primciples of marketing- understanding marketing for the 21st century

8/3/2019 Primciples of Marketing- Understanding Marketing for the 21st Century

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Principles of MarketingPrinciples of Marketing

Understanding Marketing for the 21st Century

Prof. Rushen Chahal

Prof. Rushen Chahal


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Marketing Principles

Marketing is defined as the set of activities

that identify, anticipate and satisfy customersrequirements profitably. (CIMUK)

Process of creating, communicating, and

delivering value to customers and for managingcustomer relations that benefit the organization.

(Kotler,Armstrong)

Prof. Rushen Chahal


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Scope of Marketing

Marketers are involved in

Goods

Services

Events Experiences

Persons

Places

Properties Organizations

Information

Ideas

Prof. Rushen Chahal


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What does a marketer do?(Chief Marketing officer- CMO)

Marketers seek attention from you!

What is a market?(an exchange between 2 or more people;must have an offer)

Some Terms

Marketplaces / Marketspaces / Metamarkets

Prof. Rushen Chahal


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Metamarkets:- a cluster of complementary

products and services

Manufacturer markets (raw materials)

Reseller markets (2nd hand cars)

Intermediary markets (channels)

Consumer markets (customer to customer;

ebay)

Prof. Rushen Chahal


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Market OrientationsMarket Orientations

Orientations/Concepts/Philosophies

Production concept

Product concept

Selling concept

Marketing concept

Societal Marketing concept

Prof. Rushen Chahal


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Production concept is the idea that

consumers will favor products that are

available or highly affordable.

Mass production/distribution of products

Low costs, efficient (fast)

Prof. Rushen Chahal


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Product concept is the idea that

consumers will favor products that offer the

most quality, performance.

Focus is on design and improvements

(healthier food / cosmetics that make you

look 20 years younger)

Prof. Rushen Chahal


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Selling concept is the idea that

consumers will not buy enough of the firms

products unless it undertakes a large scaleselling and promotion effort.

Inside-out approach

Company-centric

Prof. Rushen Chahal


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Marketing concept is a

modern idea that achieving

organizational goals depends on

knowing the needs and wants of

the target markets.

Outside-in approach Satisfaction and relationships

are customer-centric

Prof. Rushen Chahal


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Holistic Marketing concept is a new practice

in marketing.

Relationship marketing -- networks

Integrated marketing -- (4Ps / 4Cs / SIVA)

Internal marketing staff coordination

Performance marketing- accountability / social responsibility

(cause related programs)

Prof. Rushen Chahal


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Some other core conceptsSome other core concepts

Customer Needs, Wants, and Demands

Needs are states of deprivation. Some needs

are:-

Prof. Rushen Chahal

Physical Social Intellectual

Food, air, emotions, study, educationclothing friends


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Some other core conceptsSome other core concepts

Wants

are a form of strong desire for something.

( I needwater but I want Spring water)

Demands

are purchases backed by buying power in a

social market. (money talks) (e.g. no demandforTV in Nepal.)

Prof. Rushen Chahal


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Product offering

It is the value proposition:- a of values or benefits

why a customer should purchase from the company.

e.g. Offer you BMWs reliable performance;

A380 Boeing excellent experience

Customer satisfaction

Value and performance over competitors

Adding even more value and benefits

Prof. Rushen Chahal


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Market Exchange/Transaction

process of obtaining a product by offering

money or something else!

Transactions are data/numbers

Segmentation Targeting Positioning

Divide into groups Choose groups How to attract?

Prof. Rushen Chahal


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Prof. Rushen Chahal

Channel TypesChannel Types

Distribution channel wholesalers / retailers

Communication channel media, CCTV

Service channel Advertising, banking etc


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Prof. Rushen Chahal

4. Market Exchange/Transaction

2. Product offering

3.

Value/Quality/

Customersatisfaction

1. Needs, Wants,

and Demands

5.Channel / markets


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Prof. Rushen Chahal

Marketing environment Factors affecting business

Demographics

Economic

Social-cultural

Political-Legal

Technological

Environment / Natural

sometimes called PEST, STEP, PESTLE


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Dynamic 21Dynamic 21stst Century MarketingCentury Marketing

Dynamic marketing: the driver and adapterto marketing environmental conditions

Globalization

Privatization

Deregulation (access to markets)

Alliances (cooperation)

Internet and digital prowess

New networks / media Diverse customers and staff

Diverse choices

Prof. Rushen Chahal


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Dynamic 21st Century MarketingDynamic 21st Century Marketing

Consumer capabilities

- Affluence (rich)

- More choices

- Information exchange

- Compare information

- Give opinions / feedback

Prof. Rushen Chahal


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Dynamic 21Dynamic 21stst Century MarketingCentury Marketing

In summary:

Ultimately, marketers must be ready for thefollowing:

Develop new markets/products

Understand customer and trends

Develop, offer and deliver more value

Push companys brand

Make lasting relationships

Prof. Rushen Chahal

primciples of marketing- understanding marketing for the 21st century

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