designed & developed by e4 sba semester one session 1 basics of marketing- i basics of marketing...
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Designed & developed by E4
SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I
BASICS OF MARKETING I
Session 1
Designed & developed by E4
SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I
Do you see these around you,
somewhere?
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SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I
• Why do you choose one product/brand over
another?
• Why do you go to a certain place to buy certain
things?
• How will you know that you are getting the best
deal?
• Why are you willing to pay a certain amount for
certain things at certain times?
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SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I
What is Marketing?
All of the above, plus much more!
• Personal Selling?
• Advertising?
• Making products available in stores?
• Maintaining inventories?
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SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I
Few simple questions..
Marketing is about:• Who is my customer?• What do they want to buy?• Where do they want to buy it?• How much will they pay?• How and when will they collect information?• Why will they buy our product rather than a competitor’s?
Designed & developed by E4
SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I
Learning Objectives
• Define the term marketing
• To understand needs, wants and demand
• Discuss the differences between sales and market orientations
• Understanding customer value
• Describe four marketing management philosophies
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SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I
What is Marketing?
American Marketing Association Definition
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 goals.
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SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I
The Marketing Concept
• 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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SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I
Needs, Wants & Demands
• Needs become wants when they are directed to specific objects
• Demands are wants for specific products backed by the willingness & ability to pay
• Needs pre-exist marketers (e.g social status)
• Product- an offering that can satisfy need or want
• Marketers can influence level, timing & composition of demand
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SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I
A Simple Marketing System
Ref: Marketing Management by Philip Kotler
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SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I
Sales Concept & Marketing Concept
Ref: Marketing Management by Philip Kotler
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SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I
Marketing
“There will always be need for some selling. But the aim of But the aim of marketing is to make selling marketing is to make selling
superfluoussuperfluous. The aim of marketing is to know and understand the
customer so well that the product or service fits him and sells itself.
Ideally, marketing should result in a customer who is ready to buy. All
that should be needed is to make the product or service available.”
Peter Drucker
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SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I
Customer Delivered Value
• Any product/service offering will be successful if it delivers “value” to the customer
• The buyer chooses between different offerings on the basis of what is perceived to deliver most value
• Value can be seen as primarily a combination of quality, service and price (QSP) called “customer value triad”
• Value increases with quality and service and decreases with price
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SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I
• So, Value is a ratio between what the customer gets and what he gives
• The benefits include functional benefits and emotional benefits (also known as total customer value)
•The benefits can also be represented as Product Value+ Service Value + Personnel Value + Image Value
• The costs include monitory costs, time costs, energy costs and psychic costs
Customer Delivered Value
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SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I
The Value Equation
Value = Benefits/Costs
Benefits= Functional benefits + emotional benefits
Costs = Monetary costs + Time costs+ Energy costs + Psychic costs
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SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I
Ref: Marketing Management by Philip Kotler
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SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I
Customer value
The marketer can increase the value of thecustomer offering by one or combination of thefollowing :• Raise benefits
• Reduce costs
• Raise benefits and reduce costs
• Raise benefits by more than the raise in costs
• Lower benefits by less than the reduction in costs
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SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I
Customer Value
• The value offered by offerings in the same category can be different , even if they come from the same organization
e.g. Ginger Hotels from Taj Group of Hotels is a “no-frills” offering appealing to a different set of customers, priced much lower than the premium offerings. Each value offering has its own set of customers who find value in it at a given price point
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SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I
CompetingPhilosophiesCompeting
Philosophies
ProductionProduction
SalesSales
MarketMarket
Societal MarketingSocietal Marketing
Marketing Management Philosophies
Ref: Marketing by Lamb
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SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I
Marketing Management Philosophies
PhilosophyPhilosophy Key Ideas
ProductionProduction
SalesSales
MarketMarket
SocietalSocietal
Focus on efficiency of internal operations
Focus on satisfying customer needs and wants
Focus on satisfying customer needs and wants while enhancing individual and societal well-being
Focus on aggressive techniques or overcoming customer resistance
Ref: Marketing by Lamb