MARKETING I

Introduction to Marketing

LEARNING OBJECTIVES

…to understand the general meaningof 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

Custom

ers

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 INTERMEDIARIESRETAILERS 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 FOREFFECTIVE 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

InputTHE MARKETING MIX

Cohen, 1991

4 P’s