This PPT will help to get the preliminary concepts of marketing.

1. Introduction to Marketing
Amrita Sutradhar
Lecturer
Department of Pharmacy
Southeast University
Dhaka, Bangladesh

2. What is Marketing?
Marketing is simply defined as managing profitable
customer relationship.
The twofold goal of marketing is to attract new
customers by promising superior value and to keep and
grow current customers by delivering satisfaction.
In broad sense, marketing is social and managerial
process by which individuals and organizations obtain
what they need and want through creating, offering and
exchanging products and services of value with others.

3. In a narrower business context, marketing involves
building profitable, value-laden exchange relationship
with customers.
Hence, Marketing is the process by which companies
create value for customers and build strong customer
relationships in order to capture value from customer in
return.
One of the shortest good definition of marketing is
“Meeting needs profitably”.

4. American Marketing Association define marketing as an
organizational function and set of processes for creating,
communicating and delivering value to customers and
for managing customer relationships in ways that
benefit the organizations and its stakeholders.
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.

5. The marketing process:
Understand the market place and customer needs and wants
Design a customer driven marketing strategy
Construct an integrated marketing program that delivers
superior value
Build profitable relationships and create customer delight
Capture value from customers to create profit and customer
equity
Createvalueforcustomersandbuild
customerrelationship
Capturevaluefrom
customerinreturn

6. What is “Need”?
Human needs are state of felt deprivation.
They include –
 Physical needs for food, clothing etc.
Social needs for belonging and affection.
Individual needs for knowledge and self – expression.

7. Customer needs can be classified into five types –
1) Stated needs: The customer wants a cheap car.
2) Real needs: The customer wants a car whose
operation cost is low.
3) Unstated needs: The customer expects a good
service from dealer.
4) Delight needs: The customer buys the car and
receives a complementary road map.
5) Secrete needs: The customer wants to be seen by
friends as a value oriented savvy consumer.

8. What is “Want”?
Wants are the form of human needs take as they are
shaped by the culture and individual personality.
Wants are shaped by one’s society and are described in
terms of objects that will satisfy needs.
An American needs food but wants a soft drink.

9. What is “Demand”?
Demand is defined as human wants that are backed by
buying power.
Demand can be classified into eight types –
1) Negative demand: A market is in a state of negative
demand if a major part of the market dislikes the
product and may even pay a price to avoid it. People
have a negative demand for vaccination, dental
works, vasectomy etc.
The marketing task is to analyze why the market
dislikes the product and whether a marketing
program consisting of product redesign, lower price
and more positive promotion can change the
market’s beliefs and attitudes.

10. 2) No Demand: Target consumers may be uninterested
to the product. For example: College students may
not be interested in a foreign language course.
The marketing task is to find ways to connect the
benefit of the product with the person’s natural need
and interest.
3) Latent Demand: Many consumer may share a strong
need that can not be satisfied by any existing product.
For example: There is a strong latent demand for
harmless cigarette.
The marketing task is to measure the size of the size
of the potential market and develop effective goods
and services that would satisfy the demand.

11. 4) Declining Demand: Every organization, sooner or
later, faces declining demand for one or more of its
products.
The marketer must analyze the cause of market decline
and determine whether demand can be restimulated
by finding new target market, changing product’s
features or developing more effective
communication.
The marketing task is to reverse the declining demand
through creative marketing of the product.

12. 5) Irregular Demand: Many organizations face
demand that varies on a seasonal basis.
The marketing task, called Synchromarketing is to
find ways to alter the same pattern of demand
through flexible pricing, promotion etc.
6) Full Demand: Organizations face full demand when
they are pleased with their volume of business.
The marketing task is to maintain the current level of
demand in the face of changing consumer preferences
and increasing competition. The organization must
maintain or improve its quality and continually
measure consumer satisfaction to make sure it is
doing a good job.

13. 7) Overfull Demand: Some organizations face a
demand level that is higher than they can or want to
handle.
The marketing task, called Demarketing requires
finding ways to reduce the demand temporarily or
permanently by raising prices and reducing
promotion and services.
8) Unwholesome Demand: Unwholesome products
will attract organized efforts to discourage their
consumption.

14. Market Offerings:
Marketing people market 10 types of entities –
1) Product: Physical goods constitute the bulk of most
company’s production and marketing efforts.
Products may include car, television, food, cosmetics
etc.
2) Service: As economy advances, a growing proportion
of their activities focuses on the production service.
Services include the work of airlines, hotels, bankers,
lawyers, doctors, engineers etc.
3) Events: Marketers promote time-based events such
as major trade shows, artistic performances and
company anniversaries etc.

15. 4) Experience: By orchestrating several services and
goods, a firm can create, stage and market
experiences. A theme restaurant can create the
ambience of a village people.
5) Persons: Celebrity marketing is a major business.
Artists, musicians, physicians all get help from
celebrity marketers.
6) Places: Cities, states, regions and whole nation
compete actively to attract tourists, factories,
company head-quarters, new residents etc. Place
marketers include real state agents, public relation
agencies etc.

16. 7) Properties: Properties are intangible rights of
ownership of either real properties (Real State) or
financial properties. Marketing is required during
buying and selling properties.
8) Organizations: Organizations actively work to build
a strong, favorable and unique image in the minds of
their target public.

17. 9) Information: The production, packaging and
distribution of information are same of our society’s
major industries. Even companies that sell physical
products attempt to add value through the use of
information.
10)Ideas: Every market offering includes a basic idea.
Products and services are platforms for delivering
some ideas and benefits. Social marketers promote
such ideas by creating awareness about AIDS,
encouraging family planning, discouraging smoking
etc.

18. Marketing Concepts:
There are five alternative concepts under which
organization design and carry out their marketing
strategies. These are –
 The production concept
 The product concept
 The Selling concept
 The marketing concept
 The societal marketing concept

19. 1) The production concept:
The production concept holds that consumers will favor
products that are available and highly affordable.
Therefore, management should focus on improving
production and distribution efficiency.
Although useful in some situations, production concept
leads to marketing myopia. Companies adopting this
orientation run a major risk of focusing too narrowly
on their own operation and losing site of the real
objectives – satisfying customer needs and building
customer relationship.

20. 2) The product concept:
The product concept holds that consumers will favor
products that offer the most in quality, performance
and innovative features.
Under this concept, marketing strategy focuses on
making continuous product improvement.

21. 3) The selling concept:
The selling concept holds that consumers will not buy
enough of the farm’s products unless it undertakes a
large scale selling and promotion effort. The selling
concept is practically practiced with unsought goods
– those that buyers do not normally think of buying
such as insurance.
Such aggressive selling, however, carries a high risk. It
focuses on creating sales transactions rather than on
building long term profitable customer relationships.
The aim often is to sell what the company makes
rather than making what the market wants.

22. 4) The marketing concept:
The marketing concept holds that achieving
organizational goals depends on knowing the needs
and wants of target markets and delivering the
desired satisfactions better than competitors do.
Under the marketing concept, customers focus and
value are the paths to sales and profits.
The marketing concept is a customer centered “Sense
and Respond” philosophy. The job is not find the
right customers for the product but to find the right
products for customers.

23. Selling concept Vs Marketing concept
Selling concept Marketing concept
Start point
Focus
Means
Ends
Factory
Existing product
Selling and promoting
Profit through sales
volume
Market
Customer needs
Integrated marketing
Profit through
customer satisfaction

24. 5. The Societal Marketing Concept:
The societal marketing concept holds that marketing
strategy should deliver value to customers in a way
that maintain and improve both consumer and
society’s well-being.
Companies should balance three considerations in
setting their marketing strategies. Those are –
 Company’s profit
 Customer’s wants
 Society’s interest

25. What is customer value?
It is customer’s evaluation of the difference between all
the benefits and all the costs of a market offering
relative to those of competing offers.
Customers often face a bewildering array of products
and services from which to choose. A customer buys
from the farm that offers the highest customer perceived
value.

26. What is Customer satisfaction?
It is the extent to which a product’s perceived performance
matches a buyer’s expectations.
Important customers should be always kept satisfied. Higher
level of customer satisfaction leads to a greater customer
loyalty which results in better company performance.
Smart companies aim to delight customers by promising
only what they can deliver, then delivering more than they
promise.
Delighted customers not only make repeat purchases, they
become willing marketing partners and ‘Customer
evangelists’ who spread the word about their good
experiences to others.

27. Building right relationship with right customers:
Customers can be classified according to their potential
profitability and projected loyalty. Each group requires a
different relationship management strategy.
1. Strangers:
They show low potential profitability and little projected
loyalty. There is a little fit between company’s
offerings and their needs. The company should not
invest anything in them.

28. 2. Butterflies:
They are potentially profitable but not loyal. There is a
good fit between customer offerings and their needs.
However, like real butterflies they can enjoy them
for only a short while and then they are gone.
Efforts to convert butterflies into loyal customers are
rarely successful. Instead, the company should enjoy
the butterflies for the moment.

29. 3. True friends:
They are both profitable and loyal. There is a strong fits
between their needs and company’s offerings. The farm
wants to make continuous relationship investments to
delight these customers and nurture, retain and grow
them.
Company wants to turn true friends to true believers
who come back regularly and tell others about their
good experience with the company.

30. 4. Barnacles:
They are highly loyal but not very profitable. There is a
limited fit between their needs and company’s offerings.
An example is smaller bank customers who bank
regularly but do not generate enough returns to cover the
cost of maintaining their account.
Like Barnacles on the hull of a ship, they create drag.
They are the most problematic customers. The company
might be able to improve their profitability by selling
them more, raising their fees or reducing service to them.
However, if they can’t be made profitable, they should be
fired.

31. Customer relationship group:
Butterfly
Good fit between
company’s offering
and customer needs;
high profit potential.
True Friends
Good fit between
company’s offering
and customer needs;
highest profit potential
Strangers
Little fit between
company’s offerings
and customers needs;
Lowest profit potential
Barnacles
Little fit between
company’s offerings
and customer needs;
Low profit potential.
Short-term customers Long-term customers
LowprofitabilityHighprofitability
Projected loyalty
Potentialprofitability

32. Thank You