Understanding the Marketing Process

  1. Understanding the Marketing Process By: Durgesh Satpathy Lecturer in Management, Imperial College
  2. What is Marketing??
  3. The committee of Marketing Teacher’s Association of the U.S.A. defines Marketing as: “Marketing consists of the performance of business activities that direct the flow of goods and services from producer to consumer or user.“ The Chartered Institute of Marketing defines marketing as: “the management process responsible for identifying, anticipating and satisfying customer requirements profitably. Definition:
  4. Concept of Marketing: qThe marketing concept is the strategy that firms implement to satisfy customers needs, increase sales, maximize profit and beat the competition.
  5. Production Concept: “Consumers will favor products that are available and highly affordable” Organization should therefore focus on improving production & distribution efficiency. Example: Lenovo in China or HP with UP Govt. “Laptop Distribution Scheme”
  6. Product Concept • The product concept holds that the consumers will favor products that offer the most in quality, performance and innovative features. • Apple is a well known company for its gadgets & technology • In order to follow the product concept, they evolve themselves from i-phone 3g (2009) to the i-phone 7s
  7. Apple • Very User Friendly • Follows what customers demands • Amazing new features with every new models • Follow product concept diligently. Blackberry • Not User Friendly • Doesn’t meet customer demands • Only have limited features • Doesn’t follow the product concept
  8. Drawbacks of product concept
  9. Selling Concept “consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort”. Example: Life Insurance Companies, Encyclopedia (Aggressive marketing….. bye bye )
  10. Marketing Concept “achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do”. Example Toyota Motors: Market Research & Understanding consumer needs Providing value to customer Profit through customer loyalty in long run
  11. • Societal Marketing Concept “Marketing strategy should deliver value to customers in a way that maintains or improves both the consumer’s and society’s well-being”. Example: Tata Motors Ariel by P&G Imperial College Nihar Coconut Oil Social Marketing Concept Societal (Human Welfare) Company Profits Consumers (Wants)
  12. • Difference between Selling & Marketing Concept • Traditional Vs Modern Concept of Marketing (How they effect Marketing Decision Making) • How Societal Marketing Concept influence the Organization • Various functions of Marketing Assignments:
  13. Marketing Environment
  14. Marketing Environment Organisation as a system : A system is a set of objects, elements or components that are interrelated and interact with one another. These elements operate on inputs such as physical resources, human resources and information to accomplish common objectives such as productivity, and satisfaction. A system consists of inputs, processor, output and feedback.
  15. Marketing Environment Inputs & Outputs: It has its own environment from where it draws its inputs. It offers output in the form of products, services, information and ideas to satisfy environment demands.
  16. Environment provides resources and opportunities It also puts limits and constraints on the organization, and influences its survival and growth. Marketing Environment
  17. Marketing Environment • Microenviroment: – Forces close to the company – That affect directly its ability to serve customers • Macroenvironment: – Larger, societal forces that affect the organization’s microenvironment
  18. • The company: – Management, finance, research & development, purchasing, manufacturing, accounting, and human resources • Suppliers • Marketing intermediaries: – Resellers – Physical distribution firms – Marketing service agencies – Financial intermediaries The Company’s Microenvironment
  19. The Company’s Microenvironment • Customers: – Consumer, business, reseller, government, and international markets • Competitors • Publics: – Financial – Media – Government – Citizen-action groups – General
  20. The Company’s Macroenvironment • Demographic environment: – Study of human population – Size, density, location, age, race, sex, occupation, and education • Trends of interest: – World population growth – Increased diversity – Changing households – Education – Geographic shifts
  21. The Company’s Macroenvironment • Economic environment: – Factors that affect consumer buying power and spending patterns • Trends of interest: – Changes in income, continued spending by consumers – Consumer debt levels rising, savings down – Changing spending patterns
  22. The Company’s Macroenvironment • Natural environment: – Growing shortages of raw materials – Increased pollution – Increased government intervention – Environmental Protection Act – Green movement – Focus on environmental sustainability strategies
  23. The Company’s Macroenvironment • Technological environment: – New technology creates new markets and opportunities – Replaces existing products and services – Research and development activity drives this sector – Government programs to encourage more – Government agencies to regulate new product safety
  24. The Company’s Macroenvironment • Political environment: – Laws, government agencies, and pressure groups – Influence and limit organizations and individuals within a society – Increasing legislation – Increased emphasis on ethics and social responsibility
  25. The Company’s Macroenvironment • Cultural environment: – Institutions and other forces that influence – Society’s basic values, perceptions, preferences, and behaviours – Core beliefs passed on through family, reinforced by institutions – People’s views of: • Themselves • Others • Organizations • Society • Nature • The universe
  26. Responding to the Marketing Environment • Passive approach: – Companies react to uncontrollable factors within their environments • Environmental management perspective: – Proactive approach to influence and affect forces within their environment – Use lobbyists to influence legislation – Media events, advertorials to shape public opinion – Use legal action when necessary
  27. In Conclusion… • The learning objectives for this chapter were: – Describe the environmental forces that affect the company’s ability to serve its customers – Explain how changes in the demographic and economic environments affect marketing decisions – Identify the major trends in the firm’s natural and technological environments – Discuss how companies can react to the marketing environment
  28. Role of Marketing in modern organization
  29. Characteristics of Modern Marketers: Basic Business Skills • Problem analysis and decision-making • Oral and written communication • Basic quantitative skills • Working well with others
  30. Understanding Marketing’s Impact: Marketing decisions shall not be taken in isolation • For example, making a decision to run a special sale that significantly lowers the price of a product could present supply problems if the production area is not informed well in advance of the sale.
  31. Technology Savvy: Marketers must be skilled in using technology as part of their everyday activities. Marketers must understand emerging technology and applications in order to spot potential business opportunities as well as potential threats.
  32. The Need for a Global Perspective: • Need to understand international trade and cultural differences
  33. Information Seeker • The field of marketing is dynamic.
  34. Efficiency and Effectiveness Ineffective Goes out of business quickly Dies Slowly Survives Does well Thrives Effective Efficient Inefficient
  35. The Marketing Concept: • Customer orientation • Customer focused • Customer driven • Customer centric • Customer satisfaction • Market driven • Exceed customer expectations
  36. Creating Customer Value Product benefits Service benefits Relational benefits Image benefits Monetary costs Time costs Energy costs Psychological costs
  37. Creating Customer Satisfaction Delight Neutral Dissatisfaction Absent Fulfilled Presence of the characteristic Customersatisfaction ‘Delighters’ ‘More is better’ ‘Must be’

 

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