Lesson 1 - Introduction to Marketing (2).pptx

Principles of Marketing Facilitated by: Dr Nisha Jayasuriya Assessment Criteria Assignment one - 30 Assignment two - 30 Final Examination -40 BM2014 1 Introduction to Marketing Learning Outcome ◉LO 1 – Identify alternative definitions of marketing and core concepts Les...

Principles of Marketing Facilitated by: Dr Nisha Jayasuriya Assessment Criteria Assignment one - 30 Assignment two - 30 Final Examination -40 BM2014 1 Introduction to Marketing Learning Outcome ◉LO 1 – Identify alternative definitions of marketing and core concepts Lesson outline What is marketing? Introduction to Marketing Core concepts Evolution of in marketing marketing What is Marketing? Marketing is everything you do to place your product or service in the hands of potential customers. “  Definition of Marketing “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” (Kotler, 2017) “Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives”. (American management association)  Definition of Marketing “Marketing is the management process responsible for identifying, anticipating and satisfying consumers’ requirements profitably.” (The Chartered Institute of Marketing) “Marketing is the art of selling products” (Peter Drucker)  It’s a Process Not Not Advertisi Sales ng  A Simple Model of the Marketing Process 1. Understand the 3. Construct a 2. Design a customer- marketplace and marketing program driven marketing customer needs and that delivers superior wants strategy value Create value for customers and build customer relationships 4. Build profitable 5. Capture value from relationships and customers to create create profits and customer equity (value) customer delight (pleasure) ◉ Why Marketing ? “  “Because the better mousetrap does not sell itself”  Activity ◉ Select your favourite brand and explain why do you like it.  Case Study – What is Marketing ◉ Answer the case study question as a group Evolution of marketing ◉ Production concept ◉ Product concept ◉ Selling concept ◉ Marketing concept  Production concept The idea that consumers will favour products that is available and highly affordable ◉ Companies focus on reducing production cost. ◉ The business philosophy in this era is “if you build it they will come” ◉ This philosophy was successful there are less alternatives.  Product concept Business philosophy was, Customers will favour products that offer the most in quality, performance and innovative features Manufacturers work hard to improve product quality rather than focusing on customer requirements. Marketing Myopia ◉It is shortsighted and narrowed when attempting to define it’s business in terms of the customers needs and wants ◉Marketing myopia is, a failure to define an organization's purpose in terms of its function from the consumers' point of view. E.g. - railway companies that define their markets in terms of trains  Symptoms of marketing myopia ◉Companies start thinking that their growth won't be curtailed due to the ever-growing population. ◉If organizations hold monopoly in a certain area and they think they are not replaceable. ◉Concentration is more on increasing the efficiency of making a product, and not on improving the product or its quality. (reduce unit cost) ◉Emphasizing more on selling than marketing. How to avoid marketing myopia Discuss with your teams and explain know how to avoid marketing myopia.  Selling concept ◉It holds the idea, that consumers and businesses, if left alone, will ordinarily not buy enough of the selling company’s products. ◉Their aim is to sell what they make rather than make what the market wants. ◉It is a high-risk strategy because it focuses on creating sales transactions rather than a long-term strategy Marketing concept ◉Achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. ◉The marketing concept rests on four pillars: target market, customer needs, integrated marketing and profitability. The Societal Marketing Concept ◉This concept holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors (this is the original Marketing Concept). ◉Additionally, it holds that this all must be done in a way that preserves or enhances the consumer’s and the society’s well-being. Example Triple bottom line Marketing Philosophies Activity You need to mention real-world examples for each marketing orientation. Briefly mention why you think this company follow this concept. 36 Product Vs. Marketing Orientation Homework Read the case study : AMAZON.COM: Obsessed with Creating Customer Value and Relationships, in the recommended reading.