01. introduction to mm
DESCRIPTION
Introduction to Marketing by Tharaka DiasTRANSCRIPT
THARAKA DIASMBA(USA), BBA(USA), Dip in Mgt, ACIM(UK),
FAEA(Dip in AEA-UK), FinstSMM(UK), CPM(Asia),
MSLIM
Needs - state of felt
deprivation
including physical,
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including physical,
social, and
individual needs
(e.g., food)
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Wants - form that
a human need
takes as shaped takes as shaped
by culture and
individual
personality (e.g.,
pastry)
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This is the early stage of stone
age. The only food the man
knew and consumed was raw
meat. With blunt stones and meat. With blunt stones and
clubs they could kill only a few
very small animals. Thus,
everyone had to hunt to
produce a little food. Therefore,
there was no surplus and no
exchange
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Something of ValueSomething of ValueSomething of ValueSomething of Value
Ability to Ability to Ability to Ability to
At Least Two At Least Two At Least Two At Least Two PartiesPartiesPartiesParties
Necessary Necessary Necessary Necessary
Desire to Deal With Desire to Deal With Desire to Deal With Desire to Deal With Desire to Deal With Desire to Deal With Desire to Deal With Desire to Deal With Other PartyOther PartyOther PartyOther Party
Freedom to Accept Freedom to Accept Freedom to Accept Freedom to Accept or Rejector Rejector Rejector Reject
Ability to Ability to Ability to Ability to Communicate OfferCommunicate OfferCommunicate OfferCommunicate Offer
Necessary Necessary Necessary Necessary Conditions for Conditions for Conditions for Conditions for
ExchangeExchangeExchangeExchange
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� The firm is focused on what it does best
� Less concerned on customers’ needs
� Implies work towards mass production and � Implies work towards mass production and
low cost
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� Assumes customers favor products that
offer the most quality, performance, and
features.features.
� Implies firm should strive to
continually upgrade product and
product features.
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Start Focus Means Ends
Factory Production
efficiency
Profits through
sales volume & low costOutput
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ProductProduct
Quality
Improvement
& InnovationProfits through
better product features
PRODUCTION CONCEPT
PRODUCT CONCEPT
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� Aggressive sales techniques
� Less sought out items
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The marketing concept states that
the social and economic
justification for an organization’s justification for an organization’s
existence is the satisfaction of
customer wants and needs while
meeting organizational objectives.
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� Focuses on customer wants and needs to
distinguish products from competition
� Integrates all organization’s activities to satisfy
customer wants and needs
� Achieves organization’s long-term goals by
satisfying customer wants and needs
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� Top management leadership
� A customer focus� A customer focus
� Competitor intelligence
� Inter functional coordination
� Customer relationships
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•Organized resistanceOrganized resistanceOrganized resistanceOrganized resistance
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•Organized resistanceOrganized resistanceOrganized resistanceOrganized resistance
•Slow learningSlow learningSlow learningSlow learning
•Fast forgettingFast forgettingFast forgettingFast forgetting
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� Less toxic products
Marketing that preserves or enhances an individual’s
and society’ssociety’ssociety’ssociety’s long-term best interests
� Less toxic products
� More durable products
� Products with reusable or
recyclable materials
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Production Concept
Product Concept
•Consumers favor products that are available and highly affordable.
•Improve production and distribution.
•Consumers favor products that offer the most quality, performance, and
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Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept
the most quality, performance, and innovative features.
•Consumers will buy products only if the company promotes/ sells theseproducts.
•Focuses on needs/ wants of target markets & delivering satisfaction better than competitors.
•Focuses on needs/ wants of target markets & delivering superior valueto the society.
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Identifying & meeting human and social needs profitably.profitably.
Marketing is the management process which Identify, Anticipate and Satisfy Customer
requirements most Effectively and Efficiently with Profits, in a Socially acceptable manor (CIM UK)
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Simply put: Marketing is the delivery of customer Simply put: Marketing is the delivery of customer Simply put: Marketing is the delivery of customer Simply put: Marketing is the delivery of customer
satisfaction at a profit.satisfaction at a profit.satisfaction at a profit.satisfaction at a profit.satisfaction at a profit.satisfaction at a profit.satisfaction at a profit.satisfaction at a profit.
Goals: Attract new customers by promising superior Goals: Attract new customers by promising superior Goals: Attract new customers by promising superior Goals: Attract new customers by promising superior
value value value value andandandand
keep and grow current customers by delivering keep and grow current customers by delivering keep and grow current customers by delivering keep and grow current customers by delivering
satisfactionsatisfactionsatisfactionsatisfaction....
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�� MarketingMarketing
The process of creating, distributing,
promoting, and pricing goods, services, &
ideas to facilitate satisfying exchangeideas to facilitate satisfying exchange
relationships with customers in a dynamic
environment.
�� CustomersCustomers
The purchasers of organizations’ products;
the focal point of all marketing activities
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� What is the Purpose of MarketingWhat is the Purpose of MarketingWhat is the Purpose of MarketingWhat is the Purpose of Marketing????Satisfaction
Satisfaction
is a person’s feelings of pleasure or disappointment
resulting from comparing a product’s perceived
performance (or outcome) in relation to his or her
expectations.
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� Goal: to meet or exceed
customer expectationscustomer expectations
� The customer determines the
expectation
� Treat customers like human
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� Plays an important role in society
Vital to business survival, profits � Vital to business survival, profits
and growth
� Offers career opportunities
� Affects your life every day
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““““Marketing is too important Marketing is too important Marketing is too important Marketing is too important
to be left to the to be left to the to be left to the to be left to the
marketing departmentmarketing departmentmarketing departmentmarketing department.” .” .” .”
--------David Packard David Packard David Packard David Packard
HewlettHewlettHewlettHewlett----PackardPackardPackardPackard
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Understand the organization’s missionUnderstand the organization’s missionUnderstand the organization’s missionUnderstand the organization’s mission
Set marketing objectivesSet marketing objectivesSet marketing objectivesSet marketing objectives
Gather, analyze, interpret “SWOT” informationGather, analyze, interpret “SWOT” informationGather, analyze, interpret “SWOT” informationGather, analyze, interpret “SWOT” information
Develop a marketing strategyDevelop a marketing strategyDevelop a marketing strategyDevelop a marketing strategy
Implement the marketing strategyImplement the marketing strategyImplement the marketing strategyImplement the marketing strategy
Design performance measuresDesign performance measuresDesign performance measuresDesign performance measures
Evaluate marketing effortsEvaluate marketing effortsEvaluate marketing effortsEvaluate marketing efforts--------change if neededchange if neededchange if neededchange if needed
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� Defines who may buy
your product or serviceyour product or service
� Size and potential
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� Select one or more target marketstarget marketstarget marketstarget markets
� Set market objectivesmarket objectivesmarket objectivesmarket objectives
� Develop & maintain a marketing mixmarketing mixmarketing mixmarketing mixDevelop & maintain a marketing mixmarketing mixmarketing mixmarketing mix
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� Characteristics
� Consistent with company objectives
� Measurable
� Time specific
� Benefits
� Energize employees
� Set standards of performance
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� PPPProductPPPProduct
� PPPPlace (Distribution)
� PPPPromotion
� PPPPrice
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Possession utilityPossession utilityPossession utilityPossession utility
Place utilityPlace utilityPlace utilityPlace utility
Time utilityTime utilityTime utilityTime utility
Form utilityForm utilityForm utilityForm utility
Oriental rugOriental rugOriental rugOriental rug
Store has it in stockStore has it in stockStore has it in stockStore has it in stock
Delivered to your homeDelivered to your homeDelivered to your homeDelivered to your home
Pay with your VISA cardwith your VISA cardwith your VISA cardwith your VISA card
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Communication
Industry
(a collection
of sellers)
Market
(a collection
of Buyers)
Goods/services
Money
Information
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The feeling that a
product has met or product has met or
exceeded the
customer’s
expectations.
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� Meet or exceed customer’s expectations
� Focus on delighting customers� Focus on delighting customers
� Provide solutions to customer’s problems
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The name of a strategy
that entails forging that entails forging
long-term partnerships
with customers, both
individuals and firms.x
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Attracting a new customer may be Attracting a new customer may be Attracting a new customer may be Attracting a new customer may be
TEN TIMES the cost of keeping an TEN TIMES the cost of keeping an TEN TIMES the cost of keeping an TEN TIMES the cost of keeping an
old customerold customerold customerold customer
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� Customer-oriented personnel
� Effective training programs� Effective training programs
� Empowered employees
� Teamwork
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Value creation
► Accurately knowing
what customers value
► Producing to incorporate
such values
Communicate
the value ► Inform, convince,
the value ► Inform, convince,
remind, motivate
► Servicing the
customers
► Physical delivery
Deliver the value
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Thank
you
Thank
you
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