Marketing

Chapter 1
Marketing: Definition & Importance
All activities involved in creation of time, place and
possession utilities.
The process of Planning & Executing the conception,
pricing, promotion and distribution of ideas, goods
and services to create exchanges that satisfy individual
and organizational objectives.
American Marketing Association
The management process responsible for identifying,
anticipating and satisfying customer requirements
profitably.
Chartered Institute of Marketing

Chapter 1
- Market vs Marketing
Market is an arrangement to provide an opportunity to exchange goods.
Marketing is sum total of all those activities that are related to flow of goods
from production to consumption.
- Marketing, Selling & Merchandizing
Marketing is a broader concept which is driven from customer’s demand.
Selling is one part of marketing which deals with persuading customers to
buy products that are available with seller.
Merchandizing refers to the process offering a variety of products to a retail
consumer in a manner which stimulates demand.

Chapter 1
IMPORTANCE OF MARKETING
1. Marketing helps to achieve, maintain and raise
the standards of living
- Marketing is means through which production and
purchasing power are converted into consumption.
- Better marketing  Mass production
- Mass production  Low cost
- Low cost  More buying power  Higher standard
of living

Chapter 1
2. Marketing Increases employment opportunities
- Marketing involves various functions / sub-
functions (Buying, Selling, Transport, Warehousing,
Financing, Risk management etc)
- These functions create need for different
specializations
- About 30-40% population depends directly or
indirectly on marketing

Chapter 1
3. Marketing increases national income
- More purchasing power  increase in national
income
4. Helps maintain economic stability &
development
- By maintaining demand supply balance

Chapter 1
5. Link between producer & consumer
6. Removes imbalance of supply & demand by
transferring surpluses
7. Helps create utilities of time, place &
possession

Chapter 1
IMPORTANCE OF MARKETING – Business Firms
1. Marketing Generates Revenue, by generating
sales & thereby profits
2. Marketing helps decision making process (what,
when & how much to produce, store or
transport)
3. Helps change management & innovations

Chapter 2
Marketing Concepts
1. Exchange Concept
- Exchange is only a small part of the total marketing
process.
- Other parts of marketing like customer orientation,
satisfaction, value creation, creative selling etc are
not covered

Chapter 2
Marketing Concepts
2. Production Concept
- Production in large volume, at low cost will be
acceptable to customers
- Concentrates on production efficiency
- May do well in distribution
- Rarely appreciated by customers

Chapter 2
Marketing Concepts
3. Product Concept
- Focuses on design and quality of products
- Believes that customers will automatically buy
products of high quality
- R&D is essential element
- Do not bother to study the market & consumer in
depth

Chapter 2
Marketing Concepts
4. Sales Concept
- Believes that customers need to be persuaded to
buy the products
- Involves advertising, large scale promotions,
publicity, discounts, public relations etc.
- Does not take care of the need of the customer

Marketing Sales
Approach
determine future needs and has a
strategy in place to meet those needs
for the long term relationship.
makes customer demand match the
products the company currently
offers.
Focus
fulfill customer's wants and needs thru
products and/or services the company
can offer.
fulfill sales volume objectives
HorizonLonger term Short term
Scope
Identifying customer needs (research),
creating products to meet those needs,
promotions to advertise said products.
Once a product has been created for
a customer need, persuade the
customer to purchase the product to
fulfill her needs
Chapter 2
Marketing Concepts
Sales v/s Marketing

Chapter 2
Marketing Concepts
Sales v/s Marketing
Marketing Sales
Strategypull push
ConceptMarketing is a wider concept Sales is a narrower concept
Priority
Marketing shows how to reach to
the Customers and build long
lasting relationship
Selling is the ultimate result of
marketing.
Identity
Marketing targets the construction
of a brand identity so that it
becomes easily associated with need
fulfillment.
Sales is the strategy of meeting
needs in an opportunistic,
individual method, driven by
human interaction. There's no
premise of brand identity,
longevity or continuity. It's simply
the ability to meet a need at the
right time.

Chapter 2
Marketing Concepts
5. Marketing Concept
- Starts with determination of consumer needs
- Ends with satisfaction of these needs
- Organizational activities revolve around customer
- Products & Services are designed to serve customer
needs
- Satisfied customer will only produce profits

Chapter 2
Marketing Concepts
Features of Marketing Concept
1. Consumer Orientation
2. Integrated management action
3. Consumer Satisfaction
4. Realizing organizational goals including profits

Chapter 2
Marketing Concepts
Benefits of Marketing Concept
1. Long Term success
2. Faster penetration
3. Better Products
4. Boosts creativity
5. Integrated functions
6. Mostly in profits
7. Better growth of employees
8. Contributes to overall growth of the society

Chapter 2
Marketing Concepts
Dilemma of Marketing Concept
1. Customer Orientation v/s Product standardization
2. Customer Orientation v/s Profits
3. May ignore social welfare at times
4. Constrains innovation, at times

Chapter 3
Marketing Management Tasks
Responsibilities of Marketing Management
1. Market analysis
2. Set Goals
3. Forecast sales & profits
4. Strategies, policies & procedures
5. Evolve appropriate marketing mix
6. Organize marketing activities
7. Organize resources
8. Participation in product planning
9. Managing Supply chain
10. After Sales activities

Chapter 3
1. Conversional Marketing
- Used during negative demand
- Customer dislikes the product
- May even pay to avoid the product
- It is a rare condition
- e.g. Waste Water

Chapter 3
2. Stimulational Marketing
- Used during No demand
- Customer is indifferent to the product
- Task of converting no-demand into positive demand
- Connect the product with existing need
- Create environment where need is felt
- e.g. Mushrooms

Chapter 3
3. Developmental Marketing
- Used during Latent demand
- Consumers share need for something which does not
exist
- Opportunity for Marketer to develop a product
- e.g. Electronic cigarette

Chapter 3
4. Remarketing
- Used during fading demand
- Consumers find either no use for the product or better
alternatives in the market
- Marketers recreate the demand
- e.g. Cinema halls

Chapter 3
5. Synchro Marketing
- Used during irregular demand
- Seasonal products
- Results in wasteful underutilization of production
capacity
- Marketers attempt to streamline the demand to meet
supply capacity
- e.g. Hotels at hill stations, flight tickets during peak
season

Chapter 3
6. Maintenance Marketing
- Used during robust demand
- Established products
- Does not need efforts to push supplies
- Keep a watch on competition
- Keep sharpening the saw

Chapter 3
7. Demarketing
- Used during overfull demand
- Or when you want to exit certain business
- Supply falls short of demand
- Marketers discourage customers in choosing certain
products

Chapter 3
8. Counter Marketing
- Used when demand is considered unwholesome
- Like alcohol, drugs
- Marketers try to destroy demand

Marketing

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