WHATS MARKETING IS ALL ABOUT

A HUMAN ACTIVITY DIRECTED AT SATISFYING NEEDS AND WANTS THROUGH EXCHANGE PROCESSES
PHILIP KOTLER

IT IS THE PERFORMANCE OF BUSINESS ACTIVITIES THAT DIRECT THE FLOW OF GOODS AND SERVICES FROM PRODUCER TO CONSUMERS
AMERICAN MARKETING ASSOCIATION

MARKETING CONTINUED
IT IS THE PROCES OF IDENTIFYING CUSTOMER NEEDS CONCEPTUALISING THOSE NEEDS IN TERMS OF AN ORGANISATIONS CAPACITY TO PRODUCE.

CONCEPTUALISING THE CONSEQUENT OUTPUT IN TERMS OF THE CUSTOMER NEEDS EARLIER IDENTIFIED, AND COMMUNICATING THAT CONCEPTUALISATION TO THE CUSTOMER

JOHN.A. HOWARD COLUMBIA UNIVERSITY 1973

What is Marketing?
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. More simply: Marketing is all about satisfying needs (...profitably and fairly)!!! Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return

What is Marketing?
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 benefit the organization and its stakeholders.

Marketing is an Exchange of Value

An exchange is the process by which some transfer of value occurs between a buyer and a seller.
At least two people or organizations must be willing to make a trade, and Each must have something the other values. Most exchanges occur in the form of a monetary transaction.

Why is Marketing Important?

Marketings Role in Our Daily Lives Marketings Role in Society

Designing a Customer-Driven Marketing Strategy

Marketing management is the art and science of choosing target markets and building profitable relationships with them
What customers will we serve? How can we best serve these customers?

Selling is only the tip of the iceberg

There will always be a need for some selling. But the aim of marketing is to make selling superfluous. 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. All that should be needed is to make the product or service available. Peter Drucker

Good Marketing is No Accident

The roaring success of four-wheeler Tata Ace, in a market earlier dominated by threewheeler load carriers, was due to a deep understanding of the market needs and customer requirements.

UNDERSTANDING MARKETING
Marketing: The process of finding customer needs and serving those needs profitably Profit from customer satisfaction Provide desired value to customers Retain customers to enhance profitability Is a central business function

What is Marketed?
Goods Services Events & Experiences Persons Places & Properties Organizations Information Ideas

Marketing Can Promote Ideas

Add of Honda Accord

Incredible India

Demand States
Negative Nonexistent Latent

Declining

Irregular

Full

Overfull

Unwholesome

Structure of Flows in a Modern Exchange Economy

A Simple Marketing System

Key Customer Markets

Consumer Markets Global Markets

Business Markets

Nonprofit/ Government Markets

Functions of CMOs
Strengthening the brands Measuring marketing effectiveness Driving new product development based on customer needs Gathering meaningful customer insights Utilizing new marketing technology

Core Marketing Concepts

Needs, wants, and demands Target markets, positioning, segmentation Offerings and brands Value and satisfaction Marketing channels Supply chain Competition Marketing environment

Needs

and

Wants

Needs comprise the basic requirements for the existence of life, such as food, clothing, shelter, and belongingness. A want arises when the basic needs are satisfied.

Do Marketers create need??

 Marketers with other social factors influence wants, marketers might promote the idea but they do not create needs.

Positioning
Press ads of the Scorpio focused on the functional features of the vehicle and the television ads focused on emotional benefits.

Company Orientations Towards the Marketplace

Production Concept Product 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

Selling Concept
Marketing Concept

When Did Marketing Begin?

Product Orientation
Most Efficient Production & Distribution Sellers Market Marketing as a Sales Function Buyers Market

Selling Orientation

Customer Orientation

Satisfies Customers Needs and Wants Total Quality

Benefits to Customers, Plus Firms Employees, Shareholders, and Communities.

New Era Orientation

Evolution of Marketing
Production Era (From 17th century to the late 1920s) :

Manufacturing was given importance. Product features were not a priority as it was believed that customers were concerned only about the availability of the product.

The PILLSBURY
First Era in 1869 - 1930s. The idea for the formation of the company came from the availability of high quality wheat and the proximity of water power NOT from the availability and proximity of growing major market areas or the demand for better less expensive, more convenient flour products. The principal concern here was with PRODUCTION

Contd
Sales Era (From the late 1920s to mid 1950s) :
Selling their products using advertising, promotion and distribution strategies.

The PILLSBURY
In this Era The companys Philosophy might have been stated as: We are professional flour millers. Blessed with a supply of the finest North American wheat, plenty of water power, and excellent milling machinery, we produce flour of high quality. Our basic function is to mill high quality flour, and of course we must hire salesman to sell it just as we hire accountants to keep our books.

The PILLSBURY
Second Era in 1930s 60s (Sales Orientation). This was the era of sales when for the first time the co began to be highly conscious of the consumer, her wants and her prejudices as a key factor in business equation. The first step along the road to become a marketing company has been taken. The principal concern here was with SALES.

Contd
Marketing Era (From mid 1950s onwards) :

Companies changed their approach from a selling perspective to a marketing approach.

Instead of merely selling their products, companies began to understand the needs of the customer and attempt to satisfy them.

The PILLSBURY
In this Era The companys Philosophy might have been stated as: We are a flour milling company, manufacturing a number of products for the consumer market. We must have a first rate sales organization which can dispose of all the products we can make at a favorable price. We must back up this sales force with consumer advertising and market intelligence. We want our salesman and our dealers to have all the tools they need for moving the output of our plants to the consumer.

The PILLSBURY
Second Era in 60s and beyond (Marketing Orientation). This was the era of product research and for the first time co felt the need to select the best new products. The first step the co took to set up a marketing department which developed criteria for determining which products to market. The criteria was nothing more or less than those of the consumer itself. The principal concern here was with Consumer Markets