Ppt- Mktng_ 97-2003 Version

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An Introduction to

Marketing

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Marketing

• Marketing = Market + ing(something)

= Market + activitiesin the market

= Market + businessactivities

= Market + businesstransactions

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Market and MarketingMarketing –

• Marketing is a set of business activities thatfacilitate movement of goods and services fromproducer to consumer.

• It is an ongoing process of  discovering and

translating consumer needs  into products andservices, creating demands for them, servingthe consumer and his demand through amarketing programme of promotion and

distribution to fulfill the company’s marketinggoals in a competitive environment.

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Definition of Marketing

• “The process of planning and executing theconception, pricing, promotion and distributionof ideas, goods and services to create exchangesthat satisfy individual and organizational goals”– AMA

• Marketing emphasizes on providing the productat the right place, at the right price, at the righttime and in the right form

• Marketers must focus on customer needs andwants to ensure customer satisfaction.

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Definition of MarketingLatest definition by Philip Kotler:

•Marketing is a social and managerial processby which individuals and groups obtain whatthey need and want through creating andexchanging value with others

• Marketing is managing profitable customerrelationships

 – Attracting new customers – Retaining and growing current customers

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Marketing

Therefore, Marketing is• Satisfying customer needs

• Meeting needs profitably

• Generating customer value at aprofit

• Managing profitable customer

relationships by deliveringsuperior value to customers

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Selling – Marketing...

“There will always be need for 

some selling. But the aim of marketing is to make selling

redundant. The aim of marketingis to know and understand the

customer so well that the product or service fits him and sells itself.Ideally, marketing should result ina customer who is ready to buy.” 

  Peter 

Drucker 

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Core Concepts of Marketing

Needs, wants,and demands

Productsand services

Value andsatisfaction

Exchange,transactions,

and relationships

Markets

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Marketing Concept - The 4 P’s

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Marketing Concept - The 4 P’s ++ The 4 C’s

Convenience 

Customer

solution

Marketing

Mix

Product

Price Promotion

Place

Customer Cost  Communication 

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Concept: Traditional Organization

Customers

Front-line people

Middle Management

Top

Management

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Modern Marketing Concept-Customer-Oriented Organization Chart

Customers

Front-line people

Middle management

Topmanage-

ment

C  u  s  t  o  

m  e  r  s    C  u  s  t o

  m  e  r  s 

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Micro and Macro marketing

Micro-marketing

 The performance of activities that seek to

accomplish anorganization’sobjectives byanticipating customer

needs and directingthe flow of need-satisfying goods andservices.

Macro-marketing

A social process thatdirects an economy’s

flow of goods andservices to effectivelymatch supply anddemand and to meet

society’s objectives.

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Implications of the Definition of Micro-Marketing

• Applies to profit and nonprofitorganizations.

• NOT just persuading customers to buy.

• Begins with customer needs and

focuses on customer satisfaction.• Marketing activities --but it is a

philosophy that guides the wholebusiness.

• Seeks to builds a relationship with thecustomer.

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• Needs – It constitutes basicrequirements like food, shelter, clothetc.

• Wants – Want specifically highlightsa particular objects to fulfill thatneed.

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Utility and Marketing

Exhibit 1-1

From Production

From Marketing

FormForm

TaskTask

TimeTime

PlacePlace

PossessionPossession

UtilityValue that comesfrom satisfyinghuman needs

UtilityValue that comesfrom satisfyinghuman needs

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• Utility – Capacity to satisfy the consumer need / want

• Form Utility – conversion of raw materials intofinished products (different form / shape)

• Time Utility – providing / supplying the product tothe consumer in time as per their demand

• Place Utility- Providing / supplying the product atthe place where customer prefers

• Possession Utility- allows a buyer to use theproduct as he / she uses . It is a value that a buyerobtains (possess) from the product.

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Marketing Concept and SocietalMarketing Concept

• Marketing Concept -• Marketing starts with identifying customer needs and wants

and ends with satisfaction through achieving goals.

• It is based on beliefs:(i) Customer oriented planning and operation(ii) goal should be profitable sales volume

(iii) all marketing activities should be coordinated effectively.• Features of marketing concept –(i) Consumer orientation – consumer becomes the focal point of 

business(ii) Long-term profitability – aiming on future profit (MR, product

development, customer service)

(iii) Functional integration- co-ordination among differentdepartments / functional bodies for smooth operation of business

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Societal MarketingConcept

• The customer and the society are inter-related.

• So, company’s offer to the customer has a directbearing on the society.

• According to the societal marketing concept, apart

from determining needs and wants, target market,quality product, organization also helps toimprove society’s well – being

• Societal marketing manager believe that socialresponsibility brings the goodwill of the company.

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Marketing Myopia

• Myopia means short-sightedness

• Marketing myopia argues that industries fail not because of saturated market but because of non-fulfillment of customerneed (failure or short-sightedness of management)

Conditions

(i) company’s belief that more and more of the population

affluent about the product(ii) company belief that no substitute product available in the

market

(iii) company belief that producing large quantity will reduceproduction cost

Recommendations for overcome –(i) Be customer oriented but not product oriented

(ii) Market orientation should permeate through out theorganization.

(iii) Managers need to be proactive and visionary.

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Marketing Dynamics

• Products and markets are constantly changing dueto technological advancements.

• Due to the advancement of technology, company andmarketer responses are adjusted.

• So, Marketing dynamics refers to the company andmarketer responses and adjustments.

Company responses and adjustments-• Reengineering• Outsourcing• E-commerce• Benchmarking

• Suppliers• Global and Local Markets• Decentralization

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Marketer responses andadjustments

• Customization

• Building a good relationship

•  Target marketing

• Customer Database• Integrated Marketing Communication

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Thank You