Marketing means identifying the needs and wants of the people, and satisfying those needs and

wants profitably.
The value of marketing:
Financial success depends on marketing ability
Demand – Desire for the product and willing to pay for the same
Marketing Demand Jobs 
Marketing builds strong brands and a loyal customer base.

Marketing management:
The art and science of choosing target markets and getting, keeping and growing customers
through creating, delivering and communicating superior customer value.

What is marketed/ scope of marketing:

1. Goods: Physical goods constitute the bulk of most countries’ production and marketing
effort. Examples are: refrigerators, television sets, food products, machines etc.
2. Services: As economies advance, a growing proportion of their activities is focused on the
production of services. Examples are: services include the work of airlines, hotels, car rental
firms, barbers, beauticians etc. and professionals such as, Accountants, bankers, lawyers,
engineers, doctors etc.
3. Experiences: By orchestrating several services and goods, a firm create, stage and market
experiences. For examples: travels, climbing Mount Everest etc.
4. Events: Marketers promote time-based events, such as trade-shows, artistic performance,
Asian Games, Sport-events etc.
5. Persons: Celebrity marketing is a major business. To-day, every major film star has an agent,
a personal manager and ties to a public relations agency. For Examples, artists, musicians,
physician etc.
6. Places: Cities, states, regions and whole nations compete actively to attract tourists,
factories, company headquarters and new residents. Further examples: commercial banks,
local business associations, real estate agents, Economic development specialists etc.
7. Properties: Properties are intangible rights of ownership of either real property (real estate)
or financial property (stocks, bonds etc.). Properties are bought and sold, and this requires
marketing.
8. Organisations: Organisations actively work to build a strong, favourable and unique image
in the minds of their target publics. Universities, museums, performing arts organisations
and non-profits all use marketing to boost their public images and to compete for audiences
and funds.
9. Information: Information can be produced and marketed as a product. This is essentially
what schools and universities produce and distribute at a price to parents, students and
communities. For examples, magazines, encyclopaedias, news-papers etc. supply
information.
10. Ideas: Every market offering includes a basic idea. “In the factory, we make cosmetics; in the
store we sell hope.” Social marketers are busy in promoting such ideas.
Who markets :
Marketers and prospects- A marketer is someone who seeks a response— attention, a purchase,
a vote, a donation—from another party, called the prospect. If two parties are seeking to sell
something to each other, we call them both marketers.
8 demand states:
1. Negative demand - consumers dislike the product and may even pay to avoid it.
2. Nonexistent 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
product.
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
hourly basis.
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 consequences.

Key consumer markets:

1. Consumer Markets: Companies selling mass consumer goods and services such as juices,
cosmetics, athletic shoes, and air travel spend a great deal of time establishing a strong
brand image by developing a superior product and packaging, ensuring its availability, and
backing it with engaging communications and reliable service.

2. Business Markets: Companies selling business goods and services often face well-informed
professional buyers skilled at evaluating competitive offerings. Business buyers buy goods to
make or resell a product to others at a profit. Business marketers must demonstrate how
their products will help achieve higher revenue or lower costs. Advertising can play a role,
but the sales force, the price, and the company’s reputation may play a greater one.

Another Version of Business Market: Marketplaces where organizations purchase raw

materials, natural resources and components of other products for their resale or for use in
manufacturing another product. Business markets are generally made up of businesses
which buy products and raw materials for their own operation.
3. Global Markets: Companies in the global marketplace must decide which countries to enter;
how to enter each (as an exporter, licenser, joint venture partner, contract manufacturer, or
solo manufacturer); how to adapt product and service features to each country; how to
price products in different countries; and how to design communications for different
cultures. They face different requirements for buying and disposing of property; cultural,
language, legal and political differences; and currency fluctuations. Yet, the payoff can be
huge.
4. Nonprofit and Governmental Markets: Companies selling to nonprofit organizations with
limited purchasing power such as churches, universities, charitable organizations, and
government agencies need to price carefully. Lower selling prices affect the features and
quality the seller can build into the offering. Much government purchasing calls for bids, and
buyers often focus on practical solutions and favour the lowest bid in the absence of
extenuating factors
Core marketing concepts:
(1) NEED/ WANT/ DEMAND:
 Need: It is state of deprivation of some basic satisfaction. eg.- food, clothing, safety, shelter.
 Want: Desire for specific satisfier of need. eg.- Indians needs food – wants paneer tikka/
tandoori chicken. Americans needs food- wants hamburger/ French fries.
 Demand: Want for a specific product backed up by ability and willingness to buy. eg.- Need –
transportation.
Types of need:
 Stated – expressed, spoken
 Real – actual need, economic use, unspoken want
 Unstated – taking for granted that is mandatorily given. Ex: Insurance
 Delight – complements, coupons, vouchers
 Secret – subconscious
(2) STP – Segmentation, Targeting, Positioning
Segmentation : Market segmentation is a marketing strategy which involves dividing a broad
target market into subsets of consumers, businesses, or countries who have common needs,
interests, and priorities, and then designing and implementing strategies to target them.
TARGET MARKETS “A target market is a group of customers towards which a business has
decided to aim its marketing efforts and ultimately its merchandise
POSITIONING: refers to the process of establishing the image or identity of a brand or product so
that consumers perceive it in a certain way. How you differentiate your product or service from
that of your competitors and then determine which market niche to fill. Positioning helps
establish your product's or service's identity within the eyes of the purchaser.
(3) OFFERINGS AND BRAND:
Offerings: •Companies address customer needs by putting forth value proposition a set of
benefits that satisfy those needs
•This intangible value proposition is made physical by an offering which can be a combination of
products, services, information and experiences
Brand: A Brand is an offering from known source •For example McDonald’s associates in mind
of people that makes an image of burgers, cleanliness, convenience, golden arches, courteous
services.
(4) MARKETING CHANNELS:
Communication Distribution  Service
1. COMMUNICATION CHANNEL •These channels deliver and receive message from target
buyers and include news papers, televison, telephone, mail, bill boards •Marketers are
increasingly adding dialogue channels such as emails , blogs and toll free numbers to
familiar monologue channels such as ads
2. DISTRIBUTION CHANNELS •The marketers uses distribution channels to display, sell or
deliver the physical products or services to buyers •These channels may be via internet ,
mobile phones or indirect with distributors, wholesalers, retailers and agents
3. SERVICE CHANNELS •The marketers uses service channels that include warehouse,
transportation companies, banks and insurance companies to carry out transaction with
potential customers
(5) PAID MEDIA, OWNED MEDIA, EARNED MEDIA:
Paid media: Advertising: traditional marketing, display ads, sponsorships, paid search, pay per
click
Owned media: corporate website, blog, profile, email, social pages
Earned media: reviews, media coverage, mention, posts
(6) IMPRESSIONS AND ENGAGEMENT:
Three “screen” to reach consumers: • TV, Internet, Mobile
• Impressions occur when consumers view a communication
• Engagement is the extent of a customer’s attention and active involvement with a
communication.
(7) VALUE AND SATISFACTION:
 Value, a central marketing concept, is primarily a combination of quality, service, and price
( the customer value triad = quality, service, price )
Value = benefits = Functional benefits + emotional benefits
_______ ________________________________________________
Cost monetary costs + time costs + energy costs + psychic costs
 Satisfaction reflects a person’s judgment of a product’s perceived performance in
relationship to expectations
(8) SUPPLY CHAIN: The supply chain is a longer channel stretching from raw materials to
components to finished products carried to final buyers
(9) COMPETITON: includes all the actual and potential rival offerings and substitutes a buyer
might consider.
(10)MARKETING ENVIRONMENT:
Task environment: Company, Suppliers, Distributors, Dealers, Target customers
Broad environment: Demographic, Economic, Physical, Technological, Political-legal, Social-
cultural

THE NEW MARKETING REALITIES:

There is rapid change in the marketplace can takes place day by day.
as we consider the marketplace before 10-15 years ago conditions are different.
• The market emerges with new Marketing Behaviour, Opportunity, and Challenges.
• New marketing realities based on Three Transformative Forces

1. Technology: • Whereas the marketing terminologies states technology as a mode or a

medium which helps marketer propagate his/her deliverables to the end user.
• The best outcome of bringing in technology has been innovation.
• The technology has been dynamic throughout right from television (advertisement) to internet
(viral marketing).
2. Globalization: • Globalization refers to the changes in the world where we are moving away
from self-contained countries and toward a more integrated world.
• Globalization of business is the change in a business from a company associated with a single
country to one that operates in multiple countries.
• The impact of globalization on business can be placed into two broad categories a. market
globalization b. production globalization.
3. Social Responsibility • In marketing is important because the practice involves focusing
efforts on attracting consumers who want to make a positive difference with their
purchases.
• Many companies have adopted social responsibility strategies in marketing as a means to help
the community or produce services and products that benefit society. • Initial investment may
be involved to split portions of profits or donate to those in need.
• Social responsibility in marketing promotes a positive company image, which can significantly
impact productivity and profitability favourably.
DRAMATICALLY CHANGED MARKET PLACE
1) NEW CONSUMER CAPABILITY:
• Can use the internet as a powerful information and purchasing aid
• Can search, communicate, and purchase on the move
• Can tap into social media to share opinions and express loyalty
• Can actively interact with companies
• Can reject marketing they find inappropriate
2) NEW COMPANY CAPABILITY:
• Can use the Internet as a powerful information and sales channel, including for individually
differentiated goods
• Can collect fuller and richer information about markets, customers, prospects, and
competitors
• Can reach customers quickly and efficiently via social media and mobile marketing, sending
targeted ads, coupons, and information
• Can improve purchasing, recruiting, and internal and external communications
• Can improve cost efficiency
3) CHANGING CHANNELS:
Retail transformation: Due to the competition store-based retailers face through new shopping
trends, they have been adding entertainment into their stores.
Disintermediation: Early dot-coms successfully created disintermediation in the delivery of
products and services by intervening in the traditional flow of goods.
 It is a process that provides a user or end consumer with direct access to a product, service
or information that would otherwise require a mediator such as a wholesaler, lawyer or
salesperson.
4) HIGHTEN COMPETITION:
 Retail brands: Labels created by large retailers that compete with traditional brand
manufacturers
 Mega brands: strong brands that have become mega-brands by extending their products
into related product categories, including new opportunities at the intersection of two or
more industries.
 Deregulation: It is the reduction or elimination of government power in a particular
industry, usually enacted to create more competition within the industry.
 Privatization: Converting public companies to private ownership and management to
increase their efficiency.
MARKETING IN PRACTICE:
 Marketing balance: Marketers must balance increased spending on search advertising,
social media, e-mails, and text messages with appropriate spending on traditional marketing
communications.
 Marketing accountability: Marketers are increasingly asked to justify their investments in
financial and profitable terms, as well as in terms of building the brand and growing the
customer base.
 Marketing in the organization: Marketing is not done by just the marketing department, the
whole company is involved and everyone must keep the other organizational functions in
mind when discussing marketing and vice versa.

COMPANY ORIENTATION TO THE MARKET PLACE:

1. The Production concept: Consumers prefer products that are widely available and
inexpensive. Managers focus on high production efficiency, low costs, and mass distribution
2. The Product concept: Consumers prefer products offering the most quality, performance, or
innovative features.
3. The Selling concept: Consumers and businesses, if left alone, won't buy enough of the
organization's products. It is practiced with unsought goods (insurance and cemetery plots)
and when firms with overcapacity aim to sell what they make, rather than make what the
market wants.
4. The Marketing concept: A consumer-centered, sense-and-respond philosophy. The job is to
find the right product for your consumers.
5. The Holistic Marketing Concept: It is based on the development, design, and
implementation of marketing programs, processes, and activities that recognize their
breadth and interdependencies.
The four components of Holistic Marketing
1. Relationship Marketing: aims to build mutually satisfying long-term relationships with key
constituents in order to earn and retain their business.
4 key constituents are: customers, employees, marketing partners, and members of the
financial community.
Marketing Network: the result of relationship marketing and it consists of the company and its
supporting stakeholders with whom it has built mutually profitable business relationships.
CRM: Customer relationship management
PRM: Partner relationship management
2. Integrated Marketing: occurs when the marketer devises marketing activities and assembles
marketing programs to create, communicate, and deliver value for consumers such that "the
whole is greater than the sum of its parts."
Two themes of integrated marketing
 Use many different marketing activities to communicate the message.
 All marketing activities should be considered before designing and implementing any
activity.
3. Internal Marketing: the task of hiring, training, and motivating able employees who want to
serve customers well.
4. Performance marketing: requires understanding the financial and non financial returns to
business and society from marketing activities and programs.

MARKETING MIX COMPONENTS:

1. PRODUCT: product variety, quality, design, features, brand names, packaging, sizes, services,
warranties, returns
2. PRICE: list price, discounts, allowances, payment period, credit items
3. PROMOTION: sales promotion, advertising, sales force, public relations, direct marketing
4. PLACE: channels, coverage, assortments, locations, inventory, transport

Eight steps to developing effective marketing management

1. Develop marketing strategies and plans
2. capture marketing insights
3. connect with customers
4. build strong brands
5. create value
6. deliver value
7. communicate value
8. conduct marketing responsibly for long-term success