Marketing ? Identifying and meeting human and social needs.

Meeting needs profit

ably. Flow of goods and services from producers to customers.
 The term was first academically defined in 1937 when the newly born American Mar
keting Association (AMA) asserted:
± ³Marketing consists of those activities involved in the flow of goods and services
from the point of production to the point of consumption.[2]"
 Adding to Kotler's and Norris' definitions, the Chartered Institute of Marketing
's (CIM) definition claims marketing to be the "...management process of anticip
ating, identifying and satisfying customer requirements profitably .
 For a marketing plan to be successful, the mix of the four "Ps" must reflect the
desires of the consumers in the target market
Types of markets
Consumer markets. Business markets. Global markets. Non-profit and governmental
markets.
Marketing mix
product
price
promotion
place
Core marketing concepts.
Market segmentation. Market place. Market space. Meta market.
Seven p¶s
In addition to the traditional four p¶s three more p¶s are added by Booms and Britne
r.  people  process  physical evidence
Eighth p
packaging
 People: all people that are directly or indirectly involved in the consumption o
f a service. e.g.: knowledge workers, employees ,management. process : procedure
s ,mechanisms and flow of activities by which the flow of services is consumed p
hysical evidence the ability and environment in which service is delivered.
 Segmentation based on demographic, physiographic and behavioral differences amon
g buyers. Market place is physical ± shopping in a store. Market space is digital ±
shopping on the internet. Meta market ± is a cluster of complementary goods and se
rvices. e.g.: automobile ±insurance ,loan ,accessories, dealers.
Needs ,wants and demand. Brand image. Offering. Marketing channels. Competition.
 Needs become wants when they are directed to specific objects that satisfy the n
eed. Wants are shaped by the one¶s society. Demands are wants for specific product
s backed by an ability to pay. E.g.: many people want mercedez .
CompetitionBrand competition. Industry competition. Form competition. Generic co
mpetition. Offering ± combination of products, services, information, experience.
E.g. :offer from the Mercedes Benz
 Brand competition :a company sees its competitors as other companies that offer
similar products and services to the same customers at similar prices. E.g.: wag
on r from Maruti and santro from Hyundai. Industry competition : a company sees
its competitors as all companies that make the same product or class of products
. MARUTI AGAINST HYUNDAI
 Form competition : a company sees its competitors as all companies that manufact
ure products that supply the same service.
 Generic competition: a company sees its competitors as all companies that compet
e for the same consumer group. e.g. :Volkswagen would see itself competing with
companies that sell major consumer durables , foreign vocations, new homes.
Stages in marketing .
Entrepreneurial marketing. Formulated marketing. Intrepreneurial marketing.
The scope of marketing.
 The scope of marketing. marketing people are involved in marketing 10 types of e
ntities.  goods.  services.  experiences.  events.  persons.  places.  properties.
Organizations. Information. Ideas.
 Ideas. Every market offering includes a basic idea at its core. e.g.: Charley Re
vson of Revlon: in the factory we make cosmetics in the store we sell hope.
Marketing management ?
 Marketing management ? Is the process of planning and executing the conception,
pricing , promotion and distribution of ideas , goods ,services , to create exch
anges that satisfy individual and organizational goals.
Evolution of marketing.
The stage of barter. The stage of money economy. e.g. :pricing The stage of industr
ial revolution. The stage of competition . The emergence of marketing .
Three stages in the evolution of marketing. Product ± orientation stage. Sales ± orien
tation stage. Market ± orientation stage.
Product orientation stage. Focused on the quality, design and quantity of the pro
duct. sales orientation stage. consumer had limited resources and selling equippe
d more place through advertisement efforts.
Market orientation stage. In this stage companies identify what the customers wan
t and accordingly they will shape their products.
Orientation of management towards marketing.
The five distinct concepts of marketing
The exchange concept. The production concept. The product concept. Marketing myo
pia. Sales concept.
 The exchange concept. product exchange buyer-seller. distribution, pricing conce
pts lies .
The production concept.. focused on mass production and least price.
 The product concept. improved products , new products Focused on the quality, de
sign and quantity of the product
 Marketing myopia. excessive preoccupation with the product , production or selli
ng , ignoring the customer.
 Sales concept.. as promotional methods are having more importance ,advertising,
personal selling, discounts ,sales promotion , public relations etc lies on this
.
Selling and marketing
 Selling revolves around the interests of seller whereas marketing around the buy
er. Views as a goods producing process. Whereas mktg views as a customer satisfy
ing process. Firm must make the product and figures how to sell it whereas mktg
shape its products on the customers demand.
The marketing concept
 The key to achieve the organizational goals consists of the company being more e
ffective than its competitors in creating , delivering and communicating custome
r value to its chosen target markets.
Meeting needs profitably. ³You¶re the boss´ (united airlines). ³putting people first ´ (Br
itish airways). ³Have it your way´ . (burger king )
The marketing concept
Target market
Customer needs
Integrated marketing
Profits through Customer satisfaction
 Integrated marketing. when all the company¶s department work together to serve the
customer¶s interests the result is integrated marketing. e.g. :sales dept, advert
ising , customer service , product mgmt, marketing research.
 Traditional organization chart
Top management
Middle management
Front-line people
customers
customers
Modern customer ± oriented organization chart
Front line people
Middle management
Top management
E.g. of companies practice marketing concept.. Mc Donald's, P&G , Wal- Mart
Limitations of marketing concept.
 Proper attention is not there for employees and suppliers. It gives priority to
customer satisfaction secondary how to compete , how to perform marketing activi
ties.
Value driven marketing
 Value driven marketing is an orientation for achieving objectives by developing
superior value to customers. An extension of marketing orientation that attempts
to overcome the problems of marketing orientation refers to value driven market
ing. Six principles lies for value driven marketing.
Customer principle. Competitor principle. Proactive principle. Cross-functional
principle. Continuous improvement principle. Stakeholder principle
 Customer principle: focus marketing activities on creating and delivering custom
er value. (direct & indirect ) Competitor principle: offers customers superior v
alue to competitive alternatives. (icici bank ). Proactive principle : change en
vironments to improve the chances for success when appropriate.
 Cross-functional principle :.use cross functional teams (bring people from other
business functions i.e. finance , r&d ) when they improve efficiency and effect
iveness of marketing activities. Continuous improvement principle: continuously
improve marketing planning , implementation and control.
 Stakeholder principle : Stakeholders are individuals and groups who are influenc
ed and can influence marketing decisions. e.g. : customers, employees, suppliers
,