WHAT IS

MARKETING????
14th August 2007

MARKETING is the process

of planning and executing the
conception
pricing
promotion

and

distribution
of ideas, goods and services
to create exchanges that satisfy
individual and organizational goals

n ds
e
v or
e
In r w
e
l
p
m
i
s

Marketing
is
meeting needs profitably
3

What is Marketing?
(Cont.)
Needs
Markets

Wants

Transactions

Demand

Exchange

Products

CORE MARKETING CONCEPT CYCLE

4

Needs, Wants and Demands

Needs the basic human requirements (food,
clothing)
Wants the desire to satisfy needs in specific ways
that are culturally and socially influenced
(chowmein, masala-dosa, rajma-chawal)
Demand wants for specific products backed by
the ability to pay
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A Simple Marketing System

How does one

satisfy the needs
of ones customers???
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How to satisfy the needs of ones

customers?
The conception, pricing, promotion and
distribution implies that
A product must be developed (Product)
assigned value (Price) and meaning (Promotion)
and made available to interested consumers (Place)
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The Four Ps of Marketing

Product
Price
Promotion
Place

s
l
o r
o
T ete s

g
ix tin ark er
M ke m tom
g
r e a us
n
a
i
t M bl
c
e
y
k
a
ar the s en atisf
M ed 4P
s

l
d
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l
Th o ca e the e an
als caus valu
be offer
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The 4Ps Components

Marketing Mix

Place
Product

Channels

Variety

Coverage

Quality

Price

Promotion

Design

List price

Sales

Features

Discounts

Brand name

Payment

Services
Warranties
Returns

period
Credit
terms

promotion

Locations
Inventory
Logistics

Trade
promotion
Advertising
Sales force

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How has marketing evolved?

1. Small scale production economies: Known
customers customized product personalized
service.
2. Mass Production economy: Mass production
mass impersonal marketing (TV) Mass
consumption.
3. Recent changes in the market:
a. Intense competition
b. Short PLC
c. Changing consumer expectations

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Earlier Concepts were..

The Production concept holds that
consumers will prefer products that are
widely available and inexpensive

The Product concept holds that consumers

will favor those products which offer the most
quality, performance or innovative features

The Selling concept holds that consumers if left

alone will ordinarily not buy the companys products
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Company Orientations
Towards the Customers
Production Concept Profits through better utilization of the
production capacity

Product Concept Profits through technical excellence of the

product

Selling Concept Profits through sales volume

Marketing Concept Profits through finding the right
products for your customers (not right customers for your products)

Holistic Concept profits through integration of the marketing

activities relationship marketing, integrated marketing, internal
marketing and social responsibility marketing

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Holistic Marketing Dimensions

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Fundamental
Marketing Concepts

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Market Segments, Target Markets,

Positioning
Market Segment a group of customers who share
a similar set of needs and wants

Target Markets - signify only those segments which

the firm wants to adopt as its markets

Positioning - The act of designing the companys

offer so that it occupies a distinct and valued place in the
minds of the target customers
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What is a Product?
A particular bundle of benefits
which satisfies particular needs and wants.
Anything that can be offered to a market to
satisfy a want or need.
Products include tangible goods, intangibles,
ideas.
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Value
Value the ratio between what the customer
gets and what he gives
Value =

Benefits
Costs
Functional benefits + Emotional Benefits

Monetary Costs + Time Costs + Energy Costs + Psychic Costs

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Components of the Market Offering

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Customer Satisfaction
Satisfaction is a persons
feelings of pleasure or disappointment
resulting from comparing a products
perceived performance (or outcome) in
relation to his or her expectations
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What is a Brand?
A BRAND is a
name, term, sign, symbol, or
design,
or a combination of them,
intended to identify the goods
and services
of one seller or group of
sellers
and to differentiate them
from those of competitors
according to the American Marketing
Association

A brand is an offering
from a known
source

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Marketing
is an organizational function
and a set of processes for
creating, communicating and delivering
value to customers
and for managing customer relationships
in ways that benefit
the organization and its stakeholders
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As offered by the American Marketing Association

PROCESS THE
MARKETING

Marketing

Customers

Competitors

Market-Place
Environment

Identify
Understand
Satisfy
Retain
Grow
with the Customer
Identify
Understand
Pre-empt
Beat
Outsmart
Your Competition
Understand
Interpret
Monitor
Influence
Prepare yourself
to manage change

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CUSTOMER ORIENTATION - 5 Ws & H

WHO

CUSTOMER PROFILE: AGE, INCOME, EDUCATION, RECIDENCE

ETC.

WHAT

NEED, PRODUCT QUALITY LEVEL, CUSTOMER PERSONALITY AND

LIFESTYLE.

WHEN TIMING AND OCCATION.

WHERE PREFERENTIAL / CONVENIENT BUYING LOCATION.
WHY
HOW

BUYING MOTIVES AND BENEFITS.

INDEPENDENT BUYING DECISION, JOINT/GROUP BUYING
DECISION - INFLUENCED AND THE INFLUENCE.

Plan your Ps to match with your Ws & H;

as per the Market Situation & Marketing Objective.
Remember- MOMENTUM IS IMPORTANT

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Marketing Mix and the Customer

Four Ps
Product
Price
Place
Promotion

Four Cs
Customer solution
Customer cost
Convenience
Communication

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What is the FUNDAMENTAL task

of marketing?

CHANGE BEHAVIOR????

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What is the marketing task?

Manage the two processes:
a. Acquire new customers
b. Retain existing consumers
Which of the two options is easier?
In a growing market Acquisition of new customers
In mature markets Retention of customers

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