Principles of Marketing - 01 Introduction.pdf

INTRODUCTION TO MARKETING Chapter 01 Principles of Marketing Prepared by: Robert V. Espiritu What is Marketing? ◦Where does marketing fit in the overall business experience? ◦Is marketing the same as selling and advertising? Marketing and Business Functions of Management Func...

INTRODUCTION TO MARKETING Chapter 01 Principles of Marketing Prepared by: Robert V. Espiritu What is Marketing? ◦Where does marketing fit in the overall business experience? ◦Is marketing the same as selling and advertising? Marketing and Business Functions of Management Functional Areas of a ◦ Planning Business ◦ Organizing ◦ Operations ◦ Leading ◦ Human Resource ◦ Controlling ◦ Accounting ◦ Finance ◦ Marketing  Controlling A large percentage of a manager’s Planning time is spent controlling the activities Managers plan by setting long- within the business to ensure that it’s term goals for the business, as on track to achieve its goals. When well short-term strategies people or processes stray from the needed to execute path, managers are often the first against those goals. ones to notice and take corrective action. FUNCTIONS OF MANAGEMENT Leading Organizing Managers serve as leaders for the organization, in practical as well as Managers are responsible symbolic ways. The manager may lead for organizing the work teams or groups through a new operations of a business in process or the development of a new the most efficient way, product. The manager may also be seen enabling the business to as the leader of the organization when it use its resources interacts with the community, customers, effectively. and suppliers.  FUNCTIONAL AREAS OF A BUSINESS Operations is where inputs Human Resources is the area Accounting and Finance Marketing consists of all that a (factors of production) are in charge of searching, provide managers with company does to identify converted to outputs (goods selecting and recruiting the information needed to make customers’ needs and design and services). Operations is people that the company decisions about the allocation products and services that like the heart of a business, needs to employ. In addition, of company resources. This meet those needs. The pumping out goods and it deals with managing area is ultimately responsible marketing function also services in a quantity and of a everything related to for accurately representing the includes promoting goods quality that meets the needs human capital (administrative, financial transactions of a and services, determining how of the customers. legal, training, internal business to internal and the goods and services will be communication , etc.). external parties, government delivered, and developing a agencies, and pricing strategy to capture owners/investors. The market share while remaining finance function involves competitive planning for, obtaining, and managing a company’s funds. Markets Markets are the set of actual and potential buyers of a product. “-ing” – Act of or the process of. A process is a series of actions that you take in order to achieve a result. Two common marketing misconceptions ◦ Selling and Advertising are important aspects of Marketing, but they are merely parts of the many functions of Marketing.  Marketing is the process by which companies create value for customers and build strong customer relationships to capture value from customers in return. Marketing is the process of interesting potential customers Definitions of and clients in your products and/or services. The key word in this marketing definition is "process"; marketing involves Marketing researching, promoting, selling, and distributing your products or services. Process associated with promoting for sale goods or services. The classic components of marketing are the Four Ps: product, price, place, and promotion-the selection and development of the product, determination of price, selection and design of distribution channels (place), and all aspects of generating or enhancing demand for the product, including advertising (promotion).  Product Price The Marketing Mix Place / Promotion Distribution Functions of Marketing Marketing Marketing Customer Research Satisfaction Product Price Distribution Promotions Interacting Components of Marketing ◦ Company and Market ◦ Marketing is the interfacing of both the company and the market. ◦ Strengths and weaknesses of companies must be aligned in serving the needs and wants of the market. COMPANY MARKET Interacting Components of a Market ◦ The overriding objective of the company is to satisfy its customers better than its competition. CUSTOMERS COMPETITION  Company The Strategic 3C’s of Marketing Customers Competitors  3C’s Key Objectives Customers To competently satisfy the needs, wants, and expectations of target customers. Competition To outperform competition at all times. Company To ensure corporate health and profit. KEY OBJECTIVES OF THE 3C’S OF MARKETING