BASICS OF MARKETING I
Session 1
SBA SEMESTER ONE
Designed & developed by E4
SESSION 1
BASICS OF MARKETING- I
Do you see these around you,
somewhere?
SBA SEMESTER ONE
Designed & developed by E4
SESSION 1
BASICS OF MARKETING- I
• Why do you choose one product/brand over
another?
• Why do you go to a certain place to buy certain
things?
• How will you know that you are getting the best
deal?
• Why are you willing to pay a certain amount for
certain things at certain times?
SBA SEMESTER ONE
Designed & developed by E4
SESSION 1
BASICS OF MARKETING- I
What is Marketing?
•
Personal Selling?
•
Advertising?
•
Making products available in stores?
•
Maintaining inventories?
All of the above, plus much more!
SBA SEMESTER ONE
Designed & developed by E4
SESSION 1
BASICS OF MARKETING- I
Few simple questions..
Marketing is about:
• Who is my customer?
• What do they want to buy?
• Where do they want to buy it?
• How much will they pay?
• How and when will they collect information?
• Why will they buy our product rather than a
competitor’s?
SBA SEMESTER ONE
Designed & developed by E4
SESSION 1
BASICS OF MARKETING- I
Learning Objectives
• Define the term marketing
• To understand needs, wants and demand
• Discuss the differences between sales and
market orientations
• Understanding customer value
• Describe four marketing management
philosophies
SBA SEMESTER ONE
Designed & developed by E4
SESSION 1
BASICS OF MARKETING- I
What is Marketing?
American Marketing Association Definition
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 goals.
SBA SEMESTER ONE
Designed & developed by E4
SESSION 1
BASICS OF MARKETING- I
The Marketing Concept
•
Focuses on customer wants and needs to
distinguish products from competition
•
Integrates all organization’s activities to satisfy
customer wants and needs
•
Achieves organization’s long-term goals by
satisfying customer wants and needs
SBA SEMESTER ONE
Designed & developed by E4
SESSION 1
BASICS OF MARKETING- I
Needs, Wants & Demands
• Needs become wants when they are directed to
specific objects
• Demands are wants for specific products backed
by the willingness & ability to pay
• Needs pre-exist marketers (e.g social status)
• Product- an offering that can satisfy need or
want
• Marketers can influence level, timing &
composition of demand
SBA SEMESTER ONE
Designed & developed by E4
SESSION 1
BASICS OF MARKETING- I
A Simple Marketing System
Ref: Marketing Management by Philip Kotler
SBA SEMESTER ONE
Designed & developed by E4
SESSION 1
BASICS OF MARKETING- I
Sales Concept & Marketing Concept
Ref: Marketing Management by Philip Kotler
SBA SEMESTER ONE
Designed & developed by E4
SESSION 1
BASICS OF MARKETING- I
Marketing
“There will always be need for
some selling. But the aim of
marketing is to make selling
superfluous. The aim of marketing is
to know and understand the
customer so well that the product or
service fits him and sells itself.
Ideally, marketing should result in a
customer who is ready to buy. All
that should be needed is to make the
product or service available.”
Peter Drucker
SBA SEMESTER ONE
Designed & developed by E4
SESSION 1
BASICS OF MARKETING- I
Customer Delivered Value
• Any product/service offering will be successful if
it delivers “value” to the customer
• The buyer chooses between different offerings
on the basis of what is perceived to deliver most
value
• Value can be seen as primarily a combination of
quality, service and price (QSP) called “customer
value triad”
• Value increases with quality and service and
decreases with price
SBA SEMESTER ONE
Designed & developed by E4
SESSION 1
BASICS OF MARKETING- I
Customer Delivered Value
• So, Value is a ratio between what the customer gets and
what he gives
• The benefits include functional benefits and emotional
benefits (also known as total customer value)
•The benefits can also be represented as Product Value+
Service Value + Personnel Value + Image Value
• The costs include monitory costs, time costs, energy costs
and psychic costs
SBA SEMESTER ONE
Designed & developed by E4
SESSION 1
BASICS OF MARKETING- I
The Value Equation
Value
=
Benefits/Costs
Benefits
=
Functional benefits
+ emotional benefits
Costs
=
Monetary costs + Time costs
+ Energy costs + Psychic costs
SBA SEMESTER ONE
Designed & developed by E4
SESSION 1
BASICS OF MARKETING- I
Ref: Marketing Management by Philip Kotler
SBA SEMESTER ONE
Designed & developed by E4
SESSION 1
BASICS OF MARKETING- I
Customer value
The marketer can increase the value of the
customer offering by one or combination of the
following :
• Raise benefits
• Reduce costs
• Raise benefits and reduce costs
• Raise benefits by more than the raise in costs
• Lower benefits by less than the reduction in costs
SBA SEMESTER ONE
Designed & developed by E4
SESSION 1
BASICS OF MARKETING- I
Customer Value
• The value offered by offerings in the same
category can be different , even if they come
from the same organization
e.g. Ginger Hotels from Taj Group of Hotels is a
“no-frills” offering appealing to a different set of
customers, priced much lower than the premium
offerings. Each value offering has its own set of
customers who find value in it at a given price
point
SBA SEMESTER ONE
Designed & developed by E4
SESSION 1
BASICS OF MARKETING- I
Marketing Management Philosophies
Production
Sales
Competing
Philosophies
Market
Societal Marketing
Ref: Marketing by Lamb
SBA SEMESTER ONE
Designed & developed by E4
SESSION 1
BASICS OF MARKETING- I
Marketing Management Philosophies
Philosophy
Production
Sales
Market
Societal
Key Ideas
Focus on efficiency of internal operations
Focus on aggressive techniques or
overcoming customer resistance
Focus on satisfying customer needs and wants
Focus on satisfying customer needs and
wants while enhancing individual and
societal well-being
Ref: Marketing by Lamb
SBA SEMESTER ONE
Designed & developed by E4
SESSION 1
BASICS OF MARKETING- I