PPTs are for the students of MBA at Jiwaji University

1. Introduction to
MARKETİ NG
Rahul Pratap Singh Kaurav
Asst. Professor, Vikrant Institute of Management

2. PREVIEW
 Discuss what is marketing and core concepts of
marketing and review some possible definitions
 See the evolution of marketing thought and discuss
various orientations toward marketplace
 Focus on modern marketing concept, identify four pillars
of modern marketing
 Describe 4Ps of marketing, as elements of total marketing
mix
 Discuss modern marketing concept comparing it with
selling concept and extending it with relationship
marketing concept

3. INTRODUCTİON TO MARKETİNG
Marketing;
 “Satisfying
customer needs”
 “Meeting needs profitably”
 “Generating customer value at a profit”
 “Managing profitable customer relationships by delivering superior value to
customers”

4. WHAT İS MARKETİNG?
 No single correct definition or approach
 Common subject matters:
 The ability to satisfy customers,
 The identification of favorable marketing opportunities,
 The need to create an edge over competitors,
 The capacity to make profits to enable a viable future for the
organization,
 The use of resources to maximize a business’ market position,
 The aim to increase market share mainly in target markets

5. MARKETİNG PROCESS
Capture
value from
Create value for customers and customers
build customer relationships in return
Capture
Capture
Understand
Understand Design aa Construct aa Build value from
value from
Design Construct Build
the
the customer- marketing profitable customers
customers
customer- marketing profitable
marketplace
marketplace driven program that relationships to create
to create
driven program that relationships
and customer
and customer marketing delivers and create profits and
profits and
marketing delivers and create
needs&wants
needs&wants strategy superior customer customer
customer
strategy superior customer
value delight quality
quality
value delight

6. CORE CONCEPTS OF MARKETING
Needs, wants,
and demands
Markets Products
and services
Exchange,
Value and
transactions,
satisfaction
and relationships

7. CORE CONCEPTS OF MARKETING
 Need
 Needs, wants, and demands  Basic human requirements
 Marketing offers: including  State of felt deprivation
products, services and  Example: Need food
experiences  Wants
 Value and satisfaction  Needs directed to specific
objects
 Exchange, transactions and  The form of needs as shaped by
relationships culture and the individual
 Example: Want a Big Mac
 Markets  Demands
 Wants which are backed by
buying power

8. CORE CONCEPTS OF MARKETING
 Needs, wants, and demands  Marketing offering
 Marketing offers: including  Combination of products,
products, services and services, information or
experiences that satisfy a
experiences need or want
 Value and satisfaction  Offer may include services,
 Exchange, transactions and activities, people, places,
information or ideas
relationships
 Markets

9. CORE CONCEPTS OF
MARKETING
Products
Anything that can be Offered to a Market to Satisfy a Need or Want
Experiences
Experiences Persons
Persons Places
Places
Organizations
Organizations Information
Information Ideas
Ideas
Services
Activities or Benefits Offered for Sale That Are Essentially
Intangible and Don’t Result in the Ownership of Anything

10. MARKET OFFERINGS - EXAMPLES
 Marketing places :
Creating positive
attitudes or
maintaining attitudes &
behavior toward
particular places

11. MARKET OFFERİNGS- EXAMPLES
 Marketing ideas
(social marketing)
This is the watch
Stephen Hollingshead, Jr.
was wearing when he
encountered a drunk driver.
Time of death 6:55 p.m.
“Friends Don’t Let Friends
Drive Drunk”

12. CORE CONCEPTS OF MARKETING
 Value
 Needs, wants, and demands  Customers form expectations
 Marketing offers: including regarding value
products, services and  Marketers must deliver value to
experiences consumers
 Value and satisfaction  Satisfaction
 Exchange, transactions and
 A satisfied customer will buy
again and tell others about their
relationships good experience
 Markets

13. CORE CONCEPTS OF
MARKETING
Value Gained From Owning a Product and
Costs of Obtaining the Product is
“Customer Value”
Product’s Perceived Performance in Delivering Value
Relative to Buyer’s Expectations is
“Customer Satisfaction”
Total Quality Management Involves Improving the Quality of
Products, Services, and Marketing Processes

14. CORE CONCEPTS OF
MARKETING
 Exchange
 Needs, wants, and demands  The act of obtaining a desired
object from someone by offering
 Marketing offers: including something in return
products, services and  Transaction
experiences  Trade of values between two or
 Value and satisfaction more parties
 Exchange, transactions and  One exchange is not the goal,
relationships with several exchanges are
relationships the goal
 Markets
 Relationships are built
through delivering value and
satisfaction
 Marketing network ğ consists of
the company and all its supporting
stakeholders

15. CORE CONCEPTS OF
MARKETING
 Needs, wants, and demands  Market
 Marketing offers: including  Set of actual and potential
products, services and buyers of a product
experiences  Marketers seek buyers that
are profitable
 Value and satisfaction
 Exchange, transactions and
relationships
 Markets

16. SIMPLE MARKETING SYSTEM
Communication
Products/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)
Information

17. MARKETING DEFİNED AS...
Process by which individuals and groups obtain what
they need and want through creating and
exchanging products and value with others.
Simply put: Marketing ğ the delivery of customer satisfaction at a profit.

18. MORE DEFİNİTİONS OF MARKETİNG
• A social and managerial process by which individuals and
groups obtain what they need and want through creating,
offering and exchanging products and services of value
with others.
• The management process responsible for identifying,
anticipating and satisfying customer requirements
profitably.
• Marketing consists of individual and organizational activities that
facilitate and enhance satisfying exchange relationships in a
dynamic environment through the creation, servicing,
distribution, promotion and pricing of goods, services and ideas

19. MORE DEFİNİTİONS OF MARKETİNG
(CONT.)
 From the societal perspective; some marketers describe
marketing as the creation and delivery of a standart of living.
 From the managerial perspective; marketing (management) is
the process of planning and executing the conception, pricing,
promotion and distribution of goods and services to create
exchanges that satisfy individual and organizational goals.

20. MARKETİNG MANAGEMENT
 Marketing management ğ the art and science of choosing
target markets and building profitable relationships with them.
 This definition must include answers to 2 questions:
 What customers will we serve?
 How can we serve these customers best?
 Getting, keeping, and growing customers through creating,
delivering, and communicating superior customer value
 Marketing management involves ğ managing demand ğ
involves managing customer relationships

21. MARKETİNG MANAGEMENT
 Marketing management can be defined in broader terms as
“demand management”;
 Marketers aim to influence the level, timing and composition of
demand to meet organizational goals.
 Marketing management is concerned
 not only with finding and increasing demand,
 but also with changing or even reducing it : demarketing!
 Demarketing’s aim is to reduce the number of customers or to
shift their demand temporarily or permanently
 (e.g. move traffic away from a popular tourist attraction during peak demand
times)

22. EVOLUTİON OF MARKETİNG THOUGHT
 How marketing has become
“marketing” as we understand it
and apply its practices today?

23. EVOLUTİON OF MARKETİNG THOUGHT
 Production Era (1850s-1920s)
 Industrial revolution; mass production
 Few products and little competition
 Sales Era (1920s-1950s)
 The focus was on personal selling and advertising
 Sales seen as the major means for increasing profits
 Mktg Era (1950s-present)
 Customer orientation replaced the “hard sell” of the sales-led era
 Determination of the needs and wants of customers before introducing
products or services

24. EVOLUTİON OF MARKETİNG THOUGHT
 Relationship Marketing Era: 1990s-
 Marketing era has recently shifted from being “transaction-based”
ğ to focusing on “relationships”
 The argument ğ traditional marketing practices focused on
attracting new customers rather than retaining existing ones.
 It is equally important to hang on to existing customers so that
they become repeat buyers and long term loyal customers
 “customer relationship management”!

25. COMPANY ORIENTATIONS TOWARDS THE
MARKETPLACE
Consumers prefer products that are
Production Concept
Production Concept widely available and inexpensive
Consumers favor products that
Product Concept
Product Concept offer the most quality, performance,
or innovative features
Consumers will buy products only if
Selling Concept
Selling Concept the company aggressively
promotes/sells these products
Focuses on needs/ wants of target
Marketing Concept
Marketing Concept markets & delivering value
better than competitors

26. PRODUCTİON CONCEPT
 Consumers will favor those products that are widely
available and low in cost.
 Managers concentrate on achieving high production
efficiency and wide distribution.
 The assumption is valid at least in 2 situations :
 The demand for a product exceeds supply (suppliers will
concentrate on finding ways to increase production)
 The product’s cost is high and has to be decreased to expand
the market.

27. PRODUCT CONCEPT
 Consumers will favor those products that offer the most
quality, performance or innovative features.
 Managers in product-oriented organizations concentrate on
making superior products and improving them over time.
 The assumption ğ the customers will admire well-made
products and can evaluate product quality and performance
 This concept may lead to marketing myopia

28. SELLİNG CONCEPT
 Agressiveselling and promotion
 Assumptions are;
 Consumers must be convinced of buying company products
 Company is powerful in generating effective selling and
promotion to stimulate more buying
 This concept is mostly used by firms which have
overcapacity.
 The aim is “to sell what they make” rather than “make
what the market wants.”
 Short-term profits are more important (customer
dissatisfaction may occur)

29. MARKETİNG CONCEPT
 Key to achieving organizational goals consists of being
more effective than competitors in creating, delivering
and communicating customer value to target markets.
 4 pillars of modern marketing :
1. Target market
2. Customer needs
3. Integrated marketing
4. Profitability through customer satisfaction

30. MARKETING AND SALES CONCEPTS
CONTRASTED
Starting
point Focus Means Ends
Existing Selling and Profits through
Factory products promotion sales volume
(a) The selling concept
Customer Integrated Profits through
Market needs marketing customer
satisfaction
(b) The marketing concept

31. DIFFERENCES BETWEEN SELLING AND
MARKETING

32. MARKETİNG CONCEPT (CONT.)
1) Target market ğ homogenous group of customers to
whom the company wishes to appeal
2) Customer needs
 Consumers may not be fully conscious of their needs
 It may not be easy to articulate these needs
 They may use words that require some interpretation
 Customer-oriented thinking ğ to define customer needs from the
customer’s point of view
 Sales revenue ğ New customers + Repeat customers
 “Customer Retention” vs. “Customer Attraction”
 Customer satisfaction is a function of the product perceived
performance and buyer’s expectations

33. MARKETİNG CONCEPT (CONT.)
3) Integrated Marketing
1. Various marketing functions must work together for
customer satisfaction (coordination of 4Ps; marketing mix
elements)
 Marketing Mix ğ controllable variables the company puts
together to satisfy its target market(s).
Product: Product variety, quality, design, features, brand name,
packaging, sizes, services, warranties, returns
Price: List price, discounts, allowances, payment period, credit terms
Promotion: Sales promotion, advertising, sales force, public relations,
direct marketing
Place: Channels, coverage, assortments, locations, inventory, transport

34. MARKETİNG CONCEPT - THE 4 P’S

35. MARKETİNG CONCEPT - THE 4 P’S Ğ THE
4 CS
Marketing
Pro
Mix
duc
t
Pla
ce
Convenience
Customer Pri
c e Pro
Solution mo
tio
n
Customer
Cost Communication

36. MARKETİNG CONCEPT (CONT.)
Integrated Marketing (cont.)
2. Marketing must be well coordinated with other
departments in the company;
all departments have to work together to satisfy
customers’ needs and wants
4) Profitability through customer satisfaction
 To achieve profits as a result of creating superior
customer value

37. SELLING – MARKETİNG...
“There will always be need for
some selling. But the aim of marketing
is to make selling superfluous. The aim
of marketing is to know and understand
the customer so well that the product or
service fits him and sells itself. Ideally,
marketing should result in a customer
who is ready to buy.”
Peter Drucker

38. MODERN MARKETİNG CONCEPT
TRADITIONAL ORGANIZATION CHART
Top
Management
Middle Management
Front-line people
Customers

39. CHART
C
us
Fr
on t om
M t -li er
id n s
dl
e e
m pe
ers
an op
ag le
m T em
an op en
m a
Custom
en ge t
t -
MODERN MARKETİNG CONCEPT
CUSTOMER-ORIENTED ORGANIZATION

40. RELATİONSHİP MARKETİNG CONCEPT
 Customer Relationship Management ğ the overall process
of building and maintaining profitable customer
relationships by delivering superior customer value and
satisfaction.
 Itdeals with all aspects of acquiring, keeping and growing
customers
 Relationship building blocks ğ “customer value” and
“customer satisfaction”
 “Customer retention” and “customer loyalty”
 The intention ğ to gain a greater proportion of an existing
customer’s purchases over a long period (increase “consumer
lifetime value”!)

41. RELATİONSHİP MARKETİNG CONCEPT
“Our slogan ‘5+Million More Smiling Customers’ is not
about reaching sales targets but about whether we are able
to provide greater satisfaction to a greater number of
customers...
The goal is to improve customer satisfaction which
translates to an increased number of ‘smiling customers.”
Tokuichi Uranishi
Executive Vice President,
Toyota Motor Corporation

42. CONNECTIONS WITH CUSTOMERS –
NOT ALL CUSTOMERS ARE EQUAL
• Most marketers are targeting fewer, potentially more
profitable customers.
• Asking:
▫ What value does the customer bring to the organization?
▫ Are they worth pursuing? – customer profitability analysis
• Focus has shifted to:
▫ keeping current customers, and
▫ building lasting relationships based on superior satisfaction
and value.
 It costs 5 to 10 times as much to attract a new customer as it does
to keep a current customer satisfied.

43. CUSTOMER RELATİONSHİP
MANAGEMENT CAPTURING VALUE
FROM CUSTOMERS
Key Concepts
 Customer delight leads to
 Customer Loyalty and emotional relationships and
Retention loyalty
 Share of  Customer Lifetime Value
Customer
 Customer Equity
(CLV) shows true worth of a
customer

44. CUSTOMER RELATİONSHİP
MANAGEMENT CAPTURING VALUE
FROM CUSTOMERS
Key Concepts
 Share of customer’s purchase
 Customer Loyalty and in a product category.
Retention  Achieved through offering
 Share of Customer greater variety, cross-sell and
 Customer Equity up-sell strategies.

45. CUSTOMER RELATİONSHİP
MANAGEMENT CAPTURING VALUE
FROM CUSTOMERS
Key Concepts  The combined customer
lifetime values of all current
 Customer Loyalty and and potential customers.
Retention  Measures a firm’s
 Share of Customer performance, but in a
 Customer Equity manner that looks to the
future.
 Choosing the “best”
customers is key

46. SOCİETAL MARKETİNG CONCEPT
 Company’s negative effects on society
 Conflict between consumer wants and long-term social welfare
 Marketing managers should be concerned with social
responsibility
 The societal marketing concept
 Company’s task is to determine needs and wants of target
markets & to satisfy them more effectively and efficiently than
competitors --in a way that preserves or enhances the
consumer’s and society’s well-being.

47. SOCIETAL MARKETING CONCEPT
Society
(Human Welfare)
Societal
Marketing
Concept
Consumers Company
(Want Satisfaction) (Profits)

48. MARKET SEGMENTATION,
TARGETING AND POSITIONING

49. MARKETS
Market segments for Bicycles
11 22
(Exercisers)
(Exercisers) (School-goers)
(School-goers)
33 44
(Transportation riders)
(Transportation riders) (Adventurers)
(Adventurers)

50. MARKETS
MARKET SEGMENTS
MARKET SEGMENTS
Groups of customers with different wants,
Groups of customers with different wants,
buying preferences or product-use behavior
buying preferences or product-use behavior
TARGET MARKET
TARGET MARKET
A market segment for which
A market segment for which
the seller designs a marketing mix
the seller designs a marketing mix

51. MARKET SEGMENTATION
Process of dividing the total market
Process of dividing the total market
for a good or service into several smaller,
for a good or service into several smaller,
internally homogeneous groups
internally homogeneous groups
Members of each group are
Members of each group are
similar with respect to the factors
similar with respect to the factors
that influence demand
that influence demand

52. PROCESS OF MARKET
SEGMENTATION
Identify wants within a market
Identify wants within a market
Identify characteristics that
Identify characteristics that
distinguish the segments
distinguish the segments
Determine size and satisfaction
Determine size and satisfaction

53. MARKET SEGMENTATION
CONDITIONS
Measurable
Measurable Segment is
Segment is
and
and Accessible
Accessible
Obtainable Data
Obtainable Data
Large enough
Large enough
to be
to be
Profitable
Profitable
MICROMARKETING
MICROMARKETING
Treat each single customer
Treat each single customer
as a separate segment
as a separate segment

54. MARKET SEGMENTATION - FIRST
CUT
Customer’s reason for buying
Customer’s reason for buying
CONSUMER
CONSUMER
Purchase for personal use
Purchase for personal use
BUSINESS
BUSINESS
Purchase to use in organizations,
Purchase to use in organizations,
to resell, or to make other products
to resell, or to make other products

55. SEGMENTATION BASES
FOR CONSUMER MARKETS
1.Geographic
1.Geographic Possible Market Segments
Possible Market Segments
Region
Region
--North, South,
North, South,
Urban- Rural
Urban- Rural East West
East West
--Coastal, Non-coastal
Coastal, Non-coastal
Climate
Climate --Metro, Large towns,
Metro, Large towns,
Small towns
Small towns
Metro, A, B, C
Metro, A, B, C --Rural, Urban
Rural, Urban
--Villages > 1000,
Villages > 1000,
Etc.
Etc. < 1000 population etc
< 1000 population etc

56. SEGMENTATION BASES
FOR CONSUMER MARKETS
2.Demographic
2.Demographic Possible Market Segments
Possible Market Segments
Age
Age
--< 6M, 4-6 Yrs, 20-40,
< 6M, 4-6 Yrs, 20-40,
Gender
Gender 50+ etc
50+ etc
--Male, Female
Male, Female
Family life-cycle
Family life-cycle --Young couples w/o
Young couples w/o
children, Bachelor etc
children, Bachelor etc
Income
Income --10K-20K/M, >50K/M
10K-20K/M, >50K/M
-- Graduate, PG,
Graduate, PG,
Education, etc.
Education, etc. Engineers etc
Engineers etc

57. SEGMENTATION BASES
FOR CONSUMER MARKETS
3.Psychographic
3.Psychographic Possible Market Segments
Possible Market Segments
Personality
Personality
--Introvert/Extroverts,
Introvert/Extroverts,
Achievers, etc
Achievers, etc
Life-style (Activities,
Life-style (Activities, --Spiritual, Yoga, Music
Spiritual, Yoga, Music
Interests & Opinion)
Interests & Opinion) Politics, Business etc
Politics, Business etc
--Strength of Values
Strength of Values
such as fun, love &
such as fun, love &
Consumer values
Consumer values warmth, relationship
warmth, relationship
Etc.
Etc.

58. SEGMENTATION BASES
FOR CONSUMER MARKETS
4.Behavioral
4.Behavioral Possible Market Segments
Possible Market Segments
--Virtually forBenefits desired
Virtually for all desired
all
Benefits
products
products
--Heavy, Medium,
Heavy, Medium,rate
Usage rate
Usage
Low user, Non-user
Low user, Non-user

59. SEGMENTATION BASES
FOR BUSINESS MARKETS
1.Customer
1.Customer
Location Possible Market Segments
Possible Market Segments
Location
Region
Region
--North, South,
North, South,
Country
Country East West
East West
--Coastal, Non-coastal
Coastal, Non-coastal
Town etc
Town etc --Metro, Large towns,
Metro, Large towns,
Small towns
Small towns
--Rural, Urban
Rural, Urban
--Europe, Asea
Europe, Asea

60. SEGMENTATION BASES
FOR BUSINESS MARKETS
2.Customer
2.Customer
Type Possible Market Segments
Possible Market Segments
Type
Industry
Industry
--Steel, Cement, Textile
Steel, Cement, Textile
Size
Size
--Large, Small, Medium
Large, Small, Medium
--Centralized, Decentr-
Centralized, Decentr-
Organizational structure
Organizational structure
allized,
allized,
--Price, Price & quality,
Price, Price & quality,
Purchase Criteria
Purchase Criteria process for selection
process for selection
Etc.
Etc.

61. SEGMENTATION BASES
FOR BUSINESS MARKETS
3.Transaction
3.Transaction
Condition Possible Market Segments
Possible Market Segments
Condition
Buying Situation
Buying Situation
--Straight/Modified
Straight/Modified
Usage Rate
Usage Rate re-buy, New Buy
re-buy, New Buy
--Non/Light/Heavy user
Non/Light/Heavy user
Purchase Process
Purchase Process -- Competitive Bidding,
Competitive Bidding,
Leasing, Service etc
Leasing, Service etc
Order Size
Order Size --Large, small etc
Large, small etc
--More frequent,
More frequent,
Service Reqrmt
Service Reqrmt occasional, etc
occasional, etc

62. TARGET-MARKET STRATEGY
Market-aggregation
Market-aggregation
Strategy
Strategy
“mass-market”
“mass-market”
“undifferentiated-market”
“undifferentiated-market”
Single
Single
and
and Marketing
Marketing
Strategy
Strategy
“shotgun”
“shotgun”
Product differentiation
Product differentiation
Strategy
Strategy

63. TARGET-MARKET STRATEGY
Single-Segment
Single-Segment
Strategy
Strategy
“concentration ””
“concentration
One
One
Marketing
Marketing
Mix
Mix
NICHE
NICHE
MARKETERS
MARKETERS

64. TARGET-MARKET STRATEGY
Multiple-Segment
Strategy
Multiple
Marketing
Mixes

65. SELECTING A TARGET MARKET
GUIDELINES
Compatible
Compatible
with company’s goals
with company’s goals
Match
Match
market opportunity
market opportunity
with resources
with resources
Profit that
Profit that
justifies investment
justifies investment
Competitors
Competitors
are few and/or weak
are few and/or weak

66. POSITIONING
Firm creating and maintaining
Firm creating and maintaining
in the minds of a target market a particular
in the minds of a target market a particular
image relative to competing products
image relative to competing products
THREE STEPS
Select position concept
Design the feature that
conveys position
Coordinate the marketing mix
to convey position

67. MARKET POSITIONING
 Positioning is defined as the process of designing the
company’s products and image to occupy a unique place in the
target market’s mind.
 Many marketers favor promoting only one major benefit and
Rosser Reeves called it as “a unique selling proposition”. Some
unique selling propositions (USPs) companies use are best
quality, best service, lowest price, best value, safest, more
advanced technology, etc.
67

68. THE FOUR MAJOR POSITIONING ERRORS
• Under positioning: Some companies find that buyers have
only an unclear idea of the brand.
• Over positioning: Buyers have very narrow image of the
brand.
• Confused positioning: Buyers have confused image of the
brand because the company has made too many claims or
changed the brand positioning too frequently.
• Doubtful positioning: Buyers do not easily believe the
claims made by brands about the product’s features, price or
manufacturer.
68

69. BASES OF POSITIONING THE
PRODUCT
1. Attribute positioning: The company positions itself on the basis
of attribute like size or number of years in existence. Sunfeast
positions its snacky brand as bigger, lighter and cheaper.
2. Benefit positioning: The company positions its product as leader
in providing a certain benefit. For example Santro positioned itself
as India’s simplest car to drive.
3. Use or application positioning: The company positions its
products as best for certain use or application. For example,
Kenstar positioned its products as unexpectedly cold.
4. User positioning: The company positions its product as best for
some user group. For example, Parle-G positions the boy in the
advertisement as rock star targeting the kids and boys.
69

70. BASES OF POSITIONING THE PRODUCT
5. Competitor positioning: The company claims its products as
better than a named competitor.
6. Product category positioning: The company positions its
product as leader in certain product category. For example, Bajaj
CT 100 was positioned as leader in the entry segment bikes.
7. Quality or price positioning: The product is positioned as
offering the best value. For example, the vegetable oil brand Dhara
positions itself as ‘anokhi shuddata, anokha asar’. This means the
company offers unique purity and unique effect.
70

71. PERCEPTUAL MAP FOR DIFFERENT BRANDS OF
CARS

72. FORECASTING MARKET DEMAND
MARKET SHARE
Proportion of total sales of a
Product during a stated period
in a specific market
that is captured by a single firm brand x brand y
our company brand z
MARKET FACTOR
1) exists in the market
2) is measurable
3) is related to the demand
for a product in a known way

73. FORECASTING MARKET DEMAND
MARKET POTENTIAL
MARKET POTENTIAL
Total sales of a
Total sales of a
Product during a
Product during a
Period in a market
Period in a market
under
under
ideal conditions
ideal conditions

74. FORECASTING MARKET DEMAND
SALES POTENTIAL
SALES POTENTIAL
Portion of market potential
Portion of market potential
that a specific company
that a specific company
could expect
could expect
under ideal conditions
under ideal conditions

75. FORECASTING MARKET DEMAND
SALES FORECAST
SALES FORECAST
Estimate of sales
Estimate of sales
For one company
For one company
during a period
during a period
in a specific market
in a specific market
assuming
assuming
a defined marketing plan
a defined marketing plan

76. METHODS OF SALES FORECASTING
Market-Factor
Market-Factor Survey of
Survey of
Analysis
Analysis Buyer Intentions
Buyer Intentions
Test Past Sales
Past Sales
Test
Marketing and
and
Marketing
Trend Analysis
Trend Analysis
Sales-Force
Sales-Force Executive
Executive
Composite
Composite Judgment
Judgment

77. CHALLENGES IN NETWORKED WORLD
OF MARKETING
Challenges  Growth of the Internet
 Advances in
• Digital age telecommunications,
information, transportation
• Globalization  Customer research and tracking
• Ethics and social  Product development
responsibility  Distribution
 New advertising tools
• Not-for-profit marketing  24/7 marketing through the
• Marketing relationships Internet

78. Challenges in Networked World of Marketing
Challenges
 Geographical and cultural
• Digital age distances have shrunk
• Globalization  Greater market coverage
 More options for purchasing
• Ethics and social and manufacturing
responsibility  Increased competition from
• Not-for-profit marketing foreign competitors
• Marketing relationships

79. CHALLENGES IN NETWORKED WORLD
OF MARKETING
Challenges
 Marketers need to take
 Digital age great responsibility for the
 Globalization impact of their actions
 Ethics and social
responsibility
 Not-for-profit marketing
 Marketing relationships

80. CHALLENGES IN NETWORKED WORLD
OF MARKETING
Challenges  Many organizations are
• Digital age realizing the importance of
strategic marketing
• Globalization
 Performing arts
• Ethics and social  Government agencies
responsibility  Colleges, universities
• Not-for-profit marketing  Hospitals
• Marketing relationships

81. CHALLENGES IN NETWORKED WORLD
OF MARKETING
Challenges  Profits through managing
• Digital age long-term customer equity
 Improve customer knowledge
• Globalization
 Target profitable customers
• Ethics and social  Keep profitable customers
responsibility
• Not-for-profit marketing
• Marketing relationships