2. A market is a place where things are
bought and sold. It is often defined as a
place where buyers and sellers meet.
2
MARKET
3. 3
• In a market, marketers are the
sellers. They set out their stalls,
displaying good to their best
advantage, and then try to attract
buyers.
• Modern marketing is rather more
complex than a street market, but
it is still about attracting customers,
serving them well, competing with
others and making a profit.
MARKET AND MARKETING
4. 4
• Marketing is a customer-focused
discipline centered on an exchange
between two (or more) parties.
• That exchange is at the center of
marketing activity and is usually of
products for money.
• Good marketing brings about fair
exchanges where both sides feel
that they have got good value.
MARKETING
5. 5
• “The management process which identifies, anticipates, and satisfy
customer requirements efficiently and profitably.”
• Chartered Institute of Marketing (CIM)
• This definition of marketing stressed the need for management action
to understand what customers really want from products. A product
must be what customer needs physically, psychologically, financially,
and timewise.
WHAT IS MARKETING?
6. 6
• “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 (AMA)
• AMA’s definition looks for balance between the needs of the firm, the
needs of the customer, and the needs of other stakeholders.
• Marketing can create value through goods and prices, through good
service, convenience and any number of imaginative other ways.
• This definition makes a more specific reference to “society at large” and
therefore embraces societal responsibility.
WHAT IS MARKETING?
7. 7
• Marketing can be viewed in many different ways. It is:
• A function
• A department
• A discipline
• A concept
• A philosophy
• An orientation
MARKETING: A MIXEDTERMINOLOGY
8. 8
• Marketing as a function – it embraces all marketing activity within the
organization
• The department is part of the organization in which specialist marketers
work.
• In a truly market-oriented organization, everyone will think marketing
and, at least some of the time, carry out marketing-related activities.
• Being market-oriented is providing customer value which determines an
organization’s direction.
MARKETING AS A FUNCTION AND AS A DEPARTMENT
9. 9
• The “discipline” of marketing is of
primary interest to students and
scholars. Discipline means “field of
study.”
MARKETING AS A DISCIPLINE
10. 10
• Marketing concept, philosophy, and orientation are distinct from one
another but a lot of the times are used interchangeably.
• It is an organization’s strategic orientation that provides guiding
principles that influence a firm’s marketing and strategy making
activities.
MARKETING CONCEPT, PHILOSOPHY AND ORIENTATION
11. 11
• Marketing is not just about
selling, advertising, promotion or
marketing communications.
WHAT MARKETING IS NOT
12. 12
• Marketing Research
• Market Research
• Competitive Research
• Organizational Research
• Objective Setting
• Targets
• Marketing Tasks
• Planning
• Staffing
• Budgets
• Promotion
• Sales
• Pricing
• Distribution
• Branding
• Customer Service
• Collecting Feedback and Controlling Activities
WHAT ELSE IS MARKETING?
13. MARKETING
MARKETING IS CONCERNED WITH GETTING THE
RIGHT PRODUCTS TO THE RIGHT PLACE AT THE
RIGHT TIME, AND SO DISTRIBUTION (PLACE) IS KEY.
THOSE PRODUCTS ALSO NEED TO BE AT THE RIGHT
PRICE OR THEY WILL NOT SELL.
1
3
14. 14
• One of the biggest areas of marketing
is market research.
• Research is vital in understanding
customer needs, buyer behavior, and
how to design goods and services to
meet those needs.
WHAT ELSE IS MARKETING?
15. 15
• Before Industrialization, the emphasis was on
making enough goods to supply people’s
needs, not on persuading them to buy them.
• There is no need to be persuasive when there
are not enough shoes, soap, or sugar to go
around anyway.
• There was a time when goods produced were
in small quantities, so every thing made was
sold.
• Those markets were supply-led not demand
driven.
BEFORE MARKETING
16. 16
• However, as factories opened and towns developed,
there were more goods available. People became
reliant on buying things from others to meet their
needs.
• There was a change, sellers no longer had direct
contact with their buyers; there were agents and
shopkeepers in between.
• This had two effects:
• Producers were not as aware of customer’s
requirements, relying only on the intermediaries
• It meant customers no longer knew their suppliers – they
only know the shopkeepers or stallholders.
BEFORE MARKETING
17. 17
• Factories brought significant change. Mass
production meant greater supply and
products were cheaper. Initially, the focus was
on finding efficient ways to produce large
quantities as people queued up to buy all
these cheap new products.
BEFORE MARKETING
18. 18
• Prior to mass production, value for money,
pleasant service, a shop sign, a maker’s mark, and
reputation built by word of mouth were enough to
keep a business afloat.
• More sophisticated marketing techniques were
originally developed for the everyday, high-volume
products of the new mass-production techniques.
They were easier to make and so there were more
companies making them. At the same time,
transport improved. There were roads, railways,
and canals available to ship goods to other parts of
the country.
• Consumers had lots of choice and competition
became an issue.
THE EVOLUTION OF MARKETING
19. 19
• These mass-produced products
acquired brand names, had
posters and press advertisements,
were sold on special offer, and
were adjusted to suit customer
tastes and to be better than rival
products.
THE EVOLUTION OF MARKETING
20. 20
• A number of factors led to the birth of
marketing, the main ones are:
• Breakthroughs in technology
• Advances in the technology for transporting
goods
• Social changes such as the move away from
the countryside and into towns
• Increased competition
THE BIRTH OF MARKETING
21. 21
• The concepts demand and supply are fundamental in
business and in marketing.
• Demand refers to the quantity of goods that customers buy
at a certain price
• Supply refers to the quantity of goods that sellers are
prepared to put on the market at a certain price
• Today, most markets are demand-driven. This means
the amount of goods made available for sale is
dependent upon customers and how much they will
buy.
• In a supply-led market, the amount of goods available
would depend on how much could be produced.
• Ideally, demand should equal supply exactly. The
point where the supply curve and the demand curve
cross is called the equilibrium point.
DEMAND AND SUPPLY
22. 22
• It is often said that marketing is
about managing the exchange
process.
• Clearly, there must be two parties to
an exchange. If you exchange
something, you part with something
of value in return for something else
of value.
EXCHANGES
23. 23
• A market is a place where buyers and sellers meet.
• There are a lot of different markets.
MARKETS
Market Typical Purchase Descriptions
Business-to-consumer (B2C) Personal purchases
Industrial markets Things that will be used in the making of other things
Business-to-business (B2B) Things for use in the course of another business
Not-for-profit markets Purchases and marketing activities by charities, government, orgs, etc.
Government markets Purchases by the government
Reseller markets Goods to be sold by retailers, wholesalers, distributors, dealers, etc.
Overseas markets All above categories – but in other countries or outside the home
country's trading block
Internal markets Other divisions, subsidiaries or employees of the organization itself
24. 24
• Different organizations take
different approaches when it
comes to achieving their
objectives.
STRATEGIC ORIENTATIONS
Product SalesProduction
MarketingCustomer Cooperative
SocietalFinancial
25. 25
• Production Orientation
• philosophy of an organization that focuses on production efficiency rather than
marketing
• Higher profits through reduced costs
• Product Orientation
• Philosophy concerns with making the best possible product
• Increased sales through product improvement
• Sales Orientation
• Is a strategic view that focuses on short-term sales
• Sales technique and advertising
STRATEGIC ORIENTATIONS
26. 26
• Customer Orientation
• Philosophy that focuses on customer needs
• Increased long-term sales through customer loyalty, positive image
• Market Orientation
• Philosophy focusing on customers’ needs and competitors’ strategies
• Long-term profits through good customer relations and a sustainable
competitive advantage
• Societal Marketing Orientation
• Focuses on the society’s well being
• Its objectives is environmental regeneration, community welfare
STRATEGIC ORIENTATIONS
28. 28
• It is important that employees recognize that they are there to meet
customer’s needs and wants rather than their own.
• Customers or Consumers
• There is distinction between customers and consumers, both of whom are vital
to business success.
• A customer is someone who buys the firm’s products. However, they may not
actually use the products themselves. The eventual user of the product is called
a consumer.
• Consumers are important influencers on purchase decisions, even if they do not
make the actual decision on what to buy.
FOCUSING ON CUSTOMERS
29. 29
• In its short history, marketing has moved
its focus from the immediate sale to the
preservation of future sales.
• Transactional Marketing
• Focuses on immediate sale, here there is no
intention to continue a relationship
• Relationship Marketing
• Is a long term approach, typically involving
multiple transactions between buyers and
sellers.
MARKETING’S CHANGING EMPHASIS
30. 30
• Long-standing, regular customers can be valuable assets.
• They buy more products, tell their friends good things about the
company (word-of mouth advertising), are less time-consuming
(because they already know how to handle orders with the company
and they trust their products) and less likely to be put off by a price
increase.
• It costs approximately five times more to attract a new customer than it
does to keep an existing one happy.
• Customer Relationship Marketing – attracting and keeping the right
customers
RETAININGVALUABLE CUSTOMERS
32. 32
• One of the most enduring, and popular,
concepts in marketing is the marketing
mix.
• The mix is the basic marketing toolkit
that marketers use to implement their
marketing plans.
• It is most commonly known as the 4Ps:
product, promotion, price, and place.
MARKETING MIX
33. 33
• With increasing dominance of service
products, and the importance of the service
elements of physical products, the preferred
framework today is the 7Ps, which adds
physical evidence, people and process.
• Physical evidence – tangible aspects of a service
• People – concerned with distribution, delivery,
supply chain management
• Process – the way in which a service is provided
MARKETING MIX
35. 35
• The internet has had a significant impact on our
lifestyles and on the way that many companies
market their products.
• Firms are harnessing the power of the web to
make themselves more competitive and reduce
costs.
• Customer confidence in online transactions has
increased due to improved financial security of
payments, which also cuts the cost of fraud.
• The internet has made international marketing a
realistic aim for all sizes of business in all sorts of
markets.
MARKETING INTHE INTERNET AGE
36. 36
• Digital technologies enable some very
sophisticated ways of capturing and
analyzing data that can be used to
manage customer and prospect
interactions and support.
• As the number of channels through
which customers and companies can
communicate and transact has exploded,
marketers have found new ways to track
all of this traffic.
MARKETING AUTOMATION
37. 37
• Social change is one of marketing’s key
emerging themes.
• This is due to the changing demographic
profiles of the population.
• People are living longer and choosing to use
their discretionary income in different ways.
• Digital natives is sometimes used to
describe people who have grown up with
technologies that were unthought-of when
their parents were young but are now taken
for granted as part of everyday life.
SOCIAL CHANGE
38. 38
• Organizations and individuals are sending
and receiving more messages than ever
before.
• The average internet user has 5.54 social
media accounts each; individuals’ lives and
views have never been more publically and
frequently shared .
• One consequence of this is that individuals
are exposed to many more messages than
they can possibly deal with.
INFORMATION OVERLOAD
39. 39
• Marketing metrics is about measuring
marketing performance and using the
information to improve its
management.
• In todays increasingly cost-conscious
and efficiency-driven businesses, it is
important for marketers to know how
to use marketing analytics to justify
marketing expenditure.
MARKETING METRICS
40. 40
• Consumerism is the belief that increasing consumption is economically desirable.
• Consumerists believe that it is economically desirable to consume (i.e. eat, drink,
use) more and more.
• Modern production techniques mean that we have more than enough of
everything.
• Every day, Western businesses and households throw away millions of excess of
everything. In the meantime, there parts of the world that are so poor that they
are short of basic necessities: food, shelter, water, clothing.
• This disparity provokes envy and conflict.
CONSUMERISM
41. 41
• With this surplus of goods, the power has
shifted to consumers. Today, most producers
of goods and services are more reliant on
their customers than the other way around.
• A consumer can usually go to another
supplier but, for the supplier, a replacement
customer is harder to find.
• This suggests that customers have the upper
hand.
CONSUMERISM
42. 42
• Many of today’s consumers share
concerns over sustainability and the
future of the planet.
• Citizens and governments are worried
about environmental issues such as
energy consumption, waste and
pollution.
• Companies are more keenly aware of
their corporate social responsibilities.
ETHICAL CONSUMPTION
