An Overview of Marketing

1. An Overview of Marketing 1 Course Instructor: Sean X.H. Qiu Lecturer, MDL

2. Learning Objectives 1..Why do we need to learn marketing? 2. What is a market and its types? 3. What is Marketing? 4. What is Marketed? 5. What is demand and its types? 6. What are some Core Marketing Concepts? 7. Describe Various marketing management philosophies?

3. 1. Why do we need to learn Marketing ?

4. Can you sell these products Easily ?

5. How about these products?

6. How about them ? Can you Market them?

7. How about Their films ?

8. Why Marketing for cooperatives and Coop Products?

9. Why Study Marketing? • Plays an important role in society • Vital to business survival, profits and growth • Offers career opportunities • Affects your life every day

10. Why Study Marketing? “Marketing is too important to be left to the marketing department.” ---David Packard Hewlett-Packard

11. Professional Selling • Marketing Research • Advertising • Retail Buying • Distribution Management • Product Management • Product Development • Wholesaling Why Study Marketing? • Everything must be made as simple as possible but not one bit simpler --- Albert Einstein • Fastest route up the corporate ladder

12. Why Study Marketing? • Global economy: (PIII) • International Trade & Domestic Trade • One World, Many Wallets: Economic Conflicts, Culture Shock and Market Shock

13. 2. What is Market and its types?

14. What is a market? Market ( Market place)A physical place where buyers and sellers gather to exchange goods and services

15. Types of markets Consumer Nonprofit government Business markets Global

16. 1. Consumer Market Consists of all individuals or house holds who buy or acquire offerings for personal usage. 2. Industrial/Business Market Consists of buyers who purchase or acquire offerings for resell or reproduction to earn profit 3. Global Market/International markets. Import, export etc. 4. Non Profit & Government Markets

17. 3.What is Marketing?

18. What is Marketing? • Personal Selling? • Advertising? • Making products available in stores? • Maintaining inventories? All of the above, plus much more!

19. What is Marketing? American Marketing Association Definition Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and servicesto create exchanges that satisfy individual and organizational goals.

20. Kotler’s Defination Kotler’s defination: The Art & Science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value

21. Marketing VS Sales • Process and Result (P.1) Sales occur when goods or services are “given over” to a customer in exchange for money or another valuable consideration. It’s the end of the marketing process. Marketing describes the whole commercial process that creates (through promotion) the interest that the potential customer demonstrates prior to a sale.

22. 4.What is Marketed?

23. PERSONS PROPERTIES ORG,SATIONS INFORMATION IDEAS GOODS SERVICES EXPERIENCES EVENTS MARKETING PLACES

24. What is Marketed? Basically 10 types of entities are being marketed. • Goods Consumer goods, industrial goods • Services Intangible offerings of people or organizations • Experiences Tourism, Recreation, adventure • Events Anniversaries, shows, testimonials • Persons Marketing one's self e.g. celebrities, politicians, artists etc.

25. Places Cities, states, regions, historical places, tourism. • Properties Intangible rights of ownership either real property (real estates) or financial property ( stocks & bonds). • Organizations Firms, Universities, museums. • Information News, views like encyclopedias news papers etc. • Ideas New ideas/research about production, services, advertisement etc.

26. You can market only if there is demand for them…… 5. What is Demand?

27. NEGATIVE NO DEMAND LATENT DEMAND DECLINING DEMAND DEMAND STATES DEMAND STATES IRREGULAR DEMAND FULL DEMAND OVERFULL DEMAND Unwholesome demand

28. 1. Negative Demand consumer dislike product and may even pay a price to avoid it. The marketing task is to analyze why the market dislike product and adopt the strategy to change the attitude of consumer. 2. No Demand consumer may be unaware or uninterested In product. The marketing task is to find ways to connect the benefits of the product with the person’s natural needs and interests. 3. Latent Demand Want of consumers exist but not marketing offer to satisfy need. The marketing task is to measure the size of potential market and develop good and services to satisfy that want.

29. 4. Declining Demand Consumers begin to buy the product less frequently or not at all. Marketing task is to reverse declining demand through creative marketing. 5. Irregular demand Variations in demand on seasonal, daily or even hourly bases. The marketing task called Synchromarketing is to find the ways to alter the pattern of demand through flexible pricing, promotion and other incentives. 6. Full Demand supply= demand. The marketing task is to maintain the pattern of demand

30. 7. Overfull DemandDemand level is high as compare to organizational production capacity. Marketing task is called demarketing is to find ways to reduce demand temporarily or permanently. 8. Unwholesome DemandConsumers may be attracted to products that have undesirable social consequences. The marketing task is to organize activities eg. Fear messages, price hikes or reduced availability.

31. 6. What are some Core Marketing Concepts?

32. At Least Two Parties Something of Value Necessary Conditions for Exchange Ability to Communicate Offer Freedom to Accept or Reject Desire to Deal With Other Party The Concept of Exchange

33. Exchange involves obtaining a desired product from someone by offering something in return. • A person can obtain a product by 4 ways • Self Produce • By Force • Beg • Exchange ( Core of Marketing ) • Transfer A gives something to B but doesn’t receive anything tangible in return. • Transaction A trade of values between two or more parties, involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement.

34. Important Definitions • Marketer is a some one who is seeking a response (attention, a purchase, a vote, a donation) from another party called prospect. • Prospects means future potential buyer • Need, Wants, and Demand • Need Basic human requirement • WantNeed becomes want when it is directed to specific object that satisfies need. • Demand want for specific product backed by purchasing power.

35. Market ( Market place) A physical place where buyers and sellers gathered to exchange to exchange goods. • Market Space exchange of goods without physical market (digital, Virtual) e.g. eCommerce, internet etc.

36. Target Market People/place for whom seller designs his particular offering. • Segmentation Division of market in small groups keeping on any base (Purchasing power, age, social values etc.) • Metamarket refers to a cluster of complementary goods and services that are closely related in the minds of consumers but are spread across a diverse set of industries.

37. Customer Value It is ratio between what consumer gets & what he gives • Value = Benefits / Costs

38. Customer Delivered Value Total Customer value Total Customer Cost Monetary cost Product value Time cost Service Value Personal value Energy cost Image value Psychic cost

39. Customer Satisfaction • The feeling that a product has met or exceeded the customer’s expectations. It’s related with how well the product performance lives up to customers expectation.

40. Relationship Marketing Maintaining satisfying and long term relationship with customers, partners, suppliers and other channel members.

41. Attracting a new customer may be TEN TIMES the cost of keeping an old customer Relationship Marketing’s Importance

42. Effective Marketing:Binding the Buyer and Seller Remember: The binding relationship between the buyer and seller that’s created by effective marketing tends to last longer --- and to be set up more quickly --- as the speed of information in the marketplace increases.

43. 7. What are Various Marketing philosophies?

44. product Competing Concepts Selling Production SOCIETAL MARKETING MARKETING

45. Competing Philosophies Production Concept Product Concept Selling Concept Marketing Concept Marketing Management Philosophies

46. 1. Production Conceptholds that consumers will prefer products that are widely available and inexpensive. Therefore, management should focus on improving production and distribution efficiency.

47. Focused on high production efficiency, low cost and mass distribution. Useful in/if : • competition is weak . Demand exceeds supply • Developing countries, where customers are more interested in product rather then features. • generic products competing on price • Poor quality, no customer satisfaction, narrowly focused market.

48. 2. Product Concept holds that consumers will favor products that offer the most in quality, performance, and innovative features. Thus, an organization should devote energy to make continuous product improvements. A General Motors executive said years ago: “ How can the public know what kind of car they want until they see what is available?”

49. But A new or improved product will not necessarily be successful unless the product is priced, distributed, advertised and sold properly • Product oriented companies often design products with no or very little consumer input. They give more importance to products rather then consumers.

50. 3. The Selling Conceptholds that consumers will not buy enough of the firm’s products unless it uses a large-scale selling and promotion effort. The concept is typically practiced with unsought goods those that buyers do not normally think of buying, such as insurance or blood donations, encyclopedias, fund-raisers, college admissions offices and by specially political parties etc.