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Introduction To Marketing Lecture and Discussion, Mba and Ba

The document provides an introduction to marketing. It discusses how marketing originated with early barter exchanges and has evolved over centuries. It defines marketing as identifying and satisfying consumer needs profitably. The marketing concept holds that organizations should focus on determining customers' needs and satisfying them more effectively than competitors. Marketing orientation means applying this concept through practices like understanding customers, segmentation, and ensuring organizational resources meet customer needs.

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abhi7219
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117 views

Introduction To Marketing Lecture and Discussion, Mba and Ba

The document provides an introduction to marketing. It discusses how marketing originated with early barter exchanges and has evolved over centuries. It defines marketing as identifying and satisfying consumer needs profitably. The marketing concept holds that organizations should focus on determining customers' needs and satisfying them more effectively than competitors. Marketing orientation means applying this concept through practices like understanding customers, segmentation, and ensuring organizational resources meet customer needs.

Uploaded by

abhi7219
Copyright
© Attribution Non-Commercial (BY-NC)
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Download as PPT, PDF, TXT or read online on Scribd
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INTRODUCTION TO MARKETING

Chapter 1

Introduction contd.

Marketing came into existence with the first barter exchange (e.g. the barter trade in ancient Egypt, Songhai and Ghana empires in Africa etc.) when someone realized that exchanges add value for both parties. This was the first real step forward in economic development. Marketing has evolved (like other practices such as architecture, medicine, engineering) over the centuries to where it is today (Michael Baker).

Introduction contd.

According to Peter Drucker, the first test of any business is not the maximization of profit but the achievement of sufficient profit to cover the risks of economic activity and thus avoid loss. Customers are the foundation of a business and their purpose of existence. In other words, customers are the mainstay of the business.

Introduction contd.

As Peter Drucker puts it: There is only one valid definition of business purpose: to create a customer. It is the customer who determines what business is What the business thinks it produces is not of first importance, especially not to the future of the business and to its success in the market place. The customer determines what a business is, what it produces and whether it will prosper (Drucker).

What is Marketing?

It is the most interesting, dynamic, versatile of all academic disciplines. It is both theoretical and practical in nature. It yields real results in the form of profits and/or satisfaction of business aims/objectives.

What is Marketing? contd.

It is a multidisciplinary (economics, psychology, sociology, history, statistics) management process of identifying and satisfying consumer and organizational needs profitably. The aim of marketing is to make profit and/or satisfy business objectives.

Thus, overall, it enhances human and national economic development/progress.

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. Source: The American Marketing Association (AMA) (see www.ama.org).

Definition

Marketing is the management process responsible for identifying, anticipating, and satisfying customer requirements profitably. Source: The Chartered Institute of Marketing (CIM) (UK) (see www.cim.co.uk)

Recent formal Definition of Marketing

Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Source: American Marketing Association, 2004

Role of Marketing

Organizational Resources Effective match Specification of Target Market

Customer Satisfaction

Organizational
Aims/objectives

The Marketing Concept

The Marketing Concept states that if a business or organization is to achieve profitability, the entire organization must be oriented towards satisfying consumer needs, wants and aspirations.

The Marketing Concept contd.

In other words, The Marketing Concept holds that the key to success is through determining the needs/wants/aspirations of target markets and delivering these more effectively and efficiently than competitors.

The Marketing Concept (key issues)

Organizations must concentrate on the customer and not the product or the company. Organizations should revolve round the customer and not the other way around. The purpose of a business is to create and keep a customer (Theodore Levitt).

Elements of the Marketing Concept

Consumer/customer Orientation Total Organization effort Profitability/achievement of objectives.

Criticisms of the Marketing Concept

Do customers really know their needs/wants/aspirations? The choice of either consumer or competitive orientation. Adapting to change (rigidity,inflexibility of the concept). Conflict with social responsibility. Limits in the applicability of the concept (e.g. the arts, ideology such as political parties, environmentalists greenpeace, religions churches/synagogues etc

Some Criticisms of Marketing

Too many advertisements are annoying, misleading, or both. There are too many unnecessary products. Middlemen raise prices but dont add value. Marketing makes people materialistic.
Most of the criticisms result from misunderstandings about marketing (Perreault & McCarthy, 1999).

Do you know your market?

What is the product or service being offered? What are the market trends in the industry? What is the market? Who are your customers? And what are they looking for? Who are your competitors? And how do they operate/react/behave? Why do (should) your customers buy your product/service rather than that of your competitors?

What is a Market ?

According to Kotler (2004), a market consist of all the potential customers sharing a particular need or want who might be willing and able (i.e., propensity to) to engage in exchange to satisfy that need or want.
Source: Kotler, P. (2004), Marketing Management, Prentice-Hall, Englewood Cliff, NJ.

Market Types

Consumer Markets. Industrial/Business to Business Markets. Reseller (Retailers, Distributors) Markets. Publics (Government agencies/departments/institutions). International/global Markets.

What is Market(ing) Orientation?

The process of applying the marketing concept in the market place. Maintaining a customer orientation. All departments work together guided by customer needs/wants/aspirations. Focus on profits/objectives.

Source: Kohli and Jaworski (1990); Narver and Slater (1990).

Market Orientation
Production Orientation --1850s -> 1930s Sales Orientation -- 1930s -> 1950s Time Marketing Orientation -- 1960s -> ?? Consumer Relationship Marketing (CRM) -- 1990s -> ??

Production Orientation

Focus on the means of production, and assumes customers will want the product/service.

Product Orientation

Focus on the technical perfection of the product/service seen through the producers (firm) eyes. Assumes customers will perceive product/service in the same way and thus buy.

Selling Orientation

Focus on persuading (usually aggressive) customers to buy products which do not usually match their requirements. This is unlikely to lead to repeat buy/business.

Customer Orientation

Focus on discovering customer needs (basic survey/question & answer type) and satisfying them. This is unlikely to make best uses of production and other organizational resources.

Marketing Orientation

Focus on the identification of customers needs, organizational resources and objectives. Achieve effective match through market segmentation, targeting, positioning and resource development (see also Role of Marketing).

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