MARKETING

Definition The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return 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.

Marketing Process Construct a marketing program that delivers superior value Build profitable relationships and create customer delight Understand the market place and customer needs and wants Design a customer driven marketing strategy Capture value from customers to create profits and customer quality

Company Orientation Towards the Marketplace The Production Concept Consumers will prefer products that are widely available and inexpensive The Product Concept Consumers will favour those products that offer the most quality, performance or innovative features The Selling Concept Consumers will not buy enough of the organization’s products if left alone The Marketing Concept Business shifted to customer centered Sense and respond philosophy The Holistic Marketing Concpet Based on the development, design and implementation of marketing programs, processes and activities that recogonizes their breadth and interdependencies. Relationship Marketing – aim of building mutually satisfying long term relationships with key parties – customer, suppliers, distributors andother marketing partners

The Societal Marketing Concept Society (Human welfare) A principle of enlightened marketing that holds that a company should make good marketing decisions by considering consumer’s wants, the company’s requirements, consumers long term interests and society’s long run interests Consumers (Want satisfaction) Company (Welfare)

Customer Relationship Management The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Customer Perceived Value - The difference between total customer value and total customer cost Customer Satisfaction – The extent to which a product’s perceived performance matches a buyer’s expectation.

Marketing Network Consists of company and its supporting stakeholders with whom it has built mutually profitable business relationships. Integrated Marketing - Traditional depiction of marketing activities is in term of marketing mix

Marketing Mix

Four P’s Product Price Place Promotion Four C’s Customer solution Customer cost Convenience Communication

Marketplace and Customer Needs, Wants and Demands Human needs are state of felt deprivation Physical needs – food, clothing, warmth and safety Social needs - belonging and affection Individual needs - knowledge and self expression Wants are the form human needs take as they are shaped by culture and individual personality When wants are backed by the purchasing power, wants become demand

Target Markets, Positioning and Segmentation Division of market – Segmenting Identifying and profiling distinct groups of buyers who might prefer or require varying product and services Target Market – the segment which present the greatest opportunity

Marketing Environment Task Environment Company Suppliers Distributors Dealers Target customers Broad Environment Demographic environment Economic environment Physical environment Technological environment Political legal environment Social cultural environment

Marketing Research and Information System Marketing Research is a systematic, objective process of getting information about potential customers to guide marketing decisions. Primary data and secondary data Marketing Information System

New Marketing Landscape The pace of change is so rapid that the ability to change has now become a competitive advantage – Richard Love, HP The digital age The Internet

Ethics and Social Responsibility The growth of not for profit marketing Stakeholders of Organizations Customers Employees Local communities Government Intermediaries Suppliers

Marketing Environment

A company's marketing environment consists of the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationship with target customers. Micro environment Macro environment

The Company’s Micro Environment Marketing Intermediaries Customers Competitors Suppliers Company Marketing Public

The Company Suppliers Customers Form an important link in the company’s overall customer value delivery system. Provide the resource needed by the company to produce its goods and services Customers Consumer market Business market Reseller market Government market International market

Marketing Intermediaries Firms that help the company to promote, sell and distribute its goods to final buyers, Physical distribution firms Marketing services agencies Competitors Public Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives

The Company’s Macro Environment Natural forces Technological forces Political forces Economic forces Demographic forces Marketing Cultural forces

Demographic environment Study of human population in terms of size, density, location, age, gender, race, occupation and other statistics. Economic environment Changes in income Changing consumer spending patterns Natural Environment Growing shortage of raw materials Increased pollution Increased government intervention

Technological Environment Political environment Increasing legislation Increased emphasis on ethics and socially responsible actions Cultural environment Persistence of cultural values Shift in secondary cultural values