Primciples of Marketing- Understanding Marketing for the 21st Century

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					Principles of Marketing

Understanding Marketing for the 21st Century


Prof. Rushen Chahal



                             Prof. Rushen Chahal
             Marketing Principles

   Marketing is defined as the set of activities
that identify, anticipate and satisfy customers’
requirements profitably.              (CIMUK)

    Process of creating, communicating, and
delivering value to customers and for managing
customer relations that benefit the organization.
                            (Kotler, Armstrong)

                                Prof. Rushen Chahal
               Scope of Marketing
     Marketers are involved in
• Goods
• Services
• Events
• Experiences
• Persons
• Places
• Properties
• Organizations
• Information
• Ideas


                                 Prof. Rushen Chahal
      What does a marketer do?
      (Chief Marketing officer- CMO)
•   Marketers seek attention from you!

       What is a market?
       (an exchange between 2 or more people;
       must have an offer)

    Some Terms
•   Marketplaces / Marketspaces / Metamarkets




                                  Prof. Rushen Chahal
    Metamarkets:- a cluster of complementary
    products and services

•   Manufacturer markets (raw materials)
•   Reseller markets (2nd hand cars)
•   Intermediary markets (channels)
•   Consumer markets (customer to customer;
    ebay)

                                 Prof. Rushen Chahal
Market Orientations
Orientations/Concepts/Philosophies

        Production concept
          Product concept
          Selling concept
         Marketing concept
     Societal Marketing concept


                        Prof. Rushen Chahal
     Production concept is the idea that
consumers will favor products that are
available or highly affordable.

• Mass production/distribution of products
• Low costs, efficient (fast)




                              Prof. Rushen Chahal
   Product concept is the idea that
consumers will favor products that offer the
most quality, performance.

•   Focus is on design and improvements
   (healthier food / cosmetics that make you
look      20 years younger)



                             Prof. Rushen Chahal
     Selling concept is the idea that
consumers will not buy enough of the firm’s
products unless it undertakes a large scale
selling and promotion effort.

•   Inside-out approach
•   Company-centric



                             Prof. Rushen Chahal
    Marketing concept is a
modern idea that achieving
organizational goals depends on
knowing the needs and wants of
the target markets.

•  Outside-in approach
• Satisfaction and relationships
are customer-centric

                                   Prof. Rushen Chahal
    Holistic Marketing concept is a new practice
in marketing.

•   Relationship marketing -- networks
•   Integrated marketing -- (4P’s / 4C’s / SIVA)
•   Internal marketing – staff coordination
•   Performance marketing
    - accountability / social responsibility
                         (cause related programs)


                                  Prof. Rushen Chahal
 Some other core concepts

   Customer Needs, Wants, and Demands

   Needs are states of deprivation. Some needs
are:-


 Physical     Social         Intellectual
 Food, air,   emotions,      study, education
 clothing     friends



                             Prof. Rushen Chahal
Some other core concepts

        Wants
    • are a form of strong desire for something.
    ( I need water but I want Spring water)


       Demands
    • are purchases backed by buying power in a
     social market. (money talks) (e.g. no demand
     for TV in Nepal.)


                                Prof. Rushen Chahal
  Product offering
• It is the value proposition:- a of values or benefits
why a customer should purchase from the company.
  e.g. Offer you  BMW’s reliable performance;
A380 Boeing excellent experience

  Customer satisfaction
• Value and performance over competitors
•  Adding even more value and benefits


                                     Prof. Rushen Chahal
    Market Exchange/Transaction
• process of obtaining a product by offering
money or something else!
• Transactions   are data/numbers

Segmentation  Targeting  Positioning
Divide into groups   Choose groups            How to attract?




                                     Prof. Rushen Chahal
    Channel Types

•   Distribution channel – wholesalers / retailers

•   Communication channel – media, CCTV

•   Service channel – Advertising, banking etc…




                                     Prof. Rushen Chahal
  1. Needs, Wants,
  and Demands



                                                           2. Product offering



5. Channel / markets


                                                           3.
                                                           Value/Quality/
                                                           Customer
                                                           satisfaction


         4. Market Exchange/Transaction


                                          Prof. Rushen Chahal
    Marketing environment – Factors affecting business
•   Demographics

•   Economic

•   Social-cultural

•   Political-Legal

•   Technological

•   Environment / Natural

                    sometimes called PEST, STEP, PESTLE

                                     Prof. Rushen Chahal
Dynamic 21st Century Marketing
  Dynamic marketing: the driver and adapter
    to marketing environmental conditions

    •   Globalization
    •   Privatization
    •   Deregulation (access to markets)
    •   Alliances (cooperation)
    •   Internet and digital prowess
    •   New networks / media
    •   Diverse customers and staff
    •   Diverse choices


                               Prof. Rushen Chahal
Dynamic 21st Century Marketing

Consumer capabilities

- Affluence (rich)
- More choices
- Information exchange
- Compare information
- Give opinions / feedback



                             Prof. Rushen Chahal
Dynamic 21st Century Marketing

                   In summary:
     Ultimately, marketers must be ready for the
     following:

 •   Develop new markets/products
 •   Understand customer and trends
 •   Develop, offer and deliver more value
 •   Push company’s brand
 •   Make lasting relationships


                             Prof. Rushen Chahal

				
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Description: Prof. Rushen's notes for MBA and BBA students