Marketing

1. Unit 1
Introduction to Marketing

2. Marketing Defined
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.

3. Marketing is satisfying
customer needs profitably
Creating, communicating and
delivering value to the
customers

4. Marketing Mix (4 Ps)
Product
Price
Place
Promotion

5. THE SCOPE OF MARKETING
1. Physical
Goods
2. Services
3. Experiences
4. Events
5. Persons
6. Places
7. Properties
8. Information
9. Ideas
Marketers are involved with marketing
following types of entities:

6. Products
Anything that can be Offered to a Market to Satisfy a Need or Want
Persons Places Goods
Ideas
Information
Services
Activity or Benefit Offered for Sale That is Essentially
Intangible and Does Not Result in the Ownership of Anything
What Satisfies Consumers’
Needs and Wants?

7. Physiological condition/
Problem
Need
Want
Demand

8. What Is a Want ?
Wants –
Form that a
human need
takes, as
shaped by
culture and
individual
personality.

9. Need / Want Fulfillment
 Needs and Wants Fulfilled through a
Marketing Offer :
◦ Some combination of products, services,
information, or experiences offered to a
market to satisfy a need or want.

10. What Is Demand?
Wants Buying Power
“Demand”

11.  Latent demand—a need that can't be satisfied
by existing offerings
 Increasing demand
 Irregular demand—seasonal
 Full demand
 Overfull demand
 Declining demand
 Unwholesome demand—when customers
want unhealthy or dangerous products
 Negative demand—when customers avoid a
product
 No demand—when customers have no
awareness of, or interest in a product
Demand states

12. Basic Terms
 Customer
 Consumer
 Channel Partners
◦ Retailer
◦ Wholesaler
◦ Distributor
 Supply Chain

13. Contd…
 Stake Holders
 Share Holders
 Differentiation
 Competitive Advantage
 Customization

14. Maslow’s
Hierarchy
of Needs

15. What is a Market?
 The set of actual
and potential buyers
of a product
 These people share
a need or want that
can be satisfied
through exchange
relationships

16. Types of markets
(On the basis of customers)
 Consumer markets
 Business markets
 Global markets
 Non-profit & government markets

17. Types of markets
(On the basis of channels)
 Marketplace
 Marketspace
 Metamarkets
 Metamediaries

18. Customer Satisfaction
 Dependent on the
product’s perceived
performance relative
to a buyer’s
expectations.

19. Levels of Satisfaction
 Dissatisfied
 Satisfied
 Delighted

20. Customer Perceived Value
 Customer’s evaluation
of the difference
between all the
benefits and all the
costs of a marketing
offer relative to those
of competing offers.

21. Value and Satisfaction
 Value = Benefits/Costs
 Benefits = Functional Benefits +
Emotional benefits
 Costs = Monetary costs + Time +
Energy + Psychic costs

22. Marketing Myopia
 Sellers pay more
attention to the specific
products they offer than
to the benefits and
experiences produced
by the products.
 They focus on the
“wants” and lose sight
of the “needs.”

23. Other Definitions of Marketing
Marketing is the management process that identifies, anticipates and
satisfies customer requirements profitably
The Chartered Institute of Marketing (CIM)
The right product, in the right place, at the right time, at the right price
Adcock
Marketing is essentially about marshalling the resources of an
organization so that they meet the changing needs of the customer on
whom the organization depends
Palmer
Marketing is the process whereby society, to supply its consumption
needs, evolves distributive systems composed of participants, who,
interacting under constraints - technical (economic) and ethical (social) -
create the transactions or flows which resolve market separations and
result in exchange and consumption
Bartles
Marketing is not only much broader than selling, it is not a specialized
activity at all It encompasses the entire business. It is the whole
business seen from the point of view of the final result, that is, from the
customer's point of view. Concern and responsibility for marketing must
therefore permeate all areas of the enterprise.
Drucker

24. American Marketing Association –
“It is the process of planning &
executing the conception, pricing,
promotion & distribution of ideas,
goods & services to create
exchanges that satisfy individual &
organizational goals.

25. So, What Is Marketing?
 Simple Definition: Marketing is
managing profitable customer
relationships.
Goals:
• Attract new customers by promising
superior value.
• Keep and grow current customers
by delivering satisfaction.

26. Marketing Management Philosophies
Production Concept
Product Concept
Selling Concept
Marketing Concept
Holistic Marketing Concept

27. Production Concept
Product Concept
Selling Concept
Marketing Concept
Consumers prefer products that are
widely available and inexpensive
Consumers favor products that
offer the most quality, performance,
or innovative features
Consumers will buy products only if
the company aggressively
promotes/sells these products
Focuses on needs/ wants of target
markets & delivering value
better than competitors
Company Orientations
Towards the Marketplace

28.  The Holistic marketing concept is an
elaborative attempt to explain the
phenomenon that rests on four key issues
 Target market
 Customer need
 Integrated marketing and
 Profitability.
 Customer needs are first priority and
understanding
these needs is a constant concern.
 Marketing research is an on-going activity
assigned a very high priority.
Holistic Marketing Concept

29. Holistic Marketing Dimensions

30. Internal Marketing
Internal marketing is the task of
hiring, training, and motivating able
employees who want to serve
customers well.

31. Integrated Marketing
 Integrated marketing is a company-
wide process in which all the
organizational functions are performed
considering broader marketing
strategy of the organization
 All functions including marketing
function complement other
organizational functions

32. Relationship Marketing
 Focus is on the development and
maintenance of long-term, cost-
effective exchange relationships
with individual customers,
suppliers, channel partners and
other partners for mutual benefit.

33. Socially Responsible
Marketing
 All the organizational functions are
performed considering the overall
benefit to the society and the
environment
 Organization follows ethics and law
 Community and social services are
regular features of the organization

34. Marketing Management Functions
 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

35. Marketing and Selling Concepts

36. Marketing Environment
 Every business organization is a part
of the marketing environment, within
which it operates
 No entity can function in isolation
because there are many factors that
closely or distantly surround the
business, which is known as a
business or marketing environment

37.  Marketing environment refers to the
factors and forces that affect a firm's
ability to build and maintain profitable
relationship with customers
 It includes physical and social factors
that are taken into consideration
during value delivery process

38. Types of Environment
 Micro environment –Factors that affect the
business at local level
These are specific to an industry, area or
economy (Competitors, customers,
government norms, suppliers)
 Macro environment – Factors that affect all
the businesses and industries
These factors are usually national or global
(Demography, economy, technology, politics,
culture, income, education)

39. Environmental Scanning
 The knowledge and understanding of
environment help and guide marketers
in decision-making
 Features of environmental scanning:
◦ Continuous process
◦ Exploratory process
◦ It’s a holistic exercise

40. Techniques of Environmental
Scanning
 SWOT Analysis
◦ Strength, Weakness, Opportunity, Threat
 ETOP Analysis
◦ Environmental Threat an Opportunity
Profile
 PESTEL Analysis
◦ Political, Economic, Social, Technological,
Environmental, Legal

41. Marketing Planning &
Implementation
 Planning is deciding at present as to what a
marketer is going to do in the future
 It involves not only anticipating the
consequences of decisions but also predict
the events that are likely to affect the
business
 Marketers start planning well in advance of
implementation date to allow time for
marketing research, analysis, management
review and coordination between
departments

42. Marketing Planning &
Implementation
 Marketing plan must define how progress
towards objectives will be measured
 During implementation, as each action
program begins, marketers monitor
ongoing results, investigate any
deviations from plans and take corrective
steps
 Marketers must be ready to update and
adapt marketing plans at any time