INTRODUCTION TO MARKETING Dr. Prasad Begde, Assistant Professor, FNU

Class Objective: Define Market Describe Marketing Management Elaborate 4 p’s (Marketing mix) Define marketing philosophy Understand conceptually difference between marketing and sales

What is a market? “A market consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want” (Philip Kotler)

Marketing Definition Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (Approved by AMA on July 2013)

The Overall Themes of Marketing The Traditional Marketing Mix Product Price Promotion Place

Marketing Defined Marketing is a process… that is… Managerial Social Individual Wants, Desires Demands – Products and/or Services

As far as Customers are concerned there are three elements to address Customer value: Difference between the values that the customer gains from owning and using a product versus the costs of obtaining the product. Customer satisfaction: The extent to which a product’s perceived performance in delivering value matches a buyer’s expectations. Quality: the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.

Marketing Management Philosophies Agree or Disagree? Production: consumers will favor products that are available and highly affordable Product: consumers favor products that offer the most in quality, performance, and innovative features Selling: consumers will not buy unless an organization undertakes a large-scale selling and promotional effort Marketing: determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently then the competitors Societal marketing: generating customer satisfaction and long-run societal well-being are the keys to both achieving the company’s goals and fulfilling its responsibilities

Relationships Relationship marketing: the process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.

Marketing Management Practice Essentially Two Types Entrepreneurial marketing: Businesses started by individuals Creativity, drive, and perseverance are keys to success Formulated marketing: Professional, disciplined approach Achieving a market orientation

Orientations towards marketing Production concept (before 1930): demand > supply Selling concept (1930-1950): supply > demand Marketing concept (post-1960s): analyze consumer needs before producing and selling, market orientation, competition…

Marketing Concept versus Selling Concept Starting Point Focus Means Ends Market Customer needs Integrated marketing Profits from satisfied customers The Marketing Concept Factory Product Sell and Promote it Profits through sales volume The Selling Concept Figure 1.3

Customer will not buy product unless they are persuaded Selling Concept Customer will not buy product unless they are persuaded Marketing Concept This concept proposes that the reason for success lies in company's ability to create , deliver and communicate a better value proposition through its marketing offer.

Marketing vs. Selling Marketing Sales Emphasis on consumer needs and wants. Customer need is first determined and then delivery of product is decided Mgmt is profit oriented Planning is long term oriented in terms of new product and future growth. Emphasis on innovation in every sphere All deptt. Work in an integrated manner. Consumer determines the price Sales Emphasis on product Company manufactures the product first and then decides to sell it. Mgmt is sales vol oriented Planning is short term oriented in terms of today’s product and markets. Emphasis on staying with existing technology and reducing costs. Different departments work as highly separate watertight compartments. Cost determines the price

What is Sales Management? One definition: “The management of the personal selling part of a company’s marketing function.” Another definition: “The process of planning, directing, and controlling of personal selling, including recruiting, selecting, equipping, assigning, supervising, paying, and motivating the personal sales force.