Fundamentals of Marketing PDF

FUNDAMENTALS OF MANAGEMENT OF BUSINESS MARKETING UNIT 2  2 Agenda ❑ The Concept of Marketing ❑ Implications of Different Marketing Concepts...

FUNDAMENTALS OF MANAGEMENT OF BUSINESS MARKETING UNIT 2  2 Agenda ❑ The Concept of Marketing ❑ Implications of Different Marketing Concepts ❑ The Marketing Environment ❑ Market Research Topic four ❑ Principles of Market Segmentation Monday, February 1, 20XX Sample Footer Text  The Concept of Marketing 3 Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably. Key Words: ❑ Identifying – involves answering questions such as How do we keep in touch with what consumers requirements are ? How do we keep in touch with their thoughts, feeling and perceptions about our goods or services. ❑ Anticipating- consumer requirements change all the time. Anticipation involves looking a the future as well as the present. What is the next big thing that people will want?  The Concept of Marketing 4 ❑ Satisfying – consumers want their requirements to be met. They seek particular benefits. They want the right goods, at the right price, at the right time and in the right place. ❑ Profitability – Marketing also involves making a margin of profit. If the organization does not make a profit they will have nothing to plough back into the business in the future. Ongoing marketing activities ar necessary to ensure that the need sof consumers are identified, anticipated and satisfied.  The Concept of Marketing 5 Related Marketing Terms : ❑ Market : Any situation in which goods and services are traded and exchanged. ❑ Exchange : A process through which trades are made for example between a firm supplying goods and consumers buying these goods. ❑ Value Added : making goods and services more desirable for the end consumer. Any process that does this is referred to as adding value. The key benefits of adding value are: ✓ Your product or service become more competitive when compared to your rivals. ✓ You are likely to be able to increase ethe price of your product  6 Concept of Marketing Marketing is important because it enables an organization to satisfy and respond to the changing requirements of the markets in which it operates. Market led companies sell goods easily because they produce what consumers want. Monday, February 1, 20XX Sample Footer Text  Marketing Concepts 7 These are the views companies have about the purpose of marketing. Five main concepts 1. Production Concept- Focusing on producing inexpensive products for customers. It assumes that the producer knows best what customers want : they want products to be readily available and affordable. The benefit of this concept is tha tit encourages large- scale, low-cost production. It can be successful where buyers are price conscious.  Marketing Concepts 8 2. Product Concept- Focusing on improving the quality of products and building in more features and value added aspects. Companies that focus on the product concept continually seek to develop products that are superior to those of their competitors. 3. Selling Concept – focusses on the sales effort to persuade customers to buy more of the product. Companies may focus more on selling of they think the products will not sell without support. The main advantage of the selling concept is that it provides support for products that may be less visible to the public. It is particularly useful for selling new products or when a firm has unsold stocks.  Marketing Concepts 9 4. Marketing Concept- the key focus is identifying what the customer wants and needs using market research. 5. Societal Marketing Concept – seeks to not only meet consumer needs but also to take an ethical approach to meeting the needs of wider society. It builds on the marketing concept of taking into account what the consumer wants but it goes further to consider how the company and its products can be good for the wider society. Societal marketing seeks to balance customer satisfaction, the interests of other stakeholders, and company profits.  Marketing Concepts 10 5. Societal Marketing Concept – One aspect of societal marketing is making sure advertising and promotions are not misleading or unethical. Cause related marketing is a related approach where a company combines it advertising and promotional activities with a good cause for example, donating a percentage of its revenue to a designated charity. Benefits of societal marketing - the intrinsic worth of an ethical approach and that the company is perceived as doing the right thing by society which should enhance brand reputation and sales. The disadvantage is that it may be viewed with suspicion, and it increases company costs.  11 Thank You