Defining MarketingDefining Marketing

Marketing is a societal process by Marketing is a societal process by which individuals and groups obtain which individuals and groups obtain what they need and want through what they need and want through creating, offering, and freely creating, offering, and freely exchanging products and services of exchanging products and services of value with others. value with others.

Aim of marketing-Aim of marketing- Know & understand Know & understand customer so well that product fits & customer so well that product fits & sells itselfsells itself

Exchange vs. TransactionExchange vs. Transaction

Exchange:Exchange:Act of obtaining a desired object from someone Act of obtaining a desired object from someone

by offering something in return.by offering something in return.

Transaction:Transaction:A trade of values between two parties.A trade of values between two parties.One party gives X to another party and gets Y One party gives X to another party and gets Y

in return. Can include cash, credit, check, or in return. Can include cash, credit, check, or barter.barter.

Market Integratedmarketing

Profits throughcustomer

satisfactionCustomer

needs

(b) The marketing concept

Factory Existingproducts

Selling andpromotion

Profits throughsales volume

Startingpoint Focus Means Ends

(a) The selling concept

Difference b/w marketing & sellingDifference b/w marketing & selling

Marketing orientations

Maximize profits through increased consumer satisfaction & hence raise market share.

“ what can we do that will make product better than competitors in the customer mind”

Sellings orientations

Maximize profits through sales maximization

“ we must somehow hook the customer”

What is a Market?What is a Market?

The set of actual The set of actual and potential buyers and potential buyers of a product.of a product.

These people share These people share a need or want that a need or want that can be satisfied can be satisfied through exchange through exchange relationships.relationships.

ProductsAnything that can be Offered to a Market to Satisfy a Need or Want

Persons Places Organizations

IdeasInformation

What Satisfies Consumers’ What Satisfies Consumers’ Needs and Wants?Needs and Wants?

ServicesActivity or Benefit Offered for Sale That is Essentially

Intangible and Does Not Result in the Ownership of Anything

goods

Events & experiences Services

Ideas

information

properties

What is Marketed

Simple Marketing SystemSimple Marketing System

Industry(a collection

of sellers)

Market(a collection

of Buyers)

Goods/services

Money

Communication

Information

Manufacturermarkets

Services,Services,moneymoney

Governmentmarkets

Services,Services,moneymoney

ServicesServicesServices,Services,

moneymoney

TaxesTaxes

Taxes,Taxes,goodsgoods

Taxes,Taxes,goodsgoods

Taxes,Taxes,goodsgoods

MoneyMoney MoneyMoney

Consumermarkets

IntermediarymarketsGoods, servicesGoods, services Goods, servicesGoods, services

ResourcesResources ResourcesResourcesResourcemarketsMoneyMoney MoneyMoney

Structure of FlowsStructure of Flows

Production ConceptConsumers prefer products that are widely available and inexpensive

High prdn efficiency, low cost,mass distribution

Product Concept Consumers favor products that

offer the most quality, performance, or innovative features

Company Orientations Towards Company Orientations Towards the Marketplacethe Marketplace

Selling Concept

Consumers will buy products only ifthe company aggressively

promotes/sells these productsUnsought goods-insurance,

encyclopedias

Marketing ConceptFocuses on needs/ wants of target

markets & delivering value better than competitors

Holistic Marketing orientation- Development , design & implementation of marketing programs , processes & activities that recognizes their breadth & interdependence

The Four PsThe Four Ps

MarketingMix

Product

Price Promotion

Place

The Four CsThe Four Cs

CustomerSolution

CustomerCost

Communication

Conven-ience

Integrated marketing

Core Concepts of MarketingCore Concepts of Marketing

Product or Offering Value and Satisfaction

Needs, Wants, and Demands

Relationships and Networks

Target Markets & Segmentation

Marketing Channels-communication & channel Supply Chain Competition

Marketing Environment- task & broad

This Is a NeedThis Is a Need

NeedsNeeds – – Basic human Basic human requirements including requirements including physical, social, and physical, social, and individual needs.individual needs.

Types of NeedsTypes of Needs

Physical:Physical: Food, clothing, shelter, safetyFood, clothing, shelter, safety

Social:Social: Belonging, affectionBelonging, affection

Individual:Individual: Learning, knowledge, self-expressionLearning, knowledge, self-expression

This Is a WantThis Is a Want

WantsWants - form that - form that a human need a human need takes, as takes, as shaped by shaped by culture and culture and individual individual personality.personality.

This Is DemandThis Is Demand

“Demand”

Wants Buying Power

Need / Want FulfillmentNeed / Want Fulfillment

Needs and Wants Needs and Wants Fulfilled through a Fulfilled through a Marketing Offer Marketing Offer :: Some combination of Some combination of

products, services, products, services, information, or information, or experiences offered to a experiences offered to a market to satisfy a need market to satisfy a need or want.or want.

Value and SatisfactionValue and Satisfaction

Expectation

Performance810

If performance is lower than expectations, satisfaction is low.

If performance is higher than expectations, satisfaction is high.

Expectation

Performance

108

Segmentation and Target MarketingSegmentation and Target Marketing

Market Segmentation:Divide the market into segments of customers

Target Marketing:Select the segment to

cultivate

#1 #2

The Company’s MacroenvironmentThe Company’s Macroenvironment

Actors in the MicroenvironmentActors in the Microenvironment

Marketing shapes consumer needs and Marketing shapes consumer needs and wants versus marketing reflects the wants versus marketing reflects the needs and wants of consumers.needs and wants of consumers.

Customer-Oriented Customer-Oriented Organization ChartOrganization Chart

Customers

Front-line people

Middle management

Topmanage-

ment

Customers Custom

ers

Evolving Views of Marketing’s Evolving Views of Marketing’s RoleRole

e. The customer as the controllingfunction and marketing as the

integrative function

Customer

Marketing

Production

Human

resources Finance

Marketing Management Tasks Marketing Management Tasks

Creating long term growth

Communicating value

Delivering value

Connecting with customers

Building strong brands

Marketing strategies