2. Market
The term “Market” originates from Latin noun
„Marcatus‟ which means a place where business are
conducted.
Place concept: as a convenient meeting place, where
buyers and sellers gather together.
Area Concept: it is known as Economic concept to
meet “Unmet wants, Products to meet demand &
Means of interaction”
Demand Concept: it is known as Total
Demand, hence group of people having unmet
wants, purchasing power to make their demand
effective to fulfill.2
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar
3. Good Marketing is No Accident
The roaring success
of four-wheeler Tata
Nano, in a market
earlier dominated by
Four-wheeler
Vehicles, was due to
a deep
understanding of the
market needs and
customer
requirements.
3
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar
4. Importance of marketing
Success often depends on marketing ability.
Finance, operations, accounting and other
business functions will not really matter, if
there is no sufficient demand for products and
services so the company can make a profit.
4
Prof. Raghavendran V, Dept of MBA, AIET,
Mijar
5. What is Marketing?
According to American Management
Association 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.
5
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar
6. Nature of Marketing
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar6
It is both consumer and competitors oriented.
It starts with consumers and ends with
consumers.
Important function of management.
Long term objective is to make profit
maximization.
Integrated process based on strategies and
models.
It must deliver goods & services in exchange of
money.
7. Scope of Marketing
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar7
Scope is very wide, must be analyzed in terms of
marketing performance through various function.
Marketing Functions
Functions of Exchange Buying, Assembling, Selling
Functions of Physical Distribution
Transportation, Inventory, Warehousing, Material
Functions of Facilities
Financing, Insurance, Standardization, After sales
Services
8. What is Marketing Management?
Marketing management is the art and
science of choosing target markets and
getting, keeping, and growing customers
through creating, delivering, and
communicating superior customer value.
8
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar
9. Selling is only the tip of the
iceberg
“There will always be a need
for some selling. But the aim
of marketing is to make
selling superfluous. The aim
of marketing is to know and
understand the customer so
well that the product or
service fits him and sells
itself. Ideally, marketing
should result in a customer
who is ready to buy. All that
should be needed is to make
the product or service
available.”
9
Prof. Raghavendran V, Dept of MBA, AIET,
Mijar
10. Exchanges and Transactions
A person can obtain a product in one of four ways
and they are……. i.e.
1.One can produce for himself
2.One can force to get the product (Robbery)
3.One can beg (Homeless), lastly
4.One can offer a product in EXCHANGE of
money/ any other products.
10
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar
11. Exchange
Exchange is the core concept of marketing. It is
process of obtaining a desired product from
someone by something in return. For any
exchanges 5conditions must be satisfied and they
are:
1. There are at least 2 parties.
2. Each party has something that might value to
the other party.
3. Each party is capable of communication &
delivery.
4. Each party is free to accept or reject the
exchange offer
5. Each party believes it is appropriate to deal with11
Prof. Raghavendran V, Dept of MBA, AIET,
Mijar
12. Transaction
When an agreement is reached between two
parties, we say that a transaction take place.
Transaction is a trade of values between two or
more parties.
Then what is transfer??
12
Prof. Raghavendran V, Dept of MBA, AIET,
Mijar
13. What is Marketed?
Goods
Services
Events & Experiences
Persons
Places & Properties
Organizations
Information
Ideas
13
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar
14. Successful New Product Launches
Require Careful Planning
14
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar
16. A Simple Marketing System
16
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar
17. Structure of Flows in a Modern Exchange Economy
17
Prof. Raghavendran V, Dept of MBA, AIET,
Mijar
18. Who markets?
A marketer is someone who seeks a response
from another party, called the prospect.
Marketers are responsible for demand
management.
18
Prof. Raghavendran V, Dept of MBA, AIET,
Mijar
20. Key Customer Markets
Consumer Markets
Business Markets
Global Markets
Nonprofit/ Government Markets
20
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar
22. Functions of Chief Marketing Officers
Strengthening the brands
Measuring marketing effectiveness
Driving new product development based on
customer needs
Gathering meaningful customer insights
Utilizing new marketing technology
22
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar
23. Improving CMO Success
Make the mission and responsibilities clear
Fit the role to the marketing culture and
structure
Ensure the CMO is compatible with the CEO
Remember that show people don‟t succeed
Match the personality with the CMO type
Make line managers marketing heroes
Infiltrate the line organization
Require right-brain and left-brain skills
23
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar
24. Core Marketing Concepts
Needs, wants, and
demands
Target
markets, positioning
, segmentation
Offerings and
brands
Value and
satisfaction
Marketing channels
Supply chain
Competition
Marketing
environment
24
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar
25. New Consumer Capabilities
A substantial increase in buying power
A greater variety of available goods and
services
A great amount of information about
practically anything
Greater ease in interacting and placing and
receiving orders
An ability to compare notes on products and
services
An amplified voice to influence public opinion
25
Prof. Raghavendran V, Dept of MBA, AIET,
Mijar
26. Company Orientations/Concepts of
Marketing
Prof. Raghavendran V, Dept of MBA, AIET,
Mijar26
Since Industrial Revolution, Business
management has undergone 6 (4) distinct
concepts of Marketing.
The exchange orientations
The production orientation
The product orientation
The sales orientation
The Marketing orientation
Societal Marketing orientation
30. Internal Marketing
Internal marketing is the task of
hiring, training, and motivating able employees
who want to serve customers well.
30
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar
31. Performance Marketing
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar31
Financial Accountability
Social Responsibility Marketing
Social Initiatives
Corporate social marketing
Cause marketing
Cause-related marketing
Corporate philanthropy
Corporate community involvement
Socially responsible business practices
32. Marketing Management Tasks
Develop market strategies and plans
Capture marketing insights
Connect with customers
Build strong brands
Shape market offerings
Deliver value
Communicate value
Create long-term growth
32
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar
33. Prof. Raghavendran V, Dept of MBA, AIET,
Mijar
Analyzing the Environment :Needs
and Trends
Fad
Trend
Megatrend
34. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Trends Shaping the
Business Landscape
Profound shifts in
centers of economic
activity
Increases in public-
sector activity
Change in consumer
landscape
Technological
connectivity
Scarcity of well-trained
talent
Increase in demand for
natural resources
Emergence of new
global industry
structures
Ubiquitous access to
information
Management shifts from
art to science
Increase in scrutiny of
big business practices
34
35. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Marketing Micro Environmental
Forces
Producers
Manufacturers
Suppliers/
Middlemen
Customers
Competitors
35
Public
36. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Marketing Macro Environmental
Forces
Demographic
EconomicPolitical-Legal
Socio-CulturalTechnological
Natural
36
37. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Population and Demographics
Population growth
Population age mix
Ethnic markets
Educational groups
Household patterns
Geographical shifts
37
38. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Mobilink-
Disney D 100
Mobile Phone
38
39. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Population Age Groups
Preschool
School-age
Teens
25-40
40-65
65+
39
41. Prof. Raghavendran V, Dept of
MBA, AIET, Mijar
Economic Environment
Income Distribution
Savings, Debt, and
Credit
Levi’s has responded to
changes in income
distribution by offering
an upscale line and a
mass market line
42. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Social-Cultural Environment
Views of themselves
Views of others
Views of nature
Views of organizations
Views of society
Views of the universe
42
43. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Islamic Banking: Reflecting Religious
and Cultural Sensitivities
• Consistent with principles of Islamic Laws
(Shariah)
• Prohibits investing in business that are considered
unlawful
• Growth is due to disenchantment with value-
neutral capitalist and socialist financial systems
• Popular in Pakistan and Bangladesh,
• National and international banks want to start
Islamic banking in India
43
44. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Cartoon Network‟s New Generation
Survey
Achieving good grades at school – all respondents
Looking good – 90% of respondents
Being religious/traditional – 84% of respondents
Having boyfriend/girlfriend – 40% of respondents
Career aspirations – One-third wanted to be
doctor, 21% of wanted to be engineer
44
45. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Natural Environment
Shortage of
raw materials
Increased
energy costs
Anti-pollution
pressures
Governmental
protections
45
46. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Toyota Experienced Success
with Green Cars
46
47. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Consumer
Environmental Segments
True Blue Greens (30%)
Greenback Greens (10%)
Sprouts (26%)
Apathetics (18%)
Grousers (15%)
47
48. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Keys to Avoiding
Green Marketing Myopia
Consumer Value Positioning
Calibration of Consumer Knowledge
Credibility of Product Claims
48
49. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Technological Environment
Pace of change
Opportunities
for innovation
Varying R&D
budgets
Increased regulation
of change
49
50. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Political-Legal Environment
Increase in
business legislation
Growth of special
interest groups
50
51. Marketing Debate:
Take a Position!
Does marketing shape consumer needs?
or
Does marketing merely reflect the needs and wants
of consumers?
51
Prof. Raghavendran V, Dept of MBA, AIET,
Mijar
52. Assignment Time:
1. Why is marketing important?
2. What is the scope of marketing?
3. What are some fundamental marketing
concepts?
4. How has marketing management changed?
5. What are the tasks necessary for successful
marketing management?
6. Explain in detail of company orientations.
7. Explain in detail of the all forces contributing to
macro environment.
8. What are some important micro environment
developments
9. Explain the challenges faced at globalized
marketing scenario?
52
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar