MGT101_Ch.1-Report.pdf

CHAPTER 1 INTRODUCTION TO MARKETING What is Marketing? According to Converse and Huegy, “The transportation of the goods from the point of production to the consumers and all transactions involved in getting goods from the producers to the consumer.” What is Market...

CHAPTER 1 INTRODUCTION TO MARKETING What is Marketing? According to Converse and Huegy, “The transportation of the goods from the point of production to the consumers and all transactions involved in getting goods from the producers to the consumer.” What is Marketing? According to McCarthy, ”The performance of business activities which directs the flow of goods and services from producer to consumer or user in order to satisfy customers and accomplish the company’s objectives” What is Marketing? According to Kotler, Defined marketing as ‘’human activity directed at satisfying needs and wants through exchange process” Marketing consists of the strategies and tactics used to identify, create and maintain satisfying relationships with customers that result in value for both the customer and the marketer  Value for both Customer & Marketer Strategies & Identify Tactics MARKETING Maintai Create n Satisfying Relationships STRATEGIES &TACTICS Strategies guide the overall direction of marketing efforts over time, while tactics are the actionable steps taken to implement these strategies effectively.  Identify Marketing involves understanding customers, competitors, and the market through research to make informed decisions.  Create Marketers constantly innovate to stay competitive, introducing new products, advertising approaches, and strategies to succeed.  Maintain Marketers focus on retaining customers long- term, not just on making initial sales, by ensuring customer satisfaction and loyalty. SATISFYING RELATIONSHIPS Building strong relationships with customers is a key goal in marketing to create partnerships and enhance customer loyalty. VALUE FOR BOTH CUSTOMER AND MARKETER Value is essential for both customers and marketers, as it reflects the benefits received relative to what is given up, ensuring mutual satisfaction and successful relationships What Marketers Do? Marketers use a diverse toolkit that includes making decisions regarding to: Target Markets Products Promotions Distribution Pricing Services  Target Makets Products It is a group of customers It is the item offered for with shared demographics sale. A product can be a who have been identified as service or an item. It can be the most likely buyers of a physical or in virtual or company's product or cyber form. service.  Promotions Distribution Refer to the entire set of activities, which communicate It means to spread the the product, brand or service product throughout the to the user. The idea is to make marketplace such that a people aware, attract and large number of people can induce to buy the product, in buy it. preference over others.  Pricing Services Intangible, value-added Pricing is the process activities that a company whereby a business sets the provides to its customers. price at which it will sell its They are the core of what a products and services, and company does to create may be part of the business's value for its customers and marketing plan. generate revenue  History of Marketing The Marketing Era began to take shape in the 1990s and is still a predominant part of the marketing ecosystem. This era is all about understanding the needs of your target customers and then effectively customizing your marketing activities to address those needs. We now know it’s much more effective to focus on quality over quantity regarding your customer base. By understanding your target customers’ specific needs and tailoring your marketing activities to address those needs, you’ll achieve much better results and higher lifetime value.  Timeline: The History Of Marketing Mediums 1887 - Printed (Created 1450) 1889 - Billboards (Created 1867) 1922 - Radio (Created 1890s) 1941 - Television (Created 1927) 1957 -Telemarketing (Telephone was created 1876) 1978 - Email (Created 1965) 1994 - Internet (Created 1983) 2000 - Search engines - e.g. Yahoo (1994) and Google (1997) 2015 - Smartphones (Created 1992) Today - Social media (Created 1997) THE ROLE OF MARKETING  2 Types of Organizations For-profit Not-for-profit Marketing is responsible Marketing is responsible for for most tasks that bring attracting customers revenue and, hopefully, needed to support the not- profits of an for-profit’s mission, such as organization. raising donations or supporting a cause.  Marketing Significant Benefits to Society Developing products that satisfy needs, including products that enhance society’s quality of life. Creating competitive environment that helps lower product prices. Developing product distribution systems that offer access to products to a large number of customers and many geographic regions Building demand for products that require organizations expand their labor forces. Offering techniques that have the ability to convey messages that change societal behavior in a positive way(e.g. anti-smoking advertising). CRITICISMS OF MARKETING  Marketing Encourages People to Purchase What is They Do Not Need People can be influenced by advertisements, promotions, and other forms of marketing which can make them buy things they don't actually need. Marketers Embellish Product Claims When marketers often exaggerate or overstate the benefits and features of a product to make it seem more appealing or effective than it actually is. Marketing Discriminates in Customer Selection Occurs when certain customers or groups are unfairly favored or excluded based on characteristics  Marketing Contributes Marketing Encroaches to Environmental on Customers’ Right to Waste Privacy When marketing practices lead When marketing practices are to increased waste and resource intruding on people's personal consumption. This can occur space by collecting and using their through excessive packaging, private information without their promotion of fast fashion or clear permission. This can involve single-use products, and waste tracking their online activities, from promotional materials like using their data without telling flyers and event giveaways. them how it will be used. ETHICS & SOCIAL RESPONSIBILITY IN MARKETING  MARKETING CODE OF ETHICS The call for marketers to become more responsible for their actions has lead to the development of a code of ethics by many companies and professional organizations (Go,2005).  Company Code of Ethics includes Extensive Coverage of How Business is Conducted by Members of an Organization Business Relationships -”must never take unfair advantages of others through manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair dealing practices”. Offering Gifts to Clients - “may not furnish or offer to furnish any gift that is of more than token value or that goes beyond the common courtesies” Receiving Gifts From Clients - “must never request or ask for gifts, entertainment or any other businesses courtesies”. Business Communication - “should take care to avoid exaggeration, colorful language, guesswork, legal conclusions and derogatory remarks or characterization of people and other companies Social Responsibility in Marketing Marketing Organizations are not just sellers of product but also have an inherent responsibilities to be more socially responsible, including being more responsible for its action and more responsive in addressing social concerns. Being socially responsible shows concern for the people and environment in which it transacts business. Consistently exhibit socially responsible tendencies may eventually gain a strong reputation that could pay dividends in the form of increased customer loyalty.  Characteristics Of Modern Marketers What does it takes to be a successful marketer? Among the most important knowledge and skills needed to be successful are: Basic Business Skills Understanding Marketing’s Impact Technology Savvy The Need for a Global Perspective Information Seeker  Basic Business Skills Marketers are first and foremost business people who must perform necessary tasks required of all successful business people. These includes: Problem Analysis and Decision-Making Oral and Written Communication Basic Quantitative Skills; and Working well with others. Understanding Marketing’s Impact Marketers must know how their decisions will impact other areas of the company and others business partners. They must realize that marketing decisions are not in isolation and that decisions made by marketing team could lead to problems for others.  Technology Savvy Marketers must have a strong understanding of technology on two fronts. First, marketers must be skilled in using technology as part of their everyday activities. Second, marketers must understand emerging technology and applications in order to spot potential business opportunities as well as potential threats. The Need for a Global Perspectives Marketers selling internationally must understand the nuances of international trade and cultural differences that exist between markets.  Information Seeker The field of marketing is dynamic. Changes occur continually and often quickly. Marketers must maintain close contact with these changes through a steady diet of information. The 4P’s of Marketing  Price is the amount of money The product is what a company customers must pay to acquire offers to meet the needs or the product or service. It reflects dasdasd desires of its customers. It can be the value perceived by the a physical good, a service, or a customer and affects combination of both. dasdadsa profitability. Promotion encompasses all the Place refers to the distribution activities and strategies used to channels and locations where communicate the value of the the product or service is made product or service to the target available to customers. It market and persuade them to involves getting the product to make a purchase. the right place at the right time.