MARKETING: A FOUNDATION FOR IBM

TRENDS& OVERVIEW By Elisante Ole Gabriel (Tanzania) +255-784 455499 4/26/2020 1

(A): BASIC CONCEPTS

• What is Marketing ?

This is a social and managerial process by which individuals and groups obtain their needs through creating and exchanging products and values with others.

There is always a consideration connected to this exchange, which can be in a material/kind form.

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WHAT IS BUSINESS?

This is a specific activity for specific objectives, for specific people, to be performed by specific people within a specified period of TIME.

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Business Scope

• Business is beyond just Creating, Promoting, and delivering goods & Services to consumers and Business.

• Nowadays, Marketers are involved in marketing ten types of entities: – goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.

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Why studied Marketing Management ?

• Changes in Market structure • Competition • Cultural dynamics • Micro & Macro Factors • Impact of Technology • Marginal Propensity to Save/Consume • Changes in Buyers’ Behavior 5

Generic philosophies (Concepts) in Marketing

• The Production Concept (the oldest) • Consumers will prefer products that are widely available and affordable • The Product Concept: Consumers will favour those products that offer the most quality, performance, or innovative features (Fallacy & Myopia) eg: GM: … how can they know …until they see?

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Selling Concept

• Consumers and business if left alone, will normally buy a small quantity of Organization’s products. For this very reason, the Organization must undertake an aggressive selling and promotion effort • - Buying inertia (resistance) • - The battery for effective selling to stimulate more buying 4/26/2020 7

The Marketing Concept

• The Organizational goals could be achieved if the Company will be more effective than competitors in creating, delivering, and communicating customer value to its chosen target markets • - Start and end with the customer • - Love the customer not the product • - Profits through customer satisfaction 4/26/2020 8

Four Pillars of the Marketing Concept

• Target Market • Customer needs • Integrated Marketing • Profitability 4/26/2020 9

Selling Vs Marketing Concept

• Theodore Levitt of Harvard University gave this perceptive contrast: • Selling focuses on the needs of the seller; Marketing on the needs of the buyer. Selling is preoccupied with the seller’s need to convert his product in to cash; Marketing with the idea of satisfying the needs of the customer using synergy 10

Societal Marketing Concept

• The Organization should determine the needs and interests of target markets and serve them while maintaining Consumer’s and society well-being This philosophy considers the aspects of; environment, resources, demographic factors,Worldwide economic problems, neglected Social services, etc 4/26/2020 11

TWO ADDITIONAL CONCEPTS

• Relationship Marketing There is a need to maintain a good relationship with your customers than just saving them with products. Mutual relationship will increase success in business than transactional.

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• One-to-one Marketing With the power of TECHNOLOGY in the market, marketer can now serve ‘him’ and not ‘them’. A customer can be served exactly according to his demand and convenience (eg UPS & FEDEX). Find More customers for products and more products for customers (Ref. Don Pepper’s Video Cassette) 4/26/2020 13

Micro & Macro Environment

• Micro This is an internal environment. It entails dynamic forces within the industry. These factors include: Vendors, Competitors, Customers • Macro This is the general environment, which sometimes is referred as external. It includes the following factors; (SLEEP-TIN) 14

SWOT Analysis

• SW = Strength and Weakness (INTERNAL) • OT = Opportunities and Threats (EXTERNAL) This analysis is also useful in assessing the position of a product or SBU/SBA/SME. The internal assessment deals with the Organizational capability of the SBU, including managerial competence. Ear disease, Alcohol/Pork Vs Faith) OT deals with external variables (Eg. Mobile Vs 15

SYNERGY

• This is a concept in Marketing management, which outlines that, system approach is more effective for higher performance. The concept claims that, the result of the combined efforts of individuals (as a system) is greater than when they perform the same separately.

• Mathematically: 1+1 > 2. (TEAM WORK) 4/26/2020 16

Customer Vs Consumer

• Customer This is the one whom you interact with for the service encounter, Moment of truth, Closing the sale. This can be an individual or an Organization (Eg Wholesalers are ………….) • Consumer The one who uses/consumes the product in the real sense (Eg a of a bar of chocolate) 4/26/2020 17

TYPES OF CUSTOMERS

Customers can be categorized in different forms. They can; • Person Vs Non-Person = Consumer Vs Organizational/Industrial/Institutional • New Vs Existing In Consumer Market, for instance, Individuals can represent nine types of customers. These to include; Snobbish, timid, nervous, . 4/26/2020 18

TQM

• Customers are not buying products but values • Customer Cost • Customer Value • Customer Delivered Value • Mind the distance and cultural gap when you think of International Marketing!!

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NATURE OF CUSTOMERS

Customers are different and their differences are different!!

(Gabriel, 2004) 4/26/2020 20