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Change is occurring at an accelerating rate; today is not like yesterday, and tomorrow will be
different from today. Continuing todays strategy is risky; so is turning to a new strategy.
Therefore, tomorrows successful companies will have to heed three certainties:
Global forces will continue to affect everyones business and personal life.
Technology will continue to advance and amaze us.
There will be a continuing push toward deregulation of the economic sector.
These three developmentsglobalization, technological advances, and deregulation spell endless
opportunities. But what is marketing and what does it have to do with these issues?
Marketing deals with identifying and meeting human and social needs. One of the shortest
definitions of marketing is meeting needs profitably.
Example One

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Financial success of a firm often depends on marketing ability. Functions such as operations,
accounting , finance and other business functions will not really matter if there isnt sufficient
demand for product and services. So the company can make profit.
Apart from that
Sustained and steady growth
Customer loyalty retention
Building brand & loyal customer
Marketing is tricky, and the business have to rethink their business model when the time change.
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American Marketing Association
Marketing 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
organizations and stakeholders.
Marketing social definition 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 value with others. Some think marketing as a art of selling , but if just a part of
marketing . Understanding customers and developing products are always better.
Eg Apple iPod Nano digital music players
Sony play station
As a managerial definition, marketing has often been described as the art of selling products.
But Peter Drucker, a leading management theorist, says that the aim of marketing is to make
selling more than expected. The aim of marketing is to know and understand the customer so
well that the product or service fits him and sells itself. Ideally, marketing should result in a
customer who is ready to buy.
Kotler
Marketing s the social process by which individuals and groups obtain what through creating
and exchanging products and value with others.
Chartered Institute of Marketing
Marketing is the management process that identifies anticipate and satisfies customer
requirements profitably.

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Marketing people are involved in marketing 10 types of entities: goods, services, experiences,
events, persons, places, properties, organizations, information, and ideas.
Goods - Physical goods constitute the bulk of most countries production and marketing effort.
Services - Focusing on the production of services.
EgAirlines, Banks, Lawyers, Hotels
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Experiences - By orchestrating several services and goods, one can create, stage, and market
experiences.
Eg- Walt Disney Worlds Magic Kingdom is an experience, Millennium park in Sri Lanka
Events- Promoting time based events
Egsuch as the Olympics, trade shows, sports events, and artistic performances.
Persons - Celebrity marketing has become a major business.
EgArtists, musicians
Places - Cities, states, regions, and nations compete to attract tourists, factories, company
headquarters, and new residents.
Properties - Properties are intangible rights of ownership of either real property (real estate) or
financial property (stocks and bonds). Eg-
Organizations - Organizations actively work to build a strong, favorable image in the mind of
their publics.
Eg - Philips, the Dutch electronics company, advertises with the tag line, Lets Make Things
Better. The Body Shop and Ben & J errys also gain attention by promoting social causes.
Information - The production, packaging, and distribution of information is one of societys
major industries.
Eg- publishers of encyclopedias, nonfiction books, and specialized magazines; makers of CDs;
and Internet Web sites.
Ideas - Every market offering has a basic idea at its core. In essence, products and services are
platforms for delivering some idea or benefit to satisfy a core need.
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Exercise - Identify 2 multinational brands and 2 local brands for each of the above entity.
Core Marketing Concepts
Needs, Wants, and Demands
The successful marketer will try to understand the target markets needs, wants, and demands.
Needs describe basic human requirements such as food, air, water, clothing, and shelter. People
also have strong needs for recreation, education, and entertainment.
These needs become wants when they are directed to specific objects that might satisfy the need.
Eg - An American needs food but wants a French fries, and a soft drink. A person in Mauritius
needs food but wants a mango, rice, and beans. Clearly, wants are shaped by ones society.
Customer needs are broad, customer wants are usually narrow.
Demands are wants for specific products backed by an ability to pay.
Eg- Many people want a Mercedes; only a few are able and willing to buy one. Companies must
measure not only how many people want their product, but also how many would actually be
willing and able to buy it.
Eg 2In a single year, 246 million Americans purchase 61 billion eggs, 200 million chicken, 29
million telephones, 341 billion domestic air passenger miles and more than 20 million lecture
hours by English professors.
Product or Offering
People satisfy their needs and wants with products. A product is any offering that can satisfy a
need or want, such as one of the 10 basic offerings of goods, services, experiences, events,
persons, places, properties, organizations, information, and ideas.
A brand is an offering from a known source.
Eg- A brand name such as McDonalds carries many associations in the minds of people:
hamburgers, fun, children, fast food, golden arches. These associations make up the brand image.
All companies strive to build a strong, favorable brand image.
Value and Satisfaction
In terms of marketing, the product or offering will be successful if it delivers value and
satisfaction to the target buyer. The buyer chooses between different offerings on the basis of
which is perceived to deliver the most value.

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Customers
Customers provide payment to an organization in return for the delivery of goods and services
and therefore form a focal point for an organizations marketing activity. Customers can be
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described by many terms, including client, passenger, subscriber, reader,guest, and student.
The customer is generally understood to be the person who makes the decision to purchase a
product, and/or who pays for it. In fact, products are often bought by one person for consumption
by another, therefore the customer and consumer need not be the same person. For example,
colleges must market themselves not only to prospective students, but also to their parents,
careers counsellors, local employers, and government funding agencies. In these circumstances it
can be difficult to identify who an organizations marketing effort should be focused upon.
Exchange
Societies have different ways in which they arrange for goods and services to be acquired. In
some lessdeveloped societies hunting for food, or begging, may be a norm. In centrally planned
economies goods and services may be allocated to individuals and firms by central government
planners. In modern market-based economies, goods and services are acquired on the basis of
exchange.
Exchange implies that one party makes some sacrifice to another party in return for receiving
something it values; the other party similarly makes a sacrifice and receives something that it
values.
Markets
The term market hastraditionally been used to describe a place where buyers and sellers gather
to exchange goods and services (for example a fruit and vegetable market or a stock market).
Economists define a market in terms of a more abstract concept of interaction between buyers
and sellers.
Target Markets and Segmentation
A marketer can rarely satisfy everyone in a market. Not everyone likes the same soft drink,
automobile, college, and movie. Therefore, marketers start with market segmentation. They
identify and profiledistinct groups of buyers who might prefer or require varying products and
marketing mixes. Market segments can be identified by examining demographic, psychographic,
and behavioral differences among buyers.
For each chosen target market, the firm develops a market offering. The offering is positioned in
the minds of the target buyers as delivering some central benefit(s). For example, Volvo
develops its cars for the target market of buyers for whom automobile
safety is a major concern. Volvo, therefore, positions its car as the safest a customer can buy.
Marketers and Prospects
Another core concept is the distinction between marketers and prospects. A marketer is someone
who is seeking a response (attention, a purchase, a vote, a donation) from another party, called
the prospect. If two parties are seeking to sell something to each
other, both are marketers.
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Marketing Channels
To reach a target market, the marketer uses three kinds of marketing channels. Communication
channels deliver messages to and receive messages from target buyers. They include
newspapers, magazines, radio, television, mail, telephone, billboards, posters, fliers, CDs,
audiotapes, and the Internet.
The marketer uses distribution channels to display or deliver the physical product or service(s) to
the buyer or user. There are physical distribution channels and service distribution channels,
which include warehouses, transportation vehicles, and various
trade channels such as distributors, wholesalers, and retailers.
The marketer also uses selling channels to effect transactions with potential buyers. Selling
channels include not only the distributors and retailers but also the banks and insurance
companies that facilitate transactions.
Competition
Competition includes all the actual and potential rival offerings and substitutes a buyer might
consider. We can broaden the picture by distinguishing four levels of competition, based on
degree of product substitutability:
1. Brand competition: A company sees its competitors as other companies that offer similar
products and services to the same customers at similar prices. Volkswagen might see its
major competitors as Toyota, Honda, and other manufacturers of medium price automobiles,
rather than Mercedes or Hyundai.
Exercise -
2. Industry competition: A company sees its competitors as all companies that make the same
product or class of products. Thus, Volkswagen would be competing against all other car
manufacturers.
Exercise -
3. Form competition: A company sees its competitors as all companies that manufacture
products that supply the same service. Volkswagen would
see itself competing against manufacturers of all vehicles, such as motorcycles, bicycles, and
trucks.
Exercise -
4. Generic competition: A company sees its competitors as all companies that compete for the
same consumer dollars. Volkswagen would see itself
competing with companies that sell major consumer durables, foreign vacations, and new
homes.
Exercise -