerations in setting
  their marketing policies, company profits,
  consumer wants and societys interests.

Societal Marketing Concept
Society (Human Welfare)
Consumers (Wants Satisfactions)
Company (Profits)
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Marketing Challenges

• Todays companies are wrestling with changing
  customer values and orientations economic
  stagnation environmental decline increased
  global competition and other political and social
  problems.
• Problems also provide opportunities

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Growth of Non Profit Marketing

• Colleges (facing declining enrollments from
  competition and rising costs, thy are using
  marketing to define their target markets,
  improving their communication and promotion and
  responding better to student needs and wants)
• Private Hospitals (As hospital room rates soar
  under-utilisation become prominent, they are
  using marketing to compete for maternity patients
  by offering a steak and Champaign dinner with
  candlelight for new parents)
• Churches (finding out what their consumers want
  and need, catering more to them in programs,
  meeting the boredom segment and lapse church
  goers with clearly defined research as to take
  care of their spirituality)
• Trouble keeping members and attracting financial
  support are redesigning their service offerings
  according to their marketing research

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Rapid Globalisation

• Geographical and cultural distances have shrunk
  with the internet, internet VOIP, jet planes, fax
  machines
• In turn it has allowed companies to greatly
  expand their geographical market coverage,
  purchasing, and manufacturing
• As a result it has provided a more complex
  marketing environment for both customers and
  companies

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Rapid Internationalisation

• Industries have found new opportunities abroad
  (International Marketing)
• Most products and services are hybrids through
  material purchases, manufacturing and marketing
  taking place in several countries.
• Honda is assemble in the USA from American made
  parts
• Many companies are forming strategic alliances
  with foreign companies, even competitors, who are
  suppliers or marketing partners (China and India
  to lower cost)
• China Manufacturing and India Telemarketing
  call centres
• Markets consists of people with needs and
  purchasing power
• China and India are one of the largest markets in
  the world and have the potential to be the
  biggest consumer market.

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Ethics

• The call for companies to take responsibility for
  social and environmental impact of their actions
• Consider
• Manufacturing in China, India (Labour Laws)
• Chemical Dumping
• Privacy (direct marketing)

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Marketing

• What can marketing be used for?
• Travel Destination Popularity
• Worldwide growth and understanding of Yoga
• Worldwide growth of Japanese martial arts
• It took 30 40 years for Japan to be a world
  manufacturer of cars after WWII
• It took Singapore 30 40 years to build, manage
  and market a country
• Employees have to understand and partake in
  customer service which is part of marketing e.g.
  LLBEAN
• Marketing is thus closely related to Business
  management and corporate management
• customer oriented and market driven

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Marketing Jobs

• It is essential that you understand that
  marketing is used by every individual to some
  extent and it is vital for every company, which
  ever occupation you have considered
• The two essentials are product knowledge and
  industry knowledge for every employee
• Generally you would choose the type of industry
  to work in as your job experience and career will
  be tagged to that particular industry and it is
  sometimes not interchangeable
• Marketing in a hospital is different to Marketing
  as a car manufacturer
• Secondly, to understand your company is to
  understand the company products and the type of
  customers you serve

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Marketing in Companies

• Kinds of Marketing Occupations (non exhaustive
  list)
• Direct marketing
• Internet marketing
• Advertising
• Public Relations
• Sales, Business Development
• Strategic Marketing
• Marketing Consulting
• Promotional firms

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Marketing Process

• How is marketing carried out?
• It starts from the business plan
• Corporate Strategic Planning
• Strategic Marketing Planning
• Marketing Planning (APIC)
• Understanding Consumers Customers (Research)
• Marketing effort and activities
• Marketing control with measurement, evaluation
  and corrective action

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Marketing Mix

• Customers, segments, markets
• Marketing Mix 4 Ps (Product, Price, Place and
  Promotion)
• Product customer needs and wants
• Price costs to customers
• Place convenience
• Promotion - Communication

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TEST and Presentation

• Presentation Topics
• Core Marketing concept
• Maslows
• SWOT
• Marketing Management Philosophies
• Test will be short answers on key terms and
  marketing introduction content