Introduction to Marketing

Market Oriented Approach

What is Marketing?What is 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 to serve both buyers and sellers.

Needs Eat, Dress, Move

Wants Cheeseburger, Tuxedo, Car

Marketer

Needs & WantsNeeds & Wants

A need occurs when a person feels physiologically deprived of basic necessities such as food, clothing, and shelter.

A want is a felt need that is shaped by a person’s knowledge, culture, and personality.

What are the legal, ethical, and moral.implications of satisfying wants and needs?

Factors that influence marketing activities

• Organization itself (mission and goals)• Customers• Suppliers

• Shareholders• Competitors

• Environmental forces• Society

Summary of factors that affect an organization’s Summary of factors that affect an organization’s marketing marketing

programprogram

Pro

mo

tion

Competitive fo

rces

Reg

ulato

ry forces S

oci

al f

orc

es

Economic forces

PlacePrice

Pro

du

ct

Environmental forces

Consumer

Marketingprogram

Technological forces

Requirements for Marketing to Requirements for Marketing to OccurOccur

For marketing to occur, at least 4 factors are required:

1. Two or more parties (individuals or organizations) with unsatisfied needs,

2. a desire and ability on their part to be satisfied,

3. a way for the parties to communicate, and

4. something to exchange.

First Task: Detect Needs

Organization’smarketing department

Discover consumer needs

Information about needs

Potential consumers: The market

Marketing’s first task: discovering Marketing’s first task: discovering consumer needsconsumer needs

What is a Market?What is a Market?

Potential consumers make up a market, which is:

1. People

2. with the Desire and

3. with the Ability to Buy a

specific product.

Organization’s marketing departmentConcepts

forproducts

Discover consumer needs

Information about needs

Potential consumers: The market

Satisfy consumer needsFind the right combination of:

• Product• Price• Promotion• Place

Goods, services, ideas

Marketing’s Second Task: Satisfying Marketing’s Second Task: Satisfying Consumer NeedsConsumer Needs

The Target MarketThe Target Market Because the organization

obviously can’t satisfy all

consumer needs, it must

concentrate its efforts on

certain needs of a specific

group of potential consumers. This is the target market -- one or more specific groups of potential consumers toward which an organization directs its marketing program.

The Four Ps: Controllable The Four Ps: Controllable Marketing Mix FactorsMarketing Mix Factors

ProductPricePromotion

Place

Building Customer Relationships

Customer value is. . . . Customer value is. . . .

the unique combination of benefits received by target buyers that includes quality

priceconvenienceon-time deliverybefore & after-sale service

the unique combination of benefits received by target buyers that includes quality

priceconvenienceon-time deliverybefore & after-sale service

Relationship MarketingRelationship MarketingRelationship marketing is linking the

organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits.

Mutual long-term benefits between the organization and its customers require links to other vital stakeholders-- including suppliers, employees, and “partners” such as wholesalers or retailers in a manufacturer’s channel of distribution.

A marketing program is. . .A marketing program is. . .

a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.

a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.

How Marketing became so important?

Production era

Sales era

Marketing concept era

Market orientation era

18601880 190019201940 196019802000

Four different orientations in the history of Four different orientations in the history of North American businessNorth American business

Definition of Market OrientationDefinition of Market Orientation

An organization that has a market orientation focuses its efforts on . . . .

An organization that has a market orientation focuses its efforts on . . . .

(1) Continuously collecting information about customers’ needs and competitors’ capabilities,

(2) sharing this information across departments, and

(3) using the information to create customer value.

(1) Continuously collecting information about customers’ needs and competitors’ capabilities,

(2) sharing this information across departments, and

(3) using the information to create customer value.

Old Marketing ContextOld Marketing Context

Ethics & Social ResponsibilityEthics & Social Responsibility

• Ethics

• Social responsibility. Decisions should

consider the well-being of society as a whole.

• Societal marketing concept. An organization

should satisfy customers’ needs while

providing for society’s well-being.

• Macromarketing

• Micromarketing

The Breadth & Depth of MarketingThe Breadth & Depth of Marketing

Marketing affects every person and organizationMarketing affects every person and organization

Who markets?Who markets?

What do they market?What do they market?

Who buys and uses what is marketed?Who buys and uses what is marketed?

Who benefits from these marketing activities?Who benefits from these marketing activities?

How do they benefit?How do they benefit?

Who buys and uses what Who buys and uses what is marketed?is marketed?

Ultimate Consumers

Organizational Buyers(B to B)

UtilityUtility

Form

Place

Time

Possession

Form

Place

Time

Possession

Examples of Marketing Actionsthat Create Utility

Examples of Marketing Actionsthat Create Utility

Product design, packaging

Distribution, store location

Inventory management, warehouses, delivery

Transactions, transfer of ownership

Product design, packaging

Distribution, store location

Inventory management, warehouses, delivery

Transactions, transfer of ownership

How Do Consumers Benefit?