INTRODUCTION TO

MARKETING
Definitions
“Marketing is the management process responsible
for identifying, anticipating, and satisfying customer
requirements profitably.” (CIM,2001)

We define marketing as a social and managerial

process by which individuals and groups obtain what
they need and want through creating and
exchanging value with others.

“Marketing is eliciting the right kind of response”

Why is Marketing Important?
• Developing the products or services that
customers want.
• Pricing the products or services correctly.
• Making the products or services readily
available to the customers.
• And finally: Promoting the product or
service. This is the field of marketing
"communications"
7 compelling reasons for marketing:

1. Marketing communications creates "top of mind" awareness.

2. Preferred brands command a premium price - short and long-
term.
3. Happy customers not only send referrals, they create
perceived value.
4. Planned marketing communications create a system that can
be replicated.
5. Repeat revenue streams ensure a profit now and later.
6. Nothing lasts forever: marketing has to be a long-term
investment.
7. Employees who are "brand ambassadors" sell your company
- to customers AND potential buyers
HUL’s success
1. Strong Brand Equity:
HUl has an annual turnover of around Rs.25,206 crores
(financial year 2012 - 2013)
2. Wide distribution network
Unilever makes and sells products under more than 1,000
brand names worldwide. Two billion people use them on
any given day.
3. Technological innovation:
This is how new Surf Excel Quick Wash can deliver a good
lather at the washing stage, and reduce the need for the
rinsing – saving two bucketful's of water per wash.
4. Consistency in quality
5. Ensuring relevancy
6. Strong dependence on MR
7. Social Consciousness
8. An eye on the future
 Capture value from
Marketing process Customers to
Create profits and
Customer quality
Figure 1
Build profitable
Relationships and
Create customer
delight
Construct a
Marketing program
That delivers
Superior value

Design a
Customer-driven
Marketing strategy

Understand
The marketplace
And customer needs
And wants
There are five core marketplace concepts

1- Needs, wants, and demands;

• Needs are states of felt deprivation.
• Stated needs
• Real needs
• unstated needs
• Delight needs
• Secret needs
• Wants are needs shaped by culture and individual
personality.
• Demands are wants combined with buying power.
 SELLING
1. Product focused
2. Sales volume oriented
3. Planning is short-run-
oriented
4. Stresses needs of seller
5.Views business as a good
producing process
6.Emphasis on staying with
existing technology and
reducing costs
7. Different departments work
as in a highly separate water
tight compartments
8. Cost determines Price
9. Selling views customer as
a last link in business
MARKETING
1. Consumer needs wants
2. Profit oriented
3. Planning is long term oriented
4. Stresses needs and wants of
buyers
5. Views business as consumer
producing process satisfying
process
6. Emphasis on innovation
7. All departments are
integrated
8. Consumer determine price,
price determines cost
9. Marketing views the customer
as last link in business
Cont..

2- Products, Services, Experiences

Consumer needs and wants are fulfilled through a
marketing offer, which is some combination of
products, services, or experiences offered to a
market to satisfy a need.
3- Value and Satisfaction
Value=f (p,q,s)
Price, quality and service
If the performance and the customer’s experience
is lower than expectations, then customer
satisfaction is low etc
Cont…

4- Exchange, transactions, and

relationships
• Exchange.
• The act of obtaining a desired object from
someone by offering something in return.
• Transaction
- consists of a trade values between two
parties.
5. Markets
Pool of potential customers
The Five Concepts
The Production Concept. This concept is the
oldest of the concepts in business. Managers focusing on
this concept concentrate on achieving high production
efficiency, low costs, and mass distribution. They assume
that consumers are primarily interested in product
availability and low prices.
The Product Concept. This orientation holds that
consumers will favor those products that offer the most
quality, performance, or innovative features. Managers
focusing on this concept concentrate on making superior
products and improving them over time. They assume that
buyers admire well-made products and can appraise
quality and performance.
• The Selling Concept. The organization must undertake
an aggressive selling and promotion effort. This concept
assumes that consumers typically show buying inertia or
resistance and must be coaxed into buying. Most firms
practice the selling concept when they have
overcapacity. Their aim is to sell what they make rather
than make what the market wants.
• The Marketing Concept. This is a business philosophy
that challenges the above three business orientations. Its
central tenets crystallized in the 1950s. The marketing
concept rests on four pillars: target market, customer
needs, integrated marketing and profitability.
The Societal Marketing Concept. This concept holds that the organization’s
task is to determine the needs, wants, and interests of target markets and to
deliver the desired satisfactions more effectively and efficiently than competitors
(this is the original Marketing Concept). Additionally, it holds that this all must be
done in a way that preserves or enhances the consumer’s and the society’s well-
being.