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Marketing- nature and scope of marketing.ppt
- 1. NATURE AND SCOPE OF MARKETING Unit 1
- 2. Introduction Main objective of any business organization is to satisfy the needs and wants of the society Production or purchase is of no meaning if a firm is unable to market its goods and services Marketing is the focal point of all business activities
- 3. Introduction Marketing is an ancient art & is everywhere. Formally or informally, people & organizations engage in a vast numbers of activities that could be called marketing. Good marketing has become an increasingly vital ingredient for business success. It is embedded in everything we do- from the clothes we wear, to the web sites we click on, to the ads we see.
- 4. The term Marketing has been derived from the word Market Market is a place or geographical area where buyers and sellers meet and enter into transactions involving transfer of ownership of goods and services Marketing Defined
- 5. Traditional View Performance of business activities that direct the flow of goods and services from producers to consumers or users Modern View A business process through which products are matched with the markets and through which transfer of ownerships are effected Marketing Defined
- 6. Marketing Defined The American Marketing Association has defined marketing as an organizational function & a set of processes for creating, communicating & delivering value to the customers & for managing customer relationships so as to benefit the organization & the stake holders.
- 7. The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. According to Philip Kotler, Marketing is a social process by which individuals and groups obtain what they need and want through creating, offering, freely exchanging products and services of value with others Marketing Defined
- 9. What are Consumers Needs, Wants, and Demands? Needs Needs - state of felt deprivation including physical, social, and individual needs i.e hunger Wants Wants - form that a human need takes as shaped by culture and individual personality i.e. bread Demands Demands - human wants backed by buying power i.e. money
- 10. NATURE OF MARKETING Exchange is the essence of marketing. Marketing is customer/ consumer oriented. Marketing starts and ends with customers/ consumers. Modern marketing precedes and succeeds production. Marketing is goal oriented and the goal being profit maximization through satisfaction of human needs. Marketing is a science as well as an art. Marketing is the guiding element of business (It tells what, when, how to produce; Marketing is capable of guiding and controlling business. Marketing is a system . Marketing is a process, i.e., series of interrelated functions.
- 11. Marketing has a very wide scope it covers all the activities from conception of ideas to realization of profits. Some of them as discussed as below: Study of Consumer Wants and Needs: Goods are produced to satisfy consumer wants. Therefore study is done to identify consumer needs and wants. These needs and wants motivates consumer to purchase. Study of Consumer behaviour: Marketers performs study of consumer behaviour. Analysis of buyer behaviour helps marketer in market segmentation and targeting. Product Planning and development : It includes the activities of product research, marketing research, market segmentation, product development, determination of the attributes, quantity and quality of the products. Branding: Branding of products is adopted by many reputed enterprises to make their products popular among their customer and for many other benefits. Marketing manager has to take decision regarding the branding policy, procedures and implementation programs. Packaging: Packaging is to provide a container or wrapper to the product for safety, attraction and ease of use and transportation of the product. Scope of Marketing
- 12. Scope of Marketing Channels of Distribution: Decision regarding selection of most appropriate channel of distribution like wholesaling, distribution and retailing is taken by the marketing manager and sales manager. Pricing Policies: Marketer has to determine pricing policies for their products. Pricing policies differs form product to product. It depends on the level of competition, product life cycle, marketing goals and objectives, etc. Sales Management: Selling is a part of marketing. Marketing is concerned about all the selling activities like customer identification, finding customer needs, persuading customer to buy products, customer service, etc. Promotion: Promotion includes personal selling, sales promotion, and advertising. Right promotion mix is crucial in accomplishment of marketing goals. Finance: Marketing is also concerned about the finance, as for every marketing activity be it packaging, advertising, sales force budget is fixed and all the activities have to be completed with in the limit of that budget. After Sales services: Marketing covers after sales services given to customers, maintaining good relationships with customers, attending their queries and solving their problems.
- 13. Core Concepts/ Philosophies of Marketing
- 14. Exchange Concept holds that the exchange of a product between seller & buyer is the central idea of marketing. Exchange is an important part of marketing, but marketing is a much wider concept. Production Concept is one of the oldest concepts in business. It holds that consumers will prefer products that are widely available & inexpensive. Manager of production oriented business concentrate on achieving high production efficiency low cost & mass distribution. Core Concepts/ Philosophies of Marketing
- 15. Product Concept holds that consumers will prefer those products that are high in quality, performance or innovative features. Managers in these organization focus on making superior products & improving them over time. Core Concepts/ Philosophies of Marketing
- 16. Selling Concept holds that consumers, if left alone, will ordinarily not buy enough of the organizations product and thus the organization must undertake an aggressive selling promotion effort for pushing its products. It implies selling what is made, rather than making what can sell. Core Concepts/ Philosophies of Marketing
- 17. The Marketing concept emerged in the mid 1950s.The business generally shifted from a product centered, make & sell philosophy, to a customer centered, sense & respond philosophy. The job is not to find the right customers for your product, but to find right products for your customers. The marketing concept holds that the key to achieving organizational goals consists in determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors. Every department & every worker should think customer & act customer. Core Concepts/ Philosophies of Marketing
- 19. Social or Societal Marketing Concept holds that the organizations task is to determine the needs, wants and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhances the customers' and the society's well being. It involves understanding broader concerns & the ethical, environmental & legal and social context of marketing activities & programs. Core Concepts/ Philosophies of Marketing
- 20. The Holistic Marketing Concept is based on the development, design and implementation of marketing programs, processes and activities that recognizes their breadth and inter-dependencies. Holistic marketing is a marketing philosophy that believes everything matters and that a business cannot exist and excel in vaccum. This is an approach which proposes that marketing should be looked from a broad and integrated perspective and not as an isolated management function. For more details, please visit: http://www.projectguru.in/publications/concept-of-holistic- marketing/ Core Concepts/ Philosophies of Marketing
- 22. Difference between Marketing and Selling MARKETING SALES Focuses n customers needs Focuses on Sellers needs Customer Enjoys Supreme importance Product enjoys supreme importance Product Planning and development to match products with markets High pressure selling to sell gods already produced Converts customers needs into products Converts products into cash Profits through customer satisfaction Profits through sales volume Consumers determine the price; price determines costs Cost determines the price It assumes: Let the seller beware (Caveat Vendor) It assumes: Let the buyer beware (Caveat Emptor)
- 23. Marketing Environment Businesses do not operate in isolation in the market place. There are various factors/ forces, that directly or indirectly influence the organizations business activities. All these forces/ factors form the Marketing Environment of an organization. The company operates in a complex marketing environment, consisting of uncontrollable forces, to which the company must adapt.
- 24. Marketing is the sum total of trading forces operating in a market place, over which a business has no control, but which shapes the manner in which the business functions and is able to satisfy its customers. A marketing environment is what surrounds and creates impact on business organizations. Marketing environment is un-controllable and ever changing. Marketing Environment
- 25. The key elements of marketing environment are as follows :- Internal Environment, Micro Environment, and Macro Environment. Marketing Environment
- 26. Internal Environment The internal environment refers to the forces and actors that are within the organization and affects its ability to serve its customers. A Companys marketing system is influenced by its capabilities regarding production, financial & other factors. Hence, the marketing management/manager must take into consideration these departments before finalizing marketing decisions. It includes marketing managers, sales representatives, marketing budget, marketing plans, procedures, inventory, logistics, and anything within organization which affects marketing decisions, and its relationship with its customers. The Research & Development Department, the Personnel Department, the Accounting Department also have an impact on the Marketing Department. It is the responsibility of a manager to company-ordinate all department by setting up unified objectives.
- 27. Micro Environment The micro environment refers to the forces that are close to the marketing organization and directly impact the customer experience. It includes the organization itself, its suppliers, marketing intermediaries, customers, markets or segments, competitors, and publics. Happenings in micro environment is relatively controllable for the marketing organization.