Definition of Marketing Marketing is an activity, which

Definition of Marketing Marketing is an activity, which is directed at satisfying the needs and wants of customers through exchange processes, which continually occur in the market between buyers and sellers "The marketing concept stresses the belief that an organization should aim all its efforts at anticipating and satisfying its customers at a profit"

MARKETING PROCESS MARKET COLLECTION OF BUYERS INDUSTRY COLLECTION OF SELLERS Information [Needs, Wants, Demands] Product &services EXCHANGE/TRANSACTION Money Communication [Value Quality]

MARKETING Needs – Something that you don’t have at the moment but desire to have. These include basic physical needs for food, clothing, warmth, and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression Wants – The form taken by human needs as they are shaped by culture and individual personality. Example a hungry person in USA will want to eat hamburger, in Russia will want to eat Borsh, while an Italian man will want pizza to satisfy the need for food.

MARKETING Demands – Demand is human wants that are backed by buying power. Need and wants become demands when people have money to buy the products. Product – Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organizations, and ideas

MARKETING Customer Value – The difference between the values the customer gains from owning and using a product and the costs of obtaining the product Customer Satisfaction – The extent to which a product’s perceived performance matches a buyer’s expectations Total Quality Management (TQM) – Programs designed to constantly improve the quality of products, services, and marketing processes Market – The set of all actual and potential buyers of a product or service

MARKETING Exchange - Exchange is the act of obtaining a desired object from someone by offering something in return For an exchange to take place, four conditions must exist: 1) Two or more individuals, groups, or organizations must participate 2) Each party must possess something of value that the other party desires 3) each party must be willing to give up its 'something of value' to receive the 'something of value' held by the other party 4) the parties to the exchange must be able to communicate with each other

Marketing Management Marketing Management is defined as the analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives Marketing Management is responsible for: matching the company’s resources and capabilities to the needs/wants of the market in a profitable way managing the organization’s products determining pricing strategy forecasting sales and profit commissioning / conducting market research providing co-ordinate promotional activities, managing and co-coordinating the sales force ( Note many larger firms will have a sales unit also which works alongside marketing department - this is a function of how many larger businesses are structured) order-taking encouraging the development of a marketing orientation throughout the organization.

FUNCTIONS OF THE MARKETING DEPARTMENT: 1) Identifying Market Opportunities researching the needs and wants of the different types of customers, be aware of technological developments taking place outside the company, and of new product development activities taking place within and outside the organisation. 2) Managing Products forecasting and managing the rate of supply and distribution of the company's existing products, ability to determine what new products should be developed by the company. 3) Choosing and Motivating the Channels of Distribution Channels of distribution should make products available at the right time, in the right place, and in the right quantity

FUNCTIONS OF THE MARKETING DEPARTMENT: 4) Promoting Products and Services communicating to target market customers the existence of its products and the benefits to be obtained from purchasing them; advertising - Communicates with the customer. - Encourages the customer to consider the product or service and understand its benefits. - Persuades / informs the customer. - Reassures the customer that he or she has made the correct purchase decision. - Encourages the customer to make further purchases of the company's products or services

FUNCTIONS OF THE MARKETING DEPARTMENT: 5) Setting Prices agreeing and setting market prices, terms of supply and payment conditions - Analysing competitors' prices; - Formulating pricing policies; - Determining method or methods used to set prices; - Setting prices; - Determining discounts for various types of buyers; -Establishing conditions and terms of sales. 6) Planning the Marketing Activity deciding on marketing strategies that will help the company attain its overall objectives at a profit.

MARKETING MANAGEMENT PHILOSOPHIES 1) Production Concept - consumers will favour products that are available and highly affordable and that management should therefore focus on improving production and distribution efficiently; a) demand exceeds the supply b) product’s cost is too high 2) Product Concept - product offers the most quality, performance, and features and that the organization should therefore devote its energy to making continuous products improvements 3) The Selling Concept - consumers will not buy enough of the organization’s products unless they aggressively persuaded. E.g. encyclopedia, insurance etc 4) Marketing Concept - determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do.

MARKETING MANAGEMENT PHILOSOPHIES 5) Societal Marketing Concept – Marketing concept + maintain or improve the consumer’s and society’s well-being Society [Human Welfare] Consumer [wants, satisfaction] Company [Profits]