MARKETING I Introduction to Marketing

LEARNING OBJECTIVES …to understand the general meaning of Marketing …to recognise the importance of Marketing

DEFINITIONS OF MARKETING “Marketing is the human activity directed at satisfying human needs and wants through an exchange process.” Kotler “Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably.” The chartered Institute of Marketing “The right product, in the right place, at the right time, and at the right price.” Adcock et al

MARKETING CRITERION There must be two parties, each with unsatisfied needs or wants. Each party must have something to offer The parties must be able to communicate

THE MARKETING CONCEPT Choosing and targeting appropriate customers Positioning your offering Interacting with those customers Controlling the market effort Continuity of performance

CHANNEL AND DISTRIBUTION TACTICS “A channel of distribution comprises a set of institutions which perform all of the activities utilised to move a product and its title from production to consumption.” Bucklin

A SYSTEM OF EXCHANGE Suppliers Customers Promotion Contact Negotiation Transport and Storing Financing Packaging Money Goods

INDIRECT CHANNEL INTERMEDIARIES AGENTS International markets Commission or stockist Difficult to control WHOLESALERS Breaks down bulk Provides storage facilities Reduces contact cost Takes marketing responsibility

DIRECT CHANNEL INTERMEDIARIES RETAILERS Strong customer relationship Hold variety of products Promotion Merchandising Final price Branding INTERNET Global market Segment specific Low set-up cost Use of e-commerce technology Growing market

CHANNEL CONSIDERATIONS Direct or indirect channels Single or multiple channels Length of channel Types of intermediates Number of intermediates at each level Producer-Distributor fit Changes in PLC Market segment

CRITERIA FOR EFFECTIVE MARKETING The plan must be specific enough so that it can be implemented and communicated to people in the firm The plan must be measurable so that one can see if it has been achieved The goal must be achievable or realistic The goals must be consistent

THE CONSUMER BUYING PROCESS Product Price Promotion Place People Process Physical Evidence Purchase Decisions Product Choice Location Choice Brand Choice Other Choices Psychological Inputs Culture Attitude Learning Perception CONSUMER Input THE MARKETING MIX Cohen, P’s