Friday, August 18, 2006

MBA Lite & Ezy

OK, OK, this is not really an MBA course, and I am no management guru. In fact, I am just an MBA student. I am trying to summarize what I learn in the class, or from the books, and post them on my site.

Some friends of mine are dreaming of becoming billionaires. Perhaps my ‘lesson summary’ will help them.

Lesson 1: Marketing is NOT Sales

Sales is not marketing. There are a lot of confusions here. The employers don’t help by giving the title Marketing Executive to their salespersons.

What, exactly, is marketing?

American Marketing Association gives the following definition:

“Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.”

Note the keywords – creating, communicating and delivering.

Another way to look at marketing is to understand the four Ps. They are:

Product – product variety, quality, design, features, brand name, packaging, sizes, services, warranties, returns

Price – list price, discounts, allowances, payment period, credit terms

Promotion – sales promotion, advertising, sales force, public relations, direct marketing

Place – channels, coverage, assortments, locations, inventory, transport

Again as you can see from the list, sales is just a subset of marketing. Now ask yourself – how comprehensive are your company’s marketing activities?

Reference: Kotler & Keller, “Marketing Management”, 12th edition

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