The document provides an introduction to concepts related to business development, marketing, and marketing management. It discusses basic definitions of business and business development. It then covers marketing concepts like identifying customer needs and wants, marketing philosophies such as the production, product, and marketing concepts. The document also discusses the difference between marketing and selling, and outlines the marketing management process involving analyzing the environment, selecting target markets, and developing the marketing mix.
The document provides an introduction to concepts related to business development, marketing, and marketing management. It discusses basic definitions of business and business development. It then covers marketing concepts like identifying customer needs and wants, marketing philosophies such as the production, product, and marketing concepts. The document also discusses the difference between marketing and selling, and outlines the marketing management process involving analyzing the environment, selecting target markets, and developing the marketing mix.
The document provides an introduction to concepts related to business development, marketing, and marketing management. It discusses basic definitions of business and business development. It then covers marketing concepts like identifying customer needs and wants, marketing philosophies such as the production, product, and marketing concepts. The document also discusses the difference between marketing and selling, and outlines the marketing management process involving analyzing the environment, selecting target markets, and developing the marketing mix.
The document provides an introduction to concepts related to business development, marketing, and marketing management. It discusses basic definitions of business and business development. It then covers marketing concepts like identifying customer needs and wants, marketing philosophies such as the production, product, and marketing concepts. The document also discusses the difference between marketing and selling, and outlines the marketing management process involving analyzing the environment, selecting target markets, and developing the marketing mix.
By Assistant Professor Tushar Jindal Business Development and Marketing Management
Agenda of the Presentation:
► Basic Concepts of Business and Business Development
► Basic Concepts of marketing ► Introduction to concept of Selling ► Difference between Marketing and Selling ► Marketing Concepts ► Introduction to Marketing Mix Starting a Business?
What Should I Make?
Who will buy my Product? What Price will they Pay for It? Who is my Competition? How my Product will be better than my Competition’s? Can someone else validate my Product and its quality? How will I make it reach my Customer? Will my customer pay a premium for my Product? What if there is a problem with my Product?
How will my Customer know about it?
How easy is it to buy my Product?
Does this list really end somewhere?
Concept of Business: • Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered into for profit.“ Concept of Business Development: • In the simplest terms, business development can be summarized as the ideas, initiatives, and activities that help make a business better. This includes increasing revenues, growth in terms of business expansion, increasing profitability by building strategic partnerships and making strategic business decisions.( Investopedia) Some Questions for you all: Qus2. How many of Qus1. What do you you think Marketing Questions: understand by term is equivalent to marketing? Advertising?
Qus3. How many of
Qus4. According to you think Promotion Qus5. Can we Market you what all can be is another name for Ourselves? Marketed? Marketing?
Qus8. How many of
Qus7. Should we Qus6. Is Marketing you think Marketing work in Marketing necessary? and Sales are same field? concepts? Is This The End?
No, this is the Beginning…
Product Place
Price Promotion Marketing
The Four Ps Definition of Marketing
Marketing* is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
*The definition of Marketing as approved by the American Marketing Association
Board of Directors: Or Simply Put…
Marketing* is Management Processes
for identifying, anticipating and satisfying
consumers’ requirements Dr. Philip Kotler defines marketing as profitably. “the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a *Definition of Marketing as given by The Chartered Institute of Marketing. profit. Nature Of marketing:
The nature of Marketing will be further clear by following points:
► 1. Customer focussed ► Based on system approach ► Integrated process ► Mutually beneficial exchange ► Interaction with external environment ► Creative ► Multi disciplinary discipline Core Marketing Concepts:
Concept of Needs, Wants and Demands
► What is need? What is your need right now? Are you getting what you need?
Needs are basic Human requirements such as Air, food, water, clothing and Shelter. Core Marketing Concepts:
Concept of Needs, Wants and Demands
► Needs become wants when they are directed to specific objects that might satisfy the need.
You need Food but May Want Chapati, Rice, curries and Yoghurt. Wants are Shaped by our Society. Core Marketing Concepts:
Concept of Needs, Wants and Demands
► Demands are wants for specific products backed up by ability to pay.
Most People Want
Only few can buy one
Marketing Philosophies Or Concepts:
Philip Kotler has shown 5 Competing Concepts for carrying out marketing activity in an Organization:
Production Product Selling
Concept Concept Concept
Societal Marketing Marketing Concept Concept Production Concept
Meaning:
► This concept of Market Philosophy believes that customers are interested only in Low Priced, easily and Extensively available goods; and finer points of products are not very important to them. ► Hence, company believes that they must concentrate only on efficient (economical) and extensive (large scale) production. ► A Company which believes in this approach, concentrates on achieving high production efficiency and wide distribution coverage resulting in lower cost of Production. ► Ford Motor Company – Ford’s Model-T ► The whole philosophy on Henry Ford was to perfect the production process of Ford Model-T. The initial cost of the Ford Model-T vehicle was roundabout 800 US dollars, and it was high at the beginning of the 20th century. The company followed the production concept and developed its assembly line and other manufacturing processes. The price reduced from $800 to $300 and $300 was an affordable price to many Americans at that time. Product Concept:
Meaning:
► The product concepts implies that consumers favor those products that offer the most quality, performance, and features. ► Managers also believe that consumers appreciate quality features and shall be willing to pay higher prices for the extra quality in the product or services made available to them. ► Those companies which believe in product concept concentrate on product and its improvement.
► BMW advertisement: ► https://www.youtube.com/watch?v=wNAmxL25Bhk Selling Concept:
Meaning:
► This concept assumes that effective selling can push its output into the hands of Customers.in Other words, it assumes that consumers on their own will not buy enough of organization products, unless organization undertakes aggressive sales and promotional efforts. ► Hence some companies believe that aggressive promotion and selling is required for business success and without such methods they cannot sell and survive. Marketing Concept:
Meaning:
► This concept of marketing is based on Customer satisfaction.
► All activities of organization are directed to satisfy the consumer. ► Companies produce to satisfy consumers need and requirements. ► Consumer is treated as king who dictates ► “Make what you can sell instead of trying to sell what you can make”- is the approach in this concept ► The marketing concept is also known as the “pull strategy,” meaning businesses are so powerful, customers will always return and buy more. In this case, the profits result from customer satisfaction ► Maggi advertisement: ► https://www.youtube.com/watch?v=WvOZSIVC6wM Societal marketing Concept:
Meaning:
► It is an extension of Modern Marketing Concept
► This concept emphasizes Social welfare along with the interest of Firm and Customers. ► This concept includes social implication in decision making. ► As per this concept , firm should consider the welfare of society as well as Consumer satisfaction.
The following is the difference between marketing and selling:
► 1. Scope of the term
► Focus on sale or customer satisfaction ► Beginning ► Emphasis ► Approach ► Maximum sales v/s customer satisfaction Lest Discuss:
What you see?
What’s your Take?
Answer the following:
► Name of car? ► Good or bad Car? ► Successful or Un successful car? ► Reason of Success or failure? ► Where you think TATA went right or Wrong? ► Can you do something for the car /Brand? Marketing Management Process:
The Marketing Process consists of 4 steps:
► Analyzing the marketing Environment
► Selecting Target Markets (STP Analysis)
► Developing the Marketing Mix (4 Ps)
► Implementing and Controlling
Marketing Management Process:
Analyzing The Marketing Environment:
► Marketing starts with Identification of Consumer needs, therefore the first step in the marketing process is the analysis of marketing opportunities to identify the consumer needs. ► Marketing must identify the new needs, or the existing needs not satisfied by any product offer or needs which can be satisfied through better product offerings. For this you must analyze the opportunities by scanning the marketing environment. ► Marketing analysis talks about finding out the current position of the company in form of current market share, the relevant strength and weakness of company in relation to competitors and market opportunity and threats it is likely to face in the marketing environment. Marketing Management Process:
Selecting Target Markets:
► In this stage, the marketer has to decide about the target market, the company’s business mission, the category of customer markets it wants to serve, the type of strategy to arrive at the set goals. ► Once a particular customer group is identified and analyzed, the marketing manager can direct company resources and activities to satisfy the selected market. ► Thus, at this stage the marketer divides the market into various segments , called Market Segmentation. Each segment consists of consumers who respond in similar way to a given set of marketing efforts. ► Then the marketer evaluates each segment and select one or more segments in which he can generate the greatest customer value and sustain it over a long period. This is called Targeting. ► After identifying the target market, you must decide Market Positioning, that is the place product occupies relative to competitor's product in consumers 'mind. If the product is perceived to be exactly like competitor’s product, consumers would have no reason to buy it. Marketing Management Process:
Developing the Marketing Mix:
► The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place. However, nowadays, the marketing mix increasingly includes several other Ps like Packaging, Positioning, People and even Politics as vital mix elements. Marketing Management Process:
Implementing and Controlling:
► At this stage the Marketing plan is to be implemented. Without a proper implementation program, Marketing planning exercise is just a paperwork. The marketing implementation revolves around executing the strategy and resources for achieving the Marketing goals or targets. ► The marketing managers execute the strategy by converting it to operational plans which are achievable within a specified period of time frame. ► This stage also includes marketing control, which is the process of benchmarking the expended efforts and resources with the set goals. ► Market feedback is taken about product. Marketing Environment:
Concept/Definition of marketing Environment:
► According to Philip Kotler “It refers to external forces and forces that effect the company’s ability to develop and maintain successful transactions and relationships with its target customer”.
► For example: The relevant environment to a car tyre manufacturer may be the car manufacturer and buyers, the tyre manufacturing technology, the tax structure, import and export regulations, the distributor, dealer, competitors, etc. ► In addition to these company has to consider internal environment in terms of Finance, Purchasing, Accounting , Top management, R&D etc. (Internal environment is controllable to large extent) ► The external environment becomes necessary as it is changing and there is uncertainty. (Most of external environment factors are uncontrollable) There is both threat and opportunity in these changes. Marketing Environment:
The External marketing Environment can be divided into 2 parts:
1. Micro- Environment : It refers to company's immediate environment, that is those
environmental factors that are in its proximity. They include the company’s own capabilities to produce and serve the consumer needs, the dealers and distributors, the competitors, and the customers. These are also the group of people who effects the company’s prospects directly. 2. Macro- Environment: It refers to those factors which are external forces in the company’s activities and do not concern the immediate environment. Macro environment are uncontrollable factors which directly effect the concern’s ability to operate in the market effectively. These include demographics, economic, natural, technological, political forces etc. Marketing Environment:
► It creates an increased general awareness of Environmental changes on the part of the
management. ► It guides with greater effectiveness in matters relating to Government. ► It help in marketing analysis. ► It suggests improvements in diversification and resource allocations. ► It helps firms to identify and capitalize upon opportunities rather than losing out to competitors. ► It provides a base of “ objective qualitative information” about the business environment that can subsequently be of value of designing the strategies. Business Environment:
Case to Discuss:
► Comment on various Environmental aspects which are going to impact a Cement manufacturing Company? or Choose any industry in Built Environment Sector and analyze what environmental factors will affect it? Thank you
From Product to People: The 8Ps of Marketing: A Comprehensive Guide to Modern Marketing. Excellent Marketing Strategies for Success in a Digital World.
From Product to People: The 8Ps of Marketing: A Comprehensive Guide to Modern Marketing. Excellent Marketing Strategies for Success in a Digital World.
