1 - *What is Marketing?Marketing is Meeting customer needs profitably.The Chartered Institute of MarketingMarketing is the management process that identifies, anticipates and satisfies customer requirements profitablyMarketing is the process of creating and delivering the standards of living to societyMarketing is managing profitable customer relationshipsAttracting new customersRetaining and growing current customersMarketing is NOT synonymous with sales or advertising

1 - *What is Marketing?Kotlers definition: Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.Kotlers definition-2: Getting the right goods and services to the right people at the right place at the right time at the right price with the right communication and promotion

1 - *The art and science of choosing target market and getting, keeping, and growing customers through creating, delivering, and communicating superior customer valueKotler, koshy, jha

1 - *What is Marketing?AMAs definition: 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 objectives .

1 - *AMA DEFINITIONMarketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefits the organization and its stake holders

1 - *The Chartered Institute of Marketing

Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably

1 - *Scope of marketingOnly function which raises major revenue of the firmCompetitive nature of the market makes it essential for survival and growthIt is the marketers who design the market offerProfession providing challenging job for millionsKindles economic activity of the country by creating demandProvide standard of living through supply of value added productsSatisfy human needs by creating different utilitiesPlace utility - by transporting goods to the convenient placeTime utility storing goods to supply as and when it is demanded by customerPossession utility salePerson- establish contact with customersKnowledge- promotionForm utility provide finished product in different forms as demanded by customer

1 - *CORE CONCEPTS IN MARKETINGNWD

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Needs, Wants and Demand: Needs describe basic human requirements. States of felt deprivation - Physical, Social, Individual. Example need for food, air, water, education, entertainment etc.Needs become wants when they are directed to specific objects that might satisfy the need. form of needs shaped by culture and individual personality Need for food ---> Want for a Hamburger Demands are wants for specific products backed by willingness and ability to pay. Marketers do not create needs. Needs preexist marketers. Marketers along with other social influencers influence wants. 1 - *

We can distinguish among five types of needs:

Stated needs Real needs Unstated needs Delight needs Secret needs Responding only to the stated need may shortchange the customer. Consider a woman who enters a hardware store and asks for a sealant to seal glass windowpanes. This customer is stating a solution and not a need. The salesperson may suggest that tape would provide a better solution. The salesperson met the customers need, not her stated solution. 1 - *

There are responsive marketing, anticipative marketing, and creative marketing. A responsive marketer finds a stated need and fills it. An anticipative marketer looks ahead into what needs customers may have in the near future.A creative marketer discovers and produces solutions customers didnt ask for but to which they enthusiastically respond. Sony exemplifies a creative marketer because it has introduced many successful new products that customers never asked for or even thought were possible.

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Eight different states of demand:

1) Negative demand: if a major part of market dislikes the product and may even pay a price to avoid it vaccinations, gall bladder operations etc. Marketing task is to analyse why the market dislikes the product and whether a marketing program can change beliefs and attitudes. 2) No Demand: Target consumers may be unaware of or uninterested in the product. Ex. College students may not be interested in foreign language courses. Marketing should look for ways to benefit others with their product and of course thus sell their product 3) Latent demand: Market feels a strong needs for some products like harmless cigarettes. Marketer needs to measure size of this market and develop such goods 4) Declining demand: market for products etc declines. Then marketer need to know the causes and rectify 1 - *

5) Irregular demand: Demand of many products and services are seasonal. Marketer needs to devise ways called synchromarketing like flexible pricing, promotions and other incentives 6) Full demand: sometimes full demand is there. Marketing task is to maintain current level of demand in face of changing consumer preferences and increasing competition. 7) Overfull demand: sometimes demand is higher than what organization can handle. Then marketing task, called demarketing is required. Like thru raising prices and reducing promotion and service. Selective marketing is reducing demand from some parts, say not so profitable, of the market 8) Unwholesome demand: Unwholesome products will attract organized efforts to discourage consumption. Like unselling campaigns against cigarettes, alcohol, and handguns. Marketing can use fear messages like raising prices, reduced availability.

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Product- Any thing that can be offered to satisfy a need or wantMany Things Can Be Marketed!

GoodsServicesExperiencesTheme parkEvents -ShowsPersons-Big B

Places-Kerala,Properties-EstatesOrganizationsInformation- DataIdeas- Siruthuli

1 - *Value - Customers estimate of products capacity to satisfy the needs Benefits (functional and emotional benefits) Value = ----------- = --------------------------------------------- Costs (include monetary costs, time costs, energy costs and psychic cost) Value of customer offering can be increased by: Raise benefits Reduce costs Raise benefits AND reduce costs Raise benefits by more than the raise in costs Lower benefits by less than the decrease in costs

Core Marketing Concepts

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Satisfaction Customer Satisfaction is a persons feelings of pleasure or disappointment resulting from comparing a products perceived performance (or outcome) in relation to his or her expectations Customer Satisfaction is a function of perceived performance and expectations of the customer. Exchange Exchange is the act of obtaining a desired object from someone by offering something in return. Transaction Consists of a trade of values between two parties Relationships Win-Win

Core Marketing Concepts

1 - *Market? A market is simply the entire set of people or organizations who might or will buy or obtain your product offering.Market place, market space, meta marketMohan Sawhney has proposed the concept of metamarket to describe a cluster of complementary products and services that are closely related in the minds of consumers but are spread across a diverse set of industries. Metamediaries Consumer marketBusiness marketsGlobal marketNonprofit marketGovernment market

*1 - *Marketing Management PracticeEntrepreneurial marketing:Businesses started by individualsCreativity, drive, and perseverance are keys to successThe origins of guerilla marketingFormulated marketing: Professional, disciplined approachAchieving a market orientationIntrepreneurial marketing: Encouraging initiative at the local levelPutting creativity and passion back into the marketing effort

1 - *Marketing ManagementMarketing management is the art and science of choosing target markets and building profitable relationships with them.Creating, delivering and communicating superior customer value is key.

1 - *Marketing ManagementCustomer Management:Marketers select customers who can be served well and profitably.Demand Management:Marketers must deal with different demand states ranging from no demand to too much demand.Creation & Management of demand

1 - *Customer ManagementSegmentingTargetingPositioning

STP strategies

1 - *Marketing MixMarketing mix is the set of marketing tool that the firm uses to pursue its marketing objectives in the target market. McCarthy classified these tools into four broad groups that he called the four Ps of marketing: Four Ps & Four Cs Product customer solutionPrice- customer costPromotion- communicationPlace- conveniencethe four Ps represent the sellers view of the marketing tools available for influencing the buyer. From a buyers point of view, each marketing tool is designed to deliver a customer benefit. Robert Lauterborn suggested that the sellers four Ps correspond to the customers four Cs. Mix for every element

1 - *PRODUCTProduct varietyQuality Design FeaturesBrand namePackagingSizes ServicesWarrantiesReturns

1 - *PRICEList priceDiscountsAllowancesPayment periodCredit terms

1 - *PROMOTIONSales promotionAdvertisingSales forcePublic relationsDirect marketing

1 - *PLACEChannelsCoverageAssortmentsLocationsInventoryTransport

1 - *Marketing ManagementProduction conceptProduct concept

Selling concept Marketing concept

Societal marketing conceptManagement Orientations How marketers plan and implement their marketing effort

Marketing ManagementBASIC CONCEPTS

1 - *Marketing ManagementProduction conceptCustomers will favour products that are widely available & low in costManagers of production-oriented business concentrate on mass production achieving high production efficiency making use of economies of scale, low costs and mass distribution and mass promotion.It is also used when a company wants to expand the market. Product conceptThe product concept holds that consumers will favor those products that offer the most quality, performance, or innovative features. makes superior products and improving them over time. marketing myopia. Company orientation towards the market place Management Orientations

The selling conceptThe selling concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organizations products. The organization must, therefore, undertake an aggressive selling and promotion effort. This concept one assumes that consumers typically show buying inertia or resistance and must be coaxed into buying.Most firms practice selling concept when they have overcapacity. Their aim is to sell what they make rather than make what the market wants.1 - *

THE MARKETING CONCEPTThe marketing concept holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer values to its chosen target markets. The marketing concept rests on four pillars: target market, customer needs, integrated marketing and profitability.a company should carry out internal as well as external marketing. Delivering desired satisfactionResponsive, anticipative & creativeCustomer orientationMarket focusCo ordinated marketingprofitability

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\Internal marketing is the task of successfully hiring, training, and motivating able employees to serve the customers well

The selling concept takes an inside-out perspective. It starts with the factory, focuses on the existing products, and calls for heavy selling and promoting to produce profitable sales. The marketing concept takes an outside-in perspective. It starts with a well-defined market, focuses on customer needs, coordinates all the activities that will affect customers, and produces profits by satisfying customers

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1 - *Selling versus MarketingStarting PointFocusMeansEndsFactoryExistingproductsSelling andpromotingProfits throughsales volumeMarketCustomerneedsIntegratedmarketingProfits fromsatisfied customersThe Selling ConceptThe Marketing Concept

1 - *Societal marketing concept

In an age of environmental deterioration, resource shortage, explosive population growth, world hunger and poverty. Marketers needs to be sensitive on these issues The organizations task is to determine the needs, wants and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumers and the societys well being. Enhancing consumers & Societys well being

Relationship marketing

The task of creating strong customer loyalty is called Relationship Marketing. The steps in customer development process is Suspects -> Prospects -> First-time customers -> repeat customers -> Clients -> members -> Advocates -> Partners. There might be defections from any of these levels, in which case, relationship marketing works on customer win-back strategies. There are 5 different types of levels of investment in customer relationship marketing 1. Basic marketing : the sales person simply sells the product 2. Reactive marketing: the salesperson sells the product and encourages the customer to call if he or she has questions comments or complaints. 3. Accountable marketing: the salesperson phones the customer a short time after the sales to check whether the product is meeting the expectation. 4. Proactive marketing: the company salesperson contacts the customer from time to time with suggestion about the improved product uses or helpful new products. 5. Partnership marketing: the company works continuously with the customer to discover ways to perform better.

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1 - *HOLISTIC MARKETING CONCEPTSeen as the development, design and implementation of marketing programs, processes and activities that recognize the breadth and interdependencies involved in todays marketing environment.Everything Matters- Broad integrated perspectives is necessary.Internal marketingIntegrated marketingRelationship marketingSocially responsible marketing

1 - *Marketing ChallengesTechnological advances, rapid globalization, and continuing social and economic shifts are causing marketplace changes.Major marketing developments can be grouped under the theme of Connecting.

1 - *Marketing ChallengesChanging technologyGlobalizationDeregulationPrivatizationCustomer empowermentCustomizationHeightened competitionIndustry convergenceRetail transformationdisintermediation

1 - *Challenges for marketersFrom marketing does the marketing to everyone does the marketing.From organizing by product units to organizing by costumer segments.From making everything to buying more goods and services from the outside.From using many suppliers to working with fewer suppliers in a Partnership.From relying on old market positions to uncovering new ones.

1 - *From emphasizing tangible assets to emphasizing intangible assets.From building brands through advertising to building brands through performance and integrated communications.From attracting costumers through stores and sales people to making products available online.From selling to everyone to trying to be the best firm serving well-defined target markets.From focusing on profitable transaction to focusing on customer lifetime value.From a focus on gaining market share to a focus on building customer share.From being local to being Glocal-to Both global and local.From focusing on the financial score card to focussing on the marketing score card.From focusing on shareholders to focusing on stakeholders.

Here are some current trends 1. Reengineering: Focusing on Functional departments to reorganize the key business processes, each managed by multidiscipline teams 2. Outsourcing: From making everything inside to buying more goods and services outside, to obtain them cheaper and better. Few companies are outsourcing everything making them Virtual companies owning very few assets and therefore extraordinary rates of return 3. E-Commerce: Making all products available on the Internet. Customers can now shop online from different vendors, have access to a lot of Pricing and Quality and Variety information. Click and pay systems are evolving along with B2B systems and B2C systems, with buyers and sellers in Real Time Systems

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4. Benchmarking: Adopting the best practices of World Class performers 5. Alliances: Network of partners 6. Partner ships with Suppliers: the local level 1 - *

1 - *Marketing Management TasksDeveloping marketing strategies and plans.Capturing marketing insights.Connecting with customers.Building strong brands.Shaping the market offerings Communicating valueDelivering valueCreating long term growth

1 - *Marketing ChallengesVia technologyWith customersWith marketing partnersWith the worldAdvances in computers, telecommunications, video-conferencing, etc. are major forces.Databases allow for customization of products, messages and analysis of needs.The InternetFacilitates anytime, anywhere connectionsFacilitates CRMCreates marketspaces

Connecting

1 - *Marketing ChallengesSelective relationship management is key.Customer profitability analysis separates winners from losers.Growing share of customer Direct sales to buyers are growing.ConnectingVia technologyWith customersWith marketing partnersWith the world

1 - *Marketing ChallengesPartner relationship management involves:Connecting inside the companyConnecting with outside partnersSupply chain managementStrategic alliancesConnectingVia technologyWith customersWith marketing partnersWith the world

1 - *Marketing ChallengesGlobalizationCompetitionNew opportunitiesGreater concern for environmental and social responsibilityIncreased marketing by nonprofit and public-sector entitiesSocial marketing campaignsConnectingVia technologyWith customersWith marketing partnersWith the world