MGT211 Final Term Lectures 23-45 by Orange Monkey

MGT211 FINAL TERM NOTES · LECTURE 23 TO 45 · Lecture no 23 THE MARKETING ENVIRONMENT · Difference b/w marketing and selling

Marketing selling Marketing starts before decision about production Selling starts after decision about production Marketing is a total system and selling is one of its parts Selling is the transfer of ownership

Marketing is a long term process Selling is a short term process

Classification of products

•  Consumer products.
•  Industrial products.

Consumer products:

Consumer products after certain uses, e.g. tea, soap etc

Industrial products:

Industrial products are used in industry, e.g. raw material, machinery,

Relationship marketing

Developing a long term relationship with the customers, by making phone calls to the customers, sending gifts to customers etc

Transactional Marketing

Transactional marketing is a business strategy that focuses on single, "point of sale" transactions. The emphasis is on maximizing the efficiency and volume of individual sales rather than developing a relationship with the buyer.

The marketing environment

•  Political and legal environment (From taxes to regulations to laws, the political and legal environment has a profound impact on marketing.)
•  Social and cultural environment (in which social or cultural changes act to affect the firm's marketing effort )
•  Technological environment (New technologies create new goods and services, but also make some existing products)
•  Economic environment (The term economic environment refers to all the external economic factors that influence buying habits of consumers and businesses)
•  Competitive environment(A competitive environment is a system where different businesses compete with each other by using various marketing channels, promotional strategies, pricing methods, etc

Substitute product competition:

Products that are dissimilar from those of competitors, but can fulfill the same need

Brand competition:

Occurs between similar products (e.g. Zest bar soap and Irish Spring bar soap)

International competition:

Matches the products of domestic marketers against those of foreign competitors

MARKETING MANAGER:

A person who plans, executes and responsible for all marketing activities.

Role of Marketing Manager

•  To identify the unsatisfied needs of the customers
•  To design the product
•  Project development
•  Pricing decisions
•  Product distribution
•  Communication with the customers
•  Marketing research
•  Appointment of the staff in marketing department

Marketing Plan

A written document which describes the overall marketing activities for a particular time period.

Components of marketing plan

•  Executive summary
•  Current market situation
•  Opportunity analysis
•  Marketing objectives
•  Marketing strategies
•  Projected income statement
•  Control

The Marketing Mix

Consist of product, place, price and promotion

Product

The good, service, or idea that is marketed to fill consumer wants and needs

Product differentiation

Creation of a product or product image that differs enough from existing products to attract consumers

Pricing

Selecting the most appropriate price at which to sell a product .Lower prices generally lead to higher sales volume, while higher prices generally lead to higher profits per unit.

Place

Determining the most effective and efficient way to get products from producers to consumers

Promotion

All of the activities a firm undertakes to communicate and promote its products to the target market.

Target marketing

refers to a group of customers to whom a company wants to sell its products and services, and market target A efforts ng marketi to whom it directs its