COURSE: MARKETING ESSENTIALS

INSTRUCTOR: DR. SONAL SISODIA

MARKETING: AN OVERVIEW

Marketing is everywhere
Marketing is an important organizational function
Marketing is embedded in our daily lives

But….
Is it just the art of selling products!!!
 What is marketing
Marketing is about identifying and meeting human and
social needs
Ex: IKEA, eBay

AMA: Marketing is an organizational function and a set

of processes for creating, communicating, & delivering
value to customers and managing customer relationships
in ways that benefit the organisation and its stakeholders.

Marketing is a societal process by which individuals and

groups obtain what they need and want through creating,
delivering and communicating superior customer value.
What is marketed
•Goods
•Services
•Events
•Experiences (experimental marketing, ex. amusement
parks)
•Persons (celebrity marketing)
•Places
•Properties (real estate agents, investment companies)
•Organizations (ex. Tata Tea’s Jago re campaign)
•Information (different reports)
•Ideas (ex. Social marketing initiatives, yoga)
Key customer markets
•Consumer markets: mass consumer goods and
services, ex. FMCG
•Business markets: buy goods and sell it further in a
processed form; ex. Tyres, nuts, bolts, engines
•Global markets: goods/ services sold in global
marketplace
•Non profit and governmental markets: ex. Govt.
hospitals, charitable organisations

Discussion: Factors affecting each category

Marketplace, marketspaces and metamarkets
•Marketplace: physical in nature that is a grocery
shop or an apparel store
•Marketspace: digital in nature, for instance,
internet shopping
•Metamarket: clusters of complementary products
and services that are closely related but spread across
a diverse set of industries. Includes metamediaries
Ex. Travel and tourism (Hotels, restaurants, booking
agents, booking sites, transportation, travel
magazines, guides, classified ads, etc)
Core marketing concepts
Needs, wants and demands
Needs: basic requirements like food, water
Wants: specific objects that satisfy needs, ex. Chappati, rice
Demands: wants for specific products backed by an ability to
pay.
Debate: What do marketers influence: ‘needs or wants’
Types of needs
Stated needs (inexpensive car)
Real needs (low operating cost)
Unstated needs (good dealer services)
Delight needs (an onboard navigation system included)
Secret needs (customer wants to be seen as ‘savvy’)
Target markets, positioning and segmentation

Not everyone has the same likings / requirements;

hence

•Segmentation (identifying and profiling customers)

•Deciding Target markets (greatest opportunity)

•Positioning the market offering (ex. J&J)

Offerings and brands

Offerings: value proposition , a set of benefits

offered to customers to satisfy their needs.

Brand: an offering from a known source

Value and satisfaction
Value: sum of perceived tangible and intangible
benefits and costs to customers

Quality

Service Price

Satisfaction: a product’s perceived performance in

relation to expectations
 Marketing channels
Communication channels: includes newspapers,
magazines, TV, mail, telephone, billboards, fliers,
internet, toll-free numbers

Distribution channels: includes distributors,

wholesalers, retailers and agents

Service channels: includes warehouses, transportation

companies, banks, and insurance companies that
facilitate transactions

Marketing challenge: to choose the best mix of channels

Supply chain
It stretches from raw materials to components to
final products that are carried to final buyers

Marketing challenge: to capture a higher percentage

of supply chain value

How???

•Vertical integration
•Acquiring competitors
Competition

Includes actual and potential rival offerings and

substitutes a buyer might consider

Discussion: consider competition for Real brand of

juices
Marketing environment

Consists of
Task environment: company, suppliers, distributors,
dealers and target customers

Broad environment: demographic environment,

economic environment, physical environment,
technological environment, political- legal
environment and social- cultural environment
 Evolution of marketing philosophy
Production concept
Belief: Consumers prefer products that are widely
available and inexpensive.
Focus: high production efficiency, low costs and mass
distribution
Usefulness: for developing countries or when company
wants to expand the market
Product concept
Belief: Consumers favour products that offer the most
quality, performance or innovative features.
Focus: making superior products and improving them
over time
Pitfalls: marketing myopia
 Selling concept

Belief: Consumers and businesses, if left alone, would

not buy enough of organisation’s products
Focus: aggressive selling and promotion effort
Usefulness: for unsought goods or when there is
overcapacity
Pitfalls: sell what you make rather than what market
wants
 Marketing concept

Belief: key to achieving organisational success is being

more effective than competitors in creating, delivering
and communicating superior customer value to your
chosen target market
Focus: customer centered, sense and respond
philosophy; finding the right product for customer
 Holistic marketing concept
Other Communications Products &
Marketing Senior mgmt services
department departments

Internal Integrated Channels

marketing marketing

Holistic
Sales marketing
Brand and customer revenue
equity

Ethics Performance Relationship

marketing marketing Partners

Channel
Environment Customers

Legal Community
Relationship marketing
Aims to build mutually satisfying long term
relationships with key constituents (customers,
employees, channels, financial community) in order
to earn and retain business
Integrated marketing
Consists of marketing mix

Marketing mix

Product Place

Price Promotion
Internal marketing
Everyone in the organisation embraces appropriate
marketing principles, especially senior management

Performance marketing
Includes
Financial accountability and
Social responsibility marketing
Assignment

Pick up a well known organisation. With the help of holistic

marketing concept, try to map all the elements in context to
the chosen organisation

Presentation time: 5 minutes

Marketing management tasks
•Developing marketing strategies and plans
•Capturing marketing insights
•Connecting with customers
•Building strong brands
•Shaping the market offerings
•Delivering value
•Communicating value
•Creating long term growth
 HAPPY
LEARNING!!!