SM-I- Understanding Fundamentals of Marketing (1).pptx
1.
Topic-1: Understanding Fundamentalsof
Marketing
Dr. Vijay Kumar Pandey
Professor, Symbiosis Law School, Noida
MBA (Marketing), M.Phil. (Management),
PhD (Management), UGC NET
(Management)
2.
Awesome one dedicatedto people in sales!
An experienced psu bank Manager left the job and
applied for a salesman's job at London 's premier
downtown department store. In fact, it was the
biggest store in the world - you could get anything
there.
The boss asked him, "Have you ever been a
salesman before?" "Yes sir, I was purely a salesman
in India ", replied the lad. The boss liked the cut of
him and said, "You can start tomorrow and I'll
come and see you."
The day was long and arduous for the young man,
but he got through it.
3.
And finally 6:00PM came around.
The boss duly fronted up and asked, "How
many sales did you make today?"
"Sir, Just ONE sale." said the young salesman.
"Only one sale?" blurted the boss.
"No! No! You see here, most of my staff make
20 or 30 sales a day.
"If you want to keep this job, you'd better be
doing better than just one sale. "
By the way "How much was the sale worth?"
"Just 93300534.00 pounds" said the ex banker.
"What"?" How did you manage that?" asked the
flabbergasted boss.
4.
"Well", said thesalesman, "This man came in and I
sold him a small fish hook, then a medium hook
and finally a really large hook.
Then I sell him new fishing rod and some fishing
gear.
Then I asked him where he was going fishing and
he said down the coast.
So I told him he'd be needing a boat, so I took him
down to the boat department and sold him that
twenty-foot schooner with the twin engines.
Then he said his Volkswagen probably wouldn't be
able to pull it, so I took him to our automotive
department and sold him that new Deluxe 4X4
Blazer.
5.
I then askedhim where he'll be staying, and since
he had not decided, I took him to camping
department and sold him one of those new igloo
6-sleeper camper tents.
Then the guy said, while we're at it, I should
throw in about $100 worth of groceries and two
cases of beer.
The boss took two steps back and asked in
astonishment, "You sold all that to a guy who
came in for a fish hook!"
"No" answered the salesman, "He came in to buy a
headache relief tablet and I convinced him that
fishing is best remedy for headache."
6.
Boss- " Inwhich bank u worked? "
Salesman - "State Bank of India "
Boss - "You take my chair, I want to join
your old organisation.."
8.
Good Marketing isNo Accident
The roaring success
of four-wheeler Tata
Ace, in a market
earlier dominated by
three-wheeler load
carriers, was due to a
deep understanding
of the market needs
and customer
requirements.
9.
What is Marketing?
Marketingis 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.
10.
What is MarketingManagement?
Marketing management is the
art and science
of choosing target markets
and getting, keeping, and growing
customers through
creating, delivering, and communicating
superior customer value.
11.
Social Definition ofMarketing
Marketing is a societal process by which
individual and groups obtain what they
need and want through creating, offering,
and freely exchanging products and
services of value with others.
12.
Selling is onlythe tip of the iceberg
“There will always be a need for
some selling. But the aim of marketing
is to make selling superfluous. The aim
of marketing is to know and understand
the customer so well that the product or
service fits him and sells itself. Ideally,
marketing should result in a customer
who is ready to buy. All that should be
needed is to make the product or
service available.”
Peter Drucker
Information
The CEO ofSiemens Medical Systems ,
Tom Mccausland says, “(our product) is not
an necessarily an X-ray or an MRI, but
information. Our business is really health
care information technology, and our end
product is really an electronic patient record:
information on lab tests, pathology, and
drugs as well as voice dictation.
22.
Ideas
Charles Revson ofRevlon once
observed: “ In the factory, we make
cosmetics ; in the store we sell hope.”
Social marketers are busy promoting
such ideas by creating awareness about
AIDS, encouraging family planning, and
discouraging smoking, which fall in the
realm of social marketing.
Product-orientation Stage
1. Demandexceeds available supply.
2. All that is made can be sold.
3. Focus is on engineering and generating output, not the customer.
4. Epitomized between late 1800s and early 1930s.
“make all you can”
“The American public can have any color car it wants so long as it’s black.”
Henry Ford, referring to the Model T.
1. Supply frequently exceeds demand.
2. Focus is on promotion and pricing; objective is to sell all the inventory.
3. Hard-sell techniques create stereotype of pushy, annoying salesperson.
4. Epitomized between early 1930s and 1950s.
Sales-orientation Stage “sell all you make”
Evolution of Marketing
26.
1. Variety inmarkets, variety in products.
2. Employs full marketing mix.
3. Focus is on customer needs and satisfaction; profitability over volume.
4. Most typical current orientation.
5.Brought into play during 1950.
“make what you can
sell”
Market-orientation Stage
Evolution of Marketing
Social Orientation Philosophy
1. Production of product as per the need of the consumers.
2. Guided by long – term profit goals rather than quick sales.
3. The firm should discharge its social responsibilities.
4. The management is to integrate the firm’s resources and activities to develop
programme to meet these individual consumer and social need.
5. Epitomized between early 1970s and 1980s.
“make society
happier with long
term benefit of
customer”
27.
27
Production Concept
Product Concept
SellingConcept
Marketing Concept
Societal Marketing Concept
• Consumers favor products that are
available and highly affordable.
• Improve production and distribution.
• Consumers favor products that offer
the most quality, performance, and
innovative features.
• Consumers will buy products only if
the company promotes/ sells these
products.
• Focuses on needs/ wants of target
markets & delivering satisfaction
better than competitors.
• Focuses on needs/ wants of target
markets & delivering superior value.
Marketing Management
Philosophies
28.
Marketing and SalesConcepts
Contrasted
Factory
Existing
Products
Selling
and
Promoting
Profits
through
Volume
The
Selling
Concept
Starting
Point
Focus Means Ends
Market
Customer
Needs
Integrated
Marketing
Profits
through
Satisfaction
The
Marketing
Concept
Core Marketing Concepts
•Needs, wants, and
demands
• Target markets,
positioning,
segmentation
• Value( sum of perceived
tangible and intangible
benefits and costs. It is
combination of QSP) and
satisfaction
• Marketing channels
(Communication,
Distribution and Service)
• Supply chain
• Competition
• Marketing environment
Positioning
Press ads ofthe
Scorpio focused on
the functional
features of the
vehicle and the
television ads
focused on emotional
benefits.
34.
New Consumer Capabilities
•A substantial increase in buying power
• A greater variety of available goods and
services
• A great amount of information about
practically anything
• Greater ease in interacting and placing and
receiving orders
• An ability to compare notes on products and
services( compareindia.com, techtree.com,
mouthshut.com)
• An amplified voice to influence public opinion
Marketing Debate:
Take aPosition!
Does marketing shape consumer needs?
or
Does marketing merely reflect the needs
and wants of consumers?
38.
Marketing Discussion
Consider thesocietal forces (e.g.,
information technology, globalization,
deregulation, consumer resistance,
retail transformation).
How have marketing practices shifted
to accommodate and even leverage
these forces?
