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CHAPTER 1 :

DEFINING MARKETING FOR THE 21st CENTURY

Nataraj Pangal | Shreya Rana

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

Social Definition

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.

AMA Definition

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Marketing Management is the Art and Science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value.

Kotler Definition

WH

AT IS

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D? GOODS

SERVICESEVENTSEXPERIENCES

PERSONS

PLACES

PROPERTIES

ORGANIZATIONS

INFORMATION

IDEAS

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• Dental Work• VaccinationNegative Demand

• Foreign Language CoursesNo Demand

• Harmless Cigarettes• Fuel-Efficient CarsLatent Demand

• ChurchesDeclining Demand

• Hotels• Mass-TransitIrregular Demand

• Changing Preference• Increasing CompetitionFull Demand

• DemarketingOverfull Demand

• Cigarettes• AlcoholUnwholesome Demand

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PTS Marketplace

Physical

Store

Marketspace

Digital

Internet

Metamarket

Cluster of complementary

products

Spread across a diverse set of

industries

Automobile

www.marutitruevalue.com

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Needs, Wants and Demands• Needs – Basic Human Requirements• Wants – Directed at specific objects• Demands – Backed by ability to pay

Target Markets, Positioning & Segmentation

Offerings and Brands• Offering – Value Proposition made Tangible• Brand – Offering from a known source

Value & Satisfaction• Value – Benefits / Cost• Customer Value Triad – Quality, Service and Price• Satisfaction – Product’s perceived performance

Marketing Channel• Communication Channel – Deliver & Receive message• Distribution Channel – Display, sell & Deliver• Service Channel – Carry out transactions

• Oldest Concept• Consumers will prefer products that are widely available &

Inexpensive• Concentrate on achieving high production efficiency, low

costs and mass distribution• Eg: - Lenovo and Haier in China

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ON The Production Concept

• Consumers favor products that offer most quality, performance and innovative features.

• Make superior products and improve them over time.• Caught in a “love-affair” with their product.

The Product Concept

• Consumers, if left alone, wont buy enough of the organization’s products.

• Must undertake an aggressive selling and promotion effort.• Practiced most aggressively with unsought goods.• Eg:- Insurance & Encyclopedias.• Aim is to sell what they make rather than make what the

market wants.

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The Selling Concept

• Customer Centered instead of Product Centered.• Not to find right customers for your products, but to find

right products for your customers.• Eg:- Dell• Reactive Market Orientation – Understanding and meeting

customers’ expressed needs• Proactive Market Orientation - Understanding and meeting

customers’ latent needs• Total Market Orientation

The Marketing Concept

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Holistic Marketing Concept

Internal Marketing

Performance Marketing

Relationship Marketing

Integrated Marketing

CustomersChannel

PartnersSales RevenueBrand & Customer Equity

EthicsEnvironment

Legal

Commodity

Communications

Products & Services

ChannelsMarketing Dept

Senior Mgmt

Other Depts

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KSDeveloping Marketing Strategies & Plan

Capturing Marketing Insights

Connecting with Customers

Building strong brands

Shaping the market offering

Delivering Value

Communicating Value

Creating Long-Term Growth