What is Marketing?
Marketing is “Meeting needs Profitably.”
Marketing is the delivery of customer
satisfaction at a profit.
The Chartered Institute of Marketing:
“The management process responsible for
identifying, anticipating and satisfying customer
Definition of Marketing
According to American Marketing Association,
“Marketing is an organisational function and a set of
processes for creating, communicating & delivering
value to the customers and for managing customers
relationships in way that benefit the organisation
and its stakeholders.”
Marketing is the activity, set of instructions, and
processes for creating, communicating, delivering,
and exchanging offerings that have value for
customers, clients, partners, and society at large.
OLD view of marketing:
Making a sale—
“telling and selling”
NEW view of marketing:
The Goal of Marketing is:
To attract new customer by promising
Keep current customers by delivering
Needs, Wants, and Demands
NEED : A state of felt deprivation of some
basic satisfaction ( Food, Clothing, Shelter,
Belonging etc. )
WANTS : Wants are desires for specific
satisfiers of the deeper needs. Needs are
few and wants are many .
DEMANDS : are wants backed by ------
Ability to buy and Willingness to buy
Need – food ( is a must )
Want – Pizza, Burger, French fry's
(translation of a need as per our experience )
Demand – Burger ( translation of a want as
per our willingness and ability to buy )
Desire – Have a Burger in a five star hotel
STATE OF DEMAND AND MARKETING TASK
1. Negative demand: Consumers dislike the
product and may even pay to avoid it.
2. Non-existent demand:Consumers may be
unaware of or uninterested in the product.
3. Latent demand:Consumers may share a strong
need that cannot be satisfied by an existing
4. Declining demand:Consumers begin to buy the
product less frequently or not at all.
5. Irregular demand:Consumer purchases vary
on a seasonal, monthly, weekly, daily, or even
6. Full demand: Consumers are adequately buying
all products put into the marketplace.
7. Overfull demand: More consumers would like
to buy the product than can be satisfied.
8. Unwholesome demand : Consumers may be
attracted to products that have undesirable social
In each case, marketers must identify the
underlying cause(s) of the demand state and
determine a plan of action to shift demand to
a more desired state.
Products & Services
Anything that can be offered to a market to satisfy a
need or want.
The concept of product is not limited to physical
objects – anything capable of satisfying a need can
be called a product.
In addition to tangible goods, products also include
services, which are activities or benefits offered for
sale that are essentially intangible and do not result
in the ownership of anything.
VALUE = Benefit/Costs
= Functional benefits + Emotional benefits
Monetary costs+Time costs+Energy costs+Psychic costs
Customer value: Difference between the
benefits that the customer gains from
owning and using a product versus the
costs of obtaining the product.
Satisfaction & Quality
• Customer satisfaction: The extent to
which a product’s perceived performance in
delivering value matches a buyer’s
• Quality: the characteristics of a product or
service that bear
on its ability to satisfy stated or implied
Exchange, Transactions, and
The act of obtaining a desired object from someone by
offering something in return
A trade between two parties that involves at least two
things of value, agreed – upon conditions a time of
agreement, and a place of agreement.
Relationship marketing :
The process of creating, maintaining, and enhancing
strong, value – laden relationships with customers and
EXCHANGE AND TRANSACTION
Exchange is the act of obtaining a desired
product by offering something in return .
Exchange takes place when 5 conditions are
(a) Two parties should be there
(b) Each party must have something of value to the
(c) Each party is capable of communication & delivery
(d) Each party is free to accept or reject the offer
(e) Each party believes that it is appropriate to deal
with the other party
EXCHANGE AND TRANSACTION
Exchange is a process rather than event. It
is a value creating process because it
normally leaves both parties better off.
A transaction is a trade of values between
two or more parties ( A BARTER
TRANSACTION OR A MONETARY
What is Marketed ? (Needs & wants are
fulfilled through a Marketing Offering):
GOODS: Physical goods constitute the
bulk of most countries’ production and
It include like food, cars, refrigerators,
television sets, machines etc.
Services include the work of airlines,
hotels, car rental firms, barbers and
beauticians, maintenance and repair
people, and accountants, bankers,
lawyers, engineers, doctors, software
programmers, and management
Many market offerings mix goods and
services, such as a fast-food meal.
EVENTS: Marketers promote time-
based events, such as major trade
shows, exhibition like TCU exhibition
,artistic performances, Launching a
new product and company
Global sporting events such as the
Olympics and the World Cup are
promoted aggressively to both
companies and fans.
EXPERIENCES : By organizing
several services and goods, a firm
can create, stage, and market
Also called Experiential marketing.
Example; Walt Disney World’s Magic
Kingdom allows customers to visit a
fairy kingdom, a pirate ship, or a
INFORMATION :The production,
packaging, and distribution of information
are major industries.
Information is essentially what books,
schools, and universities produce, market,
and distribute at a price to parents,
students, and communities.
On the basis of these information students
decide in which school or college they
should take admission.
IDEAS : Every market offering includes a basic
idea. Charles Revson of Revlon once observed
that: “In the factory we make cosmetics; in the
drugstore we sell hope.”
Products and services are platforms for
delivering some idea or benefit.
Social marketers are busy promoting such ideas
as “Friends Don’t Let Friends Drive Drunk” and
“A Mind Is a Terrible Thing to Waste.”
The production concept, one of the
oldest in business, holds that
consumers prefer products that are
widely available and inexpensive.
Managers of production-oriented
businesses should therefore concentrate
on achieving high production efficiency,
low costs, and mass distribution.
This orientation makes sense in
developing countries, where
consumers are more interested in
obtaining the product than in its
It is also used when a company
wants to expand the market.
The product concept proposes that
consumers favour products offering the
most quality, performance, or
Managers in these organizations focus
on making superior products and
improving them over time, assuming
that buyers can appraise quality and
The selling concept holds that
consumers and businesses, if left
alone, won’t buy enough of the
The organization must therefore,
undertake an aggressive selling and
This concept assumes that consumers
must be coaxed into buying, so the
company has a battery of selling and
promotion tools to stimulate buying.
The selling concept is practiced most
aggressively with unsought goods,
[Goods that buyers normally do not
think of buying, such as insurance and
The marketing concept holds that the
key to achieving organizational goals
consists of the company being more
effective than its competitors in
creating,delivering and communicating
customer value to its chosen target
Societal Marketing Concept
The idea that the organization should
determine the needs, wants, and interests of
target markets and deliver the desired
satisfactions more effectively and efficiently
than competitors in a way that maintains or
improves the consumer’s and society’s
well – being.