AN OVERVIEW

OF
MARKETING
 What
is
Marketing???
 a de s
p e rv v i ty
i vit y e a c t i
c t ol e it
Marketing A w h
the zation
n i o t a o
t i m
ne ng pu
o i
r s u
or g a N o n g
t a n u ct
is an organizational function b u d
Pro otion
m
Pro e
and a set of processes for Plac

creating, communicating and nd

ng a
c t i
delivering value to customers
e At t r a
i ni ng
Pric reta mers
American Marketing Association

s t o
and for managing customer c u

relationships fy
a t i s
S
in ways that benefit
the organization and its stakeholders
 For Need Satisfaction ……
There has to be an exchange between
the buyer and the seller.

The exchange is stimulated by an

attractive combination of

* Product * Price
* Promotion and * Place
( called the Marketing Mix )
Product … what does it extend to
• Variety
• Quality
• Design
• Features
• Packaging
• Brand name
• Services
• Warranties
• Returns ….etc., etc.,.

Product
Product Strategy
Strategy Decision
Decision Areas
Areas
 What are the
characteristics of products
and
How can they be classified?
What is a Product
A particular
bundle of benefits
which satisfies
particular needs and
wants.
rds
o w
e
pl Anything that can be offered to a
s im market to satisfy a want or need.
In
 Classification of Products
BASIS :
Consumer
Use
Business

Durable
Goods
Tangibility Non-durable
Services
 How do products fit into the
se
market place How
e rs
U s um
OFFERINGS con buy

i l ity Consumer Business to Business

n gi b
Ta
Goods Services Raw Process Accessory Services
Material Material Equipment

Convenience Specialty Manufactured Operating

Components Supplies
Shopping

Convenience Specialty Distribution Consulting

Shopping
Financial Operational Marketing Personnel
 Characteristics of Products and
Marketing Considerations (1/3)
Convenience Shopping Specialty
products products products
Characteristics Canned fruit Furniture Expensive suits

Time and effort devoted Very little Considerable As much as

to shopping necessary to find
desired brand
Time spent planning Very little Considerable Considerable
the purchase
How soon is the want Immediately Relatively long Relatively long time
satisfied after it arises time
Are price and quality No Yes No
compared?
Price Usually low Usually high Usually high
Purchase frequency Usually frequent Infrequent Infrequent

…..2
 Characteristics of Products and
Marketing Considerations (2/3)
Convenience Shopping Specialty
products products products
Marketing Canned fruit Furniture Expensive suits
Considerations
Length of channel Long Short Short to very
short
Retailer Relatively Important Very important
unimportant
Number of outlets As many as Few Few, often only
possible one in a market
Stock turnover High Lower Lower
Gross margin Low High High
Responsibility for Producer Joint Joint
advertising

…..3
 Characteristics of Products and
Marketing Considerations (3/3)
Convenience Shopping Specialty
products products products
Marketing Canned fruit Furniture Expensive suits
Considerations
Point of purchase Very important Less important Less important
display
Brand or store name Brand name Store name Both

Packaging Very important Less important Less important

 Product Levels
• Core benefit – the
primary benefit
• Basic product – a
generic tangible product
• Expected product – set
of attributes normally expected
• Augmented product –
the additions the seller adds to
the product to make it attractive
• Potential Product – all
possible augmentations a product
might undergo in the future

Five Product Levels

 Product Levels - Bicycle
LEVELS BICYCLE
Core ?
Basic ?
Expected ?
Augmented ?
Potential ?
 Product Levels - Bicycle
LEVELS BICYCLE
Cheap self powered
Core
transportation
Strong frame, two wheels,
Basic
pedal, brakes seat
Bell, carrier, chain guard,
Expected
tool kit
Light frame, gears, collapsible,
Augmented
service
Open to creativity, endless
Potential
possibilities………….
 Product Levels – Pressing
Iron
LEVELS PRESSING IRON
Core ?
Basic ?
Expected ?
Augmented ?
Potential ?
Product Levels – Pressing
Iron
LEVELS PRESSING IRON
Removal of creases
Core
from clothes
Heavy base, heating coil,
Basic
handle, power plug, power cord
Temperature control, low power
Expected
consumption
Cordless, steam ironing,
Augmented
light weight
Open to creativity, endless
Potential
possibilities………….
What does the term Price extend to
• Pricing objectives
• Pricing Policies
• List price
• Discounts and allowances
• Credit terms
• Legal factors
• Markup chain in channels
• Costs
• Demand (price sensitivity)

Strategy
Strategy Planning
Planning for
for Price
Price
Distribution … Customer Convenience

Place
Place Strategy
Strategy Decision
Decision Areas
Areas

• Distribution Channels
۰ Coverage
۰ Locations
۰ Inventory
• Logistics
• Roles of Middlemen
 Promotion

• Personal Selling
• Advertising
• Publicity
• Sales Promotion
• Trade Promotion

Promotion:
Promotion: Integrated
Integrated Marketing
Marketing Communications
Communications
 Company’s Orientations
How Marketing became so Important

Focus: Sell what is easy

Production - orientation to produce

Focus:
Focus: Manufacture product
Product - orientation of the highest quality

Focus : Push customers to

Sales - orientation buy

Focus : Long-run customer

Marketing - orientation satisfaction
 Earlier Concepts were…..
The Production concept … holds that
consumers will prefer products
that are widely available and inexpensive
The Product concept … holds that
consumers will favor those products
which offer the most quality, performance or
innovative features
The Selling concept …holds that consumers
if left alone
will ordinarily not buy the company’s products
 What is the
Marketing Concept?

Finding the
Right products for your customers
and not the
Right customers for your product
 Components and Outcomes
of the Marketing Concept

Customer
Orientation
+
Coordinated
Customer Organization
+ marketing
Satisfaction success
activities
Organization’s +
performance
objectives

“There is only one boss : the customer.” Sam Walton, founder of Wal - Mart
Marketing’s First Task : Discovering
Consumer Needs
Organization’s
marketing department

Discover
consumer needs

Information about needs

Potential consumers :
The market
 Marketing’s Second Task :
Satisfying Consumer Needs
Organization’s marketing department

Satisfy consumer needs by

Concepts for
finding right combination of :
Discover products 1. Product 2. Price
consumer needs 3. Promotion 4. Place

Information about needs Goods, services, ideas

Potential consumers : The market

 How do Customers Benefit?
Utilities Customers desire
Provided by Production
with guidance from Provided by Marketing
Marketing

Time
Form
Utility
Value that comes
from satisfying Place
customer
needs
Task
Possession
THAT’S ALL FOR
TODAY!!!

End of Session 1