HANDOUTS IN PRINCIPLES OF MARKETING PDF

HANDOUTS IN PRINCIPLES OF MARKETING Definition of Marketing American Marketing Association (AMA): "Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers,...

HANDOUTS IN PRINCIPLES OF MARKETING Definition of Marketing American Marketing Association (AMA): "Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." Philip Kotler (Marketing Expert and Author): "Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures, and quantifies the size of the identified market and the profit potential. It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services." Chartered Institute of Marketing (CIM): "Marketing is the management process responsible for identifying, anticipating, and satisfying customer requirements profitably." Business Dictionary: "Marketing is the management process through which goods and services move from concept to the customer. It includes the coordination of four elements called the 4 P's of marketing: product, price, place, and promotion." Marketing is the process of engaging customers and managing profitable customer relationships by understanding their needs and desires, creating value, and effectively communicating and delivering products or services that satisfy those needs. It involves a series of activities that include market research, product development, promotion, distribution, and sales, all aimed at attracting and retaining customers while ensuring that the business achieves its financial objectives. Needs: Needs are fundamental requirements essential for survival and well-being. They are basic and universal, such as food, water, shelter, clothing, and healthcare. In a broader sense, needs can also include psychological requirements like love, self- esteem, and security. Wants: Wants are desires or aspirations that go beyond basic needs. They are shaped by individual preferences, cultural influences, and personal experiences. For instance, while food is a need, craving a gourmet meal or a specific cuisine is a want. Demands: Demands are wants backed by purchasing power. In other words, demands are specific products or services that people are willing and able to buy. For example, if someone wants a smartphone and has the financial means to purchase it, that becomes a demand. Exchange: Exchange is the act of obtaining a desired product or service by offering something of value in return. This could involve trading goods, services, money, or other resources. Exchange is the fundamental principle behind trade and commerce. Satisfaction: Satisfaction is the fulfillment or gratification of a need, want, or demand. It is a measure of how well a product or service meets or exceeds the expectations of the consumer. High satisfaction often leads to repeat purchases and positive word-of-mouth. Maslow's Hierarchy of Needs is a psychological theory proposed by Abraham Maslow in 1943. It is often depicted as a pyramid with five levels, each representing different human needs. Here's a brief explanation of each level, starting from the bottom: Physiological Needs: These are the most basic human survival needs, including food, water, warmth, rest, and other bodily requirements. Without meeting these needs, the human body cannot function properly. Safety Needs: Once physiological needs are met, the next level focuses on safety and security. This includes physical safety from harm, as well as financial, health, and emotional security. People seek stability and protection. Love and Belongingness Needs: After achieving a sense of safety, social needs become important. This level includes the need for relationships, love, friendship, and a sense of community. Humans have a strong desire to belong and be accepted by others. Esteem Needs: This level includes the need for self-esteem and the esteem of others. It encompasses feelings of accomplishment, recognition, and respect. People seek to achieve and be valued for their contributions and abilities. Self-Actualization Needs: At the top of the hierarchy is self-actualization. This represents the realization of personal potential, self-fulfillment, and the pursuit of personal growth and peak experiences. It is about becoming the most one can be. Maslow later expanded the hierarchy to include cognitive and aesthetic needs, and eventually self-transcendence, but the original five-level pyramid remains the most well-known. THE MARKETING MIX is a foundational concept in marketing that involves four key elements, often referred to as the "4 Ps": Product, Price, Place, and Promotion. Here's a brief definition of each: Product: This refers to the goods or services that a company offers to its target market. It involves decisions about the design, features, quality, branding, packaging, and any additional services or warranties. The product must meet the needs and wants of consumers to be successful. Price: This is the amount of money customers must pay to purchase the product. Pricing strategies can vary widely and may include considerations such as cost of production, target market, competition, perceived value, and pricing models (e.g., discounting, premium pricing, or penetration pricing). Price plays a crucial role in the positioning of the product in the market. Place: Also known as distribution, this involves getting the product to the customer. It includes decisions about the distribution channels (e.g., online, retail stores, wholesalers), logistics, inventory management, and the locations where the product will be sold. The goal is to ensure that the product is available to the target market at the right place and time. Promotion: This encompasses all the activities that communicate the product’s benefits and persuade customers to make a purchase. Promotion includes advertising, sales promotions, public relations, social media marketing, direct marketing, and personal selling. Effective promotion strategies increase awareness, generate interest, and drive sales. THE TRADITIONAL APPROACHES IN MARKETING: Traditional marketing refers to promotional strategies that have been used for decades and rely on older forms of media. These methods are often non-digital and include print, broadcast, direct mail, and outdoor advertising. Print Advertising: Ads placed in newspapers, magazines, and brochures. Example: A full-page color ad in a popular lifestyle magazine promoting a new line of skincare products. Broadcast Advertising: Commercials aired on television and radio. Example: A 30-second TV commercial during prime time showcasing a new car model with stunning visuals and a catchy jingle. Direct Mail: Physical promotional materials sent directly to consumers' mailboxes. Example: A postcard with a discount code sent to local residents to promote the grand opening of a new restaurant. Outdoor Advertising: Billboards, posters, and other large-scale advertisements placed in high-traffic areas. Example: A giant billboard on a busy highway advertising a new soft drink with a vibrant, eye-catching design. Product Concept The product concept focuses on the idea that consumers will favor products that offer the most quality, performance, and innovative features. Companies that adopt this approach strive to make continuous improvements to their products, believing that a superior product will naturally attract customers. The risk here is that companies may fall into the "better mousetrap" fallacy, thinking that a great product will sell itself without the need for substantial marketing efforts. Production Concept The production concept is based on the idea that consumers prefer products that are affordable and readily available. Companies that follow this approach focus on high production efficiency, low costs, and mass distribution. This approach is particularly effective in markets where demand exceeds supply or where the primary concern of consumers is availability and affordability, rather than the product's features or quality. Selling Concept The selling concept emphasizes the need for a company to aggressively promote and sell its products to consumers. This approach operates on the belief that consumers will not buy enough of the company's products unless it undertakes a large- scale selling and promotional effort. Companies using this approach often focus more on creating sales transactions than on building long-term customer relationships. This can sometimes lead to a short-term focus and may not always consider the customer's long-term satisfaction and loyalty. CONTEMPORARY APPROACHES IN MARKETING: Sachet Marketing: refers to the strategy of selling products in small, single-use packages, often called sachets. This marketing approach is particularly popular in developing countries and emerging markets where consumers may prefer or only be able to afford smaller quantities of a product at a time. Content Marketing; Content marketing involves creating and sharing valuable, relevant, and consistent content to attract and engage a clearly defined audience. Example: A company blog that provides useful articles, how-to guides, and industry news tailored to the interests of its target audience. Social Media Marketing :Social media marketing uses platforms like Facebook, Instagram, Twitter, and LinkedIn to promote products or services, engage with customers, and build brand awareness. Example: A fashion brand running targeted ads on Instagram and engaging with followers through comments and direct messages. Influencer Marketing: Influencer marketing leverages individuals with a large, engaged following on social media to promote a brand's products or services.Example: A fitness apparel company partnering with a popular fitness influencer to showcase their clothing in workout videos. Search Engine Optimization (SEO) SEO is the practice of optimizing a website to rank higher in search engine results pages (SERPs) to increase organic (non-paid) traffic. Example: An e-commerce site optimizing its product descriptions, blog content, and meta tags to appear at the top of Google search results for relevant keywords. Email Marketing: Email marketing involves sending targeted emails to a list of subscribers with the goal of building relationships, driving sales, or sharing important information. Example: An online retailer sending personalized product recommendations and exclusive discount codes to its email subscribers. Data-Driven Marketing: Data-driven marketing uses data analytics to gain insights into customer behavior, preferences, and trends, allowing for more informed decision-making and personalized marketing strategies. Example: A streaming service analyzing user viewing habits to recommend content and create targeted advertising campaigns. Marketing Concept: The marketing concept is a business philosophy that focuses on identifying and meeting the needs and wants of customers. It is based on the idea that a company can achieve its goals by understanding and satisfying the needs of its target market better than the competition. This approach emphasizes customer orientation, integrated marketing efforts, and achieving profitability through customer satisfaction. Relationship Marketing Concept: The relationship marketing concept emphasizes building long-term relationships with customers rather than focusing solely on individual transactions. This approach seeks to create strong, lasting connections with customers by providing consistent value, fostering trust, and ensuring customer satisfaction. Relationship marketing involves strategies such as personalized communication, loyalty programs, and excellent customer service to enhance customer retention and encourage repeat business. Societal Marketing Concept: The societal marketing concept extends the traditional marketing concept by considering the long-term well-being of society as a whole. This approach recognizes that businesses have a responsibility to balance their profit-making activities with the needs of society and the environment. Companies adopting the societal marketing concept aim to make decisions that benefit both the organization and the broader community. This might include promoting sustainable practices, engaging in corporate social responsibility (CSR) initiatives, and ensuring that their products and services contribute positively to society. Customer Service Customer Support: Assistance provided by a company to those who purchase or use its products or services. This can include troubleshooting problems, answering questions, and providing guidance. Help Desk: A resource intended to provide the customer or end user with information and support related to a company's or institution's products and services. It often includes a ticketing system to manage and track customer issues. Customer Relationship Management (CRM): CRM refers to the strategies, technologies, and practices that companies use to manage and analyze customer interactions and data throughout the customer lifecycle. The goal of CRM is to improve business relationships with customers, enhance customer retention, and drive sales growth. CRM systems compile data from various communication channels, including a company's website, phone, email, live chat, marketing materials, and social media. By consolidating this information, businesses can gain insights into customer behavior, preferences, and needs, allowing them to tailor their interactions and offerings more effectively. Customer Service: Customer service is the support and assistance provided by a company to its customers before, during, and after they purchase and use its products or services. It involves addressing customer inquiries, resolving issues, providing product information, and ensuring a positive customer experience. Effective customer service aims to build customer satisfaction and loyalty by meeting or exceeding customer expectations. It can be delivered through various channels, such as in-person interactions, phone calls, emails, live chats, and social media.