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An Introduction to Marketing

PowerPoint by
Vidyadhar Vedak
DY Patil Inst of MCA, Pune 44.
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Copyright 2003 Prentice-Hall, Inc.

The New Economy

Substantial increase in buying power


A greater variety of goods and services
A greater amount of information about practically anything
Websites can provide companies with powerful new information and sales
channels.
The Internet can be used as a communication channel for purchasing, training,
and recruiting.

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Copyright 2003 Prentice-Hall, Inc.

The New Economy


Companies can collect fuller and richer
information about markets, customers,
prospects and competitors.
Companies can have 2-way communication
with customers and prospects.
Companies can improve logistics and
operations for cost savings while improving
accuracy and service quality eg. online
shopping.
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The Scope of Marketing


Marketing: typically seen as the
task of creating, promoting, and
delivering goods and services to
consumers and businesses, at a
profit.

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The Scope of Marketing

Places
Properties
Organizations
Information
Ideas

Goods
Services
Experiences
Events
Persons

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Marketing Concepts
and Tools
Defining Marketing
Marketing
Marketing Management

Core Marketing Concepts


Segmentation, Target Markets
and Positioning (STP)

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Figure 1-1: A Simple Marketing System

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Marketing Concepts
and Tools
Marketplace,
Marketspace,
and
Metamarket

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Marketing Concepts
and Tools

Marketers and Prospects


Needs, Wants, and Demands
Product, Offering, and Brand
Value and Satisfaction
Customer value triad
Value
Value = Benefits / Costs =
(Functional benefits + Emotional benefits) /
(Monetary costs + Time costs + Energy costs +
Psychic costs)
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Marketing Concepts
and Tools
Relationships and Networks
Relationship marketing
CBB
CRM

Marketing Channels
Supply Chain

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Marketing Concepts
and Tools
Competition
Brand competition
Industry competition
Form competition
Generic competition

Marketing environment
Task environment
Broad environment

Marketing Program
Marketing program
Marketing mix
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Figure 1-5:
The Four P
Components
of the
Marketing Mix

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Figure 1-6: Marketing-Mix Strategy

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Company Orientations
Toward the Marketplace

Production Concept
Product concept
Selling Concept
Marketing Concept

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Figure 1-7: Contrasts Between the Sales Concept


and the Marketing Concept

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Company Orientations
Toward the Marketplace
Target Market
Customer Needs
Stated needs
Real needs
Unstated needs
Delight needs
Secret needs
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Figure 1-8: Traditional Organizational Chart


versus Modern Customer-Oriented Company
Organization Chart

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Company Orientations Toward


the Marketplace
Figure 1-10: The Customer Concept

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Company Orientations
Toward the Marketplace
Societal Marketing Concept
Cause-related marketing

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How Business and


Marketing are Changing
Company responses and adjustments

Reengineering

Outsourcing

E-commerce

Alliances
Digital Marketing

Partner-suppliers
E-Marketing
Global and local
Decentralized

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Adapting Marketing to the


New Economy
Everyone does the marketing
Build brands through performance,
not just advertising
Growth thru customer retention
rather than customer acquisition
From none to in-depth customer
satisfaction measurement
From over-promise, under-deliver to
under-promise, over-deliver
The New Hybrid
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Copyright 2003 Prentice-Hall, Inc.

Table 2-1: Old Economy vs. New Economy


Old Economy

New Economy

Organize by product units


Focus on profitable transactions
Look primarily at financial scorecard
Focus on shareholders
Marketing does the marketing
Build brands through advertising
Focus on customer acquisition

Organize by customer segments


Focus on customer lifetime value
Look also at marketing scorecard
Focus on stakeholders
Everyone does the marketing
Build brands through behavior
Focus on customer retention and
growth
Measure customer satisfaction and
retention rate
Under-promise, over-deliver

No customer satisfaction
measurement
Over-promise, under-deliver

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Table 4.1: Product-Oriented versus Market-Oriented


Definitions of a Business
Company

Product Definition

Market Definition

Missouri-Pacific
Railroad

We run a railroad

We are a people-andgoods mover

Xerox

We make copying
equipment

We help improve office


productivity

Standard Oil

We sell gasoline

We supply energy

Columbia Pictures

We make movies

We market entertainment

Encyclopaedia

We sell encyclopedias

We distribute Information

Carrier

We make air
conditioners and
furnaces

We provide climate
control in the home

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Table 2-3: Mass Marketing vs.


One-to-One Marketing
Mass Marketing

One-to-One Marketing

Average customer
Customer anonymity
Standard product
Mass production
Mass distribution
Mass advertising
Mass promotion
One-way message
Economies of scale
Share of market
All customers
Customer attraction

Individual customer
Customer profile
Customized offering
Customized production
Individualized distribution
Individualized message
Individualized incentives
Two-way messages
Economies of scope
Share of customer
Profitable customers
Customer retention

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Queries welcomed .

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