Introduction of Marketing, Definitions, Core concept of Marketing, Marketing Management, Marketing Mix, Marketing Environment, Sales VS Marketing, Function of Marketing, Evolution of Marketing,

1. M A R K E T İ N G
Prof Brahmmanand
Sharma
Asst. Professor, Prestige Institute of
Management

2. Marketing;
–“Satisfying customer needs”
–“Meeting needs profitably”
–“Generating customer value at a profit”
• “Managing profitable customer relationships by
delivering superior value to customers”
Introduction to Marketing

3. • No single correct definition or approach
• Common subject matters:
– The ability to satisfy customers,
– The identification of favorable marketing
opportunities,
– The need to create an edge over competitors,
– The capacity to make profits to enable a viable future
for the organization,
– The use of resources to maximize a business’ market
position,
– The aim to increase market share mainly in target
markets
What is Marketing?

4. Marketing Process
Build
profitable
relationship
s and
create
customer
delight
Capture
value
from
customer
s to
create
profits
and
customer
quality
Create value for
customers and build
customer relationships
Capture
value
from
custome
rs in
return
Design a
customer-
driven
marketing
strategy
Construct
a
marketing
program
that
delivers
superior
value
Understand
the
marketplace
and
customer
needs&want
s

5. Core Concepts of Marketing
Needs, wants,
and demands
Products
and services
Value and
satisfaction
Exchange,
transactions,
and relationships
Markets

6. • Need
– Basic human requirements
– State of felt deprivation
• Example: Need food
• Wants
– Needs directed to specific
objects
– The form of needs as
shaped by culture and the
individual
• Example: Want a Big Mac
• Demands
– Wants which are backed by
buying power
• Needs, wants, and
demands
• Marketing offers: including
products, services and
experiences
• Value and satisfaction
• Exchange, transactions and
relationships
• Markets
Core Concepts of Marketing

7. • Marketing offering
– Combination of
products, services,
information or
experiences that satisfy
a need or want
– Offer may include
services, activities,
people, places,
information or ideas
• Needs, wants, and
demands
• Marketing offers: including
products, services and
experiences
• Value and satisfaction
• Exchange, transactions and
relationships
• Markets
Core Concepts of Marketing

8. Products
Anything that can be Offered to a Market to Satisfy a Need or Want
Experiences Persons Places
Organizations IdeasInformation
Core Concepts of Marketing
Services
Activities or Benefits Offered for Sale That Are Essentially
Intangible and Don’t Result in the Ownership of Anything

9. • Value
– Customers form
expectations regarding
value
– Marketers must deliver
value to consumers
• Satisfaction
– A satisfied customer will
buy again and tell others
about their good
experience
• Needs, wants, and
demands
• Marketing offers: including
products, services and
experiences
• Value and satisfaction
• Exchange, transactions and
relationships
• Markets
Core Concepts of Marketing

10. Core Concepts of Marketing
Total Quality Management Involves Improving the Quality of
Products, Services, and Marketing Processes
Product’s Perceived Performance in Delivering Value
Relative to Buyer’s Expectations is
“Customer Satisfaction”
Value Gained From Owning a Product and
Costs of Obtaining the Product is
“Customer Value”

11. Market
Integrated
marketing
Profits through
customer
satisfaction
Customer
needs
(b) The marketing concept
Factory
Existing
products
Selling and
promotion
Profits through
sales volume
Starting
point Focus Means Ends
(a) The selling concept
Marketing and Sales Concepts Contrasted

12. Differences between Selling and Marketing

13. • A social and managerial process by
which individuals and groups obtain
what they need and want through
creating, offering and exchanging
products and services of value with
others.
Simply put: Consumer satisfaction with profitability.
Marketing defined as...

14. • The management process responsible for identifying,
anticipating and satisfying customer requirements
profitably.
• Marketing consists of individual and organizational
activities that facilitate and enhance satisfying
exchange relationships in a dynamic environment
through the creation, servicing, distribution,
promotion and pricing of goods, services and ideas
More Definitions of Marketing

15. • Marketing management - the art and science of choosing
target markets and building profitable relationships with
them.
– This definition must include answers to 2
questions:
• What customers will we serve?
• How can we serve these customers best?
– Getting, keeping, and growing customers through
creating, delivering, and communicating superior
customer value
• Marketing management involves managing demand
involves managing customer relationships
Marketing Management

16. • Marketing management can be defined in broader
terms as “demand management”;
– Marketers aim to influence the level, timing and
composition of demand to meet organizational goals.
• Marketing management is concerned
– not only with finding and increasing demand,
– but also with changing or even reducing it :
demarketing!
• Demarketing’s aim is to reduce the number of
customers or to shift their demand temporarily or
permanently
–e.g. Move traffic away from a popular tourist
attraction during peak demand times
Marketing Management

17. Evolution of Marketing Thought
• Production Era (1850s-1920s)
– Industrial revolution; mass production
– Few products and little competition
• Sales Era (1920s-1950s)
– The focus was on personal selling and advertising
– Sales seen as the major means for increasing
profits
• Mktg Era (1950s-present)
– Customer orientation replaced the “hard sell” of
the sales-led era
– Determination of the needs and wants of
customers before introducing products or services

18. • Relationship Marketing Era: 1990s-
– Marketing era has recently shifted from being “transaction-
based” to focusing on “relationships”
– The argument traditional marketing practices focused on
attracting new customers rather than retaining existing ones.
– It is equally important to hang on to existing customers so that
they become repeat buyers and long term loyal customers
• “customer relationship management”!
• Social Marketing
• Mobile Marketing
Evolution of Marketing Thought

19. Production Concept
Product Concept
Selling Concept
Marketing Concept
Consumers prefer products that are
widely available and inexpensive
Consumers favor products that
offer the most quality, performance,
or innovative features
Consumers will buy products only if
the company aggressively
promotes/sells these products
Focuses on needs/ wants of target
markets & delivering value
better than competitors
Company Orientations Towards the
Marketplace

20. • Consumers will favor those products that are widely
available and low in cost.
• Managers concentrate on achieving high production
efficiency and wide distribution.
• The assumption is valid at least in 2 situations :
– The demand for a product exceeds supply
(suppliers will concentrate on finding ways to
increase production)
– The product’s cost is high and has to be decreased
to expand the market.
Production Concept

21. • Consumers will favor those products that offer the
most quality, performance or innovative features.
• Managers in product-oriented organizations
concentrate on making superior products and
improving them over time.
• The assumption the customers will admire well-made
products and can evaluate product quality and
performance
• This concept may lead to marketing myopia
Product Concept

22. • Agressive selling and promotion
• Assumptions are;
– Consumers must be convinced of buying company products
– Company is powerful in generating effective selling and
promotion to stimulate more buying
• This concept is mostly used by firms which have
overcapacity.
• The aim is “to sell what they make” rather than “make
what the market wants.”
• Short-term profits are more important (customer
dissatisfaction may occur)
Selling Concept

23. • Key to achieving organizational goals consists of
being more effective than competitors in
creating, delivering and communicating
customer value to target markets.
• 4 pillars of modern marketing :
1. Target market
2. Customer needs
3. Integrated marketing
4. Profitability through customer satisfaction
Marketing Concept

24. 1) Target market - homogenous group of customers to
whom the company wishes to appeal
2) Customer needs
– Consumers may not be fully conscious of their needs
– It may not be easy to articulate these needs
– They may use words that require some interpretation
– Customer-oriented thinking to define customer needs
from the customer’s point of view
– Sales revenue New customers + Repeat customers
– “Customer Retention” vs. “Customer Attraction”
– Customer satisfaction is a function of the product
perceived performance and buyer’s expectations
Marketing Concept (cont.)

25. 3) Integrated Marketing
1. Various marketing functions must work together
for customer satisfaction (coordination of 4Ps;
marketing mix elements)
• Marketing Mix controllable variables the company
puts together to satisfy its target market(s).
Product: Product variety, quality, design, features, brand
name, packaging, sizes, services, warranties, returns
Price: List price, discounts, allowances, payment period,
credit terms
Promotion: Sales promotion, advertising, sales force,
public relations, direct marketing
Place: Channels, coverage, assortments, locations,
inventory, transport
Marketing Concept (cont.)

26. Marketing Concept - The 4 P’s

27. Marketing Concept - The 4 P’s The 4 Cs
Marketing
Mix
Product
Price
Promotion
Place
Customer
Solution
Customer
Cost Communication
Convenience

28. 28
The Seven Functions of Marketing
1. Marketing Information Management
2. Financing
3. Pricing
4. Promotion
5. Product Management
6. Distribution
7. Selling

29. 29
Marketing Information Management
• This is the gathering, analyzing, storing, and collecting of
information. This information is used to find out who the
customer is, their habits, attitudes, and trends in the market
place.
• Collection methods include:
Surveys
Focus groups
Taste testing

30. 30
• Getting the money that is necessary to pay for setting
up and running a business.
• Financing also involves decisions such as whether to
offer credit to customers or other payment options.
• Budgeting to appropriate business operations,
(advertising, inventory, etc)
Financing

31. 31
Pricing
• Pricing decisions dictate how much to charge for
goods and services in order to make a profit.
• Marketers must determine how much customers are
willing to pay for these products.
• Too High
• Too low
• Mark ups and mark downs

32. 32
Promotion
• Promotion is the effort to inform, persuade, or remind
potential customers about a business’s products or
services.
• It is also used to improve a company’s brand image.
• Types/Examples:
Advertising
Sales Promotions
Publicity
Personal Selling

33. 33
Product Service Management
• Product service management is obtaining, developing,
maintaining, or improving existing products.
Determining what to make or sale.
• Market research guides product service management
toward what the customer wants and needs.
• Examples- What colors, styles, brands, ingredients,
product packaging, name of product, warranty
information etc.

34. 34
Distribution
• Distribution is the process of deciding how to get
goods to the customer.
• This also involves systems that track products so that
they can be located at any time.
• Examples:
Transportation
Storage
inventory control

35. 35
Selling
• Selling provides customers with the good and services
they want. This includes:
Manufacturers, Wholesalers, and Retailers
• Sales people help customers make wise buying
decision.
• They also assist with product knowledge and
demonstration, answer customer questions and
reassure the customer’s purchase.

36. • Marketing Planning
• Product Designing and Development
• Packaging and Labelling
• Branding
• Customer Support Service
• Standardisation and Grading-Regarding size, quality,
design, weight, color etc.
Other Functions of Marketing

37. • Customer Relationship Management the overall
process of building and maintaining profitable
customer relationships by delivering superior customer
value and satisfaction.
– It deals with all aspects of acquiring, keeping and
growing customers
– Relationship building blocks “customer value” and
“customer satisfaction”
– “Customer retention” and “customer loyalty”
– The intention to gain a greater proportion of an
existing customer’s purchases over a long period
(increase “consumer lifetime value”!)
Relationship Marketing Concept

38. “Our slogan ‘5+Million More Smiling Customers’ is
not about reaching sales targets but about
whether we are able to provide greater
satisfaction to a greater number of customers...
The goal is to improve customer satisfaction which
translates to an increased number of ‘smiling
customers.”
Tokuichi Uranishi
Executive Vice President,
Toyota Motor Corporation
Relationship Marketing Concept

39. The Marketing Environment
• Marketing environment:
– Factors and forces outside of marketing’s direct
control
– Affect management’s ability to develop and maintain
– Successful transactions with target customers
• Micro Enviroment:
– Forces close to the company
– That affect its ability to serve customers
• Macro Environment:
– Larger, societal forces that affect the organization’s
microenvironment

40. The Company’s Microenvironment
• The company:
– Management, finance, research & development,
purchasing, manufacturing, accounting, and human
resources
• Suppliers
• Marketing intermediaries:
– Resellers
– Physical distribution firms
– Marketing service agencies
– Financial intermediaries

41. The Company’s Microenvironment
• Customers:
– Consumer, business, reseller, government, and international markets
• Competitors
• Publics:
– Financial
– Media
– Government
– Citizen-action groups
– Local
– General
– Internal

42. The Company’s Macroenvironment
• Demographic environment:
– Study of human population
– Size, density, location, age, race, sex, occupation, and education
• Trends of interest:
– World population growth
– Increased diversity
– Changing age structure
within Canada
– Changing households
– Higher education
– Geographic shifts

43. The Company’s Macroenvironment
• Economic environment:
– Factors that affect consumer buying power and spending patterns
• Trends of interest:
– Changes in income, continued spending by consumers
– Consumer debt levels
rising, savings down
– Changing spending
patterns
• Engel’s laws: amount
spent on various categories
changes as income rises

44. 5.44
The Company’s Macroenvironment
• Natural environment:
– Growing shortages of raw materials
– Increased pollution
– Increased government intervention
– Canadian federal law:
Environmental
Protection Act (1989)
– Green movement
– Focus on environmental
sustainability strategies

45. 5.45
The Company’s Macroenvironment
• Technological environment:
– New technology creates new markets and opportunities
– Replaces existing products and services
– Research and development activity drives this sector
– Canadian spending on
R&D is low, ranked 15th
in the world
– Government programs to
encourage more
– Government agencies to
regulate new product
safety

46. 5.46
The Company’s Macroenvironment
• Political environment:
– Laws, government agencies, and pressure groups
– Influence and limit organizations and individuals within a society
– Increasing legislation
– Increased emphasis on
ethics and social
responsibility
– Cause-related marketing
– Business legislation is
used to protect
consumers, businesses,
and the interests of
society

47. The Company’s Macroenvironment
• Cultural environment:
– Institutions and other forces that influence
– Society’s basic values, perceptions, preferences, and behaviours
– Core beliefs passed on through family, reinforced by institutions
– Secondary beliefs are
more open to change
– People’s views of:
• Themselves
• Others
• Organizations
• Society
• Nature
• The universe