Market

Report
An Overview of Marketing
1
Course Instructor:
Sean X.H. Qiu
Lecturer, MDL
1
Learning Objectives
1..Why do we need to learn marketing?
2. What is a market and its types?
3. What is Marketing?
4. What is Marketed?
5. What is demand and its types?
6. What are some Core Marketing Concepts?
7. Describe Various marketing management
philosophies?
1. Why do we need to learn
Marketing ?
Can you sell these products Easily ?
How about these products?
How about them ?
Can you Market them?
How about Their films ?
Why Marketing for cooperatives
and Coop Products ?
Why Study Marketing?

Plays an important role in society

Vital to business survival, profits
and growth

Offers career opportunities

Affects your life every day
Why Study Marketing?
“Marketing is too important
to be left to the
marketing department.”
---David Packard
Hewlett-Packard
Why Study Marketing?
• Professional Selling


Everything must be
made as simple as
possible but not one
bit simpler
--- Albert Einstein
• Marketing Research
Fastest route up the
corporate ladder
• Product Management
• Advertising
• Retail Buying
• Distribution
Management
• Product Development
• Wholesaling
Why Study Marketing?

Global economy: (PIII)
 International Trade &
Domestic Trade
 One World, Many Wallets:
Economic Conflicts,
Culture Shock and Market
Shock
2. What is Market and its
types?
What is a market?
Market ( Market place) A physical place
where buyers and sellers gather to
exchange goods and services
Types of markets
Consumer
Nonprofit
government
markets
Global
Business
1. Consumer Market
Consists of all individuals or house
holds who buy or acquire offerings for
personal usage.
2. Industrial/Business Market
Consists of buyers who purchase or
acquire offerings for resell or
reproduction to earn profit
3. Global Market/International markets.
Import, export etc.
4. Non Profit & Government Markets
3.What is Marketing?
What is Marketing?

Personal Selling?

Advertising?

Making products available in stores?

Maintaining inventories?
All of the above, plus much more!
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.
Kotler’s Defination
The Art & Science of choosing
Kotler’smarkets
defination
:
target
and
getting,
keeping and growing customers
through creating, delivering and
communicating
superior customer value
Marketing VS Sales

Process and Result (P.1)
Sales occur when goods or services are
“given over” to a customer in exchange for
money or another valuable consideration. It’s
the end of the marketing process.
Marketing describes the whole commercial
process that creates (through promotion) the
interest that the potential customer
demonstrates prior to a sale.
4.What is Marketed?
GOODS
SERVICES
PERSONS
PROPERTIES
ORG,SATIONS
MARKETING
INFORMATION
EXPERIENCES
PLACES
EVENTS
IDEAS
What is Marketed?
Basically 10 types of entities are being marketed.
Goods Consumer goods, industrial goods
Services Intangible offerings of people or
organizations
Experiences Tourism, Recreation, adventure
Events Anniversaries, shows, testimonials
Persons Marketing one's self e.g. celebrities,
politicians, artists etc.
Places Cities, states, regions, historical
places, tourism.
Properties Intangible rights of ownership
either real property (real estates) or
financial property ( stocks & bonds).
Organizations Firms, Universities,
museums.
Information News, views like
encyclopedias news papers etc.
Ideas New ideas/research about production,
services, advertisement etc.
You can market only if there is
demand for them……
5. What is Demand?
NEGATIVE
NO
DEMAND
LATENT
DEMAND
DEMAND
STATES
DECLINING
DEMAND
DEMAND
STATES
IRREGULAR
DEMAND
FULL
DEMAND
OVERFULL
DEMAND
Unwholesome
demand
1. Negative Demand consumer dislike product and
may even pay a price to avoid it. The marketing
task is to analyze why the market dislike product
and adopt the strategy to change the attitude of
consumer.
2. No Demand consumer may be unaware or
uninterested In product. The marketing task is to
find ways to connect the benefits of the product
with the person’s natural needs and interests.
3. Latent Demand Want of consumers exist but not
marketing offer to satisfy need. The marketing
task is to measure the size of potential market
and develop good and services to satisfy that
want.
4. Declining Demand Consumers begin to buy
the product less frequently or not at all.
Marketing task is to reverse declining demand
through creative marketing.
5. Irregular demand Variations in demand on
seasonal, daily or even hourly bases. The
marketing task called Synchromarketing is to
find the ways to alter the pattern of demand
through flexible pricing, promotion and other
incentives.
6. Full Demand supply= demand. The marketing
task is to maintain the pattern of demand
7. Overfull Demand Demand level is high as
compare to organizational production capacity.
Marketing task is called demarketing is to find
ways to reduce demand temporarily or
permanently.
8. Unwholesome Demand Consumers may be
attracted to products that have undesirable
social consequences. The marketing task is to
organize activities eg. Fear messages, price
hikes or reduced availability.
6. What are some Core
Marketing Concepts?
The Concept of Exchange
At Least Two
Parties
Necessary
Conditions
for Exchange
Something of
Value
Ability to
Communicate
Offer
Freedom to
Accept or Reject
Desire to Deal
With Other Party
Exchange involves obtaining a desired
product from someone by offering something
in return.
A person can obtain a product by 4 ways
 Self Produce
 By Force
 Beg
 Exchange ( Core of Marketing )
Transfer A gives something to B but doesn’t
receive anything tangible in return.
Transaction A trade of values between two or
more parties, involves at least two things of
value, agreed-upon conditions, a time of
agreement, and a place of agreement.
Important Definitions

Marketer is a some one who is seeking a response
(attention, a purchase, a vote, a donation) from another
party called prospect.

Prospects means future potential buyer

Need, Wants, and Demand
Need Basic human requirement
Want Need becomes want when it is directed to specific
object that satisfies need.
Demand want for specific product backed by purchasing
power.

Market ( Market place) A physical place where buyers
and sellers gathered to exchange to exchange goods.

Market Space exchange of goods without physical
market (digital, Virtual) e.g. eCommerce, internet etc.

Target Market People/place for whom seller designs his
particular offering.

Segmentation Division of market in small groups keeping
on any base (Purchasing power, age, social values etc.)

Metamarket refers to a cluster of complementary goods
and services that are closely related in the minds of
consumers but are spread across a diverse set of
industries.
Customer Value
It is ratio between what
consumer gets & what
he gives
Value = Benefits / Costs
Total
Customer
value
Customer
Delivered
Value
Total
Customer
Cost
Product
value
Monetary
cost
Service
Value
Time
cost
Personal
value
Energy
cost
Image
value
Psychic
cost
Customer Satisfaction
The feeling that a product
has met or exceeded the
customer’s expectations.
It’s related with how well
the product performance
lives up to customers
expectation.
Relationship Marketing
Maintaining satisfying
and long term
relationship with
customers, partners,
suppliers and other
channel members.
Relationship Marketing’s Importance
Attracting a new customer
may be
TEN TIMES
the cost of keeping
an old customer
Effective Marketing:
Binding the Buyer and Seller
Remember:
The binding relationship between the
buyer and seller that’s created by effective
marketing tends to last longer --- and to
be set up more quickly --- as the speed of
information in the marketplace increases.
7. What are Various Marketing
philosophies?
product
Selling
Competing
Concepts
Production
MARKETING
SOCIETAL
MARKETING
Marketing Management
Philosophies
Production Concept
Product Concept
Competing
Philosophies
Selling Concept
Marketing Concept
1. Production Concept holds that
consumers will prefer products that are
widely available and inexpensive.
Therefore, management should focus on
improving production and distribution
efficiency.
Focused on high production efficiency, low
cost and mass distribution.
Useful in/if :
competition is weak . Demand
exceeds supply
Developing countries, where customers
are more interested in product rather
then features.
generic products competing on price
narrowly
Poor quality, no customer satisfaction,
focused market.
2. Product Concept holds that consumers
will favor products that offer the most in
quality, performance, and innovative
features. Thus, an organization should
devote energy to make continuous product
improvements.
A General Motors executive said years ago:
“ How can the public know what kind of car
they want until they see what is available?”
But A new or improved product will not
necessarily be successful unless the
product is priced, distributed, advertised
and sold properly
Product oriented companies often design
products with no or very little consumer
input. They give more importance to
products rather then consumers.
3. The Selling Concept holds that consumers
will not buy enough of the firm’s products
unless it uses a large-scale selling and
promotion effort. The concept is typically
practiced with unsought goods those that
buyers do not normally think of buying,
such as insurance or blood donations,
encyclopedias, fund-raisers, college
admissions offices and by specially
political parties etc.
Coca-cola’s VP said “ The purpose of
marketing is to sell more stuff to more
people more often for more money in
order to make more profit”.
Their aim is to sell what they make rather
than make what the market wants
4. The Marketing Concept holds that
achieving organizational goals depends
on knowing the needs and wants of target
markets and delivering the desired
satisfactions better than competitors do.
Under the marketing concept, customer
focus and value are the paths to sales
and profits.
Marketing concept is a customer-centered
“sense and respond” philosophy. It views
marketing not as “hunting,” but as “gardening.”
The job is not to find the right customers for your
product, but the right products for your
customers
The marketing concept starts with a well-defined
market, focuses on customer needs, and
integrates all the marketing activities that affect
customers. In turn, it yields profits by creating
long-term customer relationships based on
customer value and satisfaction.
5. The Societal Marketing Concept holds that
the organization should determine the needs,
wants, and interests of target markets. It
should then deliver superior value to
customers in a way that maintains or
improves the consumer’s and the society’s
well-being.

It questions whether the pure marketing
concept overlooks possible conflicts
between consumer short-run wants and
long-run welfare of consumer and society.

The fast food industry offers tasty but
unhealthy food with high fats, salts starch.
The products are wrapped in convenient
packaging, but this leads to waste and
pollution. Thus, in satisfying short-term
consumer wants, the highly successful
fast-food chains may be harming
consumer health and causing
environmental problems
6. Holistic Marketing Concept is based on
development, design and implementation
of marketing programs, processes and
activities that recognizes their extent and
interdependencies. It holds that
“everything matters" in marketing and a
broad an integrated perspective is often
necessary.
Integrated Marketing Communication
a. Relationship Marketing has aim to build
mutually satisfying long-term relationship
with key parties like customers, suppliers,
distributors etc. for making a strong
marketing network.
b. Integrated Marketing Activities to create,
communicate and deliver value to
customers through diversified set of
integrated activities eg. 4 P’s of Marketing,
communication mix, offering mix etc.
c. Internal Marketing It ensures that every
one in the organization embraces
appropriate marketing functions like
sales force, advertising, customer
service, product management, marketing
research, hiring, pricing etc.
d. Social Responsibility Marketing
Understanding social, ethical,
environmental & legal concern of society.
Marketing Functions:
Five Classics Functions and a Forgotten One
Contact : Seeking out of prospective
customers.
Merchandising: Bring the right products to the
right place at right time in the right quantity
at the right price.
Pricing: Determining factor when a purchase
is made and a key to profit
Marketing Functions:
Five Classics Functions and a Forgotten One
Promotion: Convincing customers through
ads, personal selling, pr and other efforts.
Distribution: The process of putting the
customer and the product together.
Human Resources: Transactions don’t take
place between companies and faceless
consumers but between flesh-and-blood
human beings.
Else is what?
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