Sales & Marketing

Why Study Marketing?

• How many of you bought something
today?
• How many have seen or heard an ad
today?
• How many of you consumed something
today?
• How many of you engaged in word of
mouth about a product/service today?
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 The Marketing Concept?

“Selling is not marketing. Selling concerns

itself with the tricks and techniques of
getting people to exchange their cash for
your product…[selling] does not, as
marketing invariably does, view the entire
business process as consisting of a tightly
integrated effort to discover, create,
arouse and satisfy customer needs.”
– Theodore Levitt, “Marketing Myopia”
1960
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 Peter Drucker
(writing about lesser developed countries)

“…in an economy that is striving to break the

age-old bondage of man to misery, want and
destitution, marketing is…the catalyst for
transmutation of latent resources, of desires
into accomplishments, and the development
of responsible economic leaders and
informed economic citizens.”

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 Reason #1

Marketing is a fundamental human activity

• it’s ubiquitous in daily life
• it happens around the world
• we can learn to make better consumer
decisions

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 Reason #2
Marketing impacts the economy
• Marketing (broadly conceptualized) is
about 50% of retail sales expenses
• Healthy marketing systems support economic
advance

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 Reason #3

Marketing management is essential to

organizational success

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 Build a better mousetrap?

…and the world will beat a path to your

doorstep.
Or does it????

• 80-90% of new products fail

• Same rate for new businesses

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 Reason #4

• Marketing can contribute to societal

well-being

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 Reason #5

• It’s about people (consumers) and it’s fun.

• (Well, it’s more fun than accounting and

calculus anyway…)

04/22/10 Basic Marketing Concept - I 10

 Some Criticisms of Marketing

• Marketing communications are not always honest

– “They can sometimes play on people’s emotions and
fears and can cause them to buy things they really
don’t need.”
• It can “psychologically manipulate” consumers (they
sell the “sizzle,” not the steak).
• Youth may be targeted by companies selling adult
products (e.g. alcohol)
• Marketing sells products that can be harmful
• Some ads are crude
– “[Sex] is not necessary to sell something, and if it is,
the product is not worth much!”
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 My criticism of marketing

• Sometimes takes advantage of consumer

lack of knowledge (let the buyer beware)
• Especially true for goods and services with
“credence” qualitites
– Examples: car repair, plumbing, medical
services, pharmaceuticals

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 One more criticism?:
The “Paradox of Choice”
• Sociologist Barry Schwartz shows that more
choice can make us less happy
– Choice has increased over time
– “Maximizers” may get more than “satisfiers” but
may be less happy
• Choice increases the burdens of making “good
decisions” and regret over suboptimal decisions
• Availability of choice raises expectations
• What’s the solution?
04/22/10 Basic Marketing Concept - I 13
 Business Intelligence
Vision & Strategy

Improving organisations
by providing business
insights to all employees
leading to better, faster,
more relevant decisions

Complete and integrated BI

offering
Widespread delivery of
intelligence
Enterprise grade and affordable
04/22/10 Basic Marketing Concept - I 14
 What’s good about marketing?

• Usually seeks to be successful by focusing

on satisfying consumer desires (needs?)
• Often delivers customers what they want,
when they want it, at a price they are willing
to pay
• (More on customer focus later!)
• What’s the alternative?

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 Introduction to Sales
Personnel
• Importance of personal sales:
– Direct link to the customer
– Most customers see the sales person as the
company

– Are we part of Sales team or Marketing

team?

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 ???
• Which one is applicable
– Marketing subset of Sales
– Sales Subset of Marketing
– Sales and Marketing are separate domain

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 Sales vs Marketing
• What is more important?
– Sales or Marketing… (Give supportive
reason)

• Comparison

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 Differences between Sales &
Marketing Orientations
Sales Focus Marketing Focus
• Organization’s needs • Customer’s needs
• Selling goods/services • Satisfying customer
wants/needs
• Everybody • Specific groups of
people
• Profit through max. • Profit through customer
satisfaction
sales volume
• Coordinated mktg.
• Intensive promotion
activities (4 p’s)

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 Comparison???

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 Marketing
• Marketing is a social and managerial
process by which individuals and
groups obtain what they need and want
through creating and exchanging
products and value with others

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 Marketing
– « Marketing management is the process of
planning and executing programs designed to
create, build, and maintain beneficial
exchange relationships with target audiences
for the purposes of satisfying individual and
organizational objectives. »

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 Core Concepts of Marketing
Target
Target Markets
Markets &
& Segmentation
Segmentation
Needs, Wants, and Demands
Product
Product or
or Offering
Offering
Value
Value and
and Satisfaction
Satisfaction
Exchange
Exchange and
and Transactions
Transactions
Relationships
Relationships and
and Networks
Networks
Marketing
Marketing Channels
Channels
Supply
Supply Chain
Chain
Competition
Competition
04/22/10 Marketing
Marketing Environment
Environment
Basic Marketing Concept - I 23
 Organizations Stakeholders
• Customers
• Suppliers
• Distributors
• Employees
• Society
• Local Community
• Banks/ Source of Finance

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 Stages of Marketing Evolution

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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing
 Company Orientations
Towards the Marketplace

Consumers prefer products that are

Production
Production Concept
Concept widely available and inexpensive

Consumers favor products that

Product
Product Concept
Concept offer the most quality, performance,
or innovative features

Consumers will buy products only if

Selling
Selling Concept
Concept the company aggressively
promotes/sells these products

Focuses on needs/ wants of target

Marketing
Marketing Concept
Concept markets & delivering value
better than competitors
04/22/10 Basic Marketing Concept - I 26
 Evolution of Business Models
and the role of Marketing
Selling Marketing Societal
Product Production Mktg

As
As business
business philosophy
philosophy hashas evolved,
evolved, so
so
has
has the
the role
role of
of marketing…customer
marketing…customer
satisfaction
satisfaction is
is now
now at
at the
the core
core of
of most
most
successful
successful corporations
corporations

04/22/10 Basic Marketing Concept - I 27

 Evolutions of Marketing
Concept

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 Evolving Views of Marketing’s
Role

Finance
Production
Production Finance
Human
resources
Marketing Human
resources Marketing

a. Marketing as an b. Marketing as a more

equal functionBasic Marketing Conceptimportant
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