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MARKETING-MKT243/260

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An Overview OfMarketing

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What is Marketing

Marketing has two components:

1.The first component ofmarketing is its philosophy - acustomer oriented philosophy

2.The second component is theset of activities in marketing:

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Marketing planning

Marketing research Product development

Pricing and promotion

Distribution Market segmentation

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The AMA Definition of

Marketing

Marketing is the process of

planning and executing theconception,pricing, promotionand distribution of ideas,goods and services to createexchanges that satisfyindividual and org.objectives.

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The Concept of exchange

3.Exchange is the key concept in

the definition of marketing.4.There are five conditions ofexchange that must be satisfied

for marketing to occur :5.1.There must be at least two

parties.

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2.Each party have something of

value to the other party 3.Each party must be capable

of communicating with the

other party

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4.Each party must be free to

accept or reject the othersoffer

5.Each party must believe that

it is appropriate to deal with theother party.

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Four Marketing management

philosophies 1.Production orientation

2.Sales orientation 3.Market orientation

4.Societal orientation.

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Sales orientation

Mgt focus on aggressive /hard

selling States that buyers resist

purchasing nonessentials.

Buyers will buy more goods ifaggressively persuaded to do so

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Market orientation

States that the social and

economic justification for anorganizations existence is thesatisfaction of customer wants

and needs while meetingorganizational objectives.

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The main pillars of the marketing

concept

1.Target market

2.Customer needs 3.Integrated marketing

4.Companyobjectives/profitability

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Integrated/coordinated marketing

Two levels of integration :

1.Integration within themarketing department

2.Integration betweenmarketing and other businessfunction.

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Integrated marketing requires

two types of activities: 1.Internal marketing-marketing

to the co. employees

2.External marketing-marketingto the target market.

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Societal orientation

Focus on customer needs,

org.objectives and societyslong term best interests.

E.g Environmental protection,

smoking in public places,alcohol marketing

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Achieving a Market Orientation Obtain information about customers,

competitors, and markets

Examine the information from a total businessperspective

Determine how to deliver superiorcustomer value

Implement actions to provide valueto customers

2

On Linehttp://www.westernunion.com

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Definition of business

Explain the definition of a

business from a productorientation and marketorientation perspective

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A product orientation defines a

business in terms of goods andservices

E.g Nikon-We sell camera

Bandai- we sell toys

Proton- We sell cars

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A market orientation defines a

business in terms of benefits. E.g Nikon - We preserve

memories

Bandai - We sell childrenentertainment

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The differences between sales

and market orientation.

1.Organizational focus

2.Business 3.Customers

4.Primary goal 5.Tools for goal achievement

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Organizational focus Sales orientation focus inward

upon the firms own need. Market orientation focus

outward on the wants and

preferences of customers.

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Business

A Sales orientation is in the

business of selling goods andservices

A market orientation is in the

business of satisfying consumerwants and needs.

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CustomersA sales orientation directs the

firms output at everybodyA market orientation directs

goods toward specific groups of

people.

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Primary Goal Sales orientation--is to make

profit through maximizing salesvolume

Market orientation--is to seek

profit through customersatisfaction.

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Tools for goal achievement Sales orientation -- intensive

promotion Market orientation--Coordinated

marketing effort.

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The Organizations Focus

Create

CustomerValue

Build Long-

TermRelationships

Maintain

CustomerSatisfaction

Key Issues inDevelopingCompetitive

Advantage

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Customer Value

The ratio of benefitsto the sacrifice

necessary to obtain

those benefits

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Customer Value Requirements Offer products that perform

Give consumers more than they expect

Avoid unrealistic pricing

Give the buyer facts

Offer organization-wide commitment inservice and after-sales support

3

http://www.ZanesCycles.com

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The feeling that aproduct has met or

exceeded the

customers

expectations.

Customer Satisfaction3

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Maintaining Customer

Satisfaction Meet or exceed customers expectations

Focus on delighting customers Provide solutions to customers problems

Cultivate relationships,

NOT one-time transactions

3On Line

http://www.volvocars.com

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Relationship Marketing

The name of a strategythat entails forging

long-term partnerships

with customers, both

individuals and firms.

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Relationship Marketing

RequirementsRequirements

forforBuildingBuilding

RelationshipsRelationships

Who are your customers

What do customers value

HHow do they prefer to intera

What do they want to buy

3

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Building Long-Term

Relationships Customer-oriented personnel

Effective training programs

Empowered employees

Teamwork

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The marketing process

1.Understanding the co.mission

2.Setting marketing objectives 3.Performing a situation

analysis (SWOT analysis)

4.Developing a marketingstrategy

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5.Implementing the marketing

strategy 6.Designing performance

measures

7.Evaluating marketing efforts

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Reasons for studying marketing

1. Marketing plays an important

role in society 2.Important to business

3.Provide careers

4.Affects your everyday life

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SEKIAN

TERIMAKASIH

mkt243 ch 1

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