Introduction to Marketing

Introduction to Marketing

• A market is a group of potential buyers who might transact with a seller.
• There are different types of markets based on Kotler: consumer, business, global, and nonprofit.
• Consumer Market refers to individuals buying goods for personal use.
  • Fast Moving Consumer Goods (FMCG) are high volume, low unit value, and quickly purchased. Examples include ready-to-eat meals and newspapers.
  • Consumer Durables are long-lasting goods purchased less frequently. Examples include refrigerators, microwaves, computers, and DVD players.
    • White Goods are large and not portable, like refrigerators and air conditioners.
    • Brown Goods are small electronic goods, like computers and DVD players.
  • Soft Goods are nondurable goods that wear out more quickly. Examples include clothes and shoes.
  • Services are intangible transactions where no physical goods are transferred. Examples include hairdressing, dentistry, and hospitality services.
• Business Markets refer to organizations buying industrial goods for business operations (B2B marketing).
• Global Markets are used by multinational companies to sell goods internationally, often through licensing, franchises, and joint ventures.
• Nonprofit and Government Markets are organizations that operate in both public and private sectors and reinvest earnings back into their objectives.
• Marketing is about determining target market needs and delivering desired products/services more effectively than competitors while contributing to consumer and societal well-being.
• Needs are basic necessities, while wants are desired but not essential.
• Potential exchange involves buyers and sellers physically meeting and exchanging goods and services.
• Human activity encompasses the flow of goods and services from producers to consumers.
• Demand is a human want backed by purchasing power.

Nature of Marketing

• Consumer-oriented: Focuses on fulfilling human needs.
• Starts and Ends with the Customer: Emphasizes understanding customer preferences and choices.
• Guiding Element of Business: Contributes to economic development and standard of living.
• System-oriented: Interacts with the environment and exchanges information.
• Goal-oriented: Sets objectives for business success.
• Exchange Process: Dynamic exchange of goods, services, and information between buyers and sellers.

Importance of Marketing

• Helps organizations achieve goals and survive in competitive business environments.

Marketing Philosophies

• Marketing Concept: Focuses on understanding and satisfying customer needs and wants.
  • Consumer Orientation: Understanding customer needs and providing satisfaction through profitable products and services.
  • Integrated Marketing: Unifying various marketing methods, like mass marketing, one-to-one marketing, and direct marketing.
  • Marketing Research and Long-term Planning: Keeping pace with market trends for long-term business planning.
• Selling Concept: Focuses on selling efforts and creating demand for existing products.

Definition of Service

• Services are intangible activities that provide satisfaction and don't result in ownership of tangible goods.

The Concept of Service

• Focuses on exceeding customer expectations beyond just providing their needs.
  • Friendliness: Greeting customers politely.
  • Understanding and Empathy: Putting oneself in the customer's shoes.
  • Fairness: Treating customers equitably.
  • Control: Giving customers a sense of impact and confidence.
  • Options and Alternatives: Providing options for meeting customer needs.
  • Information: Educating customers about products, policies, and procedures.

Growth of the Service Sector

• Increased service demand, competition, innovation through technology, evolving customer needs, and improved marketing strategies.

Services Marketing

• Aims to demonstrate benefits and build brand awareness after the sale of services.

Hospitality Marketing

• Focuses on customer needs and satisfaction across different sectors of the hospitality industry.

Hospitality Marketing Orientations

• Supplier Provider Orientation: Industry focuses on internal operations and expects guests to adapt to offerings.
• Sales Orientation: Emphasis on forceful sales and competitive pricing, neglecting profit.
• Promotional Orientation: Focused on advertising, personal selling, and public relations.
• Marketing Orientation: Prioritizes guest needs and wants in hospitality services.

Characteristics of Service Marketing

• Intangibility: Services cannot be touched or physically possessed.
• Inseparability: Services are often produced and consumed simultaneously.
• Heterogeneity: Services are variable and unique each time.
• Perishability: Services cannot be stored for later use.
• Ownership: No ownership or title transfer during service transactions.

Types of Marketing in Service Industries

• External Marketing: Interactions between marketers and customers, representing promises made about products and services.
• Interactive Marketing: Direct interactions between buyers and sellers at the point of purchase.
• Internal Marketing: Marketing efforts within the organization to empower employees to deliver customer promises and achieve goals.

Hotel Customer and Principal Expectations

• Hotel guests expect cleanliness, safety, and good service.

Hospitality Service Encounter

• The steps in a hospitality service encounter:
  • Arrival of the guest at the entrance.
  • Greeting the guest.
  • Reception.
  • Luggage handling.
  • Taking the guest to the room.
  • Entry into the room.

The Six S's of Service Encounter

• Specification: Describing the service details.
• Standardization: Ensuring consistent service delivery.
• Service: The actual service provided.
• Speed: Timeliness of service.
• Sincerity: Showing genuine care and interest.
• Success: Achieving customer satisfaction.