Marketing: INTRODUCTION

Road Map:

Define marketing and outline the steps in

the marketing process.
Explain the importance of understanding
customers and the marketplace, and
identify the five core marketplace concepts.

1-
2
What is Marketing?
Simple Definition: Marketing is managing
profitable customer relationships.
Goals:
1 Attract new customers by promising
superior value.
2 Keep and grow current customers by
delivering satisfaction.

1-
3
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.- Philip Kotler
Marketing is a total system of Business activities
designed to plan, price, promote and distribute
want satisfying goods, services to present and
potential customers. William J Stanton

1-
4
More Definitons
Delivery of standard of living Paul Mazor
Creation & Delivery of standard of living- Malcom

1-
5
CORE CONCEPTS
NEEDS, PRODUCTS VALUE EXCHANGE MARKETS MARKETERS,
WANTS, RELATIONS
DEMANDS

1-
6
Needs, Wants, & Demands
Need: State of felt deprivation including
physical, social, and individual needs.
Physical:
Food, clothing, shelter, safety
Social:
Belonging, affection
Individual:
Learning, knowledge, self-expression

1-
7
Needs, Wants, & Demands

Wants: Form that a human need takes, as shaped by

culture and individual personality.

Wants + Buying Power = Demand

1-
8
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.

1-
9
10
1-
Safety &
Security
Physiological
Self
Esteem
Social
Self
actual
isatio
n
Abraham Maslow need hierarchy
Need / Want Satisfiers= Products

Products:
Goods
Services
Persons
Places
Organizations
Information
Ideas

Services
Activity or benefit offered for sale that is
essentially intangible and does not result in
the ownership of anything .
Marketing Myopia
Theodore Levite
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

1-
12
Value & Satisfaction
If performance is lower than expectations,
satisfaction is low

If performance is higher than expectations,

satisfaction is high

1-
13
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.

1-
14
Value Proposition
The set of benefits or values a company promises to
deliver to consumers to satisfy their needs.

1-
15
Marketing Management
Philosophies

Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept

1-
16
 Chapter 2: Fundamentals of
Marketing
Exchange Concept
Holds that the central idea in Marketing is Exchange: exchange of a Product
between the seller and buyer
This is the most short sighted view of the marketing process
The Production Concept
Maximise output, achieve a lower unit cost; and sell at a lower price
The Product Concept
Holds that Quality and Features of the Product is the main thing
Results in Marketing Myopia
A coloured or crooked perception of marketing and a shortsighted view of
business. - Theodore Levitt.
The right thing is to Focus on the basic human needs the product satisfies

The Sales Concept
Aggressively promote and push products
The Marketing Concept
Customer is central to business

Ch
ap
ter
2/
Sli
de
17
Difference Between Selling and Marketing

Selling revolves around the needs and interests of the seller

Marketing revolves around the needs and interests of the buyer

Levitt and Drucker on Marketing

Is not Selling a part of Marketing?

Does not Marketing seek profit just as Selling does?

 Selling revolves around the needs and
interests of the seller
The purpose of selling is to sell
what is made rather than make
what the customer wants.
Views business as a task of
somehow disposing off existing
products.
Marketing revolves around the needs
and interests of the buyer
Marketing starts with the
customers.
Views business as a task of meeting
the needs of the customers.

Ch
ap
ter
2/
Sli
de
19
Selling
vs. marketing

Ch
ap
ter
2/
Sli
de
20
 Levitt and Drucker on Marketing
Customer orientation is the essence of marketing

Ch
ap
ter
2/
Sli
de
21
Look back

Is not selling a part of marketing? Certainly yes; but marketing

recognises the futility of pushing that is inherent in the sales approach. In the
marketing approach, there is no need for pushing the product on the consumers
Does not marketing seek profit just as selling does? Yes; but
selling seeks profits by pushing the products on the consumers, while marketing
seeks profits by creating value satisfaction for the consumers

Ch
ap
ter
2/
Sli
de
22
How does the Marketing Concept Conceive Marketing?
Key Attributes of Marketing Concept
Unflinching consumer orientation
Overwhelming emphasis on the consumer and his needs
The customer, not the corporation, has to be the centre of the business universe.
Integrated management action with marketing as the fulcrum
All the limbs of the business are tightly integrated with each other, keeping
marketing as the pivot.
Emphasis on generating consumer satisfaction
It is essential that consumer orientation leads to/translates into consumer
satisfaction.
Emphasis on profit
Creation of profits or surpluses as an essential requirement.
Attaining all the goals of the corporation through customer satisfaction
All goals must be realised through consumer orientation and generation of
consumer satisfaction.

Ch
ap
ter
2/
Sli
de
23
Difference in Orientation the Separating Factor Between One
Concept and the Other

Contrast the Sales concept and the Marketing concept. A difference in orientation towards
the market/conduct of business is the real differentiating factor between the two concepts.

Why the Existing Perspectives are Not Sufficient for Interpreting Marketing

Do Not provide the Needed Practical Direction

Do Not explicitly project Value

Customer Orientation and Value Delivery are Not the same

Ch
ap
ter
2/
Sli
de
24
Need for the Value Perspective

There is a need for a new perspective revolving

around Value and providing practical direction
Delivering Value to the customer is marketings
basic job
Exchange, Production, Product, Place, Price,
Promotion and everything else are incidental
When Value Delivery to the customer is highlighted,
the application aspect of marketing gets the
emphasis
Ch
ap
ter
2/
Sli
de
25
The Marketing Mix
Product
Price
Distribution (Place)
Promotion

1-
26
Rest Stop: Reviewing the Concepts

Define marketing and outline the steps in

the marketing process.
Explain the importance of understanding
customers and the marketplace, and
identify the five core marketplace concepts.

1-
27