Marketing: An Introduction

INTRODUCTION TO
MARKETING

Unit-1
Marketing: An Introduction
Do you know??
 What is a market?
Marketing: An Introduction

“A market consists of all the potential

customers sharing a particular need or
want who might be willing and able to
engage in exchange to satisfy that need
or want” (Philip Kotler).

For instance…..
Marketing: An Introduction
The Overall Themes of Marketing
The Traditional Marketing Mix

• Product
• Price
• Promotion
• Place
 Marketing Defined
Marketing: An Introduction

• Marketing is a process… that is…

• Managerial
• Social
• Individual
• Wants, Desires
• Demands – Products and/or Services
 As far as Customers are concerned there are
three elements to address
Marketing: An Introduction

• Customer value: Difference between

the values that the customer gains from
owning and using a product versus the
costs of obtaining the product.

• Customer satisfaction: The extent to

which a product’s perceived performance in
delivering value matches a buyer’s
expectations.

• Quality: the characteristics of a product or

service that bear on its ability to satisfy
stated or implied customer needs.
 Marketing Management Philosophies
Agree or Disagree?
Marketing: An Introduction

1. Production: consumers will favor products that are

available and highly affordable
2. Product: consumers favor products that offer the
most in quality, performance, and innovative features
3. Selling: consumers will not buy unless an
organization undertakes a large-scale selling and
promotional effort
4. Marketing: determining the needs and wants of
target markets and delivering the desired satisfactions
more effectively and efficiently then the competitors
5. Societal marketing: generating customer
satisfaction and long-run societal well-being are the
keys to both achieving the company’s goals and
fulfilling its responsibilities
 Relationships
Marketing: An Introduction

• Relationship marketing: the process of creating,

maintaining, and enhancing strong, value-laden relationships
with customers and other stakeholders.
 Marketing Management Practice
Essentially Two Types
Marketing: An Introduction

• Entrepreneurial marketing:
– Businesses started by individuals
– Creativity, drive, and perseverance are
keys to success

• Formulated marketing:
– Professional, disciplined approach
– Achieving a market orientation
 Orientations towards marketing
Marketing: An Introduction

• Production concept (before 1930):

demand > supply

• Selling concept (1930-1950):

supply > demand

• Marketing concept (post-1960s):

analyze consumer needs before
producing and selling, market
orientation, competition…
 Marketing Concept versus
Selling Concept
Marketing: An Introduction

Starting Point Focus Means Ends

The Marketing Concept

Customer Integrated Profits from
Market
needs marketing satisfied customers

The Selling Concept

Sell and Profits through

Factory Product
Promote it sales volume

Figure 1.3
 Marketing Management
• What is marketing management?
Marketing: An Introduction

« Marketing management is the process of

planning and executing the conception,
pricing, promotion, and distribution of
ideas, goods, and services to create
exchanges that satisfy individual and
organizational goals » (Philip Kotler)

• Marketing management has the task of

influencing the level, timing, and
composition of demand in a way that
will help the organization achieve its
objectives.
 Course Outline
Marketing: An Introduction

• Marketing Research

• Marketing Strategy
 Common marketing problems
Marketing: An Introduction

• How can we identify and choose profitable

market segments?
• How can differentiate our offer from our
competition?
• How should we react to competitors?
• How can we satisfy our customers and
build brand loyalty?
• How can we measure the effectiveness of
an add campaign, of Public Relations, of a
promotion, etc…?
Chapter
11-15
 Chapter
1-16
1
Main Topics

What Is Selling?
Personal Selling Today
A New Definition of Personal Selling
The Golden Rule of Personal Selling
Everybody Sells!
What Salespeople Are Paid to Do
Why Choose a Sales Career?
Is a Sales Career Right for You?
 Chapter
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1
Main Topics

Success in Selling–What Does It Take?

C–Characteristics for the Job Examined
Do Success Characteristics Describe You?
Sales Jobs Are Different
What Does a Professional Salesperson Do?
The Future for Salespeople
The Plan of This Textbook
Building Relationships through the Sales Process
 How Do You View Salespeople?
 Some people have a negative view of
salespeople.
 What is your view of salespeople?
 How many of you have a viewpoint that is
 Positive?
 Negative?
 No opinion?
 How many of you are interested in a sales
career?

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 What is Selling?
 Selling is just one of many marketing
components
 Personal selling includes
 Personal communication
of information
 Persuasion
 Helping others
 Goods
 Services
 Ideas

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 A New Definition of Personal Selling

 Personal Selling
 Refers to the personal communications of information
 To unselfishly persuade someone

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 Think of Your Grandmother

 Would you treat her in a selfish manner?

 Would you sell her something just to make a
sale?

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 The Golden Rule of Personal Selling

 Refers to the sales philosophy of unselfishly

treating others as you would like to be treated
 Reciprocity is not expected
 Example - children whose cat had recently
delivered a litter of kittens
 Girl - “They love each other so much that they’re trying
to keep each other warm”
 Mother - “Actually they’re trying to keep themselves
warm”

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 The Golden Rule of Personal Selling

 The Golden Rule is all about trying to keep

somebody else warm, even if it means that we get
cold in the process

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 Salesperson Differences

 Traditional Salesperson
Guided by self-interests

 Professional Salesperson
Takes care of customers

 Golden Rule Salesperson

Others interests most important

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Exhibit 1.3

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Exhibit 1.3: Self & Customer Service Progress

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 Everybody Sells!

 Each of us develops communication techniques

for trying to get our way in life
 You are involved in selling when you want
someone to do something
 You use persuasion skills to persuade someone to
act

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 What Salespeople are Paid to Do
 Salespeople are paid to sell – that is their job
 Performance goals are set for:
 Themselves – In order to serve others and earn a living
and keep their job
 Their employers – So the companies will survive
 Their customers – To fulfill needs and help organizations
grow

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 How Do You Sell Someone and Remain
Friends?
 Salespeople need to close sales and at the same
time maintain a great relationship with their
customers
 What does this require?
 This is what you will learn in this course

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Exhibit 1.4: Major Reasons For Choosing A
Sales Career

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 Service: Helping Others
 When asked what she will look for in a career after
graduating from college, a student of your author’s,
Jackie Pastrano, said “I’d like to do something that
helps other people.”
 Service refers to making a contribution to the
welfare of others
 Would you like to help others?

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 What are Examples of How Selling Can Help
Others?
 What could a person be sold that would help the
individual/family?
 Car, gas, repairs
 House
 Insurance
 Food
 Medicine

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 What are Examples of How Selling Can Help
Others?
 What could a business be sold that would help it
produce and market goods and services?
 Land to build a business
 Building materials/construction of business
 Furniture, equipment, supplies
 Raw materials used in manufacturing

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 Types of Sales Jobs
 Retail
 Direct
 Wholesaler
 Manufacturer

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 Types of Sales Jobs
 Retail Selling
 A retail salesperson sells goods or services to
consumers for their personal, non-business use
 Direct Selling
 Face to face sales to consumers, typically in their
homes, who use the products for their non-business
personal use

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 Types of Sales Jobs, cont…
 Selling for a Wholesaler
 For resale
 For use in producing other goods
 For use within an organization
 Selling for a Manufacturer
 Working for the firm who manufacturers the product
 Usually one of the most prestigious jobs to hold

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 Exhibit 1.6
 The complexity and difficulty of these seven sales
job categories increase as they move left to right.

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Exhibit 1.7: A Sales Personnel Career Path

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 Rewards
 Non-financial
 Intrinsic reward of knowing you’ve skillfully delivered a
sales presentation
 Quick path to managing large amounts of responsibility
 Quick path to managing others
 Financial
 Higher average salary than that of other workers at the
same level within the organization
 Based upon performance, not tenure

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 Is a Sales Career Right for You?
 What are your past accomplishments?
 What are your goals?
 Do you want to have the responsibilities of a sales
job?
 Do you mind travel? How much travel is
acceptable?
 How much freedom do you want in a job?
 Do you have the personality characteristics to
succeed?
 Are you willing to transfer to another city? Another
state?
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 Exhibit 1.8: Success in Selling–What Does it Take?
Love of Selling Is At Heart of Helping Others (Ssuccess)

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Exhibit 1.9

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 Exhibit 1.10: Harry Potter and You Have
Something in Common
 You both have the freedom to choose the type of
person you want to be and thus how you will treat
others.

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Personal Characteristics Needed to Sell for
Building Long-term Relationships
Joy in
Caring for work
Harmony in
customer
relationship

Self-control Patience in
in emotions closing the
Salesperson sale

Fairness Kind
in the sale to people
Faithful to Morally
your word ethical
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Exhibit 1.11: Personal Characteristics Needed to Sell for Building Long-term Relationships

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 Putting the Customer First Requires Salespeople to
Have Personal Characteristics That Allow Them To:

 Care for the customer

 Take joy in their work
 Find harmony in the sales relationship
 Have patience in closing the sale
 Be kind to all people
 Have high moral ethics
 Be faithful to one’s word
 Be fair in the sale
 Be self-controlled in emotions
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 How Would You Answer These Questions?

 Do these success characteristics describe you?

 Do you have all, or part, of them?
 Can you develop the missing ones?

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 Once Again, Are You:
 Caring?
 Joyful?
 Able to get along with others?
 Patient?
 Kind?
 Ethical?
 Honest?
 Fair?
 Self-controlled?
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 Connect the Dots
 The following puzzle illustrates how you can be
held back from breaking through. The challenge is
to connect all nine dots with four straight lines,
without lifting your pencil from the paper. Try it!

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 Go Beyond the Limits!

2. 3.

1. Start Here
4.
To reach your goals

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We Often Do Not Reach Our Potential Because

 We set our limits

 It is hard to breakaway from our old self

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 Relationship Selling

 Non-adversarial
 Non-manipulative
 Consultative
 Partnering
 Problem-solving
 Goal: long-term relationship

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Exhibit 1.12: The Customer is at the Center of
the Sales System: ABC’s

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What Are The ABC’S? Analyze, Benefits,
Commitment, Service

Analyze
needs
Analyze
needs

Service CUSTOMER Present

C Product
benefits
Present
Service CUSTOMER
Gain product
Commitment Benefits

Gain
Commitment

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What Are The ABC’S? Analyze, Benefits,
Commitment, Service

Analyze
needs Analyze
Service needs
Service CUSTOMER Present
C Product
benefits

CUSTOMER
Gain
Commitment

Gain Present
Commitment product
Benefits

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What Are The ABC’S? Analyze, Benefits,
Commitment, Service

Service
Analyze
needs

Service CUSTOMER Present

C Product
benefits
Gain Analyze
Commitment CUSTOMER
Gain needs
Commitment

Present
product
Benefits

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What Are The ABC’S? Analyze, Benefits,
Commitment, Service

Analyze
Gain needs
Commitment Service
Service CUSTOMER Present
C Product
benefits

CUSTOMER
Gain
Commitment

Present
product Analyze
Benefits needs

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What Are The ABC’S? Analyze, Benefits,
Commitment, Service
Gain
Commitment
Analyze
needs

Service CUSTOMER Present

C Product
benefits
Present
product CUSTOMER
Gain Service
Benefits Commitment

Analyze
needs

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What Are The ABC’S? Analyze, Benefits,
Commitment, Service

Present Analyze Gain

needs
product Commitment
Benefits
Service CUSTOMER Present
C Product
benefits

CUSTOMER
Gain
Commitment

Analyze
Service
needs

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What Are The ABC’S? Analyze, Benefits,
Commitment, Service

Present
product
Analyze
Benefits
needs

Service CUSTOMER Present

C Product
benefits

Analyze Gain
needs CUSTOMER
Gain Commitment
Commitment

Service

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What Are The ABC’S? Analyze, Benefits,
Commitment, Service

Analyze
Analyze needs Present
needs product
Service CUSTOMER Present Benefits
C Product
benefits

CUSTOMER
Gain
Commitment

Gain
Service
Commitment

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What Are The ABC’S? Analyze, Benefits,
Commitment, Service

Analyze
needs
Analyze
needs

Service CUSTOMER Present

C Product
benefits
Present
Service CUSTOMER
Gain product
Commitment Benefits

Gain
Commitment

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 Sales Jobs Are Different

 Salespeople:
 Represent their companies to the world
 Work with little or no supervision
 Require more people skills
 Are often allowed to spend company funds
 May require travel and being away from home

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 What Does a Salesperson Do?
 Creates new customers
 Sells more to present customers
 Builds long-term relationships
 Provides solutions to customer’s problems
 Provides service to customers
 Helps customers resell products to their
customers
 Helps customers use products after purchase
 Builds goodwill with customers
 Provides company with market information
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 The Future of Salespeople: Skills Required

 Learning conceptual skills

 Example: planning
 Learning human skills
 Example: working with customers
 Learning technical skills
 Example: selling skills

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 Selling is Both an Art and a Science

 Selling takes practice, just like golf or

tennis

 Selling is also a science because a

growing body of knowledge and
objective facts describe selling

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 Preparing for the 21st Century

 International and global selling

 Cultural fluency
 Language fluency
 Diversity of salespeople and customers
 Customer partnerships
 Ethical and professional behavior
 E-selling

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 The Plan of the Textbook
 The role of the sales force in the firm’s marketing
efforts
 The social, ethical, and legal issues in selling
 Why people and organizations buy what they do
 Verbal and nonverbal communications
 The importance of knowing your products and your
competition’s products
 An in-depth discussion of the selling process
 Self, time, and sales territory management
 Important functions of sales management
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 Building Relationships through the Sales
Process
1. Prospecting
The sales process 2. Preapproach - planning
is a sequential
3. Approach
series of actions:
4. Presentation

5. Trial close

6. Determine objections

7. Meet objections

8. Trial close

9. Close

10. Follow-up
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 Exhibit 1-19: Ten Important Steps in the
Customer Relationship Selling Process
1. Prospecting. Locating and qualifying prospects.
2. Preapproach. Obtaining interview. Planning: determining sales call
objective, developing customer profile, customer benefit program, and
sales presentation strategies.
3. Approach. Meeting prospect and beginning customized sales
presentation.
4. Presentation. Further uncovering needs; relating product benefits to
needs using demonstration, dramatization, visuals, and proof statements.
5. Trial close. Asking prospects’ opinions during and after presentation.
6. Objections. Uncovering objections.
7. Meet objections. Satisfactorily answering objections.
8. Trial close. Asking prospect’s opinion after overcoming each objection
and immediately before the close.
9. Close. Bringing prospect to the logical conclusion to buy.
10. Follow-up and service. Serving customer after the sale.

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Part I: Chapters 1-3

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Part II: Chapters 4-6

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Part III: Chapters 7-14

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Part IV: Chapters 15-17

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 Summary

 Personal selling is an old and honorable

profession
 Millions of people have chosen sales careers
because of:
 Job availability
 Personal freedom
 The challenge
 Opportunities for success
 Non-financial rewards
 Financial rewards

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 Summary, cont…
 Success comes from:
 Training
 Applying knowledge
 Developing skills
 Working hard
 Wanting to succeed
 Maintaining a positive
outlook
 Effective time management
 All to take care of the customer

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