BASICS OF MARKETING I

BASICS OF MARKETING I Session 1 SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I

Do you see these around you, somewhere? SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I

Why do you choose one product/brand over another? • Why do you go to a certain place to buy certain things? • How will you know that you are getting the best deal? • Why are you willing to pay a certain amount for certain things at certain times? SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I

What is Marketing? • Personal Selling? • Advertising? • Making products available in stores? • Maintaining inventories? All of the above, plus much more! SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I

Few simple questions.. Marketing is about: • Who is my customer? • What do they want to buy? • Where do they want to buy it? • How much will they pay? • How and when will they collect information? • Why will they buy our product rather than a competitor’s? SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I

Learning Objectives • Define the term marketing • To understand needs, wants and demand • Discuss the differences between sales and market orientations • Understanding customer value • Describe four marketing management philosophies SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I

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. SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I

The Marketing Concept • Focuses on customer wants and needs to distinguish products from competition • Integrates all organization’s activities to satisfy customer wants and needs • Achieves organization’s long-term goals by satisfying customer wants and needs SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I

Needs, Wants & Demands • Needs become wants when they are directed to specific objects • Demands are wants for specific products backed by the willingness & ability to pay • Needs pre-exist marketers (e.g social status) • Product- an offering that can satisfy need or want • Marketers can influence level, timing & composition of demand SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I

A Simple Marketing System Ref: Marketing Management by Philip Kotler SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I

Sales Concept & Marketing Concept Ref: Marketing Management by Philip Kotler SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I

Marketing “There will always be 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 SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I

Customer Delivered Value • Any product/service offering will be successful if it delivers “value” to the customer • The buyer chooses between different offerings on the basis of what is perceived to deliver most value • Value can be seen as primarily a combination of quality, service and price (QSP) called “customer value triad” • Value increases with quality and service and decreases with price SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I

Customer Delivered Value • So, Value is a ratio between what the customer gets and what he gives • The benefits include functional benefits and emotional benefits (also known as total customer value) • The benefits can also be represented as Product Value+ Service Value + Personnel Value + Image Value • The costs include monitory costs, time costs, energy costs and psychic costs SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I

The Value Equation Value = Benefits/Costs Benefits = Functional benefits + emotional benefits Costs = Monetary costs + Time costs + Energy costs + Psychic costs SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I

Ref: Marketing Management by Philip Kotler SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I

Customer value The marketer can increase the value of the customer offering by one or combination of the following : • Raise benefits • Reduce costs • Raise benefits and reduce costs • Raise benefits by more than the raise in costs • Lower benefits by less than the reduction in costs SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I

Customer Value • The value offered by offerings in the same category can be different , even if they come from the same organization e.g. Ginger Hotels from Taj Group of Hotels is a “no-frills” offering appealing to a different set of customers, priced much lower than the premium offerings. Each value offering has its own set of customers who find value in it at a given price point SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I

Competing Philosophies Production Sales Market Societal Marketing Marketing Management Philosophies Ref: Marketing by Lamb SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I

Philosophy Key Ideas Production Focus on efficiency of internal operations Sales Focus on aggressive techniques or overcoming customer resistance Market Focus on satisfying customer needs and wants Focus on satisfying customer needs and wants while enhancing individual and societal well-being Societal Marketing Management Philosophies Ref: Marketing by Lamb SBA SEMESTER ONE SESSION 1 BASICS OF MARKETING- I

BASICS OF MARKETING I