Marketing 12 Sep 2023.docx

Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others. CUSTOMER ORIENTATION The purpose of a business is to create and maintain satisfied, profitable customers. Customers are attract...

Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others. CUSTOMER ORIENTATION The purpose of a business is to create and maintain satisfied, profitable customers. Customers are attracted and retained when their needs are met. Many companies today have a customer focus (or market orientation). This implies that the company focuses its activities and products on consumer demands. There are 4 basic stages for customer orientation Development Development has to be done keeping customer needs into mind. Products should be customer-oriented. The development cycle time should be minimal. Manufacture As per the product, the manufacturing should be such that it gives the best products to the customer Quality should not be compromised Manufacturing cycle time should be reduced market Identifying and targeting the right customer Processing the demand as early as possible Customization of the products for the market Deliver Deliver to the target customer Reduce delivery time Value for money products CORE CONCEPTS OF MARKETING NEEDS Needs are what we require to live a normal, healthy life. There are some needs that are in-built in us. These are called basic needs e.g good food to eat, we need fresh air to breathe, and clean water to drink. As we grow up, we develop a number of needs as our requirements grow with maturity. These needs are called acquired needs. E.g we need love from our family, friendship WANTS Wants are our expression of satisfaction of needs. The situations that we encounter in our day-to-day lives are different. Our family background, literacy level, attitude, thinking pattern, social status,etc are different. Hence even though our needs may be the same, the way we satisfy our needs are different DEMAND Demand is willingness to satisfy the need supported by the ability. The term demand signifies the ability or the willingness to buy a particular commodity at a given point of time. PRODUCT Product is anything that can be offered to the market for attention, acquisition, use or consumption and that which might satisfy the need or wants. Products belonging to the following categories: Goods Services Events Experiences Persons Places Properties Organizations Information Ideas VALUE Value to a customer refers to the difference between the benefit he derives from the product or service and the cost of acquiring the product. Value = Benefits = Functional Benefits+ Emotional Benefits Costs Monetary Costs +Time Costs+ Energy Costs+ Psychic Costs COST Cost refers to the combination of economic and non-economic investment the customer makes in order to acquire, consume, maintain or to disperse of the product. The following are the various costs that the customers have to consider before purchase. Total cost Monetary cost Time cost Energy cost Psychic cost Energy cost SATISFACTION It is the gratification or fulfillment of need, desire or appetite. It is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business. EXCHANGE It is the process of obtaining a desired product from someone by offering something in return. For exchange to exist, following conditions must be satisfied. There are at least two parties. Each party has something that can be of value to the other party TRANSACTION It is the trade of values between two or more parties. Transaction takes place as soon as the agreement is reached. Transactions finally end up with exchange. MARKET A market is a physical place where buyers and sellers gather to buy and sell goods. Markets are also defines as a collection of buyers and sellers who transact over a particular product or product class.eg. money markets. PHILOSOPHIES OF MARKETING MANAGEMENT There are five alternative concepts under which organizations conduct their marketing activities: the production, product, selling, marketing, and societal marketing concepts. THE PRODUCTION CONCEPT The production concept holds that customers will favor products that are available and highly affordable and that management should therefore focus on improving production and distribution efficiency. The production concept is useful when: Demand for a product exceeds the supply. The product's cost is too high and improved productivity is needed to bring it down. The risk with this concept is in focusing too narrowly on company operations. Do not ignore the desires of the market. THE PRODUCT CONCEPT The product concept states that consumers will favor products that offer the most quality, performance, and features, and that the organization should therefore devote its energy to making continuous product improvements. Organizations practicing the product concept assume that a customer will buy the product of highest quality, but these organizations fail because they do not attempt to study the needs and wants of the customers THE SELLING CONCEPT Many organizations follow the selling concept. The selling concept is the idea that consumers will not buy enough of the organization's products unless the organization undertakes a largescale selling and promotion effort. This concept is typically practiced with unsought goods (those that buyers do not normally think of buying. To be successful with this concept, the organization must be good at tracking down the interested buyer. Industries that use this concept usually have overcapacity. Their aim is to sell what they make rather than make what will sell in the market. There are not only high risks with this approach but low satisfaction by customers. THE MARKETING CONCEPT The marketing concept puts customers twice in the entire business cycle- in the beginning as well as at the end of the business cycle. It assumes that the business should start with the determination of consumer needs and wants and it should end with the satisfaction of those needs and wants. According to the marketing concept, any business should be organized around the marketing function and it should strive to anticipate, stimulate and meet customer’s expectations. THE SOCIETAL MARKETING CONCEPT Societal marketing concept holds that organization should not develop marketing strategy by only keeping customer needs and wants in mind but also consider the well being and betterment of society. Now days this marketing concept is followed by majority of organizations including MacDonald’s, Unilever and Procter & gamble. This marketing strategy passes out positive message to the stakeholder, partners, Government, customer and public.Those organizations working on this marketing strategy communicating the message to the world those they are not only working for the profits but also for the well being of the society