Presentation Transcript

1. Principles of Marketing

   Chapter 1The Field of Marketing

   Instructor Ambreen Ali ambreenmasrur@yahoo.com
2. Chapter Goals To gain an understanding of: The relationship between exchange and marketing How marketing applies to business and non-business situations The evolution of marketing Services and relationship marketing The factors that drive customer satisfaction The difference between marketing and selling The marketing concept The impact of quality, service and ethics in modern marketing Marketing’s role in the global economy, in an individual organization, and in your life
3. Definition of Marketing Marketingis the total system of business activities designed to plan, price, promote, and distribute want-satisfying products, services, and ideas to target markets in order to achieve organizational objectives Marketing means adopting a customer focus for the organization; keeping the customer’s needs in mind all the time. It may not always mean making an immediate sale.
4. In the Socioeconomic System: Marketing creates utilities: Place utilitymakes a product accessible to potential customers where they want it. Time utilitymakes a product available when they want it. Information utilityis created by informing prospective buyers that a product exists. Image utilityis the emotional or psychological value that the customer attaches to a product or brand. Possession utilityis created when ownership is transferred to the buyer.
5. Importance of Marketing to Organizations The basic reason for firm’s existence is customers want satisfaction. Marketing is the only revenue-producing activity for the firm. Marketing has become increasingly important for service firms and not-for-profit organizations.
6. The Global Importance of Marketing Nations depend upon marketing to sell their raw materials and industrial output to other countries. Companies now compete in markets all over the world. Honda and Toyota now build cars in Canada, starting from nothing 15 years ago.
7. The Importance of Marketing in Your Life Marketing is a large part of your daily life. Consumers are exposed to 3,000 commercial messages a day. Studying marketing will make you a better-informed customer. Marketing probably relates -- directly or indirectly -- to your career aspirations.
8. Key Words in the Marketing Definition total system: not an ad hoc approach business activities: but not just for businesses plan, price, promote, distribute: the marketing mix want-satisfying: meeting customers’ needs products, services, ideas: not just products target markets: not a broad-brush approach organizational objectives: not just profits
9. The Focus of Marketing marketing involves theexchangeof things of value much of marketing’s focus today is on the creation ofvalue for customers we must develop a good understanding of customer needsand wants ultimately, successful companies develop a close customer relationship
10. Fundamental Bases for Exchange Two or more people, or units, must be involved Parties must be willing to be involved (voluntary participation) Each party must have something of value to contribute to the exchange Parties must communicate with each other to facilitate the exchange process
11. Evolution of Marketing marketing has evolved from a production, to a selling, to a marketing stage in the production-orientation stage, emphasis was on making a better physical product in the sales-orientation stage, the emphasis was on how to sell that product a marketing-oriented organization places emphasis on satisfying the wants and needs of customers
12. Stages in the Evolution of Marketing PRODUCTION ORIENTATION Some industries and organizations remain at the production-orientation stage. PRODUCTION ORIENTATION SALES ORIENTATION Other industries and organizations have progressed only to the sales-orientation stage. PRODUCTION ORIENTATION SALES ORIENTATION MARKETING ORIENTATION Many industries and organizations have progressed to the marketing-orientation stage. Late 1800s Early 1930s Mid-1950s 1900s
13. The Marketing Concept objective is to produce long-term customer satisfaction and organizational success all of the organization’s planning and operations are customer-oriented all of the marketing activities of the organization should be consistently designed and delivered all activities are intended to achieve the firm’s organizational objectives
14. An Innovation Based on the Marketing Orientation. Relationship Marketing An attempt to build personal, long-term bonds with customers. Relationship marketing has expanded to include all groups an organization interact with: suppliers, employees, unions, government, and even competitors.
15. Drivers of Customer Satisfaction getting the core product right is essential many services and systems support the core customers expect good technical performance of the product or service they also expect to be treated well in face-to-face interaction with employees the company must also consider how it makes the customer feel in many subtle ways
16. The Difference Between Marketing and Selling Marketingis the process of determining customer wants and then developing a product to satisfy that need and still yield a satisfactory profit. It is externally focused. Selling is producing a product and then trying to persuade customers to purchase it -- in effect, trying to alter consumer demand. It is internally focused.
17. How Should Marketing Be Defined?
18. The Marketing Concept MARKETING CONCEPT Customer orientation + Coordinated marketing activities Customer satisfaction Organizational success + Organization’s performance objectives +
19. . The Societal Marketing Concept A revised philosophy, called the societal marketing concept, involves broadly defining customer and taking a long-term view of customers’ satisfaction.
20. Quality in Marketing quality in what an organization offers is a major contributor to value and customer satisfaction if the customer is satisfied with the quality, he or she is likely to return to buy again quality is very much defined by the customer; it also varies across individuals and over time quality, as perceived by the customer, is influenced not only by physical products but by service as well requires a commitment from all staff to deliver the highest quality possible
21. Another Innovation: Mass Customization An attempt to provide affordable products customized to come as close as possible to meeting the needs of individual customers. This is made possible because of advances in information technology.
22. Ethics in Marketing Marketing is intended to influence the behaviour of customers and others. The use of marketing tools can create a wide variety of ethical challenges. There is disagreement over what constitutes ethical or unethical behaviour. Ethics are standards of behaviour generally accepted by society. Ethics vary from society to society.
23. More About Ethics Corporations are taking action to instill ethical awareness in their employees by: Avoiding unreasonable pressure on employees to perform. Communicating clearly what is expected of employees. Employing an “Ethics Officer” to advise employees on ethical dilemmas. Rewarding only ethical performance.