The Fundamentals of Marketing
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1 We must learn to do, before we learn by doing The Fundamentals of Marketing Dr. Paurav Shukla Objectives Common measure of business success The alternative approach Concept of Marketing and Strategy Issue of competence How to measure organization s success? Profit Can be played around Past performance not future potential Growth Market led Organizations becoming too optimistic about it Shareholder value Cash orientation Service orientation than Mfg orientation 3 4 How to measure organization s success? Customer satisfaction? Employee satisfaction? Societal satisfaction? The new perspective Financially led objectives VS. Market led objectives 5 6 Marketing 1
2 Evolving new dominant logic Marketing Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. Stephen, V. & R. Lusch (2004), Evolving to a New Dominant Logic for Marketing, Journal of Marketing, Vol. 68, No.1, pp Core concepts of marketing Target Markets & Segmentation Needs, Wants, and Demands Product or Offering Value and Satisfaction Exchange and Transactions Relationships and Networks Marketing Channels Supply Chain Competition Marketing Environment Marketing management process Identifying target market Marketing research Product development Marketing mix management Monitoring 9 10 Marketing mix: 4Ps Marketing mix: 4Cs & 4As Acceptability Product Product Affordability Awareness Customer solution Promotion Marketing Mix Price Promotion Communication Marketing Mix Accessibility Price Cost Place Place Convenience McCarthy, J Basic Marketing: A Managerial Approach (6 ed.). Homewood, IL: Richard D. Irwin. 11 pp Sheth, J (2004), Marketing Paradigms for Emerging Economies, Proceedings of international conference at IIMA, India 12 Marketing 2
3 Strategy Growth strategies Resource optimization Timing Strategic success: macro factors Environmental fit Timing and success Efficiency vs. Effectiveness Speed and decisiveness Ambitious intent Operational Tactical Strategic Outstanding competencies Strategic success: micro factors People Structure Integration Systems Leadership The myth of value Company Orientations Towards Marketplace Production Concept Product Concept Selling Concept Marketing Concept Consumers prefer products that are widely available and inexpensive Consumers favour products that offer the most quality, performance, or innovative features Consumers will buy products only if the company aggressively promotes/sells these products Focuses on needs/ wants of target markets & delivering value better than competitors Marketing 3
4 Company Orientations Towards Marketplace Societal Marketing Concept Holds that the organizations task is to determine needs, wants and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumers and the society s well-being Factory Customer Delivered Value Starting point Focus Means Ends Existing products Selling and promotion (a) The selling concept Profits through sales volume Market Customer needs Integrated marketing (b) The marketing concept Profits through customer satisfaction Need satisfaction and Value Types of Markets Potential product Augmented product Expected product Existing Basic product Core benefit Latent Incipient Theodore Levitt, (1980). Marketing success through differentiation or anything, Harvard Business Review, January February, Reprinted in Theodore Levitt (1986), The marketing imagination, Free Press, pp Traditional Organization Chart Customer-Oriented Organization Chart Top Management Middle Management Front-line people Front-line people Middle management Top management Marketing 4
5 ( ) Marketing 5
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