module 1 fudamentals mktg

7/27/2019 Module 1 Fudamentals Mktg

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MARKETINGAn

Introduction


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Creation of utilities

Utilities may be defined as theattributes in an item that makes it

capable of satisfying human wants.

Through combination of marketing

activities a product is given utility, orincreased value.


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Types of utilities

Form

Physical change that makes a product

more valuableeg timber made intofurniture

Place

Product made more accessible tocustomersfurniture made in a factory istransported to a store convenient tocustomers.


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Types of utilities

Time Product available to customers when they

want iteg store open on Sunday forconvenience

Possession Ownership of the product transferred to

customerspurchase is made possible tocustomers

Image Products has more value because of its

brand or reputationbrand and qualitychoice by customer


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MARKETING TASKS

DEMAND STATES Negative Demand

No Demand Declining Demand Irregular Demand Full Demand

Overfull Demand


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Productionorientation

Salesorientation

Marketingorientation

Socialresponsibilityand humanorientation

The stages in the evolution of

marketing


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Production Concept

Product Concept

Selling Concept

Marketing Concept

Consumers prefer products that arewidely available and inexpensive

Improve production and distribution

Consumers favor products thatoffer the most quality, performance,

or innovative features

Consumers will buy products only ifthe company aggressively

promotes/sells these products

Focuses on needs/ wants of targetmarkets & delivering value

better than competitors

Company Orientations

Towards the Marketplace

Societal Marketing ConceptFocuses on needs/ wants of target

markets & delivering superior value

Societys well-being


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The evolution of marketing

Typical thinking of the late 1800s

Executives in production and engineeringshaped its planning: the function of the

sales department was simply to sell thecompanys output.

The production-orientation stage


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The sales-orientation stage

Typical thinking of the 1930s1960s

The firms emphasis was on selling itsoutput.

This was the age of hard sell.

Supply usually exceeded demand.


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The marketing-orientationstage

Typical thinking of the mid 1950s

Marketing influences all short-term and long-range company planning.

The firms goals become customer orientationand profitable sales volume.

Focus is on marketing rather thansellingencompasses inventory control,warehousing, product planning andimplementation of the marketing concept.


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The marketing concept

Typical thinking of the late 1970s

The marketing concept emphasises customerorientation and the co-ordination of marketingactivities.


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The marketing concept

Planning and operations should be customer-oriented, focus on satisfying customers needs

and wants.All the marketing mix activities in a firm

should be co-ordinated and consistent.

Customer-oriented, co-ordinated marketingactivities are seen as the means to achievingthe organisations performance objectives.


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Societal Marketing Concept

Society

(Human Welfare)

Consumers

(Wants)

Company

(Profits)

SocietalMarketing

Concept


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Relationship Marketing

An attempt to build personal, long-term bonds with customers.

Relationship marketing has expandedto include all groups an organisationinteract with: suppliers, employees,

unions, government, and evencompetitors.

(Etzel, Walker, Stanton, Marketing11e)


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Marketing vs. Selling

Selling

A company makes a product and then uses

various selling methods to persuadecustomers to buy it.

Marketing

Company finds out what the customerwants and develops a product to satisfythose wants while yielding a profit.


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The Four Ps

Marketing

Mix

Product

Price Promotion

Place

The Four Ps

The Four Cs

Customer

SolutionCustomer

Cost

Communication

Convenience


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The marketing mix

The four key main elements of marketingare referred to as the Marketing Mix.

4Ps - given by M C Carthy 4Cs - given by Robert Lauterborn These elements are: Product, Price,

Promotion and Place (Distribution).

These elements, also know as variables,are controllable by marketers and are thekey to attracting a specific target market.


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Marketing mix


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Product

Is a physical good, service or idea.

A product can be tangible or intangibleit can be an application of human skillsof simply an alternative way of thinking.


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Marketing Management


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The Planning Sequence


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Customers

Front-line people

Middle Management

Top

Management

Traditional Organization Chart


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Customer-Oriented

Organization Chart

Customers

Front-line people

Middle management

TopManagement


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Evolving Views of Marketings

Role

a. Marketing as an

equal function

FinanceProduction

Marketing Humanresources

b. Marketing as a more

important function

Finance

Humanresources

Marketing

Production


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Role

c. Marketing as the

major function

Marketing

Production

d. The customer as

the controlling factor

Customer


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Role

e. The customer as the controllingfunction and marketing as the

integrative function

Customer

Marketing

Production

module 1 fudamentals mktg

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