MARKETING

CONCEPTS

WHAT IS MARKETING?

Marketing starts with

the identification of a
specific need on part
of the consumer and
ends with the
satisfaction of that
need.
The consumer is
found both at the
beginning and the
end of the marketing
process.

Marketing is a total
system of
interacting business
activities designed
to plan , promote
and distribute need
satisfying products
and services to
existing and
potential
consumers.

EXCHANGE PROCESS

Is the process of obtaining a desired product

from some one by offering something in return.
At least two parties involved
Each party has something that might be of
value to the other party
Each party is capable of communication and
delivery
Each party is free to accept or reject the
exchange offers
Transaction
Transfer

WHAT IS MARKETED?

Good
Services
Events
Experiences
Persons
Places
Properties
Organizations
Information
Ideas

WHO MARKETS?

A marketer is someone who seeks a response

( attention, a purchase, a vote, a donation)
from another party.
The first party is Marketer
The second party is the prospect.
Marketing managers are responsible for
demand management
They seek to influence the level, timing, and
composition of demand to meet the
organizations objectives.

DEMAND STATES
Negative demand
Consumers dislike the product and may even pay a price to avoid it
Non existent demand
Consumers may be unaware or uninterested in the product
Latent demand
Consumers may share a strong need that cannot be satisfied by an existing
product.
Declining demand
Consumers begin to buy the product less frequently or not at all.
Irregular demand
Consumer purchases vary on a seasonal , monthly, weekly, daily, or evenly hourly
basis.
Full demand
Consumes are adequately buying all products put into the market place
Overfull demand
More consumers would like to buy the product that can be satisfied.
Unwholesome demand
Consumers may be attracted to products that have undesirable social
consequences.

WHAT IS A MARKET?

Market is a collection of buyers and sellers

who transact over a particular product or
product class.

TYPES OF MARKETS
Consumer markets
Companies selling mass consumer goods and
services such as
Soft drinks, cosmetics, athletic shoes
Much of the brand's strength depends on
developing a superior product and packaging.

TYPES OF MARKETS
Business markets
Companies selling business gods and services
often face well trained and well informed
professional buyers who are skilled in
evaluating competitive offerings

TYPES OF MARKETS
Global Market
Companies selling goods and services in the
global market place, these markets face
additional decisions and challenges.
They must decide which countries to enter ,
how to enter ( as an exporter, licenser, joint
venture partner, contract or solo
manufacturer.)

TYPES OF MARKETS
Non profit and governmental markets
Companies selling their goods to non profit
organization such as churches, universities,
charitable organizations , Govt. agencies,
Must price their products carefully

IS SELLING DIFFERENT FROM

MARKETING?

SELLING VS MARKETING
Selling
Starts with seller.
Seller is the centre of
activity

Marketing
Starts with the buyer and
focuses constantly on the
needs of the buyer.

SELLING VS MARKETING
Selling
Emphasizes on saleable surpluses available
within the corporation
Seeks quickly to convert products in to cash

Marketing
Emphasis on identification of a market
opportunity seeks to convert customer
needs into Products emphasizes on
fulfilling the needs of the customers.

SELLING VS MARKETING
Selling
Costs determine price
Marketing
Consumer determines price : price
determines costs

SELLING VS MARKETING
Selling
The firm makes the product first and then
determines out how to sell it and make profits
Marketing
What is to be offered as product is determined
by the customer, the firm makes the total
product offering that would match and satisfy
the needs of the customers, the product is the
consequence of the marketing efforts.

MARKETING MIX
There are popularly 5 Ps of
Marketing
1. Product
2. Price
3. Place
4. Promotion
5. People

WHAT IS A PRODUCT?

The product is the total package of

benefits the customer receives when
he buys it.

Features:
A product means more than the physical
commodity.
People associate meaning with the products
They derive satisfaction from the non-utility
aspects of a product as well.
Products have an identity or a personality of
their own.
The brand name, the package, the labeling ,
the manufacturers name and prestige all go
into the personality build up of the product.

TOTAL PRODUCT PERSONALITY

AND ITS COMPONENTS

The core or the basic constituents

The Associated features
The Brand name
The Package
The label

CORE OR BASIC CONSTITUENT

THE ASSOCIATED FEATURES

Fragrance of sandal
Oval Shape
Sandal Color
Distinctions in
colors
Shapes and sizes

BRAND NAME

A brand is defined as a
name, term, symbol, or
design or a combination of
them which is intended to
identify the goods and
services of one seller or
groups of sellers and to
differentiate them from
those of competitors.
A trade mark is a brand that
has been given legal
protection thus ensuring its
use exclusively by one seller.

THE PACKAGE
The package
performs two
essential roles

Gives protection
to the product
Adding to the
aesthetic and
sales appeal of
the producttool to sales
promotion.

LABELING

A label provides written information about

the product
To understand the nature of the product
Its distinctive features
Its composition ,
Its performance

WHAT IS A PRODUCT LINE?

A group of
related
products
constitutes a
product
Line.

PRODUCT MIX

It is the
complete set of
all products
offered for sale
by a company.

PRICE

What are policies of pricing?

Levels of prices
Levels of margins
Discounts and rebates
Payments terms
Terms of delivery
Installments facility
Credit terms

PLACE

Channels of Distribution
Types of intermediaries
Channel design
Location of outlets
Channel remuneration
Dealer-principal relationship
Physical distribution
Transportation
Warehousing
Inventory levels
Order processing

PROMOTION

Personal Selling
Advertizing
Sales promotion efforts
Public relations

PEOPLE
Target Audience
Segmentation
Customer variables
1. No. of customers
2. Location
3. Purchasing power
4. Buying behavior
5. Habits of purchase
6. Personality traits
7. Lifestyle
8. Brand awareness