Introduction to the basic functional area of management: Marketing

Transcription

1 Introduction to the basic functional area of management: Marketing

2 Marketing in 21 st Century What is marketing? What is marketed? Core marketing concepts.

3 What is Marketing? Marketing = Selling? Marketing = Advertising? Marketing = meeting needs profitably Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. -American Marketing Association

4 Importance of Marketing Financial success of a business depends on marketing ability. Marketing s broader importance extends to society as a whole Gain acceptance of new products which enrich people s life.. Enhances the standard of living Create demand for products and services which in turn create jobs Marketing also allows firms to engage in socially responsible activities Identify and meet the human/social needs Converting individual/social needs into profitable business opportunity

5 What is Marketed?

6 Ten entities of marketing: Marketing people are involved in marketing ten types of entities: goods, services, events, experiences, persons, places, properties, organizations, information, and ideas. A) Goods Physical goods constitute the bulk of production and marketing efforts. B) Services A growing portion of business activities are focused on the production of services. The U.S. economy today consists of a services to goods mix. C) Events Marketers promote time-based events such as trade shows, artistic performances, and the Olympics. D) Experiences By orchestrating several services and goods, a firm can create and market experiences such as Walt Disney World s Magic Kingdom. E) Persons Celebrity marketing is a major business. 6

7 Ten entities (cont d) D) Places Cities, states, regions, and whole nations compete actively to attract tourists, factories, and new residents. E) Properties Are intangible rights of ownership of either real property (real estate) or financial property (stocks and bonds). H) Organizations Actively work to build a strong, favorable, and unique image in the minds of their target publics. I) Information Can be produced and marketed as a product. Schools, universities, and others produce information and then market it. J) Ideas Every market offering includes a basic idea. Products and services are platforms for delivering some idea or benefit. 7

8 Markets A collection of buyer and seller who transact over a particular product or a class of product Marketers use the term market to cover various groups of customers Key Customer Markets: Consumer Markets Business Markets Global Markets Non-Profit and Governmental Markets Commodity Markets Capital Markets Labor Markets Economic Perspective

9 Need, Want and Demand

10 Segmentations, Targeting and Positioning

11 Offerings and Brand A company addresses customer needs by putting forth a value proposition Value Proposition : A set of intangible benefits which satisfy the needs Value proposition is made physical by an offering Offering = Products, Services, Information, experiences Brand An offering from a known source A brand carries many associations in a customer s mind

12 Value and Satisfaction Value = Quality + Service + Price Satisfaction = Pre Consumption Expectation Post Consumption Experience

13 Marketing Channels Communication Channels Distribution Channels

14 Supply Chain

15 A Simple Marketing System

16 4 Ps of Marketing 1. Product 2. Price 3. Place 4. Promotion

17 Promotion Place

18 Marketing-Mix Example Product Price Place Promotion

19 Product-Mix Type Form Color Quality Style Specifications Packaging Warrantee/Guarantee

20 Price-Mix List Price Pricing Strategy - Premium/ Skimming Pricing Vs Penetration Pricing Pricing Method- Based on technical specs. Discount - Occasional

21 Place Apple Stores Online Apple Store and App Store Authorized retailers Walmart, Bestbuy etc. Telecom companies AT&T, Verizon etc. Fulfillment services Amazon, ebay etc.

22 Promotion Advertising Personal Selling Sales Promotion free shipping for orders over $50 itunes gift cards $100 rebate when you purchase a Mac or specific printers from the online store